Company: MDCXW
Filing Date: 2025-03-07
Form Type: 253G1
Source: 0001062993-25-004966
Chunk: 73

Company: Medicus Pharma Ltd.
Filing Date: 2025-03-07
Form: 253G1
Chunk 73
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 associated with maintaining compliance with applicable securities law requirements; additional director and officer insurance costs; and investor and public relations costs.

Research and development

Research and development ("R&D") costs include costs incurred under agreements with third-party contract research organizations, contract manufacturing organizations and other third parties that conduct preclinical and clinical activities on our behalf and manufacture our product candidates, and other costs associated with our R&D programs, including laboratory materials and supplies.

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R&D expenses increased by $737,119 or 1825% and $2,003,597 or 1259% for the three and nine months ended September 30, 2024, respectively, compared to the equivalent periods in the prior year. This increase is primarily due to costs incurred related to SKNJCT-003.

As of the date of this offering circular, the Company has activated nine clinical sites in the United States and has randomized more than 50% of the 60 patients expected to be enrolled in the study. In addition, the Company expects to complete an interim data analysis before the end of the first quarter of 2025 and to submit its findings to the FDA as a part of a package seeking a meeting with the FDA to advance clinical development.

We expect our R&D expenses to increase substantially for the foreseeable future as we continue with the SKNJCT-003 study and trials.

The principal risks related to the Company's future performance are that the trials are unsuccessful, the Company does not receive FDA approval to proceed with the next stage of its research and development, or the Company is unsuccessful in obtaining future funding needed to continue its research and development. These are customary risks for a development stage pharmaceutical Company and are less acute than for a Company with a less advanced product. Nevertheless, there can be no assurance that the Company will be able to complete its trials of the MNA, that the trials will be successful, or that the product will ultimately reach commercialization.

Depreciation

Depreciation increased by $26,322 or 100% and $78,395 or 100% for the three and nine months ended September 30, 2024, respectively, compared to the equivalent periods in the prior year. Depreciation is the result of a right-of-use asset related to the new office lease.

Share-based compensation

Share-based compensation was $nil and $580,629 for the three and nine months ended September 30, 2024, respectively, compared to $nil and $nil for