Edesa Biotech Reports $1.6 Million Net Loss, Increases Total Assets to $4.2 Million

Edesa Biotech, Inc. reported a net loss of $1.6 million for the three months ending December 31, 2024, a slight improvement from a net loss of $1.7 million during the same period in 2023. The company’s loss per common share was $0.48, compared to $0.54 in the prior year. Total operating expenses remained stable at approximately $1.9 million, with research and development (R&D) expenses increasing to $1.0 million from $0.7 million, primarily due to heightened external research costs associated with the manufacturing of its drug candidate, paridiprubart (EB05). General and administrative expenses decreased to $0.9 million from $1.2 million, attributed to reduced salaries and professional service fees.

Edesa's financial position showed a notable increase in total assets, rising to $4.2 million as of December 31, 2024, compared to $3.8 million at the end of the previous quarter. Current assets also increased to $2.1 million, driven by a rise in cash and cash equivalents, which reached $1.6 million, up from $1.0 million. The company’s accumulated deficit grew to $60.2 million, reflecting ongoing operational losses. Shareholders' equity increased to $2.3 million, bolstered by the issuance of 150 Series A-1 Preferred Shares, which generated $1.5 million in proceeds.

Strategically, Edesa has made significant moves to enhance its capital structure. In October 2024, the company entered into a Securities Purchase Agreement for the Series A-1 Preferred Shares, which included warrants for common shares. This was followed by a successful private placement in February 2025, raising approximately $15 million through the sale of Series B-1 Preferred Shares and common shares. These actions are part of Edesa's broader strategy to secure funding for its clinical programs, particularly for EB05, which is currently being evaluated in a U.S. government-funded clinical study for Acute Respiratory Distress Syndrome (ARDS).

Operationally, Edesa is focused on advancing its clinical pipeline, which includes drug candidates for inflammatory and immune-related diseases. The company is preparing for a Phase 2 study of EB06, an anti-CXCL10 monoclonal antibody for vitiligo, and is also working on an investigational new drug application for EB07 in pulmonary fibrosis. The company’s R&D efforts are supported by a multi-year contribution agreement with the Canadian government, which has committed up to C$23 million in funding for its clinical studies.

Looking ahead, Edesa Biotech anticipates continued operating losses as it invests in the development of its product candidates. The company plans to seek additional financing through equity sales, government grants, and potential collaborations to support its operations and clinical trials. Management has indicated that the cash generated from recent financing activities, along with grant reimbursements, is expected to fund operations through at least the end of fiscal 2026, although the company remains cautious about its ability to raise necessary funds in the future.