Full Press Release Details
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
| Report of Independent Registered Public Accounting Firm (PCAOB ID: 271) | 2 |
| Consolidated Balance Sheets | 3 |
| Consolidated Statements of Loss | 4 |
| Consolidated Statements of Shareholders' Equity | 5 |
| Consolidated Statements of Cash Flows | 6 |
| Notes to Consolidated Financial Statements | 7 |
Report of Independent Registered
Public Accounting Firm
the Shareholders and Board of Directors of Milestone Pharmaceuticals Inc.
Opinion on the Financial Statements
have audited the accompanying consolidated balance sheets of Milestone Pharmaceuticals Inc. and its subsidiary (together, the "Company")
as of December 31, 2021 and 2020, and the related consolidated Statements of Loss, and shareholders' equity for each of the years
then ended, including the related notes (collectively referred to as the "consolidated financial statements"). In our opinion,
the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31,
2021 and 2020, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles
generally accepted in the United States of America.
consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an
opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with
the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in
accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and
We conducted our audits
of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether
due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial
reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the
purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we
express no such opinion.
audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether
due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers
We have served as the Company's auditor since
CPA auditor, CA, public accountancy permit No.125677
Milestone Pharmaceuticals
Consolidated Balance Sheets
(in thousands of US dollars, except share data)
| December 31, 2021 | December 31, 2020 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 114,141 | $ | 72,310 | ||||
| Short-term investments | - | 70,000 | ||||||
| Research and development tax credits receivable | 356 | 725 | ||||||
| Prepaid expenses | 4,299 | 5,428 | ||||||
| Other receivables | 127 | 223 | ||||||
| Total current assets | 118,923 | 148,686 | ||||||
| Operating lease assets | 711 | 980 | ||||||
| Property and equipment | 215 | 308 | ||||||
| Total assets | $ | 119,849 | $ | 149,974 | ||||
| Liabilities, and Shareholders' Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities | $ | 6,551 | $ | 5,914 | ||||
| Operating lease liabilities | 224 | 245 | ||||||
| Total current liabilities | 6,775 | 6,159 | ||||||
| Operating lease liabilities (net of current portion) | 474 | 696 | ||||||
| Total liabilities | 7,249 | 6,855 | ||||||
| Commitments and contingencies (Note 13) | ||||||||
| Shareholders' Equity | ||||||||
| Common shares, no par value, unlimited shares authorized 29,897,559 shares issued and outstanding as of December 31, 2021, 29,827,997 shares issued and outstanding as of December 31, 2020 | 251,901 | 251,682 | ||||||
| Pre-funded warrants - 12,327,780 issued and outstanding as of December 31, 2021 and 11,417,034 as of December 31, 2020 | 52,941 | 48,007 | ||||||
| Additional paid-in capital | 15,711 | 8,530 | ||||||
| Cumulative translation adjustment | (1,634 | ) | (1,634 | ) | ||||
| Accumulated deficit | (206,319 | ) | (163,466 | ) | ||||
| Total shareholders' equity | 112,600 | 143,119 | ||||||
| Total liabilities and shareholders' equity | $ | 119,849 | $ | 149,974 |
The accompanying notes are an integral part of
these consolidated financial statements.
Milestone Pharmaceuticals
Consolidated Statements
dollars, except share and per share data)
| Year ended December 31, | ||||||||
| 2021 | 2020 | |||||||
| Revenue | $ | 15,000 | $ | - | ||||
| Operating expenses | ||||||||
| Research and development, net of tax credits | 38,671 | 34,488 | ||||||
| General and administrative | 12,399 | 10,285 | ||||||
| Commercial | 7,003 | 5,937 | ||||||
| Loss from operations | (43,073 | ) | (50,710 | ) | ||||
| Interest income, net | 220 | 726 | ||||||
| Loss before income taxes | (42,853 | ) | (49,984 | ) | ||||
| Income tax benefit | - | 17 | ||||||
| Net loss | $ | (42,853 | ) | $ | (49,967 | ) | ||
| Weighted average number of shares and pre-funded warrants outstanding, basic and diluted | 41,833,861 | 29,344,993 | ||||||
| Net loss per share, basic and diluted | $ | (1.02 | ) | $ | (1.70 | ) |
The accompanying notes are an integral part of
these consolidated financial statements.
Milestone Pharmaceuticals Inc.
Consolidated Statements of Shareholders' Equity
US dollars, except share data)
| Common Shares | Pre-funded warrants | |||||||||||||||||||||||||||||||
| Number of shares | Amount | Number of warrants | Amount | Additional paid-in capital | Cumulative translation adjustment | Accumulated deficit | Total | |||||||||||||||||||||||||
| Balance as of December 31, 2019 | 24,505,748 | $ | 226,245 | - | $ | - | $ | 3,805 | $ | (1,634 | ) | $ | (113,499 | ) | $ | 114,917 | ||||||||||||||||
| Transactions during 2020 | ||||||||||||||||||||||||||||||||
| Net loss | - | - | - | - | - | - | (49,967 | ) | (49,967 | ) | ||||||||||||||||||||||
| Exercise of stock options | 226,352 | 520 | - | - | (220 | ) | - | - | 300 | |||||||||||||||||||||||
| Share-based compensation | - | - | - | - | 4,945 | - | - | 4,945 | ||||||||||||||||||||||||
| Pre-funded warrants - Private Placement | - | - | 6,655,131 | 24,771 | - | - | - | 24,771 | ||||||||||||||||||||||||
| Public Offering | 5,095,897 | 24,917 | 4,761,903 | 23,236 | - | - | - | 48,153 | ||||||||||||||||||||||||
| Balance as of December 31, 2020 | 29,827,997 | $ | 251,682 | 11,417,034 | $ | 48,007 | $ | 8,530 | $ | (1,634 | ) | $ | (163,466 | ) | $ | 143,119 | ||||||||||||||||
| Balance as of December 31, 2020 | 29,827,997 | $ | 251,682 | 11,417,034 | $ | 48,007 | $ | 8,530 | $ | (1,634 | ) | $ | (163,466 | ) | $ | 143,119 | ||||||||||||||||
| Transactions during 2021 | ||||||||||||||||||||||||||||||||
| Net loss | - | - | - | - | - | - | (42,853 | ) | (42,853 | ) | ||||||||||||||||||||||
| Exercise of stock options | 69,562 | 219 | - | - | (98 | ) | - | - | 121 | |||||||||||||||||||||||
| Private Placement | - | - | 910,746 | 4,934 | - | - | - | 4,934 | ||||||||||||||||||||||||
| Share-based compensation | - | - | - | - | 7,279 | - | - | 7,279 | ||||||||||||||||||||||||
| Balance as of December 31, 2021 | 29,897,559 | $ | 251,901 | 12,327,780 | $ | 52,941 | $ | 15,711 | $ | (1,634 | ) | $ | (206,319 | ) | $ | 112,600 |
The accompanying notes are an integral part of
these consolidated financial statements.
Milestone Pharmaceuticals Inc.
Consolidated Statements of
(in thousands of US dollars)
| Year ended December 31, | ||||||||
| 2021 | 2020 | |||||||
| Cash flows used in operating activities | ||||||||
| Net loss | $ | (42,853 | ) | $ | (49,967 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation of property and equipment | 93 | 97 | ||||||
| Share-based compensation expense | 7,279 | 4,945 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Other receivables | 96 | 35 | ||||||
| Research and development tax credits receivable | 369 | (147 | ) | |||||
| Prepaid expenses | 1,129 | (3,583 | ) | |||||
| Operating lease assets and liabilities | 26 | (29 | ) | |||||
| Accounts payable and accrued liabilities | 637 | (2,083 | ) | |||||
| Net cash used in operating activities | (33,224 | ) | (50,732 | ) | ||||
| Cash provided by (used in) investing activities | ||||||||
| Acquisition of short-term investments | (15,000 | ) | (90,000 | ) | ||||
| Redemption of short-term investments | 85,000 | 20,000 | ||||||
| Net cash provided by (used in) investing activities | 70,000 | (70,000 | ) | |||||
| Cash provided by financing activities | ||||||||
| Proceeds from exercise of options | 121 | 300 | ||||||
| Net proceeds from issuance of common shares in a public offering, net of issuance cost | - | 24,917 | ||||||
| Net proceeds from issuance of pre-funded warrants in a public offering, net of issuance cost | - | 23,236 | ||||||
| Proceeds from issuance of pre-funded warrants, net of issuance cost | 4,934 | 24,771 | ||||||
| Cash provided by financing activities | 5,055 | 73,224 | ||||||
| Net increase (decrease) in cash and cash equivalents | 41,831 | (47,508 | ) | |||||
| Cash and cash equivalents - Beginning of year | 72,310 | 119,818 | ||||||
| Cash and cash equivalents - End of year | $ | 114,141 | $ | 72,310 |
The accompanying notes are an integral part of
these consolidated financial statements.
1 Organization and Nature
Pharmaceuticals Inc. (Milestone or the Company) is a biopharmaceutical company incorporated under the Business Corporations Act of
Qu bec. Milestone is focused on the development and commercialization of innovative cardiovascular medicines. Milestone's
lead product candidate, etripamil, is a novel, potent short acting calcium channel blocker that the Company designed and is developing
as a rapid onset nasal spray to be -administered by patients. The Company is developing etripamil to treat paroxysmal supraventricular
tachycardia, atrial fibrillation, and other cardiovascular indications.
2 Summary of Significant Accounting Policies
a) Basis of consolidation
The consolidated financial statements
include the accounts of the Company and Milestone Pharmaceuticals USA, Inc. All intercompany transactions and balances have been
b) Basis of Presentation and Use
of Accounting Estimates
These consolidated financial statements of the
Company have been presented in United States dollars (USD) and have been prepared in accordance with accounting principles generally accepted
in the United States of America (U.S. GAAP), including the applicable rules and regulations of the Securities and Exchange Commission
(SEC) regarding financial reporting.
preparation of consolidated financial statements in conformity with US GAAP requires the Company to make estimates and judgments
that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the
consolidated financial statements and the reported amounts of revenue and expenses during the period. The Company bases its estimates
and assumptions on current facts, historical experience and various other factors that it believes are reasonable under the circumstances,
to determine the carrying values of assets and liabilities that are not readily apparent from other sources. Significant estimates and
judgments include, but are not limited to,
COVID-19 pandemic has had an impact on the Company's business, operations and clinical development timelines. The pandemic has resulted
in many state, local and foreign governments implementing, and making adjustments to, various orders and restrictions in order to control
the spread of the disease, which have impacted patient recruitment, enrollment and follow-up visits at clinical sites The Company will
continue to evaluate the COVID-19 pandemic impact on the development timelines of its clinical programs. Estimates and assumptions about
future events and their effects cannot be determined with certainty and therefore require the exercise of judgment. As of the date of
issuance of these consolidated financial statements, the Company is not aware of any specific event or circumstance that would require
the Company to update its estimates, assumptions and judgments. These estimates may change as new events occur and additional information
is obtained and are recognized in the consolidated financial statements as soon as they become known. Actual results could differ from
those estimates and any such differences may be material to the Company's consolidated financial statements.
c) Segment Information
Company manages its operations as a single operating segment for the purposes of assessing performance and making operating decisions
while focusing on the development and commercialization of innovative cardiovascular medicines.
d) Revenue Recognition
Collaborative Arrangements
The Company considers the nature
and contractual terms of arrangements and assesses whether an arrangement involves a joint operating activity pursuant to which the Company
is an active participant and is exposed to significant risks and rewards dependent on the commercial success of the activity. If the Company
is an active participant and is exposed to significant risks and rewards dependent on the commercial success of the activity, the Company
accounts for such an arrangement as a collaborative arrangement under Accounting Standards Codification (ASC) 808, Collaborative Arrangements
(ASC 808), which requires that certain transactions between the Company and collaborators be recorded in its consolidated statements of
comprehensive loss on either a gross basis or net basis, depending on the characteristics of the collaborative relationship, and requires
enhanced disclosure of collaborative relationships. The Company evaluates its collaboration agreements for proper classification in its
consolidated statements of comprehensive loss based on the nature of the underlying activity. If payments to and from collaborative partners