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EUPRAXIA PHARMACEUTICALS INC. CONSOLIDATED FINANCIAL STATEMENTS For the Three and Nine Months ended

Key Takeaway: Eupraxia Pharmaceuticals Inc. reported its consolidated financial statements for the period ending September 30, 2025, revealing notable changes in its financial standing. The company increased its cash reserves significantly from $33.1 million to $88.96 million and improved its total assets. However, it also reported a substantial net loss of $6.37 million, exacerbating its overall deficit to $152.87 million. These factors indicate mixed performance as the company navigates its operational challenges.

Market Sentiment Analysis

POSITIVE FACTORS

  • Increased cash reserves from $33.1 million to $89 million.
  • Improvement in total assets compared to prior year.

CONCERNS & RISKS

  • The net loss for the period is significant at approximately $6.37 million.
  • The company's deficit has risen to $152.87 million.

Full Press Release Details

EUPRAXIA PHARMACEUTICALS INC.
CONSOLIDATED FINANCIAL STATEMENTS
For the Three and Nine Months ended September 30, 2025
(Unaudited and Expressed in U.S. Dollars)
EUPRAXIA PHARMACEUTICALS INC.
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited and Expressed in U.S. Dollars)
CONSOLIDATED BALANCE SHEETS 2
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS 3
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY 4-6
CONSOLIDATED STATEMENTS OF CASH FLOWS 7
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 8-27
EUPRAXIA PHARMACEUTICALS INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited and Expressed in U.S.
Dollars, except share amounts)
September 30, 2025 December 31, 2024
ASSETS
Current assets
Cash $ 88,959,281 $ 33,101,294
Prepaid expenses and deposits 2,300,678 1,106,512
Amounts receivable (Note 4) 139,904 228,872
Total current assets 91,399,863 34,436,678
Non-current assets
Prepaid expenses 97,597 80,761
Property and equipment, net (Note 5) 682,835 357,893
Right-of-use asset, net (Note 6) 168,760 67,023
Total assets $ 92,349,055 $ 34,942,355
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current liabilities
Accounts payable and accrued liabilities (Note 7) $ 3,734,890 $ 3,031,527
Lease liability - current portion (Note 9) 76,136 71,859
Total current liabilities 3,811,026 3,103,386
Non-current liabilities
Lease liability - non-current portion (Note 9) 94,467 -
Total liabilities 3,905,493 3,103,386
Shareholders' equity
Preferred shares, without par value; unlimited shares authorized; issued and outstanding: 8,905,638 (December 31, 2024: 8,905,638 (Notes 12(c)) 31,705,219 31,705,219
Common shares, without par value; unlimited shares authorized; issued and outstanding: 50,598,331 (December 31, 2024 - 35,641,603 (Note 12(b)) 191,017,262 116,360,066
Additional paid-in capital (Notes 12(b), 12(d)(iii) and 12(e)) 23,471,064 20,503,904
Deficit (152,868,722 ) (131,003,831 )
Accumulated other comprehensive loss (3,296,002 ) (4,160,555 )
Equity attributable to the owners of the Company 90,028,821 33,404,803
Non-controlling interest (1,585,259 ) (1,565,834 )
Total shareholders' equity 88,443,562 31,838,969
Total liabilities and shareholders' equity $ 92,349,055 $ 34,942,355
Nature of business and going concern (Note 1)
Commitments (Note 15)
Subsequent event (Note 20)
The accompanying notes are an integral part of these consolidated financial statements.
EUPRAXIA PHARMACEUTICALS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited and Expressed in U.S. Dollars, except share amounts)
Three months ended September 30, 2025 Three months ended September 30, 2024 Nine months ended September 30, 2025 Nine months ended September 30, 2024
Expenses
General and administrative (Note 13) $ 2,465,378 $ 2,223,356 $ 8,807,256 $ 7,324,505
Research and development (Note 14) 4,417,722 4,049,865 13,464,163 12,197,293
Total expenses 6,883,100 6,273,221 22,271,419 19,521,798
Other income/(expenses)
Interest income 180,185 304,342 745,595 941,937
Interest expense (Note 18) - (451 ) - (603,436 )
Gain/(loss) on sale of equipment (Note 5) - - (1,075 ) 11,368
Foreign exchange gain/(loss) 332,934 (21,990 ) (349,665 ) (240,759 )
Change in fair value of financial instruments (Note 11) - - - 1,200,541
Total other income/(expense) 513,119 281,901 394,855 1,309,651
Net loss before tax expense (6,369,981 ) (5,991,320 ) (21,876,564 ) (18,212,147 )
Tax recovery/(expense) 623 - (7,752 ) -
Net loss for the period $ (6,369,358 ) $ (5,991,320 ) $ (21,884,316 ) $ (18,212,147 )
Loss attributable to:
Owners of the Company $ (6,361,367 ) $ (5,943,325 ) $ (21,864,891 ) $ (17,993,579 )
Non-controlling interest (7,991 ) (47,995 ) (19,425 ) (218,568 )
(6,369,358 ) (5,991,320 ) (21,884,316 ) (18,212,147 )
Foreign currency translation adjustment (508,633 ) 124,431 864,553 (88,167 )
Comprehensive loss for the period $ (6,877,991 ) $ (5,866,889 ) $ (21,019,763 ) $ (18,300,314 )
Loss per share - basic and diluted (Owners of the Company (Note 12(g)) $ (0.19 ) $ (0.17 ) $ (0.66 ) $ (0.54 )
Weighted average shares outstanding - basic and diluted 36,915,009 35,622,553 36,175,714 33,360,867
The accompanying notes are an integral part of these consolidated financial statements.
EUPRAXIA PHARMACEUTICALS INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
and Expressed in U.S. Dollars, except share amounts)
Preferred shares Amount Common shares Amount Additional paid-in capital Deficit Accumulated other comprehensive loss Non-controlling interest Total-Shareholders' Equity
Balance, December 31, 2023 - $ - 27,282,165 $ 92,913,585 $ 17,510,469 $ (105,501,295 ) $ (2,706,552 ) $ (1,323,881 ) $ 892,326
Non-brokered private placement, net of transaction costs (Note 12(b)(iii)) - - 8,260,435 22,853,391 - - - - 22,853,391
Share-based payments (Note 12(d)(iii)) - - - - 213,130 - - - 213,130
Redemption of warrants (Notes 12(b)(i) and 12(e)) - - 79,943 551,246 (214,062 ) - - - 337,184
Redemption of options (Notes 12(b)(ii) and 12(d)) - - 10 23 (9 ) - - - 14
Net loss for the period - - - - - (6,043,038 ) - (113,895 ) (6,156,933 )
Foreign currency translation adjustment - - - - - - (32,392 ) - (32,392 )
Balance, March 31, 2024 - $ - 35,622,553 $ 116,318,245 $ 17,509,528 $ (111,544,333 ) $ (2,738,944 ) $ (1,437,776 ) $ 18,106,720
Share-based payments (Note 12(d)(iii)) - - - - 1,474,920 - - - 1,474,920
Net loss for the period - - - - - (6,007,216 ) - (56,678 ) (6,063,894 )
Foreign currency translation adjustment - - - - - - (180,206 ) - (180,206 )
Balance, June 30, 2024 - $ - 35,622,553 $ 116,318,245 $ 18,984,448 $ (117,551,549 ) $ (2,919,150 ) $ (1,494,454 ) $ 13,337,540
Share-based payments (Note 12(d)(iii)) - - - - 507,246 - - - 507,246
Net loss for the period - - - - - (5,943,325 ) - (47,995 ) (5,991,320 )
Foreign currency translation adjustment - - - - - - 124,431 - 124,431
Balance, September 30, 2024 - $ - 35,622,553 $ 116,318,245 $ 19,491,694 $ (123,494,874 ) $ (2,794,719 ) $ (1,542,449 ) $ 7,977,897
The accompanying notes are an integral part of these consolidated financial statements
EUPRAXIA PHARMACEUTICALS INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
and Expressed in U.S. Dollars, except share amounts)
Preferred shares Amount Common shares Amount Additional paid-in capital Deficit Accumulated other comprehensive loss Non-controlling interest Total-Shareholders' Equity
Balance, December 31, 2024 8,905,638 $ 31,705,219 35,641,603 $ 116,360,066 $ 20,503,904 $ (131,003,831 ) $ (4,160,555 ) $ (1,565,834 ) $ 31,838,969
Share-based payments (Note 12(d)(iii)) - - - - 1,493,407 - - - 1,493,407
Redemption of warrants (Notes 12(b)(iv) and 12(e)) - - 200,000 458,047 (41,641 ) - - - 416,406
Redemption of options (Notes 12(b)(v) and 12(d)(iii)) - - 7,750 22,175 (8,658 ) - - - 13,517
Net loss for the period - - - - - (6,762,608 ) - (4,667 ) (6,767,275 )
Foreign currency translation adjustment - - - - - - 38,164 - 38,164
Balance, March 31, 2025 8,905,638 $ 31,705,219 35,849,353 $ 116,840,288 $ 21,947,012 $ (137,766,439 ) $ (4,122,391 ) $ (1,570,501 ) $ 27,033,188
Share-based payments (Note 12(d)) - - - - 1,117,248 - - - 1,117,248
Redemption of warrants (Notes 12(b)(iv) and 12(e)) - - 100,000 239,200 (21,745 ) - - - 217,455
Redemption of options (Notes 12(b)(v) and 12(d)(iii)) - - 10,215 37,294 (14,971 ) - - - 22,323
Net loss for the period - - - - - (8,740,916 ) - (6,767 ) (8,747,683 )
Foreign currency translation adjustment - - - - - - 1,335,022 - 1,335,022
Balance, June 30, 2025 8,905,638 $ 31,705,219 35,959,568 $ 117,116,782 $ 23,027,544 $ (146,507,355 ) $ (2,787,369 ) $ (1,577,268 ) $ 20,977,553
The accompanying notes are an integral part of these consolidated financial statements.
EUPRAXIA PHARMACEUTICALS INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
and Expressed in U.S. Dollars, except share amounts)
Preferred shares Amount Common shares Amount Additional paid-in capital Deficit Accumulated other comprehensive loss Non-controlling interest Total-Shareholders' Equity
Balance, June 30, 2025 8,905,638 $ 31,705,219 35,959,568 $ 117,116,782 $ 23,027,544 $ (146,507,355 ) $ (2,787,369 ) $ (1,577,268 ) $ 20,977,553
Common shares issued during financing (Note 12(b)(vi)) - - 14,636,363 73,891,109 - - - - 73,891,109
Share-based payments (Note 12(d)) - - - - 446,106 - - - 446,106
Redemption of warrants (Notes 12(b)(iv) and 12(e)) - - 1,400 3,343 (304 ) - - - 3,039
Redemption of options (Notes 12(b)(v) and 12(d)(iii)) - - 1,000 6,028 (2,282 ) - - - 3,746
Net loss for the period - - - - - (6,361,367 ) - (7,991 ) (6,369,358 )
Foreign currency translation adjustment - - - - - - (508,633 ) - (508,633 )
Balance, September 30, 2025 8,905,638 $ 31,705,219 50,598,331 $ 191,017,262 $ 23,471,064 $ (152,868,722 ) $ (3,296,002 ) $ (1,585,259 ) $ 88,443,562
The accompanying notes are an integral part of these consolidated financial statements.
EUPRAXIA PHARMACEUTICALS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited and Expressed
Nine months ended September 30, 2025 Nine months ended September 30, 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (21,884,316 ) $ (18,212,147 )
Cash flows from operating activities
Accrued interest on convertible debt, net of interest paid (Note 11) - 241,597
Depreciation (Note 5 and 6) 164,911 117,207
Interest - lease liability 4,358 5,172
Loss (gain) on sale of equipment (Note 5) 1,075 (11,368 )
Share-based payments (Note 12(d)(iii)) 3,056,761 2,195,296
Change in fair value of financial instruments (Note 11) - (1,200,541 )
Lease payments (Note 9) (62,714 ) (48,354 )
Unrealized foreign exchange (gain) loss 377,152 224,381
Changes in operating assets and liabilities
Accounts payable and accrued liabilities 597,861 (1,585,694 )
Prepaid expenses (1,176,787 ) (829,014 )
Payable to Auritec (Note 10) - (5,000,000 )
Amounts receivable 96,818 81,304
Cash used in operating activities (18,824,881 ) (24,022,161 )
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of equipment (Note 5) (395,646 ) (59,912 )
Proceeds from sale of equipment - 28,510
Cash provided used in investing activities (395,646 ) (31,402 )
CASH FLOWS FROM FINANCING ACTIVITIES
Public offering (net of transaction costs) (Note 12(b)(vi) and Note 12(b)(iii)) 73,891,109 22,853,391
Redemption of warrants (Note 12(e)) 636,900 337,184
Redemption of options (Note 12 (d)(iii)) 39,586 14
Repayment of loans (Note 8) - (62,651 )
Repayment of convertible debt (Note 11) - (9,074,813 )
Cash provided by financing activities 74,567,595 14,053,125
Increase/(decrease) in cash and cash equivalents 55,347,068 (10,000,438 )
Foreign exchange effect on cash and cash equivalents 510,919 (679,522 )
Cash, beginning of period 33,101,294 19,341,756
Cash, end of period $ 88,959,281 $ 8,661,796
Supplemental disclosure with respect to cash flows (Note 19)
The accompanying notes are an integral part of these consolidated financial statements.
EUPRAXIA PHARMACEUTICALS INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2025 and 2024
(Unaudited and Expressed in
U.S. Dollars, unless otherwise stated)
Eupraxia Pharmaceuticals Inc. (the "Company") was incorporated under the laws of the province of Alberta on May 12, 2011,
under the name Plaza Capital Partners Inc. On May 11, 2012, the Company changed its name to Eupraxia Pharmaceuticals Inc. and continued from the province of Alberta to the province of British Columbia.
On October 10, 2012, Eupraxia Holdings, Inc. ("Holdings") was incorporated under the laws of the State of Delaware, USA. On
November 16, 2012, Holdings was registered as an extra-provincial corporation under the laws of the province of British Columbia, Canada. On October 10, 2012, Eupraxia Pharmaceuticals USA, LLC ("Eupraxia USA") was incorporated under
the laws of the State of Delaware. On November 16, 2012, Eupraxia USA was registered as an extra-provincial corporation under the laws of the province of British Columbia. On January 7, 2021, Eupraxia Pharma, Inc. ("Eupraxia
Pharma") was incorporated under the laws of the State of Delaware. On July 4, 2022, Eupraxia Pharmaceuticals Australia Pty Ltd. ("Eupraxia Australia") was incorporated under the laws of the state of Victoria, Australia. On
May 17, 2023, Eupraxia Pharma USA Inc. ("Eupraxia Pharma USA") was incorporated under the laws of the State of Delaware.
On March 9, 2021, the Company completed its initial public offering on the Toronto Stock Exchange ("TSX") and began trading
under the symbol "EPRX". On April 5, 2024, the Company began trading on the Nasdaq Capital Market under the symbol "EPRX".
The Company is a clinical stage biotechnology company leveraging its proprietary
Diffusphere technology to optimize drug delivery for applications with significant unmet medical need. The address of the Company's corporate office and principal place of business is
201- 2067 Cadboro Bay Road, Victoria, British Columbia, Canada.
These unaudited interim consolidated financial statements of the Company
have been prepared on a going concern basis with the assumption that the Company will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. At September 30, 2025, the Company had cash of
$88,959,281. The Company has not yet generated revenue from operations. The Company incurred a net loss of $21,884,316 during the nine months ended September 30, 2025, and as of that date, the Company's accumulated deficit was
$152,868,722. As the Company is in the research and development stage, the recoverability of the costs incurred to date is dependent upon the ability of the Company to obtain the necessary funding to complete the research and development of its
projects and upon future commercialization or proceeds from the monetization of research activities.
The Company will periodically have to
raise funds to continue operations and recently raised net proceeds of $73,891,109 through a public offering of 14,636,363 common shares on September 24, 2025. Although it has been successful in doing so in the past, there is no assurance it
will be able to do so in the future, especially with the ongoing geopolitical uncertainty affecting the global capital markets. The Company is active in its pursuit of additional funding through potential partnering and other strategic activities as
well as grants to fund future research and development activities, and additional equity financing.
The continued operations of the
Company are dependent on its ability to generate future cash flows or obtain additional funding. There is a risk that in the future, additional financing will not be available on a timely basis or on terms acceptable to the Company. These events and
conditions may cast substantial doubt about the Company's ability to continue as a going concern. These unaudited 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 be unable to continue in business.
EUPRAXIA PHARMACEUTICALS INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited and Expressed in U.S. Dollars, unless otherwise stated)
These unaudited interim consolidated financial statements are presented in U.S. dollars and have been prepared in accordance with United States
generally accepted accounting principles ("U.S. GAAP"). These unaudited interim consolidated financial statements include the accounts of the Company and the accounts of its subsidiaries. All significant intercompany transactions and
balances have been eliminated upon consolidation.
The accompanying unaudited interim consolidated financial statements have been prepared
in accordance with U.S. GAAP and pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC") for interim financial information. Accordingly, these consolidated financial statements do not include
all the information and footnotes required for complete consolidated financial statements and should be read in conjunction with the audited consolidated financial statements and notes for the year ended December 31, 2024 included in the
Company's 2024 40-F filed with SEC and on SEDAR+ on March 21, 2025.
interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for a fair presentation of results for the interim periods presented. The results of
operations for the nine months ended September 30, 2025, and 2024 are not necessarily indicative of results that can be expected for a full year. These unaudited interim consolidated financial statements follow the same significant accounting
policies as those described in the notes to the audited consolidated financial statements of the Company included in the Company's 2024 Form 40-F for the year ended December 31, 2024 filed with SEC
and on SEDAR+ on March 21, 2025.
The Company has reviewed recent accounting pronouncements and concluded that they are either not applicable to the Company or that there was no
material impact or no material impact is expected in the consolidated financial statements as a result of future adoption.
September 30, 2025 December 31, 2024
GST/HST recoverable $ 139,904 $ 82,097
Other refundable tax credits (1) - 146,775
Total $ 139,904 $ 228,872
EUPRAXIA PHARMACEUTICALS INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited and Expressed in U.S. Dollars, unless otherwise stated)
Property and equipment consisted of the following:
Computers Office furniture and equipment Leasehold Improvements Lab Equipment Total
Cost
As at January 1, 2024 $ 85,625 $ 67,996 $ 128,767 $ 525,264 $ 807,652
Additions 13,953 5,701 - 104,819 124,473
Disposals (13,219 ) (7,890 ) - (15,473 ) (36,582 )
Foreign currency adjustments (7,122 ) (5,438 ) (10,408 ) (54,992 ) (77,960 )
As at December 31, 2024 79,237 60,369 118,359 559,618 817,583
Additions 82,254 5,703 3,535 329,731 421,223
Disposals - (1,192 ) - - (1,192 )
Foreign currency adjustments 2,435 1,987 3,957 21,711 30,090
As at September 30, 2025 163,926 66,867 125,851 911,060 1,267,704
Accumulated Depreciation
As at January 1, 2024 56,181 49,667 115,816 176,401 398,065
Depreciation 12,668 6,349 8,148 86,867 114,032
Disposals (7,774 ) (5,698 ) - (12,653 ) (26,125 )
Foreign currency adjustments (4,895 ) (4,058 ) (9,787 ) (7,542 ) (26,282 )
As at December 31, 2024 56,180 46,260 114,177 243,073 459,690
Depreciation 21,187 2,334 3,124 83,039 109,684
Disposals - (117 ) - - (117 )
Foreign currency adjustments 1,804 1,557 3,861 8,390 15,612
As at September 30, 2025 79,171 50,034 121,162 334,502 584,869
Net Book Value
As at December 31, 2024 $ 23,057 $ 14,109 $ 4,182 $ 316,545 $ 357,893
As at September 30, 2025 $ 84,755 $ 16,833 $ 4,689 $ 576,558 $ 682,835
During the three months ended September 30, 2025 and 2024, depreciation expense of $44,511 and $24,908,
respectively, was recognized with $4,567 included in general and administrative and $39,944 included in research and development ($2,440 and $22,468 for general and administrative, and research and development in 2024, respectively). During the nine
months ended September 30, 2025 and 2024, depreciation expense of $109,684 and $74,010, respectively, was recognized with $9,756 included in general and administrative and $99,928 included in research and development ($13,878 and $60,132 for
general and administrative, and research and development in 2024, respectively).
EUPRAXIA PHARMACEUTICALS INC.

Frequently Asked Questions

What are the current total assets for Eupraxia Pharmaceuticals?

As of September 30, 2025, total assets for Eupraxia Pharmaceuticals amount to $92,349,055.

What was the net loss for Eupraxia Pharmaceuticals in Q3 2025?

In the third quarter of 2025, Eupraxia Pharmaceuticals reported a net loss of $6,369,358.

How much cash does Eupraxia Pharmaceuticals hold as of September 2025?

Eupraxia Pharmaceuticals holds $88,959,281 in cash as of September 30, 2025.

What was the comprehensive loss for Eupraxia in Q3 2025?

The comprehensive loss for Eupraxia Pharmaceuticals in Q3 2025 was $6,877,991.

What was the deficit for Eupraxia Pharmaceuticals in September 2025?

As of September 30, 2025, Eupraxia Pharmaceuticals has a deficit of $152,868,722.

Last updated: Nov 4, 2025