Company: EDSA
Filing Date: 2025-12-12
Form Type: 10-K
Source: 0001171843-25-007914
Chunk: 1342

Company: Edesa Biotech, Inc.
Filing Date: 2025-12-12
Form: 10-K
Item: Item 9C
Chunk 1342
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.

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

			$
			800

Components of the net deferred tax asset or liability

Deferred taxes are provided as a result of temporary differences that arise due to the difference between the income tax values and the carrying amount of assets and liabilities. Approximate deferred tax assets and liabilities are as follows:

			September 30, 2025

			September 30, 2024

			Non-capital losses carried forward - Canada

			$
			17,270,000

			$
			15,547,000

			Non-capital losses carried forward - U.S.

			749,000

			742,000

			Research and development tax credits

			1,510,000

			1,504,000

			Share issuance and financing costs

			314,000

			381