Full Press Release Details
CARDIOL THERAPEUTICS
FINANCIAL STATEMENTS
Cardiol Therapeutics Inc.
Consolidated Statements of Financial Position
in Canadian Dollars)
| As at June 30, 2024 | As at December 31, 2023 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents (note 3) | $ | 24,021,237 | $ | 34,931,778 | ||||
| Accounts receivable | 93,651 | 142,745 | ||||||
| Other receivables | 148,773 | 137,127 | ||||||
| Prepaid expenses | 1,617,854 | 941,442 | ||||||
| Total current assets | 25,881,515 | 36,153,092 | ||||||
| Non-current assets | ||||||||
| Property and equipment (note 4) | 263,009 | 337,058 | ||||||
| Intangible assets (note 5) | 168,136 | 210,358 | ||||||
| Total assets | $ | 26,312,660 | $ | 36,700,508 | ||||
| EQUITY AND LIABILITIES | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities (note 14) | $ | 9,431,457 | $ | 8,041,485 | ||||
| Current portion of lease liability (note 6) | 21,719 | 15,808 | ||||||
| Derivative liability (note 7) | 1,355,732 | 238,176 | ||||||
| Total current liabilities | 10,808,908 | 8,295,469 | ||||||
| Non-current liabilities | ||||||||
| Lease liability (note 6) | 142,554 | 158,532 | ||||||
| Total liabilities | 10,951,462 | 8,454,001 | ||||||
| Equity | ||||||||
| Share capital (note 8) | 152,349,535 | 148,519,136 | ||||||
| Warrants (note 10) | - | 3,517,867 | ||||||
| Contributed surplus | 21,358,970 | 18,786,306 | ||||||
| Deficit | (158,347,307 | ) | (142,576,802 | ) | ||||
| Total equity | 15,361,198 | 28,246,507 | ||||||
| Total equity and liabilities | $ | 26,312,660 | $ | 36,700,508 |
notes to the unaudited condensed interim consolidated financial statements are an integral part of these consolidated financial statements.
Commitments (notes 5 and 12)
Subsequent events (note 9)
Approved on behalf of the Board:
Cardiol Therapeutics Inc.
Condensed Interim Consolidated Statements
of Loss and Comprehensive Loss
(Expressed in Canadian Dollars)
| Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | |||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Operating expenses (notes 9, 13, 14) | ||||||||||||||||
| General and administration | 5,031,702 | 2,835,264 | 10,114,254 | 6,493,704 | ||||||||||||
| Research and development | 2,709,644 | 3,479,385 | 6,032,573 | 7,607,081 | ||||||||||||
| Loss before other income | (7,741,346 | ) | (6,314,649 | ) | (16,146,827 | ) | (14,100,785 | ) | ||||||||
| Interest income | 307,409 | 528,697 | 684,703 | 1,074,624 | ||||||||||||
| Gain (loss) on foreign exchange | 152,017 | (828,909 | ) | 780,952 | (752,117 | ) | ||||||||||
| Change in derivative liability (note 7) | 691,047 | (856,893 | ) | (1,117,556 | ) | (782,812 | ) | |||||||||
| Other income | - | - | 28,223 | - | ||||||||||||
| Net loss and comprehensive loss for the period | $ | (6,590,873 | ) | $ | (7,471,754 | ) | $ | (15,770,505 | ) | $ | (14,561,090 | ) | ||||
| Basic and diluted net loss per share (note 11) | $ | (0.10 | ) | $ | (0.12 | ) | $ | (0.23 | ) | $ | (0.23 | ) | ||||
| Weighted average number of common shares outstanding | 68,751,105 | 64,105,448 | 68,005,224 | 64,098,586 |
notes to the unaudited condensed interim consolidated financial statements are an integral part of these consolidated financial statements.
Cardiol Therapeutics Inc.
Consolidated Statements of Cash Flows
in Canadian Dollars)
| Six Months | Six Months | |||||||
| Ended | Ended | |||||||
| June 30, | June 30, | |||||||
| 2024 | 2023 | |||||||
| Operating activities | ||||||||
| Net loss and comprehensive loss for the period | $ | (15,770,505 | ) | $ | (14,561,090 | ) | ||
| Adjustments for: | ||||||||
| Depreciation of property and equipment | 81,309 | 74,479 | ||||||
| Amortization of intangible assets | 42,222 | 42,222 | ||||||
| Share-based compensation | 2,707,686 | 1,093,223 | ||||||
| Change in derivative liability | 1,117,556 | 782,812 | ||||||
| Unrealized foreign exchange gain on cash | (640,778 | ) | (849,290 | ) | ||||
| Accretion on lease liability | 13,006 | 3,011 | ||||||
| Shares for services | - | 16,449 | ||||||
| Changes in non-cash working capital items: | ||||||||
| Accounts receivable | 49,094 | 21,579 | ||||||
| Other receivables | (11,646 | ) | 153,549 | |||||
| Prepaid expenses | (676,412 | ) | 87,864 | |||||
| Accounts payable and accrued liabilities | 1,389,972 | (2,165,963 | ) | |||||
| Net cash used in operating activities | (11,698,496 | ) | (15,301,155 | ) | ||||
| Investing activities | ||||||||
| Purchase of property and equipment | (7,260 | ) | (48,029 | ) | ||||
| Net cash used in investing activities | (7,260 | ) | (48,029 | ) | ||||
| Financing activities | ||||||||
| Proceeds from stock options exercised | 177,510 | - | ||||||
| Payment of lease liability | (23,073 | ) | (27,688 | ) | ||||
| Net cash provided by (used in) financing activities | 154,437 | (27,688 | ) | |||||
| Net change in cash and cash equivalents | (11,551,319 | ) | (15,376,872 | ) | ||||
| Cash and cash equivalents, beginning of period | 34,931,778 | 59,469,868 | ||||||
| Impact of foreign exchange on cash and cash equivalents | 640,778 | 849,290 | ||||||
| Cash and cash equivalents, end of period | $ | 24,021,237 | $ | 44,942,286 |
The accompanying notes to the unaudited
condensed interim consolidated financial statements are an integral part of these consolidated financial statements.
Interim Consolidated Statements of Changes in Equity
in Canadian Dollars)
| Share capital | Contributed | ||||||||||||||||||||||
| Number | Amount | Warrants | surplus | Deficit | Total | ||||||||||||||||||
| Balance, December 31, 2022 | 64,042,536 | $ | 147,545,399 | $ | 3,517,867 | $ | 15,586,832 | $ | (114,448,510 | ) | $ | 52,201,588 | |||||||||||
| Restricted share units exercised | 80,000 | 112,800 | - | (112,800 | ) | - | - | ||||||||||||||||
| Shares for services | 5,000 | 16,449 | - | - | - | 16,449 | |||||||||||||||||
| Share-based compensation (note 9) | - | - | - | 1,093,223 | - | 1,093,223 | |||||||||||||||||
| Net loss and comprehensive loss for the period | - | - | - | - | (14,561,090 | ) | (14,561,090 | ) | |||||||||||||||
| Balance, June 30, 2023 | 64,127,536 | $ | 147,674,648 | $ | 3,517,867 | $ | 16,567,255 | $ | (129,009,600 | ) | $ | 38,750,170 | |||||||||||
| Balance, December 31, 2023 | 65,352,279 | $ | 148,519,136 | $ | 3,517,867 | $ | 18,786,306 | $ | (142,576,802 | ) | $ | 28,246,507 | |||||||||||
| Fair value of expired warrants | - | - | (3,517,867 | ) | 3,517,867 | - | - | ||||||||||||||||
| Restricted share units exercised | 1,596,034 | 1,919,588 | - | (1,919,588 | ) | - | - | ||||||||||||||||
| Stock options exercised | 175,000 | 177,510 | - | - | - | 177,510 | |||||||||||||||||
| Fair value of stock options exercised | - | 99,263 | - | (99,263 | ) | - | - | ||||||||||||||||
| Share-based compensation (note 9) | - | - | - | 2,707,686 | - | 2,707,686 | |||||||||||||||||
| Performance share units exercised | 2,200,000 | 1,634,038 | - | (1,634,038 | ) | - | - | ||||||||||||||||
| Net loss and comprehensive loss for the period | - | - | - | - | (15,770,505 | ) | (15,770,505 | ) | |||||||||||||||
| Balance, June 30, 2024 | 69,323,313 | $ | 152,349,535 | $ | - | $ | 21,358,970 | $ | (158,347,307 | ) | $ | 15,361,198 |
notes to the unaudited condensed interim consolidated financial statements are an integral part of these consolidated financial statements.
Cardiol Therapeutics Inc.
Notes to Condensed Interim Consolidated
Financial Statements
Three and Six Months Ended June 30,
(Expressed in Canadian Dollars)
Cardiol Therapeutics
Inc. was incorporated under the laws of the Province of Ontario on January 19, 2017. The Corporation's registered and legal office
is located at 2265 Upper Middle Rd. E., Suite 602, Oakville, Ontario, L6H 0G5, Canada.
Cardiol Therapeutics
Inc. and its subsidiary (the "Corporation" or "Cardiol") is a clinical-stage life sciences company focused on the
research and clinical development of anti-inflammatory and anti-fibrotic therapies for the treatment of heart disease. The Corporation's
lead drug candidate, CardiolRx (cannabidiol) oral solution, is pharmaceutically manufactured and in clinical development for use
in the treatment of heart disease.
2018, the Corporation completed its initial public offering on the Toronto Stock Exchange (the "TSX"). As a result, the Corporation's
common shares commenced trading on that date on the TSX under the symbol "CRDL". On August 10, 2021, the Corporation's
common shares commenced trading on The Nasdaq Capital Market under the symbol "CRDL".
applies International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB")
and Interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC"). These unaudited
condensed interim consolidated financial statements have been prepared in accordance with International Accounting Standard 34, Interim
Financial Reporting. Accordingly, they do not include all of the information required for full annual financial statements required by
IFRS as issued by IASB and interpretations issued by IFRIC.
The policies applied
in these unaudited condensed interim consolidated financial statements are based on IFRSs issued and outstanding as of August 12,
2024, the date the Board of Directors approved the statements. The same accounting policies and methods of computation are followed in
these unaudited condensed interim consolidated financial statements as compared with the most recent annual consolidated financial statements
as at and for the year ended December 31, 2023.
changes to IFRS that are given effect in the Corporation's annual consolidated financial statements for the year ending December 31,
2024, could result in restatement of these unaudited condensed interim consolidated financial statements.
on cash and cash equivalents for the three and six months ended June 30, 2024 amounted to $307,409 and $684,703 (three and six months
ended June 30, 2023 - $528,697 and $1,074,624).
Cardiol Therapeutics Inc.
Notes to Condensed Interim Consolidated
Financial Statements
Three and Six Months Ended June 30,
(Expressed in Canadian Dollars)
| Cost | Right-of- use asset | Equipment | Leasehold improvements | Office equipment | Computer equipment | Total | ||||||||||||||||||
| Balance, December 31, 2022 | $ | 200,319 | $ | 171,864 | $ | 237,248 | $ | 66,864 | $ | 112,290 | $ | 788,585 | ||||||||||||
| Additions | 140,919 | 47,945 | - | - | 16,367 | 205,231 | ||||||||||||||||||
| Balance, December 31, 2023 | 341,238 | 219,809 | 237,248 | $ | 66,864 | $ | 128,657 | $ | 993,816 | |||||||||||||||
| Additions | - | - | - | - | 7,260 | 7,260 | ||||||||||||||||||
| Balance, June 30, 2024 | $ | 341,238 | $ | 219,809 | $ | 237,248 | $ | 66,864 | $ | 135,917 | $ | 1,001,076 |
| Accumulated Depreciation | Right-of- use asset | Equipment | Leasehold improvements | Office equipment | Computer equipment | Total | ||||||||||||||||||
| Balance, December 31, 2022 | $ | 143,577 | $ | 94,961 | $ | 156,712 | $ | 33,728 | $ | 63,869 | $ | 492,847 | ||||||||||||
| Depreciation for the year | 53,091 | 36,761 | 50,840 | 6,627 | 16,592 | 163,911 | ||||||||||||||||||
| Balance, December 31, 2023 | $ | 196,668 | $ | 131,722 | $ | 207,552 | $ | 40,355 | $ | 80,461 | $ | 656,758 | ||||||||||||
| Depreciation for the period | 31,992 | 13,213 | 25,420 | 2,651 | 8,033 | 81,309 | ||||||||||||||||||
| Balance, June 30, 2024 | $ | 228,660 | $ | 144,935 | $ | 232,972 | $ | 43,006 | $ | 88,494 | $ | 738,067 |
| Carrying value | Right-of- use asset | Equipment | Leasehold improvements | Office equipment | Computer equipment | Total | ||||||||||||||||||
| Balance, December 31, 2023 | $ | 144,570 | $ | 88,087 | $ | 29,696 | $ | 26,509 | $ | 48,196 | $ | 337,058 | ||||||||||||
| Balance, June 30, 2024 | $ | 112,578 | $ | 74,874 | $ | 4,276 | $ | 23,858 | $ | 47,423 | $ | 263,009 |
| Cost | Exclusive global license agreement | |||
| Balance, December 31, 2022, December 31, 2023, and June 30, 2024 | $ | 767,228 |
| Accumulated Amortization | Exclusive global license agreement | |||
| Balance, December 31, 2022 | $ | 472,426 | ||
| Amortization for the year | 84,444 | |||
| Balance, December 31, 2023 | $ | 556,870 | ||
| Amortization for the period | 42,222 | |||
| Balance, June 30, 2024 | $ | 599,092 |
| Carrying Value | Exclusive global license agreement | |||
| Balance, December 31, 2023 | $ | 210,358 | ||
| Balance, June 30, 2024 | $ | 168,136 |
Cardiol Therapeutics Inc.
Notes to Condensed Interim Consolidated
Financial Statements
Three and Six Months Ended June 30,
(Expressed in Canadian Dollars)
Exclusive global agreement ("Meros
In 2017, the Corporation
was granted by Meros Polymers Inc. ("Meros") the sole, exclusive, irrevocable license to patented nanotechnologies for use
with any drugs to diagnose, or treat, cardiovascular disease, cardiopulmonary disease, and cardiac arrhythmias. Meros is focused on the
advancement of nanotechnologies developed at the University of Alberta.
License Agreement, Cardiol agreed to certain milestones and milestone payments, including the following: (i) payment of $100,000
upon enrolling the first patient in a Phase IIB clinical trial designed to investigate the safety and indications of efficacy of one
of the licensed technologies; (ii) payment of $500,000 upon enrolling the first patient in a Pivotal Phase III clinical trial designed
to investigate the safety and efficacy of one of the licensed technologies; (iii) $1,000,000 upon receiving regulatory approval
from the FDA for any therapeutic and/or prophylactic treatment incorporating the licensed technologies. No milestone payments have been
earned or made to date. Cardiol also agreed to pay Meros the following royalties:
worldwide proceeds of net sales of the licensed technologies containing cannabinoids, excluding non-royalty sub-license income in (b) below,
that Cardiol receives from human and animal disease indications and derivatives as outlined in the Meros License Agreement;
any non-royalty sub-license income that Cardiol receives from human and animal disease indications and derivatives for licensed technologies
containing cannabinoids as outlined in the Meros License Agreement;
of worldwide proceeds of net sales that Cardiol receives from the licensed technology in relation to human and animal cardiovascular
and/or cardiopulmonary disease, heart failure, and/or cardiac arrhythmia diagnosis and/or treatments using the drugs, excluding cannabinoids
included in (a) above, outlined in the Meros License Agreement; and
any non-royalty sub-license income that Cardiol receives in relation to any human and animal heart disease, heart failure and/or arrhythmias
indications, excluding cannabinoids included in (b) above, as outlined in the Meros License Agreement.
part of the consideration under the Meros License Agreement, Cardiol (i) issued to Meros 1,020,000 common shares; and (ii) issued
to Meros 1,020,000 special warrants convertible automatically into common shares for no additional consideration upon the first patient
being enrolled in a Phase 1 clinical trial using the licensed technologies as described in the Meros License Agreement. As of June 30,
2024, and the date of these financial statements, this condition has not been met.
| Carrying Value | ||||
| Balance, December 31, 2022 | $ | 72,871 | ||
| Additions (i) | 140,919 | |||
| Repayments | (55,376 | ) | ||
| Accretion | 15,926 | |||
| Balance, December 31, 2023 | $ | 174,340 | ||
| Repayments | (23,073 | ) | ||
| Accretion | 13,006 | |||
| Balance, June 30, 2024 | $ | 164,273 | ||
| Current portion | 21,719 | |||
| Long-term portion | $ | 142,554 |
(i) When measuring the lease liability for
the property lease that was classified as an operating lease, the Corporation discounted the lease payments using its incremental borrowing
rate. The original property lease expires on May 31, 2024, and the lease payments were discounted with a 9% interest rate. During