Profound Medical Corp._March 31, 2025

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended March 31, 2025

☐	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: 001-39032

PROFOUND MEDICAL CORP.

(Exact Name of Registrant as Specified in its Charter)


Ontario, Canada	Not Applicable
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

2400 Skymark Avenue, Unit #6, Mississauga, Ontario, Canada (Address of principal executive offices)	L4W 5K5 (Zip Code)

Registrant’s telephone number, including area code: (647) 476-1350

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 Per Share	PROF	Nasdaq Stock Market LLC

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, 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 May 8, 2025, the registrant had 30,053,142 common shares, no par value per share, outstanding.

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EXPLANATORY NOTE

Profound Medical Corp. (the “Company”) qualifies as a “Foreign Private Issuer,” as defined in Rule 3b-4 under the Securities Exchange Act of 1934 (the “Exchange Act”) and is exempt from filing quarterly reports on Form 10-Q by virtue of Rules 13a-13 and 15d-13 under the Exchange Act. The Company has voluntarily elected to file this Quarterly Report on Form 10-Q for the quarter ended March 31, 2025.

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		Page
PART I.	Financial Information
Item 1.	Condensed Consolidated Financial Statements
	Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024 (Unaudited)	1
	Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Months Ended March 31, 2025 and 2024 (Unaudited)	2
	Condensed Consolidated Statements of Shareholders’ Equity for the Three Months Ended March 31, 2025 and 2024 (Unaudited)	3
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2025 and 2024 (Unaudited)	4
	Notes to Condensed Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	18
Item 4.	Controls and Procedures	19
PART II.	Other Information	20
Item 1.	Legal Proceedings	20
Item 1A.	Risk Factors	20
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	20
Item 3.	Defaults Upon Senior Securities	20
Item 4.	Mine Safety Disclosures	20
Item 5.	Other Information	20
Item 6.	Exhibits	21
Signatures		22

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Profound Medical Corp.

CONDENSED CONSOLIDATED BALANCE SHEETS

(USD in thousands, except per share data)

(unaudited)


	March 31,	December 31,
	2025	2024
	$	$
Assets

Current assets:
Cash	46,433	54,912
Trade and other receivables, net (note 3)	5,966	7,045
Inventory (note 4)	6,795	5,801
Prepaid expenses and deposits	718	1,307
Total current assets	59,912	69,065

Property and equipment, net (note 5)	309	425
Intangible assets, net (note 6)	214	261
Right-of-use assets, net	342	396
Deferred tax assets, net	87	87
Total assets	60,864	70,234

Liabilities

Current liabilities:
Accounts payable	1,048	1,317
Accrued expenses and other current liabilities (note 7)	3,350	2,835
Deferred revenue	636	419
Long-term debt (note 8)	—	1,737
Lease liabilities	261	257
Total current liabilities	5,295	6,565

Deferred revenue	85	49
Long-term debt (note 8)	4,486	2,924
Lease liabilities	136	203
Other non-current liabilities	72	71
Total liabilities	10,074	9,812

Shareholders’ equity

Common shares, no par value, unlimited shares authorized, 30,053,142 and 30,039,809 issued and outstanding at March 31, 2025 and December 31, 2024, respectively (note 9)	281,641	281,552
Additional paid-in capital	22,198	21,298
Accumulated other comprehensive income	2,845	2,742
Accumulated deficit	(255,894)	(245,170)
Total shareholders’ equity	50,790	60,422

Total liabilities and shareholders’ equity	60,864	70,234

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Profound Medical Corp.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHESIVE LOSS

(USD in thousands, except per share data)

(unaudited)


	Three Months Ended March 31,
	2025	2024
	$	$
Revenue (note 11)
Recurring - non-capital	1,801	1,439
Capital equipment	820	—
	2,621	1,439
Cost of sales	768	573
Gross profit	1,853	866

Operating expenses
Research and development	4,808	3,945
Selling, general and administrative	8,211	4,798
Total operating expenses	13,019	8,743

Operating loss	11,166	7,877

Other (income) expenses
Net finance (income) expense	(445)	(462)
Net foreign exchange (gain) loss	(38)	(870)
Total other (income) expenses	(483)	(1,332)

Net loss before income taxes	10,683	6,545

Income tax expense	41	40
Total income tax expense	41	40

Net loss attributed to shareholders for the period	10,724	6,585

Other comprehensive (income) loss
Item that may be reclassified to (income) loss
Foreign currency translation adjustment	(103)	969

Net loss and other comprehensive loss for the period	10,621	7,554

Loss per share (note 12)
Basic and diluted net loss per common share	0.36	0.27
Basic and diluted weighted average common shares outstanding	30,041,735	24,295,749

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Profound Medical Corp.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(USD in thousands)

(unaudited)


				Accumulated
			Additional	Other
			Paid-in	Comprehensive	Accumulated
	Common Shares		Capital	Income	Deficit	Tota1
	Shares	Amount $	$	$	$	$
Balance - December 31, 2024	30,039,809	281,552	21,298	2,742	(245,170)	60,422

Net loss for the period	—	—	—	—	(10,724)	(10,724)
Cumulative translation adjustment – net of tax of $nil	—	—	—	103	—	103
Vesting of RSUs (note 10)	13,333	89	(89)	—	—	—
Share-based compensation (note 10)	—	—	989	—	—	989
Balance - March 31, 2025	30,053,142	281,641	22,198	2,845	(255,894)	50,790

Accumulated

SEC Form 10-Q filed by Profound Medical Corp.