Company: EDSA
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001171843-25-003189
Chunk: 65

Company: Edesa Biotech, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 65
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 its terms.

Under the license agreement, the Company is exclusively responsible, at its expense, for the research, development, manufacture, marketing, distribution and commercialization of the Constructs and licensed products and to obtain all necessary licenses and rights. The Company is required to use commercially reasonable efforts to develop and commercialize the Constructs in accordance 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 5 for license commitments.

Intangible assets, net consisted of the following:

			March 31, 2025 

			September 30, 2024 

			The Constructs

			$
			2,529,483

			$
			2,529,483

			Less: accumulated amortization

			(501,221
			)

			(450,635
			)

			Total intangible assets, net

			$
			2,028,262

			$
			2,078,848

Amortization expense amounted to $0.03 million for each of the three months ended March 31, 2025 and March 31, 2024 and $0.05 million for each of the six months ended March 31, 2025 and March 31, 2024.

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

			Year Ending

			September 30, 2025

			50,586

			September 30, 2026

			101,172

			September 30, 2027

			101,172

			September 30, 2028

			101,172

			September 30, 2029

			101,172

			Thereafter

			1,572,988

			$
			2,028,262

4. Right-of-Use Lease with Related Party

The Company leases