Company: EDSA
Filing Date: 2025-12-12
Form Type: 10-K
Source: 0001171843-25-007914
Chunk: 1052

Company: Edesa Biotech, Inc.
Filing Date: 2025-12-12
Form: 10-K
Item: Item 8
Chunk 1052
---
 separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.

Going Concern

Critical Audit Matter Description

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As described in Note 1 to the consolidated financial statements, the Company has incurred a net comprehensive loss, negative cash flows from operations and has accumulated deficit as at September 30, 2025 that raise substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is ultimately dependent on obtaining additional funding through financing, grants and other strategic alternatives. Management intends to continue to fund its business by way of equity financing. However, the Company has not concluded that these plans alleviate the substantial doubt related to its ability to continue as a going concern. This matter is also described in the “Material Uncertainty Related to Going Concern” section of our report.

We identified the Company’s ability to continue as a going concern as a critical audit matter because auditing the Company’s going concern assessment is complex and involves a high degree of auditor judgment to assess the reasonableness of the cash flow forecasts.

Audit Response

We responded to this matter by performing procedures over management’s assessment of the Company’s ability to continue as a going concern. Our audit work in relation to this included, but was not restricted to, the following:

			●

			We evaluated the cash flow forecasts prepared by management and evaluated the integrity and arithmetical accuracy of the model.

			●

			We evaluated the key assumptions used in management’s model to estimate future cash flows by comparing assumptions used by management against historical performance and budgets.

			●

			We assessed the adequacy of the going concern disclosures included in Note 1 of the consolidated financial statements.

Chartered Professional Accountants 

Licensed Public Accountants

We have served as the Company’s auditor since 2019.

Toronto, Canada

December 12, 2025

			1 Adelaide Street East, Suite 1900, Toronto, Ontario, M5C 2V9 

			1.877.251.2922   T: 416.596.1711   F: 416.596.7894   MNP.ca

F-3

EDESA BIOTECH, INC.

Consolidated Balance Sheets

			September 30, 2025

			September 30, 2024

			Assets:

			Current assets: