Company: MDCXW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001062993-25-016838
Chunk: 11

Company: Medicus Pharma Ltd.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 11
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 once declared effective, will remove the six-month hold.
      
        18

      The Company accounted for the transaction as an asset acquisition as substantially all of the estimated fair value of the gross assets acquired was concentrated in a single identified IPR&D, thus satisfying the requirements of the screen test in accordance with the criteria under ASC 805-10-55-5C. As the common shares issued by the Company are subject to lock-up restrictions, a discount of 21.4394% was applied to the quoted closing price of the Company's shares ($1.94) to determine the fair value of the Company's common share. This resulted in a fair value of $1.52 per share, reflecting a discount of $0.42 per share.
      The following is a summary of the consideration paid:

              Fair value of 1,603,164 common shares
              $
              2,443,344

              Cash paid
               
              2,970,166

              Transaction expenses
               
              1,992,798

              Contingent consideration
               
              Nil

              Total fair value consideration
               
              7,406,308

              Fair value of non-controlling interest
               
              105,161

              Total fair value for allocation to net assets of Antev
               
              7,511,469

      Due to the nature of the regulatory, sales and financing-based milestones, the contingent consideration was not included in the initial cost of assets acquired as they are contingent upon events that are outside the Company's control. Contingent consideration will recognized when it becomes probable that the milestone conditions will be met and the amount can be estimated. As of September 30, 2025, none of the contingent events had occurred, nor were the milestone conditions considered probable to be met.
      The allocation of Antev's net assets acquired was as follows:

              Cash
              $
              13,353

              Assets
               
              224,719

              Accrued and other accounts payable
               
              (1,327,429
              )

              Other liabilities
               
              (116,649
              )

              IPR&D - Teverelix
               
              8,717,475

              Net assets acquired
              $
              7,511,469

      All costs allocated to IPR&D by the Company were recognized as research and development expenses in the Company's condensed consolidated statement of operations and comprehensive loss