Company: GRCE
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001140361-25-041804
Chunk: 37

Company: Grace Therapeutics, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 8
Chunk 37
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 $1,961 for the three months ended September 30, 2025, an increase of $106 from $1,855 for the three months ended September 30, 2024. The increase was primarily a result of an increase in other general and administrative expenses  due to costs for the GTx-104 pre-commercial planning.

   General and administrative expenses were $4,096 for the six months ended September 30, 2025, a decrease of $13 from $4,109 for the six months ended September 30, 2024. The decrease was primarily a result of decreased legal, accounting, tax, audit and other professional fees related to Continuance and Domestication, partially offset  by an increase in other general and administrative expenses primarily due to costs for the GTx-104 commercial assessment, and pre-commercial planning, and an increase in stock-based compensation due to the issuance of new stock option awards.

   Change in fair value of derivative warrant liabilities

The change in the fair value
of derivative warrant liabilities was mainly attributable to a decrease in the
expected term as the 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.

   Interest and other income, net

   Interest and other income, net was $172 and $375 for the three and six months ended September 30, 2025, compared to $172 and $407 for the three and six months ended September 30, 2024. The $32 decrease in our interest and other income was due to decreased interest rates.

   Income tax benefit

   For the three and six months ended September 30,
2025, the Company did not record an income tax benefit.  For the three and six months ended September
30, 2024, the Company recorded an income tax benefit of $852 and $1,576. 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.

  34
  

   Liquidity and Capital Resources

   Cash flows and financial condition for the six months ended September 30, 2025 and 2024

   Summary

   As