apto20220930

apto20220930_10q.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the Quarterly Period Ended September 30, 2022

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

For the Transition Period from to

Commission File Number: 1-32001

APTOSE BIOSCIENCES INC.

(Exact Name of Registrant as Specified in Its Charter)

Canada (State or other jurisdiction of incorporation or organization)		98-1136802 (I.R.S. Employer Identification No.)

251 Consumers Road, Suite 1105 Toronto, Ontario, Canada		M2J 4R3
(Address of principal executive offices)		(Zip Code)

647-479-9828

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

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

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐

Accelerated filer ☐

Non-accelerated filer ☒

Smaller reporting company ☒

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November1, 2022, the registrant had 92,294,734 common shares outstanding.

TABLE OF CONTENTS

		Page

PART I—FINANCIAL INFORMATION		6
	Item 1 – Financial Statements	6
	Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
	Item 3 – Qualitative and Quantitative Disclosures about Market Risk	31
	Item 4 – Controls and Procedures	31

PART II—OTHER INFORMATION		31
	Item 1 – Legal Proceedings	31
	Item 1A – Risk Factors	31
	Item 6 – Exhibits	32
	Signatures	33

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Report contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities law, which we collectively refer to as “forward-looking statements”. Such forward-looking statements reflect our current beliefs and are based on information currently available to us. In some cases, forward-looking statements can be identified by terminology such as “may”, “would”, “could”, “will”, “should”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “continue”, “hope”, “foresee” or the negative of these terms or other similar expressions concerning matters that are not historical facts.

Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance, or achievements that may be expressed or implied by such forward-looking statements, including, among others:

●

our lack of product revenues and net losses and a history of operating losses;

●

our early stage of development, particularly the inherent risks and uncertainties associated with (i) developing new drug candidates generally, (ii) demonstrating the safety and efficacy of these drug candidates in clinical studies in humans, and (iii) obtaining regulatory approval to commercialize these drug candidates;

●

our need to raise substantial additional capital in the future and that we may be unable to raise such funds when needed and on acceptable terms;

●

further equity financing, which may substantially dilute the interests of our existing shareholders;

●

clinical studies and regulatory approvals of our drug candidates are subject to delays, and may not be completed or granted on expected timetables, if at all, and such delays may increase our costs and could substantially harm our business;

●

our reliance on external contract research/manufacturing organizations for certain activities and if we are subject to quality, cost, or delivery issues with the preclinical and clinical grade materials supplied by contract manufacturers, our business operations could suffer significant harm;

●

clinical studies are long, expensive and uncertain processes and the FDA, or other similar foreign regulatory agencies that we are required to report to, may ultimately not approve any of our product candidates;

●

our ability to comply with applicable governmental regulations and standards;

●

our inability to achieve our projected development goals in the time frames we announce and expect;

●

difficulties in enrolling patients for clinical trials may lead to delays or cancellations of our clinical trials;

●

our reliance on third-parties to conduct and monitor our preclinical studies;

●

our ability to attract and retain key personnel, including key executives and scientists;

●

any misconduct or improper activities by our employees;

●

our exposure to exchange rate risk;

●

our ability to commercialize our business attributed to negative results from clinical trials;

●

the marketplace may not accept our products or product candidates due to the intense competition and technological change in the biotechnical and pharmaceuticals, and we may not be able to compete successfully against other companies in our industries and achieve profitability;

●

our ability to obtain and maintain patent protection;

●

our ability to afford substantial costs incurred with defending our intellectual property;

●

our ability to protect our intellectual property rights and not infringe on the intellectual property rights of others;

●

our business is subject to potential product liability and other claims;

●

potential exposure to legal actions and potential need to take action against other entities;

●

commercialization limitations imposed by intellectual property rights owned or controlled by third parties;

●

our ability to maintain adequate insurance at acceptable costs;

●

our ability to find and enter into agreements with potential partners;

●

extensive government regulation;

●

data security incidents and privacy breaches could result in increased costs and reputational harm;

●

our share price has been and is likely to continue to be volatile;

●

future sales of our common shares by us or by our existing shareholders could cause our share price to drop;

●

changing global market and financial conditions;

●

changes in an active trading market in our common shares;

●

difficulties by non-Canadian investors to obtain and enforce judgments against us because of our Canadian incorporation and presence;

●

potential adverse U.S. federal tax consequences for U.S. shareholders because we are a “passive foreign investment company”;

●

our “smaller reporting company” status;

●

any failures to maintain an effective system of internal controls may result in material misstatements of our financial statements, or cause us to fail to meet our reporting obligations or fail to prevent fraud;

●

our ability to issue and sell common shares under the 2020 ATM Facility;

●

our broad discretion in how we use the proceeds of the sale of common shares; and

●

our ability to expand our business through the acquisition of companies or businesses.

More detailed information about risk factors and their underlying assumptions are included in our Annual Report on Form 10-K for the year ended December 31, 2021, under Item 1A – Risk Factors. Except as required under applicable securities legislation, we undertake no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

PART I—FINANCIAL INFORMATION

ITEM 1 – FINANCIAL STATEMENTS

Condensed Consolidated Interim Financial Statements

(Unaudited)

APTOSE BIOSCIENCES INC.

For the three and nine months ended September 30, 2022 and 2021

APTOSE BIOSCIENCES INC.

Condensed Consolidated Interim Statements of Financial Position

(Expressed in thousands of US dollars)

(unaudited)

	September 30, 2022			December 31, 2021
Assets
Current assets:
Cash and cash equivalents	$	27,991		$	39,114
Investments		27,402			40,014
Prepaid expenses		838			2,476
Other current assets		346			133
Total current assets		56,577			81,737

Non-current assets:
Property and equipment		251			323
Right-of-use assets, operating leases		220			465
Total non-current assets		471			788

Total assets	$	57,048		$	82,525
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	2,416		$	1,699
Accrued liabilities		7,547			6,016
Current portion of lease liability, operating leases		270			459
Total current liabilities		10,233			8,174

Non-current liabilities:
Lease liability, operating leases		1			115
Total liabilities		10,234			8,289

Shareholders’ equity:
Share capital:
Common shares, no par value, unlimited authorized shares, 92,294,734 and 92,215,024 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively		437,469			437,386
Additional paid-in capital		68,008			63,673
Accumulated other comprehensive loss		(4,333	)		(4,316	)
Deficit		(454,330	)		(422,507	)
Total shareholders’ equity		46,814			74,236

Total liabilities and shareholders’ equity	$	57,048		$	82,525

The accompanying notes are an integral part of these condensed consolidated interim financial statements (unaudited).

Subsequent event (note 12)

APTOSE BIOSCIENCES INC.

Condensed Consolidated Interim Statements of Loss and Comprehensive Loss

(Expressed in thousands of US dollars, except for per common share data)

(unaudited)

	Three months ended September 30,						Nine months ended September 30,
	2022			2021			2022			2021

Revenue	$	-		$	-		$	-		$	-

Expenses:
Research and development		6,578			7,718			21,312			25,777
General and administrative		3,448			3,641			10,887			15.322
Operating expenses		10,026			11,359			32,199			41,099

Other income/(expense):
Interest income		254			22			387			72
Foreign exchange gain/(loss)		(5	)		4			(11	)		(3	)
Total other income		249			26			376			69

Net loss	$	(9,777	)	$	(11,333	)	$	(31,823	)	$	(41,030	)

Other comprehensive income/(loss):
Unrealized gain/(loss) on available-for-sale securities		20			-			(17	)		-
Total comprehensive loss	$	(9,757	)	$	(11,333	)	$	(31,840	)	$	(41,030	)

Basic loss per common share	$	(0.11	)	$	(0.13	)	$	(0.34	)	$	(0.46	)

Weighted average number of common shares outstanding (in thousands) used in the calculation of basic loss per common share		92,289			88,949			92,253			88,927

Diluted loss per common share	$	(0.11	)	$	(0.13	)	$	(0.34	)	$	(0.46	)

Weighted average number of common shares outstanding (in thousands) used in the calculation of diluted loss per common share		92,289			88,949			92,253			88,927

The accompanying notes are an integral part of these condensed consolidated interim financial statements (unaudited).

APTOSE BIOSCIENCES INC.

Condensed Consolidated Interim Statements of Changes in Shareholders’ Equity

(Expressed in thousands of US dollars, except for per common share data)

(unaudited)

	Common Shares				Additional			Accumulated other
	Shares (in thousands)		Amount			paid-in capital			comprehensive loss			Deficit			Total

Balance, December 31, 2021		92,215	$	437,386	$	63,673		$	(4,316	)	$	(422,507	)	$	74,236
Common shares issued under the 2020 ATM Facility		55		50		-			-			-			50
Common shares issued upon exercise of stock options		14		26		(11	)		-			-			15
Common shares issued under the ESPP plan		11		7		-			-			-			7
Stock-based compensation		-		-		4,346			-			-			4,346
Other comprehensive loss		-		-		-			(17	)		-			(17	)
Net loss		-		-		-			-			(31,823	)		(31,823	)
Balance, September 30, 2022		92,295	$	437,469	$	68,008		$	(4,333	)	$	(454,330	)	$	46,814
Balance, December 31, 2020		88,882	$	429,523	$	50,861		$	(4,316	)	$	(357,153	)	$	118,915
Common shares issued upon exercise of stock options		67		272		(112	)		-			-			160
Stock-based compensation		-		-		10,635			-			-			10,635
Net loss		-		-		-			-			(41,030	)		(41,030	)
Balance, September 30, 2021		88,949	$	429,795	$	61,384		$	(4,316	)	$	(398,183	)	$	88,680

The accompanying notes are an integral part of these condensed consolidated interim financial statements (unaudited).

APTOSE BIOSCIENCES INC.

Condensed Consolidated Interim Statements of Cash Flows

(Expressed in thousands of US dollars)

(unaudited)

	Three months ended September 30,						Nine months ended September 30,
	2022			2021			2022			2021

Cash flows used in operating activities:
Net loss for the period	$	(9,777	)	$	(11,333	)	$	(31,823	)	$	(41,030	)
Items not involving cash:
Stock-based compensation		1,053			1,828			4,346			10,635
Depreciation and amortization		30			36			92			106
Loss on disposal of property and equipment		-			-			4			-
Amortization of right-of-use assets		111			119			336			353
Interest on lease liabilities		4			10			17			35
Unrealized foreign exchange gain/(loss)		7			4			10			(1	)
Accrued interest on investments		78			(3	)		85			(5	)
Changes in non-cash operating assets and liabilities:
Prepaid expenses		825			788			1,638			1,520
Other assets		(225	)		10			(213	)		(2	)
Operating lease liabilities		(134	)		(139	)		(411	)		(416	)
Accounts payable		23			(1,284	)		717			(541	)
Accrued liabilities		1,026			1,905			1,531			2,086
Cash used in operating activities		(6,979	)		(8,059	)		(23,671	)		(27,260	)

Cash flows from financing activities:
Issuance of common shares under 2020 ATM Facility		21			-			50			-
Issuance of common shares upon exercise of stock options		-			-			15			160
Cash from financing activities		21			-			65			160

Cash flows from/(used in) investing activities:
Maturity (acquisition) of investments, net		(5,078	)		(4	)		12,517			(15,000	)
Purchase of property and equipment		-			(181	)		(24	)		(198	)
Cash from/(used in) investing activities		(5,078	)		(185	)		12,493			(15,198	)

Effect of exchange rate fluctuations on cash and cash equivalents		(7	)		(4	)		(10	)		-
Decrease in cash and cash equivalents		(12,043	)		(8,248	)		(11,123	)		(42,298	)
Cash and cash equivalents, beginning of period		40,034			83,343			39,114			117,393
Cash and cash equivalents, end of period	$	27,991		$	75,095		$	27,991		$	75,095

The accompanying notes are an integral part of these condensed consolidated interim financial statements (unaudited).

APTOSE BIOSCIENCES INC.

Notes to Condensed Consolidated Interim Financial Statements (unaudited)

Three and nine months ended September 30, 2022 and 2021

(Tabular amounts in thousands of United States dollars, except as otherwise noted)

1.	Reporting entity:

Aptose Biosciences Inc. (“Aptose”, the “Company,” “we,” “us,” or “our”) is a clinical-stage precision oncology company developing differentiated kinase inhibitors addressing unmet medical needs in oncology. The Company’s executive offices are located in San Diego, California, and our head office is located in Toronto, Canada.

We are advancing targeted agents to treat life-threatening cancers that, in most cases, are not elective for patients and require immediate treatment.  However, COVID-19 has caused global economic and social disruptions that could adversely affect our ongoing and planned research and development of our clinical-stage programs including, but not limited to, drug manufacturing campaigns, clinical trial activities, such as enrollment of patients in our ongoing and planned clinical trials, collection and analysis of patient data and eventually, the reporting of results from our trials. 

Since our inception, we have financed our operations and technology acquisitions primarily from equity financing, proceeds from the exercise of warrants and stock options, and interest income on funds held for future investment. Our uses of cash for operating activities have primarily consisted of salaries and wages for our employees, facility and facility-related costs for our offices and laboratories, fees paid in connection with preclinical and clinical studies, drug manufacturing costs, laboratory supplies and materials, and professional fees.

We do not expect to generate positive cash flow from operations for the foreseeable future due to the early stage of our clinical trials. It is expected that negative cash flow will continue until such time, if ever, that we receive regulatory approval to commercialize any of our products under development and/or royalty or milestone revenue from any such products exceeds expenses.

We believe that our cash, cash equivalents and investments on hand at September 30, 2022 will be sufficient to finance our operations for at least 12 months from the issuance date of these financial statements. Our cash needs for the next twelve months include estimates of the number of patients and rate of enrollment of our clinical trials, the amount of drug product that we will require to support our clinical trials, and our general corporate overhead costs to support our operations, and our reliance on our manufacturers. We have based these estimates on assumptions and plans which may change, and which could impact the magnitude and/or timing of operating expenses and our cash runway.

Our ability to raise additional funds could be affected by adverse market conditions, the status of our product pipeline, possible delays in enrollment in our trial related to COVID-19, and various other factors and we may be unable to raise capital when needed, or on terms favorable to us. If necessary, funds are not available, we may have to delay, reduce the scope of, or eliminate some of our development programs, potentially delaying the time to market for any of our product candidates.

2.	Significant accounting policies

Basis of consolidation:

These condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions, balances, revenue, and expenses are eliminated on consolidation.

Basis of presentation:

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States (“US GAAP”) for the interim financial information and the rules and regulations of the United States Securities and Exchange Commission (“SEC”) related to quarterly reports on Form 10-Q. Accordingly, they do not include all of the information and disclosures required by US GAAP for annual audited financial statements and should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on March 22, 2022. In the opinion of management, these condensed consolidated interim financial statements include all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. The results of operations for the periods shown in this report are not necessarily indicative of the results that may be expected for any future period, including the full year.

APTOSE BIOSCIENCES INC.

Notes to Condensed Consolidated Interim Financial Statements (unaudited)

Three and nine months ended September 30, 2022 and 2021

(Tabular amounts in thousands of United States dollars, except as otherwise noted)

Significant accounting policies, estimates and judgments:

During the nine months ended September 30, 2022, there have been no changes to our significant accounting policies as described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

The preparation of the condensed consolidated interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting period. Actual outcomes could differ from those estimates. The condensed consolidated interim financial statements include estimates, which, by their nature, are uncertain.

The impacts of such estimates are pervasive throughout the condensed consolidated interim financial statements and may require accounting adjustments based on future occurrences.

The estimates and underlying assumptions are reviewed on a regular basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.

Recent Accounting Pronouncements

New Accounting Pronouncements - Recently Adopted

We have adopted no new accounting pronouncements during the nine months ended September 30, 2022.

Recent Accounting Pronouncements Not Yet Adopted

There were various accounting standards and interpretations issued recently, none of which are expected to have a material impact on our financial position, operations or cash flows.

Foreign currency:

The functional and presentation currency of the Company is the US dollar.

Concentration of risk:

The Company is subject to credit risk from the Company’s cash and cash equivalents and investments. The carrying amount of the financial assets represents the maximum credit exposure. The Company manages credit risk associated with its cash and cash equivalents and investments by maintaining minimum standards of R1‑low or A‑low investments and the Company invests only in highly rated corporations and treasury bills, which are capable of prompt liquidation.

3.	Cash and cash equivalents:

Cash and cash equivalents as of September 30, 2022, consist of cash of $874 thousand ( December 31, 2021 ‑ $294 thousand), deposits in high interest savings accounts, money market funds and accounts and other term deposits with maturities of less than 90 days totaling of $27.117 million ( December 31, 2021 ‑ $38.82 million).

4.	Prepaid expenses:

	September 30,		December 31,
	2022		2021

Prepaid research and development expenses	$	589	$	632
Other prepaid expenses		249		1,844
Total	$	838	$	2,476

5.	Right-of-use assets:

	Nine months ended September 30, 2022			Year ended December 31, 2021

Right-of-use assets, beginning of period	$	1,860		$	1,848
Additions to right-of-use assets		91			12
Right-of-use assets, end of period		1,951			1,860
Accumulated amortization		(1,731	)		(1,395	)
Right-of use assets, NBV	$	220		$	465

APTOSE BIOSCIENCES INC.

Notes to Condensed Consolidated Interim Financial Statements (unaudited)

Three and nine months ended September 30, 2022 and 2021

(Tabular amounts in thousands of United States dollars, except as otherwise noted)

6.	Investments:

Investments consisted of the following as of September 30, 2022 and December 31, 2021:

	September 30, 2022
	Cost		Unrealized gain/(loss)			Market value

United States treasury bills	$	19,941	$	(4	)	$	19,937
Commercial notes		7,478		(13	)		7,465
Total	$	27,419	$	(17	)	$	27,402

	December 31, 2021
	Cost		Unrealized gain/(loss)		Market value

Guaranteed Investment Certificate	$	20,016	$	-	$	20,016
Commercial notes		19,998		-		19,998
Total	$	40,014	$	-	$	40,014

7.	Fair value measurements and financial instruments:

The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value.

Level 1 ‑ inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 ‑ inputs are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability, or inputs that are derived principally from or corroborated by observable market data or other means; and

Level 3 ‑ inputs are unobservable (supported by little or no market activity).

The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs.

APTOSE BIOSCIENCES INC.

Notes to Condensed Consolidated Interim Financial Statements (unaudited)

Three and nine months ended September 30, 2022 and 2021

(Tabular amounts in thousands of United States dollars, except as otherwise noted)

The following table presents the fair value of Company's assets that are measured at fair value on a recurring basis for the periods presented:

	September 30, 2022		Level 1		Level 2		Level 3
Assets

Money Market accounts	$	165	$	-	$	165	$	-
Money Market Funds		24,748		-		24,748		-
High interest savings accounts		2,203		-		2,203		-
United States Treasury Bill		19,938		-		19,938		-
Commercial notes		7,465		-		7,465
Total	$	54,519	$	-	$	54,519	$	-

	December 31, 2021		Level 1		Level 2		Level 3
Assets

Money Market accounts	$	17,974	$	-	$	17,974	$	-
Money Market Funds		15,801		-		15,801		-
High interest savings accounts		5,045		-		5,045		-
Commercial notes		19,998		-		19,998		-
Guaranteed Investment Certificate		20,016		-		20,016		-
Total	$	78,834	$	-	$	78,834	$	-

8.	Accrued liabilities:

Accrued liabilities as of September 30, 2022 and December 31, 2021 consisted of the following:

	September 30,		December 31,
	2022		2021

Accrued personnel related costs	$	1,863	$	2,152
Accrued research and development expenses		4,929		3,520
Other accrued expenses		755		344
Total	$	7,547	$	6,016

9.	Lease liability

Aptose leases office space and lab space in San Diego, California. The lease for the office space expires on March 31, 2023, and can be extended for an additional five-year period. The lease for our lab space was renewed for 12 months on February 28, 2022 and expires on February 28, 2023. We also lease office space in Toronto, Ontario, Canada, and the lease for this location expires on June 30, 2023, with an option to renew for another five-year period. The Company has not included any extension periods in calculating its right-to-use assets and lease liabilities. The Company also leases for small office equipment.

Minimum payments, undiscounted, under our operating leases are as follows:

Years ending December 31,
2022	$	135
2023	$	140
Thereafter	$	-
Total	$	275

APTOSE BIOSCIENCES INC.

Notes to Condensed Consolidated Interim Financial Statements (unaudited)

Three and nine months ended September 30, 2022 and 2021

(Tabular amounts in thousands of United States dollars, except as otherwise noted)

The following table presents the weighted average remaining term of the leases and the weighted average discount rate:

	September 30, 2022			December 31, 2021
Weighted-average remaining term – operating leases (years)		0.5			1.2
Weighted-average discount rate – operating leases		5.14	%		5.37	%

Lease liability, current portion	$	270		$	459
Lease liability, long term portion		1			115
Total	$	271		$	574

Operating lease costs and operating cash flows from our operating leases are as follows:

	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021

Operating lease cost	$	115	$	129	$	353	$	388
Operating cash flows from operating leases	$	134	$	139	$	411	$	416

10.

Share capital:

The Company has authorized share capital of an unlimited number of common voting shares.

Equity issuances:

2020 At The Market (“ATM”) Facility

On May 5, 2020, the Company entered into an “at-the-market” equity distribution agreement with Piper Sandler & Co. (“Piper Sandler”) and Canaccord Genuity LLC (“Canaccord Genuity”) acting as co-agents (the “2020 ATM Facility”). Under the terms of the 2020 ATM Facility, the Company may, from time to time, sell through Piper Sandler and Canaccord Genuity Common Shares having an aggregate offering value of up to $75 million on the Nasdaq Capital Market. During the nine months ended September 30, 2022, the Company issued 54,687 shares under the 2020 ATM Facility at an average price of $0.95 for gross proceeds of $52 thousand ($50 thousand, net of share issue costs, which included a 3% cash commission). During the period ended September 30, 2021, the Company did not issue any shares under the 2020 ATM Facility. On a cumulative basis to September 30, 2022, the Company has raised a total of $89 thousand gross proceeds ($86 thousand, net of share issue costs) under the 2020 ATM Facility.

Loss per share:

Loss per common share is calculated using the weighted average number of common shares outstanding and is presented in the table below:

Three months ended
September 30,

Nine months ended
September 30,

2022

SEC Form 10-Q filed by Aptose Biosciences Inc.