Company: GRCE
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001140361-25-041804
Chunk: 9

Company: Grace Therapeutics, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 8
Chunk 9
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,190,927 2023
Common Warrants expired on the 60th day after the date of the acceptance by the FDA of the NDA for the Company’s product candidate GTx-104 or October 21, 2025.

   (2) The 2025 Common
Warrants will expire on the earlier of: (i) the 60th day after the date the FDA
approves the NDA for GTx-104 or (ii) September 25, 2028.   
   In
connection with the Continuance and the Domestication, the Company continues
its obligations under the 2023 Purchase Agreement and the 2023 Warrants. Upon
the effectiveness of the Continuance, each outstanding 2023 Warrant exercisable
for Common Shares remained exercisable for an equivalent number of common
shares of Acasti British Columbia for the equivalent exercise price per share
without any action by the holder. Upon the effectiveness of the Domestication,
each outstanding 2023 Warrant exercisable for common shares of Acasti British
Columbia remained exercisable for an equivalent number of shares of Common
Stock for the equivalent exercise price per share without any action by the
holder.  
   Derivative Warrant Liabilities
   
   The 2023 Common Warrants issued as a part of the 2023 Private Placement are derivative warrant liabilities given that the 2023 Common Warrants did not meet the fixed-for-fixed criteria and that the 2023 Common Warrants are not indexed to the Company’s own stock. Proceeds were allocated amongst Common Shares, 2023 Pre-Funded Warrants, and 2023 Common Warrants by applying the residual method, with fair value of the 2023 Common Warrants determined using the Black-Scholes model, resulting in initial derivative warrant liabilities of $1,631 and issuance costs of $45 allocated to 2023 Common Warrants. 

  15
  

 The derivative warrant liabilities are measured at fair value at each reporting period and the reconciliation of changes in fair value is presented in the following table:  

      Six months ended

      September 30, 2025

      September 30, 2024

      $ 
      $ 

      Beginning balance
     
      1,141 
      4,359 

      Issued during the year
     
       —  
       —  

      Change in fair value