Full Press Release Details
EUPRAXIA PHARMACEUTICALS INC.
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 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 CHANGES IN SHAREHOLDERS EQUITY | 4-5 | |||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | 6 | |||
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | 7-26 |
EUPRAXIA PHARMACEUTICALS INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited and Expressed in U.S.
Dollars, except share amounts)
| March 31, 2025 | December 31, 2024 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash | $ | 27,454,598 | $ | 33,101,294 | ||||
| Prepaid expenses and deposits | 913,283 | 1,106,512 | ||||||
| Amounts receivable (Note 4) | 238,531 | 228,872 | ||||||
| Total current assets | 28,606,412 | 34,436,678 | ||||||
| Non-current assets | ||||||||
| Prepaid expenses | 80,230 | 80,761 | ||||||
| Property and equipment, net (Note 5) | 497,282 | 357,893 | ||||||
| Right-of-use asset, net (Note 6) | 49,255 | 67,023 | ||||||
| Total assets | $ | 29,233,179 | $ | 34,942,355 | ||||
| LIABILITIES AND SHAREHOLDERS EQUITY (DEFICIT) | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities (Note 7) | $ | 2,147,217 | $ | 3,031,527 | ||||
| Lease liability current portion (Note 9) | 52,774 | 71,859 | ||||||
| Total liabilities | 2,199,991 | 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: 35,849,353 (December 31, 2024 - 35,641,603 (Note 12(b)) | 116,840,288 | 116,360,066 | ||||||
| Additional paid-in capital (Notes 12(b), 12(d) and 12(e)) Deficit | 21,947,012 (137,766,439 | ) | 20,503,904 (131,003,831 | ) | ||||
| Accumulated other comprehensive loss | (4,122,391 | ) | (4,160,555 | ) | ||||
| Equity attributable to the owners of the Company | 28,603,689 | 33,404,803 | ||||||
| Non-controlling interest | (1,570,501 | ) | (1,565,834 | ) | ||||
| Total shareholders equity | 27,033,188 | 31,838,969 | ||||||
| Total liabilities and shareholders equity | $ | 29,233,179 | $ | 34,942,355 |
Nature of Business and Going Concern (Note 1)
Commitments and Contingencies (Note 15)
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 March 31, 2025 | Three months ended March 31, 2024 | |||||||
| Expenses | ||||||||
| General and administrative (Note 13) | $ | 3,274,394 | $ | 2,518,023 | ||||
| Research and development (Note 14) | 3,849,826 | 4,175,453 | ||||||
| Total expenses | 7,124,220 | 6,693,476 | ||||||
| Other income/(expenses) | ||||||||
| Interest income | 309,452 | 236,369 | ||||||
| Interest expense (Note 18) | (321,140 | ) | ||||||
| Loss on sale of equipment (Note 5) | (1,075 | ) | ||||||
| Foreign exchange gain (loss) | 51,362 | (143,728 | ) | |||||
| Change in fair value of financial instruments (Note 11(a)) | 770,042 | |||||||
| Total other income/(loss) | 359,739 | 541,543 | ||||||
| Loss before tax expense | (6,764,481 | ) | (6,151,933 | ) | ||||
| Tax expense | (2,794 | ) | (5,000 | ) | ||||
| Net loss for the period | $ | (6,767,275 | ) | $ | (6,156,933 | ) | ||
| Loss attributable to: | ||||||||
| Owners of the Company | $ | (6,762,608 | ) | $ | (6,043,038 | ) | ||
| Non-controlling interest | (4,667 | ) | (113,895 | ) | ||||
| (6,767,275 | ) | (6,156,933 | ) | |||||
| Foreign currency translation adjustment | 38,164 | (32,392 | ) | |||||
| Comprehensive loss for the period | $ | (6,729,111 | ) | $ | (6,189,325 | ) | ||
| Loss per share basic and diluted (Owners of the Company (Note 12(g)) | $ | (0.21 | ) | $ | (0.21 | ) | ||
| Weighted average shares outstanding basic and diluted | 35,686,256 | 28,812,641 |
The accompanying notes are an integral part of these consolidated financial statements.
EUPRAXIA PHARMACEUTICALS INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY
(Unaudited 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)) | 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 |
The accompanying notes are an integral part of these consolidated financial statements.
EUPRAXIA PHARMACEUTICALS INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY
(Unaudited 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)) | 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)) | 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 |
The accompanying notes are an integral part of these consolidated financial statements.
EUPRAXIA PHARMACEUTICALS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited and Expressed
| Three Months ended March 31, 2025 | Three Months ended March 31, 2024 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net loss | $ | (6,767,275 | ) | $ | (6,156,933 | ) | ||
| Items not affecting cash | ||||||||
| Accrued interest on convertible debt (Note 11(a)) | 158,944 | |||||||
| Depreciation (Note 5 and 6) | 46,487 | 37,418 | ||||||
| Interest lease liability | 1,187 | 1,998 | ||||||
| Loss on sale of equipment | 1,075 | |||||||
| Share-based payments (Note 12(d)) | 1,493,407 | 213,130 | ||||||
| Change in fair value of financial instruments (Note 11(a)) | (770,042 | ) | ||||||
| Lease payments (Note 9) | (20,371 | ) | (16,269 | ) | ||||
| Unrealized foreign exchange | (50,182 | ) | 144,913 | |||||
| Changes in operating assets and liabilities | ||||||||
| Accounts payable and accrued liabilities | (894,360 | ) | 107,712 | |||||
| Prepaid expenses | 195,636 | 125,202 | ||||||
| Amounts receivable | (8,675 | ) | 17,201 | |||||
| Cash used in operating activities | (6,003,071 | ) | (6,136,726 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Acquisition of equipment | (169,044 | ) | (6,789 | ) | ||||
| Cash used in investing activities | (169,044 | ) | (6,789 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Overnight marketed public offering (net of transaction costs) (Note 12(b)(iii) | 22,853,391 | |||||||
| Redemption of warrants (Note 12(e)) | 416,406 | 337,184 | ||||||
| Redemption of options (Note 12(d)) | 13,517 | 14 | ||||||
| Repayment of loans (Note 8) | (20,547 | ) | ||||||
| Cash provided by financing activities | 429,923 | 23,170,042 | ||||||
| Increase (decrease) in cash | (5,742,192 | ) | 17,026,527 | |||||
| Foreign exchange effect on cash | 95,496 | (460,756 | ) | |||||
| Cash, beginning of period | 33,101,294 | 19,341,756 | ||||||
| Cash, end of period | $ | 27,454,598 | $ | 35,907,527 |
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
(Unaudited and Expressed in U.S. Dollars, except share amounts)
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.
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 March 31, 2025, the Company had cash of $27,454,598. The Company
has not yet generated revenue from operations. The Company incurred a net loss of $6,767,275 during the three months ended March 31, 2025, and as of that date, the Company s accumulated deficit was $137,766,439. 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 $31,705,219 through a non-brokered private placement of 8,905,638 convertible preferred shares on October 31, 2024. 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, except share amounts)
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 three months ended March 31, 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.
Basis of Measurement
unaudited interim consolidated financial statements have been prepared on a historical cost basis, except for certain financial instruments which are measured at fair value. The unaudited interim consolidated financial statements are presented in
U.S. dollars, which is the Company s reporting currency. The Company s functional currency is the Canadian dollar.
preparation of unaudited interim consolidated financial statements in accordance with U.S. GAAP requires the Company to make estimates and judgments in certain circumstances that affect the reported amounts of assets, liabilities, expenses, and
related disclosure. On an ongoing basis, the Company evaluates its estimates, most notably those related to accrual of expenses including clinical and preclinical study expense accruals, stock-based compensation and the valuation allowance for
deferred taxes. Management bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from these estimates.
unaudited interim consolidated financial statements include the accounts of the Company and the accounts of its subsidiaries. The financial statements of subsidiaries are included in the unaudited interim consolidated financial statements from the
date that control commences until the date that control ceases. Control exists when an entity is exposed to or has rights to variable returns from its involvement with the entity and has the ability to affect these returns through its power over the
entity. All significant intercompany transactions and balances have been eliminated.
Recently Adopted Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board ( FASB ) issued Accounting Standards Update ( ASU ) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing requirement. The Company
adopted this ASU in 2025 and will apply this standard to tax note disclosures presented in the consolidated financial statements on an annual basis.
EUPRAXIA PHARMACEUTICALS INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited and Expressed in U.S. Dollars, except share amounts)
Recent Accounting Pronouncements Not Yet Adopted
The Company has not yet adopted certain new standards, amendments and interpretations to existing standards, which have been published but are
only effective for accounting periods beginning after January 1, 2025. The new and amended standards are not expected to have a material impact on the Company s consolidated financial statements.
| March 31, 2025 | December 31, 2024 | |||||||
| GST/HST recoverable | $ | 90,700 | $ | 82,097 | ||||
| Other refundable tax credits (1) | 147,831 | 146,775 | ||||||
| Total | $ | 238,531 | $ | 228,872 |
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 | 4,548 | 1,118 | 163,378 | 169,044 | ||||||||||||||||
| Disposals | (1,192 | ) | (1,192 | ) | ||||||||||||||||
| Foreign currency adjustments | 72 | 54 | 108 | 169 | 403 | |||||||||||||||
| As at March 31, 2025 | 83,857 | 60,349 | 118,467 | 723,165 | 985,838 | |||||||||||||||
| 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 | 2,961 | 707 | 1,144 | 23,807 | 28,619 | |||||||||||||||
| Disposals | (117 | ) | (117 | ) | ||||||||||||||||
| Foreign currency adjustments | 47 | 41 | 101 | 175 | 364 | |||||||||||||||
| As at March 31, 2025 | 59,188 | 46,891 | 115,422 | 267,055 | 488,556 |
EUPRAXIA PHARMACEUTICALS INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS