Company: EDSA
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001171843-25-000866
Chunk: 41

Company: Edesa Biotech, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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 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:

			December 31, 2024 

			September 30, 2024 

			The Constructs

			$
			2,529,483

			$
			2,529,483

			Less: accumulated amortization

			(475,928
			)

			(450,635
			)

			Total intangible assets, net

			$
			2,053,555

			$
			2,078,848

Amortization expense amounted to $0.03 million for each of the three months ended December 31, 2024 and 2023.

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

			Year Ending

			September 30, 2025

			75,879

			September 30, 2026

			101,172

			September 30, 2027

			101,172

			September 30, 2028

			101,172

			September 30, 2029

			101,172

			Thereafter

			1,572,988

			$
			2,053,555

8

4. Right-of-Use Lease with Related Party

The Company leases a facility used for executive offices from a related company. The original lease expired in December 2022 and the Company executed a two-year extension through December 2024. The Company extended the lease until November 30, 2025, and upon expiry, the arrangement will be month to month and either party will have the right to terminate on 30 days’ notice.

The components of right-of-use lease cost were as follows:

			Three Months Ended

			December 31, 2024

			December 31, 2023

			Right-of