Company: DMAC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001437749-25-026207
Chunk: 3

Company: DiaMedica Therapeutics Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Item 1
Chunk 3
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 the ability of any future partner, to obtain required governmental approvals of our product candidate, our ability to license or market and sell our DM199 product candidate, and our ability to obtain additional financing to fund these efforts.      6

  
  As of June 30, 2025, we have incurred losses of $155.4 million since our inception in 2000. For the six months ended June 30, 2025, we incurred a net loss of $15.4 million and negative cash flows from operating activities of $14.7 million. We expect to continue to incur operating losses until such time as any future product sales, licensing fees, milestone payments and/or royalty payments generate revenue sufficient to fund our continuing operations. For the foreseeable future, we expect to incur significant operating losses as we continue the development and clinical study of, and to seek regulatory approval for, our DM199 product candidate. As of June 30, 2025, we had combined cash, cash equivalents and marketable securities of $30.0 million, working capital of $27.0 million and shareholders’ equity of $27.2 million. Subsequent to quarter end, in July 2025, we completed a private placement of common shares in which we received net proceeds of $29.9 million, see Note 14, titled “Subsequent Event.”   Our principal source of cash has been net proceeds from the issuance of equity securities. Although we have previously been successful in obtaining financing through equity securities offerings, there is no assurance that we will be able to do so in the future. This is particularly true if our clinical data are not positive or if economic and market conditions deteriorate.   Notwithstanding the completion of our July 2025 private placement, we expect that we will need substantial additional capital to further our research and development activities and complete the required clinical studies, regulatory activities and manufacturing development for our product candidate, DM199, or any future product candidates, to a point where they may be licensed or commercially sold. We expect our current cash, cash equivalents and marketable securities, including the $29.9 million net proceeds from our July 2025 private placement of common shares, to be sufficient to continue the Phase 2 PE trial, the ReMEDy2 trial, and otherwise fund our planned operations for at least the next 12 months from the date of issuance of these condensed consolidated financial statements. The amount and timing of our future funding requirements will depend on many factors, including timing and results of our ongoing