Business Description

1. Nature of Business and Liquidity Fennec Pharmaceuticals Inc., a corporation existing under the laws of British Columbia (“Fennec,” “the Company,” “we,” “us,” or “our”) was originally formed as a British Columbia corporation under the name Adherex Technologies Inc. and subsequently changed its name on September 3, 2014. Fennec, together with its wholly owned subsidiaries Oxiquant, Inc. and Fennec Pharmaceuticals, Inc., both Delaware corporations, Cadherin Biomedical Inc., a Canadian corporation, and Fennec Pharmaceuticals (EU) Limited, an Ireland company (“Fennec Limited”), collectively referred to herein as the “Company,” is a biopharmaceutical company with one FDA approved product developed to reduce the risk of ototoxicity associated with cisplatin in pediatric patients one month of age and older with localized, non-metastatic solid tumors. With the exception of Fennec Pharmaceuticals, Inc., and Fennec Limited, all subsidiaries are inactive. These consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) that are applicable to a going concern which contemplates that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of business. During the year ended December 31, 2025, the Company incurred a net loss from operations of $6,282. At December 31, 2025, it had an accumulated deficit of $229,422 and had experienced negative cash flows from operating activities in the amount of $12,473 for the year ended December 31, 2025. Senior Secured Convertible Notes In August 2022, the Company entered into a Securities Purchase Agreement with Petrichor Opportunities Fund I LP providing for the issuance of up to $45,000 of senior secured floating-rate convertible notes due August 2027. Between August 2022 and December 2023, the Company issued an aggregate of $30,000 of Notes under this agreement. ​ In December 2024, the Company redeemed approximately $13,000 of Notes, including payment-in-kind interest. ​ On November 17, 2025, the Company redeemed all remaining outstanding Notes for an aggregate redemption price of approximately $21,700, including principal, accrued interest, and applicable redemption fees. The redemption was funded primarily using proceeds from the Company’s November 2025 public equity offering (Note 6). ​ As of December 31, 2025, no convertible notes were outstanding. ​ License Agreement ​ In March 2024, the Company announced that is had secured an exclusive licensing agreement with Norgine Pharma UK Limited (“Norgine”), to commercialize PEDMARQSI in Europe, Australia and New Zealand. The deal provided the Company with approximately $43 million upfront, with the potential of another approximately $230 million in future royalties and milestone payments. ​ The Company believes current funds, which include funds from the upfront payment from Norgine, provide sufficient funding for the Company to carry out its planned activities, including the continuation of commercialization efforts for at least the next twelve months of PEDMARK ® . These financial statements do not reflect the potentially material adjustments in the carrying values of assets and liabilities, the reported expenses, and the balance sheet classifications used, that would be necessary if the going concern assumption were not appropriate.