Company: EDSA
Filing Date: 2025-12-12
Form Type: 10-K
Source: 0001171843-25-007914
Chunk: 1504

Company: Edesa Biotech, Inc.
Filing Date: 2025-12-12
Form: 10-K
Item: Item 11
Chunk 1504
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 to declare an event of default. Upon an event of default, subject to applicable cure, the Government of Canada may exercise a number of remedies, including suspending or terminating funding, demanding repayment of funding previously received and/or terminating the 2023 SIF Agreement.

The funding and any associated conditional repayments are not secured by any assets of Edesa Biotech Research or the Company.

The 2023 SIF Agreement will expire on the later of December 31, 2045 or the date of the last repayment, unless earlier terminated, subject to certain provisions that extend three (3) years beyond the term or early termination.

Under the 2023 SIF Agreement the Company recorded grant income of $0.8 million and $0.7 million for the years ended September 30, 2025 and September 30, 2024, respectively.

Canada Emergency Business Account

During year ended September 30, 2024, the Company recognized a $20,000 Canadian dollar gain from loan forgiveness related to its Canada Emergency Business Account (“CEBA”) loan. This forgiveness was granted upon successful repayment of $40,000 Canadian dollar of the loan balance, in accordance with CEBA program terms. The forgiven amount is recorded as other income in the consolidated statements of operations. The CEBA loan has been fully repaid and closed with CIBC.

F-20

EDESA BIOTECH, INC.

Notes to Consolidated Financial Statements

For the Years Ended September 30, 2025 and 2024

9. Income Tax

The reconciliation of the combined Canadian federal and provincial statutory income tax rate to the approximate effective tax rate is as follows:

			September 30, 2025

			September 30, 2024

			Net loss before recovery of income taxes

			$
			(7,185,000
			)
			 
			$
			(6,169,000
			)

			Canadian federal and provincial statutory income tax rate

			26.5
			%

			26.5
			%

			Expected income tax recovery

			$
			(1,910,000
			)
			 
			$
			(1,635,000
			)

			Effect of foreign currency and foreign tax rate differences

			216,800

			(58,200
			)

			Permanent differences

			200,000

			147,