Company: EDSA
Filing Date: 2025-12-12
Form Type: 10-K
Source: 0001171843-25-007914
Chunk: 256

Company: Edesa Biotech, Inc.
Filing Date: 2025-12-12
Form: 10-K
Item: Item 1
Chunk 256
---
381,000

			Right-of-use lease liabilities

			-

			5,000

			Other temporary differences

			21,000

			21,000

			Subtotal

			$
			19,864,000

			$
			18,200,000

			Less: valuation allowance

			(19,733,000
			)

			(18,074,000
			)

			Total net deferred tax assets

			$
			131,000

			$
			126,000

			Property and equipment

			$
			(3,000
			)
			 
			$
			(2,000
			)

			Right-of-use assets

			-

			(5,000
			)

			Grant Income receivable

			(129,000
			)

			(71,000
			)

			Deferred share issuance costs

			1,000

			(48,000
			)

			Total deferred tax liabilities

			$
			(131,000
			)
			 
			$
			(126,000
			)

			Net deferred taxes

			$
			-

			$
			-

Realization of the deferred tax assets is dependent upon the generation of future taxable income, the amount and timing of which are uncertain. It is more likely than not that a tax benefit will not be realized. Accordingly, net deferred tax assets have been fully offset by a valuation allowance.

Non-capital losses, capital losses, and research and development credits generated by Edesa Biotech USA, Inc. prior to changes in share ownership that occurred as a result of the reverse acquisition are substantially limited. It is unlikely that tax losses totaling $29.3 million and credits totaling $0.6 million will be utilized to offset potential future taxable income before expiration and they are excluded from deferred tax assets above.

F-21

EDESA BIOTECH, INC.

Notes to Consolidated Financial Statements

For the Years Ended September 30, 2025 and 2024

The approximate Canadian non-capital losses carried forward at September 30, 2025 expire as follows:

			2026

			41,000

			2027

			84,000

			2028

			172,000

			202