DiaMedica Therapeutics (DMAC) Q4 2017 earnings summary

Executive summary

• Clinical-stage development focused on neurological and kidney diseases with significant unmet clinical need; REMEDY Phase II trial addressed acute ischemic stroke.

• 2017 ended with $1.36M cash and a $50.9M accumulated deficit; cash resources were insufficient for the next 12 months of planned operations.

Financial highlights

• Net loss widened to $4.18M in 2017 from $2.22M in 2016; total expenses rose to $4.17M from $2.48M.

• R&D expense increased to $3.27M from $1.76M; G&A expense rose to $900K from $718K.

• 2017 loss included a $93,604 gain on warrant-liability revaluation; finance expense, net, was $63,574 versus $58,728 of net finance income in 2016.

Outlook and guidance

• Additional funding was required to continue R&D and other operations; future execution depended on financing, licensing agreements and/or product revenue.

• Committed R&D and other obligations were estimated at $2.2M over the next 12 months and $700K in the following 12 months; amounts depended on clinical-trial activity and timing.