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ACASTI PHARMA INC.(ACST), a pharmaceutical compa ny specializing in cardiovascular treatments, has released its condensed consolidated interim financial statements for the second quarter of 2023. The company reported a narrowed net loss of $4.02 million for the quarter, accompanied by steady revenue growth, which reached $15.01 million. The financial report provides insights into the company's current financial position and its ongoing efforts in research and development.
ACASTI PHARMA INC. showcased its strategic allocation of assets in its Condensed Consolidated Interim Balance Sheet for June 30, 2023. The company's total assets amounted to $73.03 million, a decrease from the previous quarter's $79.12 million. The decline was primarily driven by a decrease in cash and cash equivalents, as well as short-term investments. Current assets totaled $23.61 million, including $21.63 million in cash and cash equivalents, $15,000 in short-term investments, and $837,000 in receivables.
Liabilities and Equity Dynamics
The company's liabilities and shareholders' equity were detailed in the same financial statement. Total liabilities decreased to $9.02 million from $11.17 million in the previous quarter. This decrease was mainly due to reductions in trade and other payables, as well as operating lease liabilities. Shareholders' equity stood at $64.01 million, compared to $67.95 million in the previous quarter. The company's accumulated deficit increased to $202.29 million from $198.27 million.
The Condensed Consolidated Interim Statements of Loss and Comprehensive Loss for the three months ended June 30, 2023, indicated that ACASTI PHARMA INC. reported a net loss of $4.02 million. Operating expenses played a significant role in the net loss, with research and development expenses, general and administrative expenses, sales and marketing costs, and restructuring expenses totaling $4.45 million.
Progress in Research and Development
Despite the net loss, the company continues to make strides in its research and development efforts. Net expenditures on research and development amounted to $(1.09) million after considering government assistance. ACASTI PHARMA INC. remains committed to advancing its cardiovascular treatments and is allocating resources accordingly.
Shareholders' Equity Adjustments
The Condensed Consolidated Interim Statements of Shareholders' Equity revealed adjustments in the company's equity position. Stock-based compensation played a role in the adjustments, with an increase of $78,000 in the current quarter. The company also reported net proceeds from the issuance under the at-the-market (ATM) program, contributing $195,000 to its financing activities.
Cash Flow Dynamics
ACASTI PHARMA INC.'s Condensed Consolidated Interim Statements of Cash Flows demonstrated the company's cash flow dynamics for the quarter. Net cash used in operating activities amounted to $(6.24) million, while cash flows from investing activities were neutral, indicating a balanced approach to investment. Cash flows from financing activities contributed $195,000, primarily from the issuance under the ATM program.
ACASTI PHARMA INC. continues to navigate the pharmaceutical landscape with a strategic allocation of assets and a focus on research and development. The company's narrowed net loss reflects its ongoing efforts to manage expenses, while steady revenue growth underlines the progress it is making in its core business. As the pharmaceutical industry evolves, ACASTI PHARMA INC. remains committed to its mission of advancing cardiovascular treatments and delivering value to its shareholders.