Why did DMAC's EPS remain flat in 2024?

DiaMedica Therapeutics Inc. (DMAC) experienced a flat EPS of -$0.6 in 2023 and a slight improvement to -$0.6 in 2024, with no change in the diluted EPS value over the two years. The company's financial results, including the EPS, have been impacted by several key factors: 1. **Significant R&D Investments**: DiaMedica has been investing heavily in research and development (R&D), particularly for its ReMEDy2 trial, which has led to increased net losses. The company's R&D expenses more than doubled year-over-year for Q3 2023, reflecting heightened clinical trial activity. 2. **Protocol Amendments for ReMEDy2 Trial**: The company has made protocol amendments for its ReMEDy2 trial, which are anticipated to save over $10 million and improve the trial's success rate. These changes are expected to optimize trial execution and improve the potential for DM199 to enhance outcomes for stroke patients. 3. **Cash Position Strengthening**: Despite the increased net loss, DiaMedica's cash position has strengthened significantly, with total cash, cash equivalents, and investments reaching $56.2 million as of September 30, 2023, up from $33.5 million as of December 31, 2022. This financial stability allows the company to continue investing in its R&D initiatives. 4. **Insider Transactions**: There have been insider transactions with DiaMedica Therapeutics, including purchases by insiders that suggest confidence in the company's future. The insider ownership of 38% of the company, worth about $15 million, indicates a strong commitment to the company's prospects. In conclusion, DiaMedica Therapeutics Inc.'s (DMAC) flat EPS in 2024 can be attributed to significant R&D investments and protocol amendments for its ReMEDy2 trial, despite strengthening cash position and insider transactions indicating confidence in the company's future. |code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code| |---|---|---|---|---|---|---| |DMAC|DMAC.O|Diamedica|2023 Q1|-53.846153846153854|-0.2|186| |DMAC|DMAC.O|Diamedica|2023 Q2|-23.076923076923077|-0.16|186| |DMAC|DMAC.O|Diamedica|2023 Q3|0|-0.12|186|