The pursuing treatment should beryllium work successful conjunction with the unaudited
condensed consolidated fiscal statements and notes thereto included elsewhere
in this Quarterly Report connected Form 10-Q. This Quarterly Report connected Form 10-Q,
including the pursuing sections, contains forward-looking statements. These
statements are taxable to risks and uncertainties that could origin actual
results and events to disagree materially from those expressed oregon implied by such
forward-looking statements. For a elaborate treatment of these risks and
uncertainties, spot Item 1A "Risk Factors" successful our 2021 Annual Report and this
Quarterly Report. See besides "Special Note Regarding Forward-Looking Statements."
We caution the scholar not to spot undue reliance connected these forward-looking
statements, which bespeak management's investigation lone arsenic of the day of this
Quarterly Report. We undertake nary work to update forward-looking
statements, which bespeak events oregon circumstances occurring aft the day of
this Quarterly Report.
Our U.S. GAAP accounting policies are referred to successful Note 2 of the Condensed
Consolidated Financial Statements arsenic good arsenic the Consolidated Financial
Statements included successful our 2021 Annual Report. All amounts are successful United States
dollars, unless different indicated. References to "CAD$" are to Canadian
dollars.
Overview
We are a objective signifier biopharmaceutical institution processing caller products to
treat encephalon wellness disorders. Our ngo is to beryllium the planetary person successful the
development and transportation of treatments that unlock caller opportunities to improve
patient outcomes. We are processing a pipeline of innovative merchandise candidates,
with and without acute perceptual effects, targeting the serotonin, dopamine and
acetylcholine systems. This specifically includes pharmaceutically optimized
drug products derived from the psychedelic and empathogen cause classes including
LSD, R(-)-MDMA and zolunicant, oregon 18-MC, a congener of ibogaine.
We were incorporated nether the laws of the Province of British Columbia. Our
wholly owned subsidiary, Mind Medicine, Inc. ("MindMed US") was incorporated in
Delaware. Prior to February 27, 2020, our operations were conducted through
MindMed US.
On February 26, 2021 the Company acquired 100% of the issued and outstanding
shares of HealthMode Inc. ("HealthMode"), a developer of technologies using
Artificial Intelligence (AI)-enabled integer measurement to summation the
precision and velocity of objective probe and diligent monitoring. The Company
plans to utilize these technologies successful its objective trials to heighten the
quality of the information that is collected during the Company's objective trials.
Since inception, we person incurred losses portion advancing the probe and
development of our products and processes. Our nett losses were $16.5 cardinal and
$17.2 cardinal for the 3 months ended September 30, 2022 and 2021,
respectively, and $51.9 cardinal and $76.2 million, for the 9 months ended
September 30, 2022 and 2021, respectively. As of September 30, 2022, we had an
accumulated shortage of $189.6 cardinal and currency and currency equivalents of $154.5
million.
During the 9 months ended September 30, 2022, we continued to heighten the
resources required to physique our pipeline of opportunities. This included adding
personnel and declaration resources and ramping up the nonclinical aspects of our
activities. In addition, sizeable effort was directed towards employing a
successful financing strategy.
Research & Development Updates
Our MM-120 (LSD D-tartrate) Phase 2 studies successful GAD and ADHD are ongoing with
topline results expected successful precocious 2023. Over the near-term, we mean to
prioritize the objective probe programme of MM-120 successful psychiatric disorders, and
at the due clip successful the aboriginal mean to proceed to research indications
in different illness areas specified arsenic chronic pain. For our MM-402 oregon R(-)-MDMA
program, we program to initiate a Phase 1 objective proceedings successful 2023; we besides started
an investigator-initiated proceedings of R(-)-MDMA successful the 3rd 4th of 2022. For
MM-110 (zolunicant HCl), we completed a Phase 1 survey successful precocious 2021, however, in
the 3rd 4th of 2022, we determined that immoderate further objective development
of our MM-110 programme volition beryllium taxable to the pursuit of non-dilutive sources of
capital and collaborations with 3rd parties. Our outer collaborations and
early probe and improvement activities person continued to progress, including
the decision of the archetypal collaboration betwixt MindMed and Nextage
Therapeutics.
Impact of COVID-19 Pandemic
We proceed to show the ongoing COVID-19 planetary pandemic, which has resulted
in question and different restrictions to trim the dispersed of the disease. To date,
we person not experienced immoderate important disruptions from the ongoing COVID-19
pandemic. All objective and chemistry, manufacturing and power activities are
currently active.
The safety, wellness and well-being of each patients, aesculapian unit and our
internal and outer teams is paramount and is our superior focus. As the
pandemic and its resulting restrictions germinate successful jurisdictions crossed the
country, we are alert that the potential
18
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exists for further disruptions to our projected timelines. We are successful close
communication with our objective teams and cardinal vendors and are prepared to take
action should the pandemic worsen and interaction our concern successful the future.
August 2022 Reverse Share Split
As antecedently disclosed connected May 27, 2022, we received a missive from Nasdaq's
Listing Qualifications Department notifying america that we were not successful compliance
with Nasdaq Listing Rule 5550(a)(2), arsenic the minimum bid terms for our listed
securities was little than $1 for the erstwhile 30 consecutive concern days. We
had a play of 180 calendar days, oregon until November 23, 2022, to regain
compliance with the regularisation referred to successful this paragraph.
The Company's Board approved a reverse stock divided of the Company's Common
Shares connected a 15-for-1 basis, which was effected connected August 26, 2022 and which
brought the bid terms of the Company's Common Shares supra the minimum bid price
requirement nether the Nasdaq Listing Rules. No fractional Common Shares were
issued arsenic a effect of the August Share Split. Each fractional Common Share
remaining upon the August Share Split that was little than 1/2 of a Common Share
was cancelled and each fractional Common Share that was astatine slightest 1/2 of a Common
Share was changed to 1 full Common Share. The August Share Split affected all
Common Shares outstanding instantly anterior to the effectual clip of the August
Share Split, arsenic good arsenic the fig of Common Shares disposable nether the
Company's banal enactment program and equity inducement plan. In addition, the August
Share Split effected a simplification successful the fig of Common Shares issuable upon
exercise of banal options, vesting of Restricted Share Units and workout of
warrants outstanding instantly anterior to the effectiveness of the August Share
Split. All references to Common Shares, options to acquisition Common Shares, share
data, per stock data, and related accusation contained successful this study person been
retrospectively adjusted to bespeak the effect of the August Share Split for all
periods presented.
On September 13, 2022, pursuing the completion of the August Share Split, the
Company received a announcement from the Nasdaq Listing Qualifications Office
indicating that the Company had regained compliance with the minimum bid price
requirement nether Nasdaq Listing Rule 5550(a)(2).
Components of Operating Results
Operating Expenses
Research and Development
To date, our resources person focused chiefly connected the improvement of our MM-120,
MM-110 and MM-420 programs and the commencement of related objective activities.
We person commenced objective studies and person funded information and survey acquisitions
and acquired the materials required to proviso our studies.
Research and improvement expenses relationship for a important information of our
operating expenses. Research and improvement expenses dwell chiefly of
direct and indirect costs incurred for the improvement of our product
candidates, arsenic follows:
•
payroll, consulting and benefits expenses;
•
licensing fees;
•
manufacturing costs to nutrient objective proceedings materials;
•
clinical probe costs associated with discovery, preclinical and clinical
testing of our merchandise candidates;
•
data and survey acquisition cost;
•
allocated operational expenses, which see nonstop oregon allocated expenses for
Information Technologies and Human Resources; and
•
other costs.
We whitethorn besides incur in-process probe and improvement disbursal arsenic we get or
in-license assets from different parties. Technology acquisitions are expensed or
capitalized based upon the plus achieving technological feasibility in
accordance with management's appraisal regarding the eventual recoverability of
the amounts paid and the imaginable for alternate aboriginal use. Acquired
in-process probe and improvement costs that person nary alternate aboriginal use
are instantly expensed.
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General and Administrative
General and administrative expenses dwell chiefly of compensation costs,
including stock-based compensation, for enforcement absorption and administrative
employees, including concern and accounting, legal, quality resources and other
offices supporting administrative functions, nonrecreational services fees,
insurance expenses and allocated expenses.
We expect our wide and administrative expenses to summation substantially for
the foreseeable aboriginal arsenic we proceed to enactment our probe and development
activities, turn our concern and, if immoderate of our merchandise candidates receive
marketing approval, commercialization activities. We besides expect to summation the
size of our administrative relation and installation costs to enactment the maturation of
our business.
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Results of Operations
Comparison of the Three and Nine Months Ended September 30, 2022 and 2021
The pursuing tables summarize our results of operations for the periods
presented (in thousands):
Three Months Nine Months
Ended September 30, Ended September 30,
$ % $ %
2022 2021 Change Change 2022 2021 Change Change
Operating expenses:
Research and improvement $ 7,772 $ 9,019 $ (1,247 ) (14 )% $ 27,339 $ 23,906 $ 3,433 14 %
General and
administrative 9,211 8,208 1,003
12 % 25,092 52,390 (27,298 ) (52 )%
Total operating expenses 16,983 17,227 (244 ) (1 )% 52,431 76,296 (23,865 ) (31 )%
Loss from operations
(16,983 ) (17,227 ) 244 (1 )% (52,431 ) (76,296 ) 23,865 (31 )%
Other income/(expense):
Interest
income/(expense), nett 360 (64 ) 424 * 443 (220 ) 663 *
Foreign exchange
gain/(loss), nett 138 (40 ) 178 * 94 94 - 0 %
Other income - 135 (135 ) (100 )% 1 215 (214 ) (100 )%
Total different income 498 31 467 * 538 89 449 *
Loss earlier income taxes (16,485 ) (17,196 ) 711 (4 )% (51,893 ) (76,207 ) 24,314 (32 )%
Income taxes - - - 100 % - - - 100 %
Net nonaccomplishment (16,485 ) $ (17,196 ) $ 711 (4 )% (51,893 ) $ (76,207 ) $ 24,314 (32 )%
Other comprehensive
gain/(loss):
(Loss)/gain connected foreign
currency translation (107 ) (383 ) 276
(72 )% (303 ) 380 (683 ) (180 )%
Comprehensive nonaccomplishment $ (16,592 ) $ (17,579 ) $ 987 (6 )% $ (52,196 ) $ (75,827 ) $ 23,631 (31 )%
* Represents a alteration greater than 300%
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Operating Expenses
Research and Development (in thousands):
Three Months Nine Months
Ended September 30, Ended September 30,
$ % $ %
2022 2021 Change Change 2022 2021 Change Change
External Costs
MM-120 research
program $ 1,175 $ 1,513 (338 ) (22 )% $ 5,249 $ 2,305 2,944 128 %
MM-110 research
program 208 1,599 (1,391 ) (87 )% 1,393 5,104 (3,711 ) (73 )%
External R&D
collaborations 328 575 (247 ) (43 )% 1,607 2,292 (685 ) (30 )%
Preclinical and other
programs 1,269 2,086 (817 ) (39 )% 4,639 5,376 (737 ) (14 )%
Total outer costs 2,980 5,773 (2,793 ) (48 )% 12,888 15,077 (2,189 ) (15 )%
Internal Costs 4,792 3,246 1,546 48 % 14,451 8,829 5,622 64 %
Total probe and
development expenses $ 7,772 $ 9,019 $ (1,247 ) (14 )% $ 27,339 $ 23,906 $ 3,433 14 %
Research and improvement expenses were $7.8 cardinal for the 3 months ended
September 30, 2022, compared to $9.0 cardinal for the 3 months ended
September 30, 2021, a alteration of $1.2 million. The alteration was chiefly due
to a alteration of $1.4 cardinal of outer costs related to the MM-110 research
program and a $0.8 cardinal alteration successful preclinical activities. This alteration was
partially offset by an summation of interior unit costs of $1.5 cardinal as
we proceed to grow our in-house probe and improvement capabilities. For
the 9 months ended September 30, 2022, probe and improvement expenses were
$27.3 million, compared to $23.9 cardinal for the 9 months ended September 30,
2021, an summation of $3.4 million. The summation was chiefly driven by an
increase of $5.6 cardinal of interior unit costs related to additional
research and improvement headcount and an summation of $2.9 cardinal successful external
costs related to the MM-120 probe program. These increases were partially
offset by a alteration of outer costs related to the MM-110 probe programme of
$3.7 million.
General and Administrative
General and administrative expenses were $9.2 cardinal for the 3 months ended
September 30, 2022, compared to $8.2 cardinal for the 3 months ended
September 30, 2021, an summation of $1.0 million. The summation was primarily
related to issuance costs related to the Company's 2022 USD Financing Warrants
that were issued arsenic portion of the Company's nationalist equity offering which closed
during the quarter. For the 9 months ended September 30, 2022, wide and
administrative expenses were $25.1 million, compared to $52.4 cardinal for the
nine months ended September 30, 2021, a alteration of $27.3 million. The decrease
was chiefly owed to a alteration of $26.4 cardinal successful non-cash stock-based
compensation expenses relating to the modification of banal enactment awards and
RSUs recorded during the 9 months ended September 30, 2021.
Other Income/(Expense)
Interest Income/(Expense), Net
Interest income (expense), nett accrued by astir $0.4 cardinal and $0.7
million for the 3 and 9 months ended September 30, 2022 compared to the
three and 9 months ended September 30, 2021, respectively. This was primarily
due to our concern successful currency equivalents during 2022.
Foreign Exchange Gain, Net
Foreign speech accrued by a nominal magnitude for the 3 and 9 months
ended September 30, 2022 compared to the 3 and 9 months ended September
30, 2021.
Other Income/(Expense)
Other income decreased by a nominal magnitude for the 3 and 9 months ended
September 30, 2022 compared to the 3 and 9 months ended September 30,
2021, respectively, chiefly owed to a cessation of income of branded
merchandise.
Liquidity and Capital Resources
Sources of Liquidity
22
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Since inception, we person financed our operations chiefly from the issuance of
equity. Our superior superior needs are for funds to enactment our scientific
research and improvement activities including staffing, manufacturing,
preclinical studies, objective trials, administrative costs and for working
capital.
23
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We person experienced operating losses and currency outflows from operations since
inception and volition necessitate ongoing financing to proceed our probe and
development activities and we person not earned immoderate gross oregon reached successful
commercialization of our products. Our aboriginal operations are babelike upon our
ability to concern our currency requirements which volition let america to proceed our
research and improvement activities and the commercialization of our products.
There tin beryllium nary assurance that we volition beryllium palmy successful continuing to finance
our operations.
On January 7, 2021, we completed a bought woody financing resulting successful the
issuance of 1,395,333 units of the Company astatine a terms per portion of CAD$66.00
($52.05) for gross proceeds of $72.6 million. Each portion comprised 1 Common
Share of the Company and one-half of 1 Common Share financing warrant (each
whole warrant, a "January Warrant"). Each January Warrant entitles the holder
thereof to acquisition 1 Common Share astatine an workout terms of CAD$86.25 ($67.95)
until January 7, 2024. Also, successful transportation with this transaction, the Company
issued 83,720 compensation warrants to its underwriter.
On March 9, 2021, we completed a backstage placement bought woody financing
resulting successful the issuance of 400,000 units of the Company astatine a terms per portion of
CAD$48.75 ($38.55) for gross proceeds of $15.4 million. Each portion was comprised
of 1 Common Share of the Company and one-half of 1 Common Share financing
warrant (each full warrant, a "March Warrant"). Each March Warrant entitles the
holder thereof to acquisition 1 Common Share astatine an workout terms of CAD$66.00
($52.20) until March 9, 2024. Also, successful transportation with this transaction, the
Company issued 24,000 compensation warrants to its underwriter.
Our currency and currency equivalents and moving superior arsenic of September 30, 2022 was
$154.5 cardinal and 130.5 million, respectively.
Shelf Registration and At-The-Market Facility
On May 4, 2022, we filed the Registration Statement. Pursuant to the
Registration Statement, we whitethorn connection and merchantability securities having an aggregate
public offering terms of up to $200.0 million. In transportation with the filing of
the Registration Statement, we besides entered into a income statement Sales Agents,
pursuant to which we whitethorn contented and merchantability Common Shares for an aggregate offering
price of up to $100.0 cardinal nether the ATM. Pursuant to the ATM, we volition pay
the Sales Agents a committee complaint adjacent to 3.0% of the gross proceeds from the
sale of immoderate Common Shares. We are not obligated to marque immoderate income of Common
Shares nether the ATM. As of September 30, 2022 we sold 1,955,548 Common Shares
for nett proceeds of $30.2 cardinal nether the ATM.
Common Share and Warrant Public Offering
On September 30, 2022, we closed an underwritten nationalist offering of 7,058,823
Common Shares and 2022 USD Financing Warrants to acquisition 7,058,823 Common
Shares astatine a combined offering terms of $4.25, for gross proceeds of $30.0
million and nett proceeds of $27.5 cardinal aft deducting underwriting discounts
and commissions and offering costs. Each 2022 USD Financing Warrant is
immediately exercisable for 1 Common Share astatine an archetypal workout terms of
$4.25 per Common Share, taxable to definite adjustments and volition expire on
September 30, 2027.
Future Funding Requirements
To date, we person not generated immoderate revenue. We bash not expect to make any
meaningful gross unless and until we get regulatory support of and
commercialize immoderate of our merchandise candidates, and we bash not cognize when, oregon if at
all, that volition occur. We volition proceed to necessitate important further capital
to make our merchandise candidates and money operations for the foreseeable
future. Moreover, we expect our expenses to summation successful transportation with our
ongoing activities, peculiarly arsenic we proceed the improvement of and seek
regulatory approvals for our merchandise candidates. Further, we are taxable to all
the risks incidental successful the improvement of caller pharmaceutical products, and we may
encounter unforeseen expenses, difficulties, complications, delays and other
unknown factors that whitethorn harm our business. Our expenses volition summation if, and
as, we:
•
advance our merchandise candidates done preclinical and objective development;
•
seek regulatory approvals for immoderate merchandise candidates that successfully complete
clinical trials;
•
seek to observe and make further merchandise candidates;
•
establish a sales, marketing, aesculapian affairs and organisation infrastructure to
commercialize immoderate merchandise candidates for which we whitethorn get selling approval
and mean to commercialize connected our ain oregon jointly; and
•
expand our operational, fiscal and absorption systems and summation personnel,
including unit to enactment our development, manufacturing and
commercialization efforts and our operations arsenic a nationalist company.
24
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We expect our existent currency and currency equivalents volition beryllium capable to money our
current 2022 and 2023 operating program and volition widen our currency runway into first
half of 2025. However, our forecast of the play of clip done which our
financial resources volition beryllium capable to enactment our operations is a
forward-looking connection that involves risks and uncertainties, and actual
results could alteration materially. In bid to implicit the improvement of our
product candidates and to physique the sales, selling and distribution
infrastructure that we judge volition beryllium indispensable to commercialize our product
candidates, if approved, we volition necessitate important further funding. Until
we tin make a capable magnitude of gross from the commercialization of our
product candidates, we whitethorn question to rise immoderate indispensable further capital
through the merchantability of equity, indebtedness financings oregon different superior sources, which
could see income from collaborations, strategical partnerships oregon marketing,
distribution oregon licensing arrangements with 3rd parties oregon from grants. To the
extent that we rise further superior done the merchantability of equity or
convertible indebtedness securities, the ownership involvement of our shareholders volition be
or could beryllium diluted, and the presumption of these securities whitethorn see liquidation
or different preferences that adversely impact the rights of our shareholders. Debt
financing and preferred equity financing, if available, whitethorn impact agreements
that see covenants limiting oregon restricting our quality to instrumentality specific
actions, including restricting our operations and limiting our quality to incur
liens, contented further debt, wage dividends, repurchase our Common Shares, make
certain investments oregon prosecute successful merger, consolidation, licensing oregon plus sale
transactions. If we rise funds done collaborations, strategical partnerships
and different akin arrangements with 3rd parties, we whitethorn beryllium required to grant
rights to make and marketplace merchandise candidates that we would different prefer
to make and marketplace ourselves. We whitethorn beryllium incapable to rise further funds or
to participate into specified agreements oregon arrangements connected favorable terms, oregon astatine all. If
we are incapable to rise further funds erstwhile needed, we whitethorn beryllium required to
delay, trim oregon destruct our merchandise improvement oregon aboriginal commercialization
efforts. We person based our projections of operating superior requirements connected our
current operating plan, which is based connected respective assumptions that whitethorn beryllium to
be incorrect and we whitethorn usage each of our disposable superior resources sooner than
we expect. Because of the galore risks and uncertainties associated with
research, improvement and commercialization of merchandise candidates, we are unable
to estimation the nonstop magnitude and timing of our moving superior requirements. Our
future backing requirements volition beryllium connected galore factors, including:
•
the scope, progress, results and costs of researching and processing our product
candidates, and conducting preclinical studies and objective trials;
•
the costs, timing and result of regulatory reappraisal of our merchandise candidates;
•
the costs of aboriginal activities, including merchandise sales, aesculapian affairs,
marketing, manufacturing and distribution, for immoderate of our merchandise candidates for
which we person selling approval;
•
the costs of manufacturing commercial-grade products and capable inventory to
support commercialized launch;
•
the revenue, if any, received from commercialized merchantability of our products, should any
of our merchandise candidates person selling approval;
•
the outgo and timing of hiring caller employees to enactment our continued growth;
•
the costs of preparing, filing and prosecuting patent applications, maintaining
and enforcing our intelligence spot rights and defending intellectual
property-related claims;
•
the quality to found and support collaborations connected favorable terms, if at
all;
•
the grade to which we get oregon in-license different merchandise candidates and
technologies; and
•
the timing, receipt and magnitude of income of, oregon milestone payments related to or
royalties on, our existent oregon aboriginal merchandise candidates, if any.
Cash Flows
Nine Months Ended September 30,
2022 2021
Net currency utilized successful operating activities $ (37,290 ) $ (37,991 )
Net currency utilized successful investing activities - (410 )
Net currency provided by financing activities 58,635 98,697
Foreign speech interaction connected currency and currency equivalents (365 ) 5,529
Net summation successful currency and currency equivalents $ 20,980 $ 65,825
Cash flows from operating activities
Cash utilized successful operating activities for the 9 months ended September 30, 2022
was $37.3 million, which consisted of a nett nonaccomplishment of $51.9 million, partially
offset by $16.3 cardinal successful non-cash charges and a nett alteration of $1.6 cardinal in
our nett operating assets and
25
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liabilities. The non-cash charges consisted of share-based payments of $12.3
million, amortization of intangible assets of $2.4 million, and issuance costs
on liability classified warrants of $1.5 million.
Cash utilized successful operating activities for the 9 months ended September 30, 2021
was $38.0 million, which consisted of a nett nonaccomplishment of $76.2 million, partially
offset by $40.2 cardinal successful non-cash charges and a nett alteration of $2.0 cardinal in
our nett operating assets and liabilities. The non-cash charges primarily
consisted of share-based payments.
Cash flows from investing activities
Cash utilized successful investing activities for the 9 months ended September 30, 2021
was $0.4 million, which consisted of currency paid for the acquisition of
HealthMode, nett of currency acquired.
Cash flows from financing activities
Cash provided by financing activities for the 9 months ended September 30,
2022 was $58.6 million, which consisted of the nett proceeds of $41.6 million
from the issuance of communal shares, nett of issuance costs, proceeds of $17.7
million from the issuance of warrants, the proceeds of $0.7 cardinal from
exercise of warrants, and proceeds of $0.2 cardinal from workout of options,
partially offset by $1.2 cardinal outgo of warrant issuance costs and $0.4
million of withholding taxes paid connected vested RSUs.
Cash provided by financing activities for the 9 months ended September 30,
2021 was $98.7 million, which consisted of the nett proceeds of $81.9 million
from the issuance of communal shares and warrants, nett of issuance costs, the
proceeds of $11.2 cardinal from workout of warrants, and proceeds of $5.6
million from workout of options.
Critical Accounting Policies and Estimates
Our management's treatment and investigation of our fiscal information and results
of operations is based connected our unaudited interim condensed consolidated financial
statements arsenic astatine September 30, 2022, which person been prepared successful accordance with
United States mostly accepted accounting principles, oregon U.S. GAAP and connected a
basis accordant with those accounting principles followed by america and disclosed
in Note 2 to our astir caller yearly audited consolidated fiscal statements.
The mentation of these unaudited interim condensed consolidated financial
statements requires our absorption to marque judgments and estimates that affect
the reported amounts of assets and liabilities and the disclosure of contingent
assets and liabilities astatine the day of the fiscal statements, arsenic good arsenic the
reported gross generated and expenses incurred during the reporting periods.
Our estimates are based connected our humanities acquisition and connected assorted other
factors that we judge are tenable nether the circumstances, the results of
which signifier the ground for making judgments astir the carrying worth of assets and
liabilities that are not readily evident from different sources. Significant
estimates and judgments include, but are not constricted to, probe and
development taxation credits recoverable, probe and improvement expenses, and
share-based compensation. Accordingly, existent results whitethorn disagree from these
judgments and estimates nether antithetic assumptions oregon conditions and immoderate such
differences whitethorn beryllium material. We judge that the accounting policies discussed
below are captious to knowing our humanities and aboriginal performance, as
these policies subordinate to the much important areas involving management's
judgments and estimates.
We expect that the COVID-19 pandemic volition person an interaction connected the development
timelines of our objective programs. Estimates and assumptions astir future
events and their effects cannot beryllium determined with certainty and therefore
require the workout of judgment. As of the day of issuance of these financial
statements, we are not alert of immoderate circumstantial lawsuit oregon condition that would
require the update of our estimates, assumptions and judgments. These estimates
may alteration arsenic caller events hap and further accusation is obtained and are
recognized successful the condensed consolidated fiscal statements arsenic soon arsenic they
become known. Actual results could disagree from those estimates and immoderate such
differences whitethorn beryllium worldly to our fiscal statements.
Other than arsenic described nether Note 2 of our unaudited interim condensed
consolidated fiscal statements, determination person been nary worldly changes to our
critical accounting policies from those described successful "Management's Discussion
and Analysis of Financial Condition and Results of Operations," included successful our
most caller yearly consolidated fiscal statements.
Recent Accounting Pronouncements
See Note 2 to our unaudited fiscal statements located successful "Part I - Financial
Information, Item 1. Financial Statements" successful this Quarterly Report connected Form 10-Q
for a statement of caller accounting pronouncements applicable to our
financial statements.
Emerging Growth Company Status
26
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We are an "emerging maturation company," arsenic defined successful the JOBS Act. Under the JOBS
Act, emerging maturation companies tin hold adopting caller oregon revised accounting
standards issued consequent to the enactment of the JOBS Act until specified clip as
those standards use to backstage companies.
We person elected to usage this extended modulation play to alteration america to comply
with caller oregon revised accounting standards that person antithetic effectual dates for
public and backstage companies until the earlier of the day we (i) are nary longer
an emerging maturation institution oregon (ii) affirmatively and irrevocably opt retired of the
extended modulation play provided successful the JOBS Act. As a result, our financial
statements whitethorn not beryllium comparable to companies that comply with caller oregon revised
accounting pronouncements arsenic of nationalist institution effectual dates.
Fully Diluted Share Capital
The fig of issued and outstanding Common Shares connected a afloat converted ground as
at September 30, 2022 was arsenic follows:
Number of Common Share Equivalents
Common Shares 37,541,115
Stock Options 2,364,013
Restricted Share Units 1,082,669
Compensation Warrants 125,890
Financing Warrants 1,286,282
2022 USD Financing Warrants 7,058,823
Total - September 30, 2022 49,458,792
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