Company: MDCXW
Filing Date: 2025-03-07
Form Type: 253G1
Source: 0001062993-25-004966
Chunk: 77

Company: Medicus Pharma Ltd.
Filing Date: 2025-03-07
Form: 253G1
Chunk 77
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 on a timely basis depending on changes in the economic environment and risks of the underlying assets. We are not subject to any externally imposed capital requirements.

The financial statements and this offering circular have been prepared on the basis of accounting principles applicable to a going concern, which assumes that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of operations. The financial statements and this MD&A do not include any adjustments to the amounts and classification of assets and liabilities that would be necessary should the Company be unable to continue as a going concern. Such adjustments could be material.

We currently do not earn any revenues from our preclinical programs and are therefore considered to be in the R&D stage. As required, the Company will continue to finance its operations through the sale of equity or pursue non-dilutive funding sources available to the Company in the future. The continuation of our R&D activities is dependent on our ability to obtain financing.

As at September 30, 2024, the Company had cash and cash equivalents of $5,306,159 compared to cash and cash equivalents of $1,719,338 as of December 31, 2023. During the nine months ended September 30, 2024, the Company received $5,172,500 of net proceeds from the issuance of convertible notes and $5,470,000 net proceeds from the issuance of common shares in a non-brokered private placement. For the nine months ended September 30, 2024, cash used in operating activities was $6,980,076 compared to $769,657 for the equivalent period in the prior year. As at September 30, 2024, the Company has an accumulated deficit of $27,751,997 (December 31, 2023 - $18,871,062) and net loss and comprehensive loss of $2,959,216 and $8,880,935 for the three and nine months ended September 30, 2024 (2023 - $2,963,692 and $3,936,284). The Company has a working capital surplus of $3,450,299 as at September 30, 2024 (December 31, 2023 - $1,111,448).

The Company does not expect to generate positive cash flow from operations for the foreseeable future due to additional R&D expenses, including expenses related to drug discovery, preclinical testing, clinical trials, chemistry, manufacturing and controls