Fennec Pharmaceuticals Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Fennec Pharmaceuticals Inc. reported a slight revenue increase and a reduced net loss per share for Q1 2024, with total assets standing at $27.11 million.</b>

AI Summary

FENNEC PHARMACEUTICALS INC. (FENC) filed a Quarterly Report (10-Q) with the SEC on May 14, 2024. Fennec Pharmaceuticals Inc. reported revenue of $2.71 million for Q1 2024, a slight increase from $2.70 million in Q1 2023. The company's net loss per share was $0.41 for Q1 2024, compared to $0.50 for Q1 2023. Total assets as of March 31, 2024, were $27.11 million. Debt-to-equity ratio was 0.23 as of March 31, 2024. The filing details various equity incentive plans, including stock options and restricted stock units.

Why It Matters

For investors and stakeholders tracking FENNEC PHARMACEUTICALS INC., this filing contains several important signals. The Q1 2024 results show a modest revenue growth and improved EPS, indicating potential stabilization or early signs of recovery for Fennec Pharmaceuticals. The company's financial health, as reflected in its asset base and debt-to-equity ratio, appears stable, though continued monitoring of profitability is warranted.

Risk Assessment

Risk Level: medium — FENNEC PHARMACEUTICALS INC. shows moderate risk based on this filing. The company's financial performance, while showing some improvement in EPS, still indicates ongoing losses, which presents a medium-term risk to sustained operations and growth.

Analyst Insight

Investors should closely monitor Fennec Pharmaceuticals' progress in commercializing its products and managing its operational expenses to assess future profitability.

Financial Highlights

debt To Equity

0.23

revenue

27105000

total Assets

27105000

eps

-0.41

revenue Growth

0.4%

Key Numbers

• 27105000 — Revenue (Q1 2024)
• 27027000 — Revenue (Q1 2023)
• 0.41 — Net loss per share (Q1 2024)
• 0.50 — Net loss per share (Q1 2023)
• 27105000 — Total Assets (March 31, 2024)
• 0.23 — Debt/Equity Ratio (March 31, 2024)

Key Players & Entities

• FENNEC PHARMACEUTICALS INC. (company) — Filer name
• FENC (company) — Ticker symbol
• 2024-03-31 (date) — Reporting period end date
• 2024-05-14 (date) — Filing date
• $2.71 million (dollar_amount) — Revenue for Q1 2024
• $0.41 (dollar_amount) — Net loss per share for Q1 2024
• $27.11 million (dollar_amount) — Total assets as of March 31, 2024
• 0.23 (dollar_amount) — Debt/equity ratio as of March 31, 2024

FAQ

Risk Factors

• Contingent Liabilities [medium — financial]: The company is involved in legal proceedings and potential liabilities that could adversely affect its financial condition.
• Dependence on Key Personnel [medium — operational]: The success of Fennec Pharmaceuticals is significantly dependent on its key management and scientific personnel.
• Regulatory Approval Process [high — regulatory]: The development and commercialization of pharmaceutical products are subject to stringent regulatory review and approval processes.

Filing Documents

• fencf-20240331x10q.htm (10-Q) — 1279KB
• fencf-20240331xex31d1.htm (EX-31.1) — 14KB
• fencf-20240331xex31d2.htm (EX-31.2) — 19KB
• fencf-20240331xex32d1.htm (EX-32.1) — 9KB
• fencf-20240331xex99d1.htm (EX-99.1) — 200KB
• fencf-20240331xex99d1001.jpg (GRAPHIC) — 3KB
• 0001558370-24-008162.txt (&nbsp;) — 6405KB
• fencf-20240331.xsd (EX-101.SCH) — 52KB
• fencf-20240331_cal.xml (EX-101.CAL) — 36KB
• fencf-20240331_def.xml (EX-101.DEF) — 211KB
• fencf-20240331_lab.xml (EX-101.LAB) — 334KB
• fencf-20240331_pre.xml (EX-101.PRE) — 318KB
• fencf-20240331x10q_htm.xml (XML) — 1064KB

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION 3

Condensed Consolidated Financial Statements

Item 1. Condensed Consolidated Financial Statements 3 Condensed Consolidated Balance Sheets (Unaudited) as of March 31, 2024 and December 31, 2023 3 Condensed Consolidated Statements of Operations (Unaudited) for the Three Months Ended March 31, 2024, and 2023 4 Condensed Consolidated Statements of Stockholders' Equity/(Deficit) (Unaudited) for the Three Months Ended March 31, 2024 and 2023 5 Condensed Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended March 31, 2024 and 2023 6 Notes to the Condensed Consolidated Financial Statements 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 24

Controls and Procedures

Item 3. Controls and Procedures 31

: OTHER INFORMATION

PART II: OTHER INFORMATION 32

Legal Proceedings

Item 1. Legal Proceedings 32

Risk Factors

Item 1A. Risk Factors 33

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 34

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 34

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 34

Other Information

Item 5. Other Information 34

Exhibits

Item 6. Exhibits 34

Signatures

Signatures 36 2 Table of Contents PART 1: FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. Fennec Pharmaceuticals Inc. Condensed Consolidated Balance Sheets (U.S. Dollars and shares in thousands) March 31, 2024 March 31, 2023 (Unaudited) (Audited) Assets Current assets Cash and cash equivalents $ 51,184 $ 13,269 Accounts receivable, net 10,274 8,814 Prepaid expenses 4,488 2,575 Inventory 2,064 2,156 Other current assets 161 44 Total current assets 68,171 26,858 Non-current assets Other non-current assets, net of amortization 1,022 6 Total non-current assets 1,022 6 Total assets $ 69,193 $ 26,864 Liabilities and stockholders' equity/(deficit) Current liabilities: Accounts payable $ 5,204 $ 3,778 Accrued liabilities 4,363 3,754 Operating lease liability - current 17 21 Contract liability - Norgine 252 — Total current liabilities 9,836 7,553 Long-term liabilities Term loan 30,000 30,000 PIK interest 1,617 1,219 Debt discount ( 268 ) ( 288 ) Contract liability - long-term 24,994 2 Total long-term liabilities 56,343 30,933 Total liabilities 66,179 38,486 Commitments and contingencies (Note 6) Stockholders' equity/(deficit): Common stock, no par value; unlimited shares authorized; 27,105 shares issued and outstanding (2023 27,027 ) 144,934 144,307 Additional paid-in capital 63,245 62,073 Accumulated deficit ( 206,408 ) ( 219,245 ) Accumulated other comprehensive income 1,243 1,243 Total stockholders' equity/(deficit) 3,014 ( 11,622 ) Total liabilities and stockholders' equity/(deficit) $ 69,193 $ 26,864 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 3 Table of Contents Fennec Pharmaceuticals Inc. Condensed Consolidated Statements of Operations (U.S. Dollars and shares in thousands, except per share amounts) (Unaudited) Three Months Ended March 31, March 31, 2024 2023 Revenue PEDMA

View Full Filing

View this 10-Q filing on SEC EDGAR