Why did DMAC's operating expenses surge in Q4 2024?

DiaMedica Therapeutics Inc. (NASDAQ: DMAC) saw a significant increase in its operating expenses in Q4 2024, which can be attributed to several strategic initiatives and developments within the company: 1. **Advancements in Clinical Studies**: The company reported significant progress in its Acute Ischemic Stroke (AIS) study and preeclampsia program. Site activations for the AIS study in the U.S. and regulatory approval for the preeclampsia program in South Africa are notable achievements. Such advancements likely incurred additional costs for trial site activations, regulatory filings, and other related activities. 2. **REMEDy2 Trial Protocol Updates**: DiaMedica discussed updates to the ReMEDy2 trial protocol, which are anticipated to save over $10 million and improve the trial's success rate. The implementation of these updates would have required significant resources and expenses, including personnel, infrastructure, and logistical costs. 3. **Financial Position**: Despite the surge in operating expenses, DiaMedica expressed confidence in its financial stability until Q3 2026. The company reported a slight decrease in its cash balance to $50.2 million. This financial positioning suggests that the company had the resources to fund its increased operating expenses. In conclusion, the surge in operating expenses for DiaMedica Therapeutics Inc. in Q4 2024 was primarily driven by strategic developments and advancements in its clinical studies, as well as the implementation of trial protocol updates. These initiatives are likely to position the company for future growth and success in the healthcare sector.