Theralase Technologies (TLT) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended September 30, 2024, decreased by 12% year-over-year to CAD 622,984, with declines in Canadian and US markets but a significant increase in international sales; gross margin was 47% due to higher material costs.

• Net loss narrowed by 7% year-over-year to CAD 3,337,995, mainly due to reduced research and development expenses in the Drug Division.

• The company raised approximately CAD 3.94 million through multiple non-brokered private placements in 2024.

• Phase II bladder cancer clinical study enrolled 75 patients, with plans to add 20-25 more in 2025 to complete enrollment; interim data shows 61.9% complete response rate, 43.6% maintained response at 12 months, and no serious adverse events related to the therapy.

• Appointment of Dr. Michael Jewett as consultant to accelerate Study II patient enrollment.

Financial highlights

• Revenue declined to CAD 622,984 from CAD 706,694 year-over-year; Canadian revenue down 11%, US revenue down 29%, international revenue up 1185%.

• Gross margin was 47% (down from 49% year-over-year), with cost of sales at CAD 332,136 (53% of revenue), up from 51% last year due to increased material costs.

• Selling expenses rose 33% to CAD 257,935 due to higher sales salaries and advertising.

• Administrative expenses fell 11% to CAD 1,294,969 due to lower general and administrative costs, professional fees, and stock-based compensation.

• Net loss for the period was CAD 3,337,995, with the Drug Division accounting for 84% of the loss.

Outlook and guidance

• Estimated cost to complete phase II bladder cancer study is CAD 15–30 million over three years.

• Plans to secure up to CAD 100 million via a base shelf prospectus, with eligibility requiring CAD 4.5 million in cash flow.

• Targeting additional capital raises and government grants to fund ongoing and future clinical studies.

• Targeting completion of Study II enrollment in 2025, data lock in mid-2026, and FDA/Health Canada approval by end of 2026, subject to priority review.

• Plans to secure additional funding through equity and debt instruments in 2024 and 2025 to support completion of Study II and regulatory submissions.