Company: EDSA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001171843-25-005236
Chunk: 53

Company: Edesa Biotech, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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 comparative period; therefore, no prior-period disclosure is presented.

			Issued and Outstanding Series A-1 convertible preferred shares

			Series A-1 Convertible
			Preferred Shares (#)

			Series A-1 Convertible
			Preferred Shares

			Nine Months Ended June 30, 2025

			Balance - September 30, 2024

			-

			-

			Issuance of Series A-1 Preferred Shares

			150

			998,915

			Series A-1 Preferred Shares issuance costs

			-

			(43,220
			)

			Preferred return on Series A-1 Preferred Shares

			-

			99,040

			Balance - June 30, 2025

			150

			$
			1,054,735

11

Equity distribution agreement

In October 2024, the Company entered into an At The Market Offering Agreement with H.C. Wainwright & Co., LLC as a sales agent (HCW ATM) pursuant to which the Company may offer and sell, from time to time, Common Shares through an at-the-market equity offering program for up to $3.87 million in gross proceeds. The Company has no obligation to sell any of the Common Shares and may at any time suspend sales or terminate the equity distribution agreement in accordance with its terms. For the nine months ended June 30, 2025, the Company sold a total of 304,057 Common Shares pursuant to the agreement for net proceeds of $0.8 million after deducting sales agent commissions of $25,000. The Company has not sold any Common Shares pursuant to the HCW ATM subsequent to June 30, 2025.

Black-Scholes option valuation model

The Company uses the Black-Scholes option valuation model to determine the fair value of share-based compensation for share options and compensation warrants granted and the fair value of warrants issued. Option valuation models require the input of highly subjective assumptions including the expected price volatility. The Company calculates expected volatility based on historical volatility of the Company’s share price. When there is insufficient data available, the Company uses a peer group that is publicly traded to calculate expected volatility. The Company adopted interest-free rates by reference to the U.S. treasury yield rates. The Company calculated the fair value of share options granted based on the expected life of 5 years considering expected forfeitures during the option term of 10 years