Company: CSCIF
Filing Date: 2025-04-09
Form Type: 20-F
Source: 0001641172-25-003456
Chunk: 197

Company: COSCIENS Biopharma Inc.
Filing Date: 2025-04-09
Form: 20-F
Item: Item 11
Chunk 197
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Item                    Quantitative                
11.    and Qualitative Disclosures About Market Risk
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Fair value
 
The Company classifies its financial instruments in the following categories: “Financial assets at amortized cost”; “Financial liabilities at amortized cost”; and “Fair value through the profit or loss”.
 

●                                                                   The                                                                
    Company’s financial assets at amortized cost are comprised of cash and cash equivalents, trade and other receivables and restricted
                                                             cash equivalents.                                                         
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●   Financial                                                                                                                          
    liabilities at amortized cost include payables and accrued liabilities, and lease liability.                                       
 
The carrying values of all of the aforementioned financial instruments approximate their fair values due to their short-term maturity or to the prevailing interest rates of these instruments which are comparable to those of the market.
 
The Black-Scholes valuation methodology uses inputs in calculating fair value, as defined in IFRS 13, which establishes a hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement).
 
Financial risk factors
 
The following provides disclosures relating to the nature and extent of the Company’s exposure to risks arising from financial instruments, including credit risk, liquidity risk and foreign exchange risk and how the Company manages those risks.
 

(a)   Credit
       risk 
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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 (202