DiaMedica Therapeutics (DMAC) Q4 2016 earnings summary

Executive summary

• Clinical-stage development focused on neurological and kidney diseases; 2016 operating loss and cash outflows continued, with a material going-concern uncertainty.

• Net loss was $2.223 million in 2016, and accumulated deficit reached $46.7 million at year-end.

Financial highlights

• 2016 research and development expense was $1.763 million vs. $979,030 in 2015; general and administrative expense was $718,045 vs. $467,768.

• Loss before income taxes was $2.201 million in 2016 vs. $1.580 million in 2015; net loss was $2.223 million vs. $1.594 million.

• Other income was $221,902 in 2016, including proceeds recognized from the DM-71 patent and technology rights transaction.

Outlook and guidance

• Cash resources were insufficient for the next 12 months of planned operations; additional funding was needed to continue R&D and other operations.

• On April 17, 2017, a private placement raised approximately $2.0 million gross, with proceeds from 10,526,315 units.