aibioXORTX auditor flags going-concern doubt in 2025 financials; cash was $864,514
Tickers XRTX
The audit report says XORTX must finance its research or postpone it. The statements show an accumulated deficit of $23,824,557 at December 31, 2025.
Key facts
- Company
- XORTX Therapeutics Inc. (NASDAQ: XRTX)
- News type
- Distress
- Primary source
- XORTX Therapeutics Inc. 6-K (2026-02-27)
The auditor's warning
XORTX Therapeutics Inc. (Nasdaq: XRTX) furnished audited consolidated financial statements for 2025 in a Form 6-K filed February 27, 2026. The auditor's report, from Davidson & Company LLP and dated February 25, 2026, carries a going-concern paragraph. The auditor says the company will have to finance its research and development activities, and that if it cannot obtain adequate financing, research will be postponed. The auditor describes the situation as a material uncertainty that raises substantial doubt about the company's ability to continue as a going concern.
The statements themselves say they were prepared on the going-concern assumption and do not include any adjustments that might result from the outcome of the uncertainty. Note 1 says management believes more funding can be raised as needed, but it also says there is no certainty of that. If the company does not raise the money, research will be postponed until market conditions improve.
The 2025 numbers
The statements are in U.S. dollars. The net loss for 2025 was $2,656,304, against $3,313,346 for 2024. Operating activities used $2,768,723 in 2025 and $3,678,648 in 2024. Cash fell to $864,514 at December 31, 2025, from $2,473,649 a year earlier, a decrease of $1,609,135 for the year.
Total assets were $2,683,530 at year-end, against $4,094,527 a year earlier. Total liabilities were $599,071. Shareholders' equity fell to $2,084,459 from $3,336,537. The accumulated deficit reached $23,824,557 at December 31, 2025.
Research and development expense rose to $574,935 in 2025 from $183,830 in 2024. Investor relations expense fell to $595,838 from $1,360,170. Consulting, wages and benefits were $1,000,587 in 2025, compared with $1,055,247 in 2024.
How the company raised money
Proceeds from issuance of equity instruments were $2,255,535 in 2025 and $3,500,542 in 2024. The equity statement shows shares issued through an at-the-market offering, 73,871 shares for $113,547, and 1,996,442 shares issued in a private placement for $1,400,156. It also records $741,832 of pre-funded warrants issued. Cash share issuance costs were $738,433 in 2025.
The statement of changes in equity shows 6,962,218 shares at December 31, 2025, against 3,481,375 a year earlier. Those figures show that the company funded its losses largely by issuing stock, and that its share base has grown quickly.
The Vectus term sheet
The subsequent-events note describes a binding term sheet signed October 15, 2025 to acquire a renal anti-fibrotic program from Vectus Biosystems Limited, an Australian Securities Exchange company. The program includes a new chemical entity, VB4-P5, along with its intellectual property, regulatory documentation and manufacturing data.
XORTX would pay $3,000,000 in common shares at a deemed issue price of $0.86 per share, subject to adjustment in some cases. It would also pay a cash finder's fee of the greater of 5% of the transaction value or $250,000. The term sheet is subject to closing documents, regulatory approvals and stock exchange requirements. Closing was to occur no more than 90 days after the term sheet was signed. The note gives no closing date beyond that limit, and it says that if the term sheet is terminated or closing does not occur, other than through a breach by Vectus, XORTX must issue Vectus $50,000 of common shares at the deemed issue price.
Listing pressure
Note 1 describes XORTX as a late-stage clinical pharmaceutical company developing therapies for gout and progressive kidney disease, including allopurinol intolerant gout and autosomal dominant polycystic kidney disease. It says the company is listed on the TSX Venture Exchange and on Nasdaq, and that it has received a Nasdaq notice of non-compliance on the minimum bid price requirement. The company says it is working to regain compliance within the prescribed period.
The company describes itself as a late-stage clinical pharmaceutical company developing therapies for gout and progressive kidney disease. The statements say it will need to raise capital and to generate revenue. The auditor's warning, the cash decline and a bid-price notice all arrive in the same filing, and the acquisition would be paid for in shares at a deemed price of $0.86 each.