Company: MDCXW
Filing Date: 2025-05-27
Form Type: S-1
Source: 0001062993-25-010394
Chunk: 248

Company: Medicus Pharma Ltd.
Filing Date: 2025-05-27
Form: S-1
Chunk 248
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 options, warrants, and notes payable. The Company excluded the potential ordinary shares outstanding at each period end from the computation of diluted net loss per share attributable to ordinary shareholders for the three months ended March 31, 2025 and 2024 because including them would have had an anti-dilutive effect.

8. Related party transactions

On October 18, 2023, the Company signed an agreement with RBx Capital, LP (“RBx”), a family office controlled by the Company’s Executive Chairman and CEO, that provides for certain managerial positions to be filled from within RBx. RBx is responsible for the payment and provision of all wages, bonuses, and benefits for these positions. Reimbursable salaries paid to RBx pursuant to this agreement are $125,000 per month. In December 2024, reimbursable salaries were changed to $100,000 per month. Reimbursable salaries paid to RBx were both $300,000 during the three months ended March 31, 2025 and 2024, respectively. Additional expenses of $40,865 and $213,216 were incurred by RBx on behalf of the Company during the three months ended March 31, 2025 and 2024, respectively. The total amount of accounts payable to RBx was $118,215 and $142,459 as of March 31, 2025 and December 31, 2024, respectively.

<div align='center'>F-38</div>

9. Fair value measurements The accounting guidance for fair value establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than the quoted prices in active markets that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, or which require the reporting entity to develop its own assumptions The following table