XORTX Therapeutics (XRTX) - 2024 Q3 - Quarterly Report

Financial Performance - The company reported a net loss of $3,435,881 for the nine months ended September 30, 2024, compared to a loss of$4,857,289 for the same period in 2023, representing a 29.2% improvement[6] - Basic and diluted loss per common share improved to $(1.25) for the nine months ended September 30, 2024, compared to$(2.46) for the same period in 2023[6] - For the nine months ended September 30, 2024, XORTX reported a net loss of $3,435,881, a decrease of 29.2$4,857,289 for the same period in 2023[10] - Cash provided by operating activities for the nine months ended September 30, 2024, was $(2,792,240), an improvement from$(5,285,098) in 2023, indicating a 47.1% reduction in cash outflow[10] - Management compensation for the nine months ended September 30, 2024, totaled $612,749, a decrease from$753,401 in the same period of 2023[78] Assets and Liabilities - Total current assets decreased to $2,410,394 as of September 30, 2024, down 40.8$4,068,783 on December 31, 2023[3] - Shareholders' equity decreased to $2,133,580 as of September 30, 2024, down 54.1$4,642,026 on December 31, 2023[3] - The company’s cash balance was $2,300,747 as of September 30, 2024, a decrease of 33.3$3,447,665 on December 31, 2023[3] - Total liabilities increased to $1,716,751 as of September 30, 2024, up 107.5$825,938 on December 31, 2023[3] - The total accounts payable and accrued liabilities increased to $326,283 as of September 30, 2024, compared to$283,428 at December 31, 2023[42] Research and Development - Research and development expenses for the nine months ended September 30, 2024, were $176,067, a decrease of 92.3$2,284,583 in the same period of 2023[6] - The company has not capitalized any development costs as of September 30, 2024, indicating a focus on maintaining liquidity while pursuing R&D[27] - XORTX is focused on developing therapies for progressive kidney disease, with ongoing clinical studies and potential future product launches[13] - The company plans to raise additional capital to finance its research and development activities and clinical studies, emphasizing the need for future funding[14] Capital and Financing - The company issued 899,717 shares pursuant to a private placement, raising $1,032,549[8] - The company raised$2,000,549 from the issuance of equity instruments during the nine months ended September 30, 2024, compared to no such proceeds in the same period of 2023[10] - The company closed a registered direct offering on October 18, 2024, raising aggregate gross proceeds of $1,500,000 through the sale of 320,000 common share units at$1.85 each and 490,810 pre-funded warrant units at $1.8499 each[87] - The company intends to use the net proceeds from the recent offering for working capital and general corporate purposes[87] Stock and Equity - The weighted average number of common shares outstanding increased to 2,903,565 as of September 30, 2024, compared to 2,746,043 for the same period in 2023[6] - The company issued 2,903,565 common shares as of September 30, 2024, an increase from 1,998,848 shares at December 31, 2023[45] - The company has a total of 2,019,927 outstanding warrants as of September 30, 2024, with a weighted average exercise price of$4.26[54][56] - The company recorded share-based payments of $15,857 for the three months and$113,022 for the nine months ended September 30, 2024, compared to $21,850 and$92,169 in the same periods of 2023, respectively[62] Obligations and Commitments - The company has a total lease obligation of $61,468 as of September 30, 2024, which includes a$96,998 addition due to an office lease extension[43][44] - The company has committed payments totaling $173,000 for clinical trials and other business activities, down from$446,000 as of December 31, 2023[85] - The company has milestone payments of $500,000 upon FDA approval and$100,000 for each additional jurisdiction's regulatory approval for licensed products[38] Financial Instruments and Valuation - The fair values of the company's financial instruments approximate their carrying values due to their short-term nature as of September 30, 2024[80] - The balance of derivative warrant liabilities as of September 30, 2024, is $1,329,000, reflecting a fair value adjustment of$(164,756) during the period[70] - The carrying value of right-of-use assets increased to $47,018 as of September 30, 2024, from$10,913 at December 31, 2023[40] Risk Management - The company has not made any changes to its risk management policies since December 31, 2023, and continues to monitor various financial risks[80] - The company has no external capital requirements imposed by regulatory agencies[82] - The company has not reported any changes in its capital management strategy during the nine months ended September 30, 2024[82]