Fennec Pharmaceuticals Inc 10-Q for FY2025 Q2

Fennec Pharmaceuticals Inc. (FENC)

10-Q 2025-08-14 For: 2025-06-30

Added on April 06, 2026

About this 10-Q

Fennec Pharmaceuticals Inc filed this 10-Q on August 14, 2025, covering the quarter ended June 30, 2025 (FY2025 Q2).

Headline figures

Quarter ended June 30, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $9.65M; up 32.9% from $7.26M a year earlier
Net loss: $3.15M; compared with a net loss of $5.55M a year earlier
Diluted EPS: -$0.11; compared with -$0.20 a year earlier

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British Columbia, Canada	20-0442384
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

PO Box 13628, 68 TW Alexander Drive Research Triangle Park, North Carolina (Address of Principal Executive Offices)	27709 (Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares, no par value	FENC	Nasdaq Capital Market

Large Accelerated Filer	☐	Accelerated Filer	☐
Non-Accelerated Filer	☒	Smaller reporting company	☒
		Emerging growth company	☐


	Page
PART I: FINANCIAL INFORMATION	3

Item 1. Condensed Consolidated Financial Statements	3

Condensed Consolidated Balance Sheets (Unaudited) as of June 30, 2025 and December 31, 2024	3

Condensed Consolidated Statements of Operations (Unaudited) for the Three and Six Months Ended June 30, 2025 and 2024	4

Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) for the Three and Six Months Ended June 30, 2025 and 2024	5

Condensed Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended June 30, 2025 and 2024	6

Notes to the Condensed Consolidated Financial Statements	7

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	24

Item 3. Quantitative and Qualitative Disclosures about Market Risk	33

Item 4. Controls and Procedures	33


PART II: OTHER INFORMATION	33

Item 1. Legal Proceedings	33

Item 1A. Risk Factors	35

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	35

Item 3. Defaults Upon Senior Securities	35

Item 4. Mine Safety Disclosures	35

Item 5. Other Information	35

Item 6. Exhibits	35

Signatures	37


	June 30, 2025		December 31, 2024

Assets
Current assets
Cash and cash equivalents	$	18,705	$	26,634
Accounts receivable, net		17,502		12,884
Prepaid expenses		1,421		3,080
Inventory		2,201		1,060
Other current assets		965		466
Total current assets		40,794		44,124

Non-current assets
Non-current accounts receivable, net		3,314		—
Other non-current assets, net of amortization		768		822
Total non-current assets		4,082		822
Total assets	$	44,876	$	44,946

Liabilities and stockholders’ deficit
Current liabilities:
Accounts payable	$	5,941	$	3,241
Accrued liabilities		2,225		3,428
Contract liability - current		248		248
Operating lease liability - current		—		2
Total current liabilities		8,414		6,919

Long-term liabilities
Term loan		18,206		18,206
PIK interest		1,271		1,271
Debt discount		(113)		(139)
Contract liability - long-term		24,561		24,561
Total long-term liabilities		43,925		43,899
Total liabilities		52,339		50,818

Commitments and contingencies (Note 6)

Stockholders’ deficit:
Common stock, no par value; unlimited shares authorized; 27,733 shares issued and outstanding (2024 ‑27,527)		146,165		145,608
Additional paid-in capital		69,127		66,958
Accumulated deficit		(223,998)		(219,681)
Accumulated other comprehensive income		1,243		1,243
Total stockholders’ deficit		(7,463)		(5,872)
Total liabilities and stockholders’ deficit	$	44,876	$	44,946


	☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2025		2024		2025		2024

Revenue
PEDMARK product sales, net	$	9,652	$	7,262	$	18,403	$	14,681
Licensing revenue		—		—		—		17,958
Total revenue		9,652		7,262		18,403		32,639

Operating expenses:
Cost of product sales		967		608		1,340		1,158
Research and development		107		157		201		160
Selling and marketing		4,354		4,672		7,301		9,881
General and administrative		6,956		6,864		13,101		12,736

Total operating expenses		(12,384)		(12,301)		(21,943)		(23,935)
(Loss)/income from operations		(2,732)		(5,039)		(3,540)		8,704

Other (expense)/income
Unrealized foreign exchange gain / (loss)		17		(17)		30		(55)
Amortization expense		(13)		(23)		(26)		(43)
Unrealized loss on securities		(1)		—		(2)		(11)
Interest income		171		570		407		767
Interest expense		(594)		(1,044)		(1,186)		(2,078)
Total other expense		(420)		(514)		(777)		(1,420)

Net (loss)/income	$	(3,152)	$	(5,553)	$	(4,317)	$	7,284

Basic net (loss)/income per common share	$	(0.11)	$	(0.20)	$	(0.16)	$	0.27
Diluted net (loss)/income per common share	$	(0.11)	$	(0.20)	$	(0.16)	$	0.24
Weighted-average number of common shares outstanding basic		27,664		27,297		27,621		27,250
Weighted-average number of common shares outstanding diluted		27,664		27,297		27,621		30,354


								Accumulated
				Additional				Other		Total
	Common Stock			Paid-in		Accumulated		Comprehensive		Stockholders’
	Shares	Amount		Capital		Deficit		Income		Equity (deficit)

Balance at December 31, 2024	27,527	$	145,608	$	66,958	$	(219,681)	$	1,243	$	(5,872)
Stock-based compensation	—		—		798		—		—		798
Stock option exercise	55		371		—		—		—		371
Restricted stock release	12		—		(12)		—		—		(12)
Net loss	—		—		—		(1,165)		—		(1,165)
Balance at March 31, 2025	27,594		145,979		67,744		(220,846)		1,243		(5,880)
Stock-based compensation	—		—		1,494		—		—		1,494
Stock option exercise	52		186		—		—		—		186
Restricted stock release	87		—		(111)		—		—		(111)
Net loss	—		—		—		(3,152)		—		(3,152)
Balance at June 30, 2025	27,733	$	146,165	$	69,127	$	(223,998)	$	1,243	$	(7,463)


								Accumulated
				Additional				Other		Total
	Common Stock			Paid-in		Accumulated		Comprehensive		Stockholders’
	Shares	Amount		Capital		Deficit		Income		Equity (deficit)
Balance at December 31, 2023	27,027	$	144,307	$	62,073	$	(219,245)	$	1,243	$	(11,622)
Stock-based compensation	—		—		1,191		—		—		1,191
Stock option exercise	75		627		—		—		—		627
Restricted stock release	3		—		(19)		—		—		(19)
Net income	—		—		—		12,837		—		12,837
Balance at March 31, 2024	27,105		144,934		63,245		(206,408)		1,243		3,014
Stock-based compensation	—		—		925		—		—		925
Stock option exercise	147		347		—		—		—		347
Restricted stock release	77		—		(90)		—		—		(90)
Net loss	—		—		—		(5,553)		—		(5,553)
Balance at June 30, 2024	27,329	$	145,281	$	64,080	$	(211,961)	$	1,243	$	(1,357)



	Chargebacks,		Rebates, Returns, Customer
	Discounts for		Fees/Credits
	Prompt pay and		and Co-Pay
In thousands	Other allowances		Assistance		Totals
Balance at December 31, 2024	$	276	$	707	$	983
Provision related to sales made in:
Current period		418		224		642
Prior periods		—		—		—
Payments and customer credits issued		(328)		(61)		(389)
Balance at March 31, 2025	$	366	$	870	$	1,236
Provision related to sales made in:
Current period		553		196		749
Prior periods		—		—		—
Payments and customer credits issued		(637)		(185)		(822)
Balance at June 30, 2025	$	282	$	881	$	1,163


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Numerator:
Net (loss) / income	$	(3,152)	$	(5,553)	$	(4,317)	$	7,284

Denominator:
Weighted-average common shares, basic		27,664		27,297		27,621		27,250
Dilutive effect of stock options		—		—		—		843
Dilutive effect of restricted share units		—		—		—		445
Dilutive effect of warrants		—		—		—		11
Dilutive effect of convertible debt		—		—		—		253
Incremental dilutive shares		—		—		—		1,552
Weighted-average common shares, diluted		27,664		27,297		27,621		30,354
Net (loss) / income per share diluted	$	(0.11)	$	(0.20)	$	(0.16)	$	0.24


	Diluted Earnings Per Share		Diluted Earnings Per Share
	Three Months Ended June 30,		Six Months Ended June 30,
	2025	2024	2025	2024
Options to purchase common shares	221	3,466	6,078	5,228
Convertible debt to purchase common shares	24	—	3,785	—
Restricted share units to purchase common shares	—	445	485	445
Performance share units to purchase common shares	100	—	100	—
Warrants to purchase common shares	—	34	150	150


	Common Shares
	Issuable Upon Exercise
	of Outstanding		Weighted-Average
Investor Warrants	Warrants		Exercise Price
Outstanding December 31, 2024	150	$	7.71
Issued	—		—
Outstanding March 31, 2025	150	$	7.71
Issued	—		—
Outstanding June 30, 2025	150	$	7.71


	Number of	Weighted-Average
Options	Options	Exercise Price
Outstanding at December 31, 2024	5,855	$	6.22
Granted	180		6.50
Exercised	(55)		5.00
Forfeited	(123)		6.94
Outstanding at March 31, 2025	5,857		6.22
Granted	318		7.41
Exercised	(52)		5.08
Forfeited	(45)		4.23
Outstanding at June 30, 2025	6,078	$	6.31


	Valuation
	Assumptions
Black-Scholes Model Assumptions	June 30, 2025
Expected dividend	-	%
Risk free rate	3.93 - 4.19	%
Expected volatility	71.04- 161.67	%
Expected life	1.5 - 6.0	years


			Weighted-Average
	Number of		Grant Date Fair Value
	Stock Units		Per Share
Unvested balance at January 1, 2025	—	$	—
Granted	100		6.62
Vested	—		—
Forfeited	—		—
Unvested balance at June 30, 2025	100	$	6.62


		Number of
		Restricted Share
RSUs Current Periods		Units
Outstanding at December 31, 2024		324
Awarded		283
Released		(13)
Forfeited		(5)
Outstanding at March 31, 2025		589
Awarded		—
Released		(102)
Forfeited		(2)
Outstanding at June 30, 2025		485


	Fair Value Measurement at June 30, 2025 and December 31, 2024
	Quoted Price in Active
	Market for Identical						Significant Other				Significant
	Instruments						Observable Inputs				Unobservable Inputs
	Level 1						Level 2				Level 3					Total
	2025				2024			2025		2024		2025		2024		2025		2024
Assets
Cash and cash equivalents	$	1,984	⁽¹⁾	$	2,020	⁽¹⁾	$	16,721	$	24,614	$	—	$	—	$	18,705	$	26,634
Processa common shares	$	1	⁽²⁾	$	2	⁽²⁾	$	—	$	—	$	—	$	—	$	1	$	2


Years Ending December 31,		Amount
2025	$	—
2026		—
2027		18,206
Payment in kind interest		1,271
Total future payments		19,477
Less: unamortized debt discount		(113)
Total term loan, net of debt discount	$	19,364


	Three Months Ended				Three Months Ended
In thousands of U.S. Dollars	June 30, 2025		%		June 30, 2024		%		Change
PEDMARK product sales, net	$	9,652			$	7,262			$	2,390

Operating expenses:
Cost of product sales		967	8	%		608	5	%		359
Research and development		107	1	%		157	1	%		(50)
Selling and marketing		4,354	35	%		4,672	38	%		(318)
General and administration		6,956	56	%		6,864	56	%		92
Total operating expense		12,384	100	%		12,301	100	%		83
Loss from operations		(2,732)				(5,039)				2,307
Unrealized loss on securities		(1)				—				(1)
Amortization expense		(13)				(23)				10
Interest expense		(594)				(1,044)				450
Unrealized foreign exchange gain/(loss)		17				(17)				34
Interest income		171				570				(399)
Net loss	$	(3,152)			$	(5,553)			$	2,401


	As of		As of
Selected Asset and Liability Data (thousands):	June 30, 2025		December 31, 2024
Cash and equivalents	$	18,705	$	26,634
Other current assets		22,089		17,490
Current liabilities		8,414		6,919
Working capital ⁽¹⁾		32,380		37,205
⁽¹⁾ [Current assets – current liabilities]

Selected Equity:
Common stock and additional paid in capital		215,292		212,566
Accumulated deficit		(223,998)		(219,681)
Stockholders’ deficit		(7,463)		(5,872)


Selected Cash Flow Data	Six Months Ended June 30,
(dollars and shares in thousands)	2025		2024
Net cash (used in) / provided by operating activities	$	(8,004)	$	30,660
Net cash provided by / (used in) financing activities		75		(875)
Net cash flow	$	(7,929)	$	29,785


	June 30,	December 31,
Outstanding Share Type	2025	2024	Change
Common shares	27,733	27,527	206
Warrants	150	150	—
RSUs	485	324	161
PSUs	100	—	100
Stock options	6,078	5,855	223
Total	34,546	33,856	690


Exhibit No.		Description

31.1		Certification of Chief Executive Officer of the Company in accordance with Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).

31.2		Certification of Chief Financial Officer of the Company in accordance with Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).

32.1		Certification of Chief Executive Officer and Chief Financial Officer of the Company in accordance with Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).

99.1		Press Release for Quarter June 30, 2025 (filed herewith).

101.INS*		Inline XBRL Instance Document

101.SCH*		Inline XBRL Taxonomy Extension Schema Document

101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB*		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101)


	Fennec Pharmaceuticals Inc.

Date: August 14, 2025	By:	/s/ Jeff Hackman
		Jeff Hackman
		Chief Executive Officer
		(principal executive officer)

Date: August 14, 2025	By:	/s/ Robert Andrade
		Robert Andrade
		Chief Financial Officer
		(principal financial and chief accounting officer)


1.	I have reviewed this quarterly report on Form 10-Q for the period ended June 30, 2025 of Fennec Pharmaceuticals Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the unaudited interim condensed consolidated financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
		(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its condensed subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
		(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
		(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
		(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
		(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
		(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	By:	/s/ Jeffrey Hackman
		Jeffrey Hackman
		Chief Executive Officer

	1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
	2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.