Company: MDCXW
Filing Date: 2025-05-30
Form Type: 424B3
Source: 0001062993-25-010580
Chunk: 229

Company: Medicus Pharma Ltd.
Filing Date: 2025-05-30
Form: 424B3
Chunk 229
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 |
| Change in valuation allowance                 |     |               2,724,272 |   |     |    174,712 |   |
|                                               |     |                       - |   |     |          - |   |

F-20 Medicus Pharma Ltd.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2024 and 2023
[expressed in United States dollars, except share amounts] The tax effect of temporary differences between US GAAP accounting and income tax accounting creating deferred income tax assets and liabilities were as follow:

|                                           |     | Year ended December 31, 
                    2024 |   |     |       2023 |   |
|:------------------------------------------|:----|------------------------:|:--|:----|-----------:|:--|
| Non-capital losses carry forward - Canada |     |               1,973,535 |   |     |    561,698 |   |
| Net operating losses carry forward - US   |     |               2,678,919 |   |     |  2,208,235 |   |
| Intangible assets                         |     |                  10,855 |   |     |     11,810 |   |
| Accrued expenses                          |     |                 994,653 |   |     |    170,598 |   |
| Research and Development Tax credits      |     |                 242,190 |   |     |    242,190 |   |
| Other                                     |     |                  14,230 |   |     |     25,290 |   |
| Financing charges and interest            |     |                 668,701 |   |     |          - |   |
| Total deferred tax assets                 |     |               6,583,083 |   |     |  3,219,821 |   |
| Less: valuation allowance                 |     |              (6,583,083 | ) |     | (3,219,821 | ) |
| Deferred tax assets, net                  |     |                       - |   |     |          - |   |

The Company has a valuation allowance on all of its deferred tax assets at December 31, 2024 and 2023, which based in the judgement of management are not more-likely than-not to be realized. In assessing the realizability of deferred tax assets, management considers whether it is more-likely-than-not that