Company: EDSA
Filing Date: 2025-12-12
Form Type: 10-K
Source: 0001171843-25-007914
Chunk: 701

Company: Edesa Biotech, Inc.
Filing Date: 2025-12-12
Form: 10-K
Item: Item 3
Chunk 701
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 that extend three (3) years beyond the term or early termination.

Under the 2023 SIF Agreement the Company recorded grant income of $0.8 million and $0.7 million for the years ended September 30, 2025 and September 30, 2024, respectively.

Canada Emergency Business Account

During year ended September 30, 2024, the Company recognized a $20,000 Canadian dollar gain from loan forgiveness related to its Canada Emergency Business Account (“CEBA”) loan. This forgiveness was granted upon successful repayment of $40,000 Canadian dollar of the loan balance, in accordance with CEBA program terms. The forgiven amount is recorded as other income in the consolidated statements of operations. The CEBA loan has been fully repaid and closed with CIBC.

F-20

EDESA BIOTECH, INC.

Notes to Consolidated Financial Statements

For the Years Ended September 30, 2025 and 2024

9. Income Tax

The reconciliation of the combined Canadian federal and provincial statutory income tax rate to the approximate effective tax rate is as follows:

			September 30, 2025

			September 30, 2024

			Net loss before recovery of income taxes

			$
			(7,185,000
			)
			 
			$
			(6,169,000
			)

			Canadian federal and provincial statutory income tax rate

			26.5
			%

			26.5
			%

			Expected income tax recovery

			$
			(1,910,000
			)
			 
			$
			(1,635,000
			)

			Effect of foreign currency and foreign tax rate differences

			216,800

			(58,200
			)

			Permanent differences

			200,000

			147,000

			Share issuance cost booked through equity or capitalization

			(202,000
			)

			36,000

			Non-capital losses limitation - U.S.

			0

			0

			Other

			(19,000
			)

			(38,000
			)

			Change in valuation allowance

			1,715,000

			1,549,000

			Income tax (recovery) expense

			$
			800