Company: EDSA
Filing Date: 2025-12-12
Form Type: 10-K
Source: 0001171843-25-007914
Chunk: 790

Company: Edesa Biotech, Inc.
Filing Date: 2025-12-12
Form: 10-K
Item: Item 4
Chunk 790
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 with the terms of a development plan established by the parties.

The Company has determined that the license has multiple alternative future uses in research and development projects and sublicensing in other countries or for other disease indications. The value of the acquired license is recorded as an intangible asset with amortization over the estimated useful life of 25 years and evaluation for impairment at the end of each reporting period.

The required upfront license payment of $2.5 million was paid by issuance of Series A-1 Convertible Preferred Shares, which have been fully converted to common shares. The value of the license includes acquisition legal costs. See Note 6 for license commitments.

F-12

EDESA BIOTECH, INC.

Notes to Consolidated Financial Statements

For the Years Ended September 30, 2025 and 2024

Intangible assets, net consisted of the following:

			September 30, 2025 

			September 30, 2024 

			The Constructs

			$
			2,529,483

			$
			2,529,483

			Less: accumulated amortization

			(551,807
			)

			(450,635
			)

			Total intangible assets, net

			$
			1,977,676

			$
			2,078,848

Amortization expense amounted to $101,172 for each of the years ended September 30, 2025, and 2024, respectively.

Total estimated future amortization of intangible assets for each fiscal year is as follows:

			Year Ending

			September 30, 2026

			101,172

			September 30, 2027

			101,172

			September 30, 2028

			101,172

			September 30, 2029

			101,172

			September 30, 2030

			101,172

			Thereafter

			1,471,816

			$
			1,977,676

5. Right-of-Use Asset and Liabilities

Related party ROU asset and liability 

The Company leases a facility used for executive offices from a related company. The original lease expired in December 2022 and the Company executed a two-year term extension through December 31, 2024.

The components of lease cost were as follows:

			Fiscal Year