Company: EDSA
Filing Date: 2025-12-12
Form Type: 10-K
Source: 0001171843-25-007914
Chunk: 602

Company: Edesa Biotech, Inc.
Filing Date: 2025-12-12
Form: 10-K
Item: Item 2
Chunk 602
---
,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

			2029

			509,000

			2030

			636,000

			2031

			506,000

			2032

			498,000

			2033

			79,000

			2034

			1,420,000

			2035

			1,611,000

			2036

			1,612,000

			2037

			1,566,000

			2038

			2,573,000

			2039

			1,260,000

			2040

			5,792,000

			2041

			9,172,000

			2042

			15,827,000