Company: CSCIF
Filing Date: 2025-04-09
Form Type: 20-F
Source: 0001641172-25-003456
Chunk: 155

Company: COSCIENS Biopharma Inc.
Filing Date: 2025-04-09
Form: 20-F
Item: Item 6
Chunk 155
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 and foreign exchange risk and how the Company manages those risks.

  (a)      Credit  

Credit
risk is the risk of an unexpected loss if a customer or counterparty to a financial instrument fails to meet its contractual obligations.
The Company regularly monitors credit risk exposure and takes steps to mitigate the likelihood of this exposure resulting in losses.
The Company’s exposure to credit risk currently relates to the financial assets at amortized cost in the table above. The Company
holds its available cash in amounts that are readily convertible to known amounts of cash and deposits its cash balances with financial
institutions that have an investment grade rating of at least “ P-2” or the equivalent. This information is supplied by independent
rating agencies where available and, if not available, the Company uses publicly available financial information to ensure that it invests
its cash in creditworthy and reputable financial institutions. Once there are indicators that there is no reasonable expectation of recovery,
such financial assets are written off but are still subject to enforcement activity.

As
of December 31, 2024, one counterparty included in trade and other receivables comprised 75% of total receivables (2023 - one counterparty
for 40%) of which $nil (2023 - $nil) was past due, considered to be impaired and fully provided for.

Generally,
the Company does not require collateral or other security from customers for trade accounts receivable; however, credit is extended following
an evaluation of creditworthiness. In addition, the Company performs ongoing credit reviews of all of its customers and determines expected
credit losses. On this basis, as of December 31, 2024, the Company has provided for all outstanding and unpaid amounts relating to its
operations.

The
maximum exposure to credit risk approximates the amount recognized in the Company’s consolidated statement of financial position.

  104  

  (b)      Liquidity  

Liquidity risk is the risk that the Company
will not be able to meet its financial obligations as they become due. The Company manages this risk through the management of its capital
structure by monitoring rolling forecasts of the Company’s cash and cash equivalents on the basis of expected cash flows.

All of the Company’s financial liabilities
except lease liabilities are current liabilities with expected settlement dates within one year. The maturity analysis for lease liabilities
is disclosed in note 14.

While the Company has $16,393 in cash and
cash equivalents at December 31, 2024, the Company has noted the existence of