(TheNewswire)
VANCOUVER, May 09, 2024 – TheNewswire – Aequus PharmaceuticalsInc. (TSX-V: AQS, OTCQB: AQSZF) (“Aequus” or the “Company”), aspecialty pharmaceutical company focused on bringing healthcaresolutions to Canadians through licensing and partnerships, todayreported financial results for the quarter ended March 31, 2024(“First Quarter 2024”) and associated Company developments. Unlessotherwise noted, all figures are in Canadian currency.
Mr. Janzen, CEO. “I continue to believe in thevalue that ZIMED® PF will bring to Canadian ophthalmologists andtheir patients. Adoption since launch has been in line withexpectations and our team is excited by a potential surge in productdemand, as we announced earlier week.”
Financial Highlights
The Company reported an operating loss before otherincome and expenses of $662,877 for the three months ended March 31,2024, a decrease of 11% from the loss before other income of $744,394in the three months ended March 31, 2023. The decrease in net loss was mainlydue to a decrease of $99,813, or 13%, inexpenses offset by the reduction of $18,296 in gross income due topause the sale of Evolve products in July 2023.
Aequus launched ZIMED® PF in August 2023 andrecognized $52,555 of revenue from its sales during the three monthsended March 31, 2024. The Company experienced a decrease in revenuerelated to Evolve sales of 100% during the three months ended March31, 2024. Overall revenue decreased $39,696 or 43%, in the firstquarter 2024 compared to same period in 2023, which was driven by thepause in Evolve sale in summer 2023.
Sales and marketing costs in the first quarter 2024were $442,719 when compared to $351,051 in the first quarter 2023, achange of 26% or $91,668. The majority of the increase was related to new marketing initiatives promoting ZIMED® PF.
Research and development included product developmentexpenses, it decreased to during the three months ended March 31,2024, compared to $201,361 during the three months ended March 31,2023. The decrease was attributable to no expenses related to theapproval process of ZIMED® PF during the three months ended March 31,2024.
General and administration expenses in the firstquarter 2024 were $255,122 compared to $245,242 in the first quarterof 2023, an increase of 4% or $9,880. The change in expenses wasmainly driven by general cost-cutting measures offset by higherloan-related expenses.
Three months ended March 31, 2024 $ | Three months ended March 31, 2023 $ | |
Total revenue | 52,555 | 92,251 |
Net loss before other income | (662,877) | (744,394) |
Net loss and comprehensive loss | (662,088) | (744,323) |
Loss per share, basic and fully diluted | (0.00) | (0.01) |
March 31, 2024 $ | December 31, 2023 $ | |
Total assets | 1,092,341 | 1,086,223 |
Total current liabilities | (5,487,048) | (4,796,481) |
Total non-current liabilities | (553,370) | (583,856) |
Aequus Grants Stock Options
The Company announces that it hasgranted incentive stock options (the “Options”) to certaindirectors, officers, employees, and consultants of the Company topurchase up to an aggregate of 2,175,000 common shares of the Company.These stock options are exercisable at a price of $0.05 per share, fora term of eight years, and vest in tranches over a 3-year period. The options are subject to the terms and conditions of theCompany’s stock option plan and the policies of the TSX VentureExchange.
Financing
The “Company”), announces today it will increaseits debt up to $600,000 to be used for general working capital andinventory purchases. Mr. Doug Janzen, Chairman and Chief ExecutiveOfficer of the Company, has agreed to provide an on demand loan withan interest rate of six percent (6%), which are terms consistent withprevious loans.
The Loan involves a related party (as such term isdefined under Multilateral Instrument 61-101 – Protection of Minority Security Holders inSpecial Transactions (“MI 61-101”)),specifically a director and senior officer of the Company, andconstitutes a related party transaction under MI 61-101. Thistransaction is exempt from the formal valuation and minorityshareholder approval requirements of MI 61-101 pursuant to sections5.5(b) and 5.7(1)(f) of MI 61-101, as the Company is not listed orquoted on any of the stock exchanges or markets listed in subsection5.5(b) of MI 61-101, and the Loan represents a loan from a relatedparty on reasonable commercial terms that are not less advantageous tothe Company than if the Loan were obtained from a person dealing atarm’s length and the Loan is not convertible or repayable insecurities.
ABOUT AEQUUS PHARMACEUTICALS INC.
Aequus Pharmaceuticals Inc. (TSX-V: AQS , OTCQB: AQSZF ) is specialty pharmaceutical company focused on developing andcommercializing high quality, differentiated products inophthalmology. Aequus plans to build on its Canadian commercialplatform through the launch of additional products that are eithercreated internally or brought in through an acquisition or license;remaining focused on highly specialized therapeutic areas. For furtherinformation, please visit www.aequuspharma.ca .
FORWARD-LOOKINGSTATEMENT DISCLAIMER
This release may containforward-looking statements or forward-looking information underapplicable Canadian securities legislation that may not be based onhistorical fact, including, without limitation, statements containingthe words “believe”, “may”, “plan”, “will”,“estimate”, “continue”, “anticipate”, “intend”, “expect”,“potential” and similar expressions. Forward- looking statementsare necessarily based on estimates and assumptions made by us in lightof our experience and perception of historical trends, currentconditions and expected future developments, as well as the factors webelieve are appropriate. Forward-looking statements include but arenot limited to statements relating to: our ability to continue to growrevenues and add new products; the current loans allowing us to bridgeus to higher revenue ; the expectation that 2024 is a transitionperiod as we look to add to our product offerings; the implementationof our business model and strategic plans; revenue growth trends intothe future; expected timing for product launches; the Company’sexpected revenues; and the regulatory approval of its products. Suchstatements reflect our current views with respect to future events andare subject to risks and uncertainties and are necessarily based upona number of estimates and assumptions that, while consideredreasonable by Aequus, are inherently subject to significant business,economic, competitive, political and social uncertainties andcontingencies. Many factors could cause our actual results,performance or achievements to be materially different from any futureresults, performance, or achievements that may be expressed or impliedby such forward-looking statements. In making the forward lookingstatements included in this release, the Company has made variousmaterial assumptions, including, but not limited to: obtainingregulatory approvals; general business and economic conditions; theCompany’s ability to successfully out license or sell its currentproducts and in-license and develop new products; the assumption thatthe Company’s current good relationships with third parties will bemaintained; the availability of financing on reasonable terms; theCompany’s ability to attract and retain skilled staff; marketcompetition; the products and technology offered by the Company’scompetitors; and the Company’s ability to protect patents andproprietary rights. In evaluating forward looking statements, currentand prospective shareholders should specifically consider variousfactors set out herein and under the heading “Risk Factors” in theCompany’s Management Discussion and Analysis, a copy of which isavailable on Aequus’ profile on the SEDAR website atwww.sedarplus.com, and as otherwise disclosed from time to time onAequus’ SEDAR profile. Should one or more of these risks oruncertainties, or a risk that is not currently known to usmaterialize, or should assumptions underlying those forward-lookingstatements prove incorrect, actual results may vary materially fromthose described herein. These forward-looking statements are made asof the date of this release and we do not intend, and do not assumeany obligation, to update these forward-looking statements, except asrequired by applicable securities laws. Investors are cautioned thatforward-looking statements are not guarantees of future performanceand are inherently uncertain. Accordingly, investors are cautioned notto put undue reliance on forward looking statements.
Neither TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this release.
CONTACT INFORMATION
Aequus Investor Relations
Email: investors@aequuspharma.ca
Phone: 604-336-7906
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