Company: GRCE
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001140361-25-030398
Chunk: 1

Company: Grace Therapeutics, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Item 8
Chunk 1
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 became one outstanding share of common stock, par value $0.0001 per share, of Acasti Delaware (“Common Stock”). The Common Stock continues to be listed for trading on Nasdaq and in connection with its corporate name change to Grace Therapeutics, Inc., commenced trading under the symbol “GRCE” on October 28, 2024.  
  The Continuance and Domestication has
been accounted for as an exchange of equity interest among entities under
common control resulting in a change in reporting entity, and has been
retroactively reflected in the accompanying unaudited condensed consolidated
financial statements and notes thereto. All assets and liabilities of Acasti
British Columbia were deemed assumed by the Company at the Effective Date,
resulting in the retention of the historical basis of accounting as if they had
always been combined for accounting and financial reporting purposes. Any
excess resulting from the automatic conversion of each outstanding Common Share
of Acasti British Columbia into one outstanding share of Common Stock of Acasti
Delaware, is presented as Additional Paid-in Capital in the equity section of
the accompanying unaudited condensed consolidated financial statements and
notes thereto. All per share amounts for all periods presented in the
accompanying unaudited condensed consolidated financial statements and notes
thereto have been adjusted retroactively, where applicable, to reflect the
effect of the change in par value.  
   Liquidity and Financial Condition

   The Company has incurred operating losses and negative cash flows from operations in each period since its inception. The Company expects to incur significant expenses and continued operating losses for the foreseeable future.

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Table of Contents

   In May 2023, the Company implemented a strategic realignment plan to enhance shareholder value that resulted in the Company engaging a new management team, streamlining its research and development activities, and greatly reducing its workforce. Following the realignment, the Company is a smaller, more focused organization, based in the United States, and concentrated on its development of its lead product candidate GTx-104. Further development of GTx-102 and GTx-101 will occur at such a time when the Company is able to secure additional funding or enters into strategic partnerships for license or sale with third parties.
   
   In February 2025, the Company completed a private placement of Company securities with certain institutional and accredited investors. Net proceeds to the Company were $13,705. Refer to Note 6, Stockholder’s Equity - 202