Company: EDSA
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001171843-25-000866
Chunk: 42

Company: Edesa Biotech, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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-use lease cost, included in general and administrative on the Statements of Operations

			$
			17,885

			$
			20,116

Lease terms and discount rates were as follows:

			December 31, 2024

			September 30, 2024

			Remaining lease term (months):

			0

			3

			Estimated incremental borrowing rate:

			9.2
			%

			9.2
			%

Cash flow information was as follows:

			Three Months Ended

			December 31, 2024

			December 31,2023

			Cash paid for amounts included in the measurement of right-of-use lease liabilities, included in accounts payable and accrued liabilities on the Statements of Cash Flow.

			$
			17,885

			$
			20,116

5. Commitments

Research and other commitments

The Company has commitments for contracted research organizations who perform clinical trials for the Company’s ongoing clinical studies and other service providers. Approximate aggregate future contractual payments at December 31, 2024 are as follows:

			Year Ending

			September 30, 2025

			$
			17,000

			September 30, 2026

			34,000

			September 30, 2027

			34,000

			September 30, 2028

			-

			September 30, 2029

			-

			$
			85,000

9

License and royalty commitments 

In April 2020, through its Ontario subsidiary, the Company entered into a license agreement with a third party to obtain exclusive world-wide rights to the Constructs, including sublicensing rights. An intangible asset for the acquired license has been recognized. See Note 3 for intangible assets. Under the license agreement, the Company is committed to payments of up to an aggregate amount of $356 million contingent upon meeting certain milestones outlined in the license agreement, primarily relating to future potential commercial approval and sales milestones. The Company also has a commitment to pay royalties based on any net sales of products containing the Constructs in the countries where the Company directly commercializes the products containing the Constructs and a percentage of any sublicensing revenue received by the Company and its affiliates in the countries where it does not directly commercialize the products containing the Constructs. No milestone, royalty or sublicensing payments were made to the