Grace Therapeutics Files Q3 2024 10-Q

Ticker: GRCE · Form: 10-Q · Filed: Feb 13, 2025 · CIK: 1444192

Grace Therapeutics, INC. 10-Q Filing Summary
FieldDetail
CompanyGrace Therapeutics, INC. (GRCE)
Form Type10-Q
Filed DateFeb 13, 2025
Risk Levellow
Pages15
Reading Time18 min
Key Dollar Amounts$0.0001, $0
Sentimentneutral

Sentiment: neutral

Topics: 10-Q, financials, corporate-filing

TL;DR

Grace Therapeutics (formerly Acasti Pharma) filed its 10-Q for Q3 2024. Check financials.

AI Summary

Grace Therapeutics, Inc. filed its 10-Q report for the quarterly period ended December 31, 2024. The company, formerly known as Acasti Pharma Inc., is incorporated in Delaware and headquartered in Princeton, New Jersey. This filing covers its financial performance and operational status during the specified quarter.

Why It Matters

This 10-Q filing provides investors and stakeholders with an update on Grace Therapeutics' financial health and business operations for the third quarter of fiscal year 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing financial and operational updates, not indicating immediate significant risk.

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The quarterly period ended December 31, 2024.

What was Grace Therapeutics, Inc. formerly known as?

Grace Therapeutics, Inc. was formerly known as Acasti Pharma Inc.

In which state was Grace Therapeutics, Inc. incorporated?

Grace Therapeutics, Inc. was incorporated in Delaware.

What is the principal executive office address for Grace Therapeutics, Inc.?

The principal executive offices are located at 103 Carnegie Center, Suite 300, Princeton, New Jersey 08540.

What is the SEC file number for Grace Therapeutics, Inc.?

The SEC file number is 001-35776.

Filing Stats: 4,535 words · 18 min read · ~15 pages · Grade level 17.9 · Accepted 2025-02-13 07:30:33

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 5 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 19 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 41 Item 4.

Controls and Procedures

Controls and Procedures 41

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 41 Item 1A.

Risk Factors

Risk Factors 42 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 42 Item 3. Defaults Upon Senior Securities 42 Item 4. Mine Safety Disclosures 42 Item 5. Other Information 42 Item 6. Exhibits 42 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This quarterly report contains information that may be forward-looking statements within the meaning of U.S. federal securities laws and forward-looking statements within the meaning of Canadian securities laws, both of which we refer to in this quarterly report as forward-looking statements. Forward- looking statements can be identified by the use of terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not statements about historical facts. Forward-looking statements in this quarterly report include, among other things, information, or statements about: our ability to build a late-stage pharmaceutical company focused in rare and orphan diseases and, on developing and commercializing products that improve clinical outcomes using our novel drug delivery technologies; our ability to apply new proprietary formulations to existing pharmaceutical compounds to achieve enhanced efficacy, faster onset of action, reduced side effects, and more convenient drug delivery that can result in increased patient compliance; the potential for our drug candidates to receive orphan drug designation and exclusivity from the U.S. Food and Drug Administration ("FDA") or regulatory approval under the Section 505(b)(2) regulatory pathway under the Federal Food, Drug and Cosmetic Act ("FDCA"); the future prospects of our GTx-104 drug candidate, including but not limited to GTx-104's potential to be administered to improve the management of hypotension in patients with aneurysmal subarachnoid hemorrhage ("aSAH"); the ability of GTx-104 to achieve a pharmacokinetic ("PK") and sa

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

Management's Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended March 31, 2024, Quarterly Report on Form 10-Q for the period ended June 30, 2024 and Quarterly Report on Form 10-Q for the period ended September 30, 2024. 3 Table of Contents All of the forward-looking statements in this quarterly report are qualified by this cautionary statement. There can be no guarantee that the results or developments that we anticipate will be realized or, even if substantially realized, that they will have the consequences or effects on our business, financial condition, or results of operations that we anticipate. As a result, you should not place undue reliance on these forward-looking statements. Except as required by applicable law, we do not undertake to update or amend any forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements are made as of the date of this quarterly report. We express all amounts in this quarterly report in thousands of U.S. dollars, except share and per share amounts or otherwise indicated. References to "$" are to U.S. dollars and references to "CAD$" are to Canadian dollars. Except as otherwise indicated, references in this quarterly report to "Grace," "Grace Therapeutics", "Acasti," "the Company," "we," "us" and "our" refer to Grace Therapeutics, Inc. (formerly known as Acasti Pharma Inc.) and its consolidated subsidiary. 4 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Information

Item 1. Financial Information Unaudited Condensed Consolidated Financial Statements Condensed Consolidated Balance Sheets 6 Condensed Consolidated Statements of Loss and Comprehensive Loss 7 Condensed Consolidated Statements of Stockholders' Equity 8 Condensed Consolidated Statements of Cash Flows 9 Notes to the Unaudited Condensed Consolidated Financial Statements 10 5 Table of Contents GRACE THERAPEUTICS, INC. (Formerly ACASTI PHARMA INC.) Condensed Consolidated Balance Sheets (Unaudited) December 31, 2024 March 31, 2024 (Expressed in thousands except share data) $ $ Assets Current assets: Cash and cash equivalents 11,055 23,005 Receivables 301 722 Prepaid expenses 583 283 Total current assets 11,939 24,010 Equipment, net 19 24 Intangible assets 41,128 41,128 Goodwill 8,138 8,138 Total assets 61,224 73,300 Liabilities and Stockholders' equity Current liabilities: Trade and other payables 1,971 1,684 Total current liabilities 1,971 1,684 Derivative warrant liabilities 3,781 4,359 Deferred tax liability 3,333 5,514 Total liabilities 9,085 11,557 Commitments and contingencies (Note 9) Stockholders' equity: Preferred stock, $ 0.0001 par value per share; 10,000,000 authorized; none issued and outstanding — — Common stock, $ 0.0001 par value per share; 100,000,000 authorized; 10,139,861 and 9,399,404 shares issued and outstanding as of December 31, 2024 and March 31, 2024, respectively 1 1 Additional paid-in capital 279,499 278,899 Accumulated other comprehensive loss ( 6,038 ) ( 6,038 ) Accumulated deficit ( 221,323 ) ( 211,119 ) Total stockholders' equity 52,139 61,743 Total liabilities and stockholders' equity 61,224 73,300 See accompanying notes to unaudited condensed consolidated financial statements. 6 Table of Contents GRACE THERAPEUTICS, INC. (Formerly ACASTI PHARMA INC.) Condensed Consolidated Statements of Loss and Comprehensive Loss (Unaudited) Three

financial statements and notes thereto. All per share amounts for all periods

financial statements and notes thereto. All per share amounts for all periods presented in the accompanying unaudited condensed consolidated financial applicable, to reflect the effect of the change in par value. Liquidity and Financial Condition The Company has incurred operating losses and negative cash flows from operations in each period since its inception. The Company expects to incur significant expenses and continued operating losses for the foreseeable future. In May 2023, the Company implemented a strategic realignment plan to enhance shareholder value that resulted in the Company engaging a new management team, streamlining its research and development activities, and greatly reducing its workforce. Following the realignment, the Company is a smaller, more focused organization, based in the United States, and concentrated on its development of its lead product candidate GTx-104. Further development of GTx-102 and GTx-101 will occur at such a time when the Company is able to secure additional funding or enters into strategic partnerships for license or sale with third parties. 10 Table of Contents In September 2023, the Company entered into a securities purchase agreement (the "2023 Purchase Agreement") with certain institutional and accredited investors (the "2023 Private Placement"). Gross proceeds to the Company from the 2023 Private Placement were approximately $ 7,500 , before deducting fees and expenses. The Company issued and sold an aggregate of 1,951,371 Common Shares, pre-funded warrants (the "2023 Pre-funded Warrants") to purchase up to an aggregate of 2,106,853 Common Shares, each at a purchase price of $ 1.848 per Common Share and accompanying common warrants (the "2023 Common Warrants" and, together with the 2023 Pre-funded Warrants, the "2023 Warrants") to purchase up to an aggregate of 2,536,391 Common Shares. In connection with the Continuance and the Domestica

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