Company: MDCXW
Filing Date: 2025-03-07
Form Type: 253G1
Source: 0001062993-25-004966
Chunk: 74

Company: Medicus Pharma Ltd.
Filing Date: 2025-03-07
Form: 253G1
Chunk 74
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 the equivalent periods in the prior year. Share-based compensation changes based on the variability in the number of options granted, vesting periods of the options and the grant date fair value. During the nine months ended September 30, 2024, the share-based compensation expense relates to the vesting of share options. On June 25, 2024, the Board of Directors approved the acceleration of vesting for all outstanding share options resulting in the Company recognizing the remaining expense for all share options outstanding and unvested as of that date.

Finance expense, net

Finance expense (income) decreased by $232,745 or 125% and $449,841 or 90% for the three and nine months ended September 30, 2024, respectively, compared to the equivalent periods in the prior year. Finance expense (income) for the three and nine months ended September 30, 2024, is primarily related to interest on convertible notes and the Company's office lease offset by interest income earned on short-term money market investments. Finance expense for the three and nine months ended September 30, 2023, was comprised of interest accretion on convertible promissory notes and dividend expense, partially offset by a fair value adjustment gain on the convertible promissory notes.

Comparison of Year ended December 31, 2023 and Year ended December 31, 2022

General and administrative

G&A expenses increased by $2,034,170 for the year ended December 31, 2023, compared to the year ended December 31, 2022. The increase is primarily due to increased legal costs, professional fees and corporate activities related to preparation for the RTO transaction.

We expect an increase in G&A expenses associated with being a public company, including costs related to accounting, audit, legal, regulatory, and tax-related services associated with maintaining compliance with applicable securities law requirements; additional director and officer insurance costs; and investor and public relations costs.

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Research and development

R&D expenses comprise primarily of consulting fees and external contract costs. In terms of the clinical study costs, the '002 efficacy study that commenced in 2022 was limited to treatment of placebo subjects.

R&D expenses decreased by $452,806 for the year ended December 31, 2023, compared to the year ended December 31, 2022. This decrease is primarily the result of limited costs associated with the suspended '002 study and the evaluation of