Fennec Pharmaceuticals Inc 10-Q for FY2026 Q1

Fennec Pharmaceuticals Inc. (FENC)

10-Q 2026-05-14 For: 2026-03-31

Added on May 15, 2026

About this 10-Q

Fennec Pharmaceuticals Inc filed this 10-Q on May 14, 2026, covering the quarter ended March 31, 2026 (FY2026 Q1).

Headline figures

Quarter ended March 31, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $15.11M; up 72.6% from $8.75M a year earlier
Net income: $201K; compared with a net loss of $1.17M a year earlier
Diluted EPS: $0.01; compared with -$0.04 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 March 31, 2026 and December 31, 2025	3

Condensed Consolidated Statements of Operations (Unaudited) for the Three Months Ended March 31, 2026, and 2025	4

Condensed Consolidated Statements of Stockholders' Equity/(Deficit) (Unaudited) for the Three Months Ended March 31, 2026 and 2025	5

Condensed Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended March 31, 2026 and 2025	6

Notes to the Condensed Consolidated Financial Statements	7

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	21

Item 3. Quantitative and Qualitative Disclosures about Market Risk	28

Item 4. Controls and Procedures	28

PART II: OTHER INFORMATION	29

Item 1. Legal Proceedings	29

Item 1A. Risk Factors	30

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	30

Item 3. Defaults Upon Senior Securities	30

Item 4. Mine Safety Disclosures	30

Item 5. Other Information	30

Item 6. Exhibits	31

Signatures	32


	March 31, 2026		December 31, 2025

Assets
Current assets
Cash and cash equivalents	$	40,179	$	36,788
Accounts receivable, net		18,762		23,221
Prepaid expenses		3,461		3,738
Inventory		1,856		1,565
Other current assets		2,622		1,731
Total current assets		66,880		67,043

Non-current assets
Non-current accounts receivable, net		4,251		2,791
Other non-current assets, net of amortization		691		717
Total non-current assets		4,942		3,508
Total assets	$	71,822	$	70,551

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	6,281	$	4,635
Accrued liabilities		3,057		5,635
Contract liability-current		248		248
Total current liabilities		9,586		10,518

Long-term liabilities
Contract liability - long-term		24,561		24,561
Total long-term liabilities		24,561		24,561
Total liabilities		34,147		35,079

Commitments and contingencies (Note 6)

Stockholders’ equity:
Common stock, no par value; unlimited shares authorized; 34,541 shares issued and outstanding (2025 - 34,163)		191,229		189,906
Additional paid-in capital		74,424		73,745
Accumulated deficit		(229,221)		(229,422)
Accumulated other comprehensive income		1,243		1,243
Total stockholders’ equity		37,675		35,472
Total liabilities and stockholders’ equity	$	71,822	$	70,551


	☒ 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
	March 31,		March 31,
	2026		2025

Revenue
PEDMARK product sales, net	$	15,108	$	8,751

Operating expenses:
Cost of product sales		570		373
Research and development		49		94
Selling and marketing		11,422		3,227
General and administrative		3,186		5,865

Total operating expenses		15,227		9,559
Loss from operations		(119)		(808)

Other (expense)/income
Unrealized foreign exchange (loss)/gain		(12)		13
Amortization expense		—		(13)
Unrealized loss on securities		—		(1)
Interest income		339		236
Interest expense		(7)		(592)
Total other income/(expense)		320		(357)

Net income/(loss)	$	201	$	(1,165)

Basic net income/(loss) per common share	$	0.01	$	(0.04)
Diluted net income/(loss) per common share	$	0.01	$	(0.04)
Weighted-average number of common shares outstanding basic		34,336		27,578
Weighted-average number of common shares outstanding diluted		35,548		27,578


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

Balance at December 31, 2025	34,163	$	189,906	$	73,745	$	(229,422)	$	1,243	$	35,472
Equity-based compensation - employees	—		—		990		—		—		990
Stock option exercise	264		1,323		—		—		—		1,323
Restricted and performance stock release	114		—		(311)		—		—		(311)
Net income	—		—		—		201		—		201
Balance at March 31, 2026	34,541	$	191,229	$	74,424	$	(229,221)	$	1,243	$	37,675

								Accumulated
				Additional				Other		Total
	Common Stock			Paid-in		Accumulated		Comprehensive		Stockholders’
	Shares	Amount		Capital		Deficit		Income		(Deficit)
Balance at December 31, 2024	27,527	$	145,608	$	66,958	$	(219,681)	$	1,243	$	(5,872)
Equity-based compensation - employees	—		—		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)


	Chargebacks,		Rebates, Customer
	Discounts for		Fees/Credits
	Prompt pay and		and Co-Pay
In thousands	Other allowances		Assistance		Totals
Balance at December 31, 2025	$	477	$	1,423	$	1,900
Provision related to sales made in:
Current period		577		712		1,289
Prior periods		—		—		—
Payments and customer credits issued		(824)		(1,196)		(2,020)
Balance at March 31, 2026	$	230	$	939	$	1,169


	Three Months Ended March 31,
	2026		2025
Numerator:
Net income/(loss)	$	201	$	(1,165)

Denominator:
Weighted-average common shares, basic		34,336		27,578
Dilutive effect of stock options		1,056		—
Dilutive effect of restricted share units		156		—
Incremental dilutive shares		1,212		—
Weighted-average common shares, diluted		35,548		27,578
Net income/(loss) per share basic	$	0.01	$	(0.04)
Net income/(loss) per share diluted	$	0.01	$	(0.04)


		Common Shares
		Issuable Upon Exercise
		of Outstanding	Weighted-Average
Investor Warrants		Warrants	Exercise Price
Outstanding December 31, 2025		111	$	8.11
Issued		—		—
Outstanding March 31, 2026		111	$	8.11


	Number of		Weighted-Average
	Options (thousands)		Exercise Price
Outstanding at December 31, 2025	5,853		$	6.38
Granted	1,640			5.77
Exercised	(264)			5.01
Outstanding at March 31, 2026	7,229		$	6.29


	Valuation Assumptions
Black-Scholes Model Assumptions	March 31, 2026
Expected dividend	-	%
Risk free rate	4.07	%
Expected volatility	64	%
Expected life	6	years


		Number of Restricted
Awards Current Year		Share Units (thousands)
Outstanding at December 31, 2025		630
Awarded		—
Released		(118)
Forfeited		—
Outstanding at March 31, 2026		512


		Fair Value Measurement at March 31, 2026 and December 31, 2025
		(in thousands)
		Quoted Price in Active
		Market for Identical				Significant Other						Significant
		Instruments				Observable Inputs						Unobservable Inputs
		Level 1				Level 2						Level 3				Total
		2026		2025			2026		2025			2026		2025		2026		2025
Assets
Cash and cash equivalents	$	3,553	⁽¹⁾	$	3,072	⁽¹⁾	$	36,626	$	33,716	$	-	$	-	$	40,179	$	36,788
Processa common shares	$	2	⁽²⁾	$	2	⁽²⁾	$	-	$	-	$	-	$	-	$	2	$	2


Exhibit No.		Description
10.1*		Fennec Pharmaceuticals Inc. 2026 Equity Inducement Plan (incorporated herein by reference to Schedule B to the Management Proxy Circular of the Company filed April 28, 2026).
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 Ended March 31, 2026 (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: May 14, 2026	By:	/s/ Jeffrey Hackman
		Jeffrey Hackman
		Chief Executive Officer
		(principal executive officer)

Date: May 14, 2026	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 March 31, 2026 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.


		As at			As at
Selected Asset and Liability Data (thousands):		March 31, 2026			December 31, 2025
Cash and equivalents		$	40,179		$	36,788
Other current assets			26,701			30,255
Current liabilities			9,586			10,518
Working capital ⁽¹⁾			57,294			56,525
⁽¹⁾ [Current assets – current liabilities]

Selected Equity:
Common stock and additional paid in capital			265,653			263,651
Accumulated deficit			(229,221)			(229,422)
Stockholders’ equity			37,675			35,472


Selected Cash Flow Data	Three Months Ended			Three Months Ended
(dollars and shares in thousands)	March 31, 2026			March 31, 2025
Net cash provided by/(used in) by operating activities	$	2,379		$	(4,318)
Net cash provided by investing activities		—			—
Net cash provided by financing activities		1,012			359
Net cash flow	$	3,391		$	(3,959)

effrey
	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.



	March 31,		December 31,
	2026		2025

Assets

Current assets
Cash and cash equivalents	$	40,179	$	36,788
Accounts receivable, net		18,762		23,221
Prepaid expenses		3,461		3,738
Inventory		1,856		1,565
Other current assets		2,622		1,731
Total current assets		66,880		67,043

Non-current assets
Other non-current assets, net of amortization		4,942		3,508
Total non-current assets		4,942		3,508
Total assets	$	71,822	$	70,551

Liabilities and stockholders’ equity

Current liabilities:
Accounts payable	$	6,281	$	4,635
Accrued liabilities		3,057		5,635
Contract liability - Norgine		248		248
Total current liabilities		9,586		10,518

Long term liabilities
Contract liabilty - Norgine		24,561		24,561
Total long term liabilities		24,561		24,561
Total liabilities		34,147		35,079

Stockholders’ equity
Common stock, no par value; unlimited shares authorized; 34,541 shares issued and outstanding (2025‑34,163)		191,229		189,906
Additional paid-in capital		74,424		73,745
Accumulated deficit		(229,221)		(229,422)
Accumulated other comprehensive income		1,243		1,243
Total stockholders’ equity		37,675		35,472
Total liabilities and stockholders’ equity	$	71,822	$	70,551