Company: GRCE
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001140361-25-030398
Chunk: 34

Company: Grace Therapeutics, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Item 8
Chunk 34
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 short-term investments
upon their maturity used to fund operations, and a decrease in interest rates.

   Income tax benefit

For
the three months ended June 30, 2025 and  2024, the Company recorded an
income tax provision of $0 and a tax benefit of approximately $724,
respectively. The period-over-period change is primarily attributable to the
establishment of a partial valuation allowance against the Company’s net
domestic deferred tax assets. This allowance reflects management’s
determination that realization of these assets is not more likely than not at
this time. No such valuation allowance was recorded in the prior period.

   Liquidity and Capital Resources

   Cash flows and financial condition for the three months ended June 30, 2025 and 2024

  33
  

   Summary

   As of June 30, 2025, cash and cash equivalents were $20,005, a net decrease of $2,218 compared to cash and cash equivalents of $22,133  at March 31, 2024.

As described below, in February 2025,
we completed a private placement of our securities with certain institutional
and accredited investors. Net proceeds to us were $13,705. We believe our
existing cash and cash equivalents will be sufficient to sustain planned
operations through at least 12 months from the issuance date of the unaudited
condensed consolidated financial statements included with this Form 10-Q.

   We will require additional capital to fund our daily operating needs beyond that time. We do not expect to generate revenue from product sales unless we  obtain regulatory approval, which is subject to significant uncertainty. To date, we have financed our operations primarily through public offerings and private placements of our common equity, warrants and convertible debt and the proceeds from research tax credits. Until such time that we can generate significant revenue from drug product sales, if ever, we will require additional financing, which is expected to be sourced from a combination of public or private equity or debt financing or other non-dilutive sources, including fees, milestone payments and royalties from collaborations with third parties. Arrangements with collaborators or others may require us to relinquish certain rights related to our technologies or drug product candidates. Adequate additional financing may not be available to us on acceptable terms, or at all. Our inability to raise capital as and when needed could have a negative impact on our financial condition and our ability to pursue our business strategy. We plan to raise additional capital in order