Full Press Release Details
Interim Consolidated
the Three and Six Months Ended January 31, 2021
Condensed Interim Consolidated Statements of Financial Position
As of January 31, 2021 and July 31, 2020
in Canadian Dollars)
| Janury 31, | July 31, | |||||||
| 2021 | 2020 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash | $ | 7,314 | $ | 26,104 | ||||
| Amounts receivable | 5,932 | 27,660 | ||||||
| Prepaid expenses | 260,424 | 267,444 | ||||||
| Total current assets | 273,670 | 321,208 | ||||||
| Investments | 2 | 2 | ||||||
| Intellectual property (Note 5) | 311,102 | 320,474 | ||||||
| Total Assets | $ | 584,774 | $ | 641,684 | ||||
| LIABILITIES AND SHAREHOLDERS' DEFICIT | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities (Note 9) | $ | 4,540,706 | $ | 4,562,856 | ||||
| Short term loans (Note 6(a)) | 333,258 | 306,878 | ||||||
| Unsecured convertible loan (Note 6(c)) | 160,881 | - | ||||||
| Total current liabilities | 5,034,845 | 4,869,734 | ||||||
| Long term liabilities | ||||||||
| Government grants (Note 6(b)) | 191,294 | 191,572 | ||||||
| Total long term liabilities | 191,294 | 191,572 | ||||||
| Shareholders' equity | ||||||||
| Share capital (Note 7) | 15,506,234 | 15,065,961 | ||||||
| Share-based payment reserve (Note 8) | 633,601 | 739,193 | ||||||
| Warrant reserve (Note 7) | 2,325,940 | 2,271,910 | ||||||
| Accumulated other comprehensive profit (loss) | 37,029 | (170,374 | ) | |||||
| Deficit | (23,144,169 | ) | (22,326,312 | ) | ||||
| Total shareholders' deficit | (4,641,365 | ) | (4,419,622 | ) | ||||
| Total liabilities and shareholders' deficit | $ | 584,774 | $ | 641,684 |
of Operations and Going Concern (Note 1)
After the Reporting Period (Note 15)
financial statements were approved and authorized for issue on behalf of the Board of Directors on March 31, 2021 by:
| On behalf of the Board: | |||
| " Jamieson Bondarenko " | "William Williams" | ||
| Director | Director |
accompanying notes are an integral part of these condensed interim consolidated financial statements.
Interim Consolidated Statements of
Operations and Comprehensive Loss
the Three and Six Months Ended January 31, 2021 and 2020
(Expressed in Canadian Dollars)
| Three month period ended | Six month period ended | |||||||||||||||
| January 31, | January 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Expenses: | ||||||||||||||||
| Research and development costs (Note 12) | $ | 119,431 | $ | 1,216,051 | $ | 302,554 | $ | 2,220,697 | ||||||||
| General and administration costs (Note 13) | 230,166 | 662,611 | 514,329 | 1,220,122 | ||||||||||||
| Share-based compensation (Note 8) | - | - | - | 1,779 | ||||||||||||
| Total Expenses | 349,597 | 1,878,662 | 816,883 | 3,442,598 | ||||||||||||
| Operating Loss | (349,597 | ) | (1,878,662 | ) | (816,883 | ) | (3,442,598 | ) | ||||||||
| Finance expense (Note 6) | (56,251 | ) | (3,952 | ) | (75,566 | ) | (6,208 | ) | ||||||||
| Change in fair value of convertible debt | - | - | - | (79,119 | ) | |||||||||||
| Loss on extinguishment of debt (Note 7(b)) | - | - | (31,000 | ) | - | |||||||||||
| Foreign exchange loss | - | (332 | ) | - | (20,096 | ) | ||||||||||
| (56,251 | ) | (4,284 | ) | (106,566 | ) | (105,423 | ) | |||||||||
| Loss For The Period | (405,848 | ) | (1,882,946 | ) | (923,449 | ) | (3,548,021 | ) | ||||||||
| Items That Will Subsequently Be Reclassified To Profit Or Loss | ||||||||||||||||
| Foreign currency translation adjustment | 163,988 | (12,954 | ) | 207,403 | (11,195 | ) | ||||||||||
| 163,988 | (12,954 | ) | 207,403 | (11,195 | ) | |||||||||||
| Comprehensive Loss for the Period | $ | (241,860 | ) | $ | (1,895,900 | ) | $ | (716,046 | ) | $ | (3,559,216 | ) | ||||
| Basic and Fully Diluted Loss Per Share | $ | (0.52 | ) | $ | (2.61 | ) | $ | (1.19 | ) | $ | (5.07 | ) | ||||
| Weighted Average Number Of Shares Outstanding | 771,962 | 721,962 | 773,175 | 702,022 |
accompanying notes are an integral part of these condensed interim consolidated financial statements.
Interim Consolidated Statements of Cash Flows
the Six Months Ended January 31, 2021 and 2020
in Canadian Dollars)
| Six month period ended | ||||||||
| January 31 | ||||||||
| 2021 | 2020 | |||||||
| Cash flow from operating activities | ||||||||
| Net loss for the period | $ | (923,449 | ) | $ | (3,548,021 | ) | ||
| Items not affecting cash: | ||||||||
| Depreciation and amortization | 9,372 | 9,371 | ||||||
| Share-based compensation | - | 1,779 | ||||||
| Accrued interest expense | 31,366 | - | ||||||
| Change in fair value of convertible loan | - | 79,119 | ||||||
| Change in fair value of warrants | (29,790 | ) | - | |||||
| Changes in non-cash working capital: | ||||||||
| Amounts receivable | 21,728 | 3,194 | ||||||
| Prepaid expenses | - | (197,382 | ) | |||||
| Accounts payable and accrued liabilities | 551,032 | 2,425,463 | ||||||
| (339,741 | ) | (1,226,477 | ) | |||||
| Cash flow from financing activities | ||||||||
| Proceeds on private placement | - | 1,414,744 | ||||||
| Proceeds from issuance of convertible loans | 265,000 | - | ||||||
| Short-term loans | 31,950 | 199,047 | ||||||
| Repayment of unsecured convertible loan | - | (477,599 | ) | |||||
| 296,950 | 1,136,192 | |||||||
| Decrease in cash | (42,791 | ) | (90,285 | ) | ||||
| Effect of changes in foreign exchange rates | 24,001 | (8,939 | ) | |||||
| Cash and cash equivalents, beginning of period | 26,104 | 192,916 | ||||||
| Cash and cash equivalents, end of period | $ | 7,314 | $ | 93,692 | ||||
| Supplementary information: | ||||||||
| Significant non-cash transactions | ||||||||
| Shares issued for settlement of debt | $ | 405,000 | $ | - |
accompanying notes are an integral part of these condensed interim consolidated financial statements.
Interim Consolidated Statements of Changes in Shareholders' Equity
the Six Months Ended January 31, 2021 and 2020
in Canadian Dollars)
| SHARE CAPITAL | SHARE- BASED PAYMENT | WARRANT | ACCUMULATED OTHER COMPREHENSIVE | ACCUMULATED | TOTAL SHAREHOLDERS' | |||||||||||||||||||||||
| SHARES | AMOUNT | RESERVE | RESERVE | PROFIT (LOSS) | DEFICIT | EQUITY (DEFICIT | ||||||||||||||||||||||
| Balance, July 31, 2019 | 654,593 | 13,651,217 | 877,089 | 2,870,442 | (124,295 | ) | (18,120,590 | ) | (846,137 | ) | ||||||||||||||||||
| Private Placement | 40,300 | 846,300 | - | - | - | - | 846,300 | |||||||||||||||||||||
| Private Placement | 27,069 | 568,444 | - | - | - | - | 568,444 | |||||||||||||||||||||
| Expiration of warrants | - | - | - | (598,531 | ) | - | 598,531 | - | ||||||||||||||||||||
| Expiration of options | - | - | (84,997 | ) | - | - | 84,997 | - | ||||||||||||||||||||
| Share-based compensation | - | - | 1,779 | - | - | - | 1,779 | |||||||||||||||||||||
| Foreign exchange translation | - | - | - | - | (11,195 | ) | - | (11,195 | ) | |||||||||||||||||||
| Loss for the period | - | - | - | - | - | (3,548,021 | ) | (3,548,021 | ) | |||||||||||||||||||
| Balance, January 31, 2020 | 721,962 | $ | 15,065,961 | $ | 793,871 | 2,271,911 | $ | (135,490 | ) | $ | (20,985,083 | ) | $ | (2,988,830 | ) | |||||||||||||
| Balance, July 31, 2020 | 721,962 | 15,065,961 | 739,193 | 2,271,910 | (170,374 | ) | (22,326,312 | ) | (4,419,622 | ) | ||||||||||||||||||
| Issuance of warrants (Note 6(c)) | - | - | - | 54,030 | - | - | 54,030 | |||||||||||||||||||||
| Conversion feature (Note 6(c)) | - | 35,273 | - | - | - | - | 35,273 | |||||||||||||||||||||
| Issuance of shares for debt (Note 7(b)) | 50,000 | 405,000 | - | - | - | - | 405,000 | |||||||||||||||||||||
| Exipration of options (Note 8(a)) | - | - | (105,592 | ) | - | - | 105,592 | - | ||||||||||||||||||||
| Foreign exchange translation | - | - | - | - | 207,403 | - | 207,403 | |||||||||||||||||||||
| Loss for the period | - | - | - | - | - | (923,449 | ) | (923,449 | ) | |||||||||||||||||||
| Balance, January 31, 2021 | 771,962 | $ | 15,506,234 | $ | 633,601 | $ | 2,325,940 | $ | 37,029 | $ | (23,144,169 | ) | $ | (4,641,365 | ) |
accompanying notes are an integral part of these condensed interim consolidated financial statements.
to the Condensed Interim Consolidated Financial Statements
the Three and Six Months Ended January 31, 2021 and 2020
in Canadian Dollars)
Nature of Operations and Going Concern
Therapeutics Corp. ("BriaCell" or the "Company") was incorporated under the Business Corporations Act
(British Columbia) on July 26, 2006 and is listed on the TSX Venture Exchange ("TSXV"). The Company trades on the
TSX Venture under the symbol "BCT.V". Subsequent to the balance sheet date, on February 24, 2021, the Company also
trades on the Nasdaq Capital Market under the symbols "BCTX" and "BCTXW". On February 26, 2021, the Company
completed an underwritten public offering in the United States and raised US$25 million (gross) - see Note 15(a).
Company's head office is located at Suite 300 - 235 West 15th Street, West Vancouver, British Columbia, V7T 2X1.
is an immuno-oncology biotechnology company. BriaCell owns the US patent to Bria-IMT , a whole-cell cancer vaccine (US Patent
No.7674456) (the "Patent"). The Company is currently advancing its immunotherapy program, Bria-IMT , to complete
a 24-subject Phase I/IIa clinical trial and by research activities in the context of BriaDx , a companion diagnostic test
to identify patients likely benefitting from Bria-IMT .
accompanying condensed interim consolidated financial statements have been prepared on the basis of a going concern which contemplates
the realization of assets and liquidation of liabilities in the normal course of business for the foreseeable future. The Company
has incurred losses from inception of $23,144,168 (July 31, 2020 - $22,326,312) has negative working capital and negative cash
flows from operating activities and is currently in the development stage and has not commenced commercial operations. The Company's
ability to continue as a going concern is dependent upon its ability to attain future profitable operations and to obtain the
necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due.
As of January 31, 2021, the Company had not yet completed the clinical development of or achieved regulatory approval to market
Bria-IMT , its lead product candidate and expects to incur further losses; the nature of a development stage immuno-oncology
company requires the raising of financial capital to support its clinical development programs and administrative costs. The uncertainty
of the Company's ability to raise such financial capital casts significant doubt on the Company's ability to continue
as a going concern. These condensed interim consolidated financial statements do not include any adjustments to the amounts and
classification of assets and liabilities that might be necessary should the Company not be able to continue as a going concern.
condensed interim consolidated financial statements were authorized for issue by the Board of Directors on March 31, 2021.
to the Condensed Interim Consolidated Financial Statements
the Three and Six Months Ended January 31, 2021 and 2020
in Canadian Dollars)
Basis of Presentation
Company prepares its unaudited condensed interim consolidated financial statements in accordance with International Financial
Reporting Standards ("IFRS") using the accounting policies described herein as issued by International Accounting
Standards Board ("IASB") and International Financial Reporting Interpretations Committee ("IFRIC") interpretations.
These unaudited condensed interim consolidated financial statements have been prepared in accordance with International Accounting
Standards ("IAS") 34 Interim Financial Reporting. The unaudited condensed interim consolidated financial statements
do not include all of the information required for annual consolidated financial statements and should be read in conjunction
with the Company's audited consolidated financial statements for the year ended July 31, 2020.
policies applied in these condensed interim consolidated financial statements are based on IFRS effective as of January 31, 2021.
condensed interim consolidated financial statements are prepared on a going concern basis and have been presented in Canadian
dollars which is the Company's reporting currency.
Adjustment for Reverse Stock Split
December 2019, the Board and TSXV approved a 1-for-300 reverse stock split, or the Reverse Split, which was implemented effective
January 2, 2020. Consequently, all share numbers, share prices, and exercise prices have been retroactively adjusted in these
condensed interim consolidated financial statements for all periods presented.
condensed interim consolidated financial statements have been prepared on a going concern basis, under the historical cost basis,
except for financial instruments that are required to be measured at fair value.
condensed interim consolidated financial statements include the accounts of BriaCell and its wholly-owned US subsidiary BriaCell
Therapeutics Corp. ("BTC") and BTC's wholly owned subsidiary - Sapientia Pharmaceuticals, Inc. ("Sapientia").
The financial statements of the subsidiaries are included in the consolidated financial statements from the date that control
commenced until the date control ceases. Control exists when the Company has the power directly or indirectly, to govern the financial
and operating policies of an entity so as to obtain benefits from its activities. The Company applies the acquisition method to
account for business combinations in accordance with IFRS 3.
inter-company balances, and transactions, have been eliminated upon consolidation.
to the Condensed Interim Consolidated Financial Statements
the Three and Six Months Ended January 31, 2021 and 2020
in Canadian Dollars)
Significant Accounting Policies
preparation of financial data is based on accounting principles and practices consistent with those used in the preparation of
the audited financial statements as of July 31, 2020. The accompanying condensed interim consolidated financial statements should
be read in conjunction with the Company's audited financial statements for the year ended July 31, 2020.
Significant Accounting Judgments and Estimates
critical judgments and significant estimates in applying accounting policies that have the most significant effect on the amounts
recognized in the consolidated financial statements are:
| The series of loans made to the subsidiary company are considered part of the parent company's net investment in a foreign operation as the Company does not plan to settle these balances in the foreseeable future. As a result of this assessment, the unrealized foreign exchange gains and losses on the intercompany loans are recorded through compressive loss. If the Company determined that settlement of these amounts was planned or likely in the foreseeable future, the resultant foreign exchange gains and losses would be recorded through profit or loss. | |
| The change in the fair value of the unsecured convertible loan is based on an estimate determined by the Black-Scholes Model. | |
| Preparation of the consolidated financial statement on a going concern basis, which contemplates the realization of assets and payments of liabilities in the ordinary course of business. Should the Company be unable to continue as a going concern, it may be unable to realize the carrying value of its assets, including its intangible assets and to meet its liabilities as they become due. | |
| Intangible assets are tested for impairment annually or more frequently if there is an indication of impairment. The carrying value of intangibles with definite lives is reviewed each reporting period to determine whether there is any indication of impairment. If there are indications of impairment the impairment analysis is completed and if the carrying amount of an asset exceeds its recoverable amount, the asset is impaired and impairment loss is recognized. |
to the Condensed Interim Consolidated Financial Statements
the Three and Six Months Ended January 31, 2021 and 2020
in Canadian Dollars)
Intellectual Property
attributable intellectual property relates to Sapientia's various patents, which the Company is amortizing over 20 years,
consistent with its accounting policy. During the three and six months ended January 31, 2021, the Company recorded $4,686 and
$9,372, respectively in amortization on intellectual property (for the three and six months ended January 31, 2020 - $4,686 and
$9,372, respectively).