# EDGAR Filing Document

**Accession Number:** 0001771885
**File Stem:** 0001185185-25-000906
**Filing Date:** 2025-8
**Character Count:** 221152
**Document Hash:** 938cd1d40c2fe3592951d4bf3d7003ac
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001185185-25-000906.hdr.sgml**: 20250807

**ACCESSION NUMBER**: 0001185185-25-000906

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 107

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250807

**DATE AS OF CHANGE**: 20250806

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Quantum Biopharma Ltd.
- **CENTRAL INDEX KEY:** 0001771885
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHARMACEUTICAL PREPARATIONS [2834]
- **ORGANIZATION NAME:** 03 Life Sciences
- **EIN:** 000000000
- **STATE OF INCORPORATION:** A6
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-39152
- **FILM NUMBER:** 251190829

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 55 UNIVERSITY AVENUE, SUITE 1003
- **CITY:** TORONTO
- **PROVINCE COUNTRY:** A6
- **ZIP:** M5J 2H7
- **BUSINESS PHONE:** (416) 854-8884

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 55 UNIVERSITY AVENUE, SUITE 1003
- **CITY:** TORONTO
- **PROVINCE COUNTRY:** A6
- **ZIP:** M5J 2H7

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** FSD Pharma Inc.
- **DATE OF NAME CHANGE:** 20190327

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Form 6-K**

**REPORT OF FOREIGN PRIVATE ISSUER**

**PURSUANT TO RULE 13a-16 OR 15d-16**

**UNDER THE SECURITIES EXCHANGE ACT OF 1934**

For the month of: <u>August 2025</u>

Commission File Number: **001-39152**

---

| |
|:---|
| **Quantum Biopharma Ltd.** |
| (Translation of registrant's name into English) |

---

**199 Bay St., Suite 4000**

**Toronto, Ontario M5L 1A9, Canada**

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒&nbsp;&nbsp;&nbsp;&nbsp; Form 40-F ☐

**INCORPORATION BY REFERENCE**

This Report on Form 6-K and the exhibits attached hereto (Exhibit 99.1 and 99.2) are incorporated by reference into the Registrant's Registration Statement on [Form F-3 (SEC File No. 333-276264](https://www.sec.gov/Archives/edgar/data/1771885/000165495423015955/fsd_f3.htm)), including any prospectuses forming a part of such Registration Statement and to be a part thereof from the date on which this report is furnished, to the extent not superseded by documents or reports subsequently filed or furnished.

**<u>CONTENTS</u>**

This Report of Foreign Private Issuer on Form 6-K (this "Form 6-K") consists of Quantum BioPharma Ltd.'s (i) Unaudited Condensed Consolidated Financial Statements as of, and for the three and six months ended June 30, 2025 and 2024, which are attached hereto as Exhibit 99.1; and (ii) Management's Discussion and Analysis of Financial Condition and Results of Operations for the three and six months ended June 30, 2025 and 2024 , which is attached hereto as Exhibit 99.2.

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit** | **Description** |
| 99.1 | [Condensed consolidated interim financial statements for the three and six months ended June 30, 2025 and 2024](qntmex99-1.htm) |
| 99.2 | [Management's Discussion and Analysis of Financial Condition and Results of Operation for the three and six months ended June 30, 2025 and 2024](qntmex99-2.htm) |
| 99.3 | CEO Certification of Interim Filings dated August 6, 2025 |
| 99.4 | CFO Certification of Interim Filings dated August 6, 2025 |
| 101.INS | XBRL Instance Document |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| 101.SCH | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File(formatted as Inline XBRL and contained in Exhibit 101) |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | Quantum Biopharma Ltd.<br> (Registrant) | Quantum Biopharma Ltd.<br> (Registrant) |
| Date: August 6, 2025 | By: | /s/ Donal Carroll |
|  |  | Donal Carroll, Chief Financial Officer |

---

## Exhibit 99.1

?xml version='1.0' encoding='ASCII'?

**Exhibit 99.1**

**Quantum Biopharma Ltd. (formerly, FSD Pharma Inc.)**

**Condensed consolidated interim financial statements**

For the three and six months ended June 30, 2025, and 2024

[expressed in United States dollars]

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION**

[unaudited] [expressed in United States dollars]

---

| | | | |
|:---|:---|:---|:---|
| **As at** |  | **June 30,** | **December 31,** |
|  |  | **2025** | **2024** |
|  | Notes | **$** | **$** |
| **ASSETS** |  |  |  |
| **Current assets** |  |  |  |
| Cash and cash equivalents |  |  |  |
| Other receivables | 4 |  |  |
| Prepaid expenses and deposits | 5 |  |  |
| Finance receivables, net | 6 |  |  |
| Investments | 7 |  |  |
| Inventory | 8 |  |  |
| Digital assets | 913 |  |  |
| **Non-current assets** |  |  |  |
| Equipment, net |  |  |  |
| Long-term investments | 7 |  |  |
| Right-of-use asset, net |  |  |  |
| Intangible assets, net | 10 |  |  |
| **Total assets** |  |  |  |
| **LIABILITIES** |  |  |  |
| **Current liabilities** |  |  |  |
| Trade and other payables | 1122 |  |  |
| Lease obligations |  |  |  |
| Warrants liability | 12 |  |  |
| Derivative liabilities | 1417 |  |  |
| Deferred income | 21 |  |  |
| Notes payable | 13 |  |  |
| Convertible debentures | 1417 |  |  |
| **Total liabilities** |  |  |  |
| **SHAREHOLDERS' EQUITY** |  |  |  |
| Class A Multiple Voting Share capital | 15 |  |  |
| Class A Multiple Voting Shares to be issued | 15 |  |  |
| Class B Subordinate Voting Share capital | 15 |  |  |
| Warrants | 15 |  |  |
| Contributed surplus |  |  |  |
| Foreign exchange translation reserve |  |  |  |
| Accumulated deficit |  |  |  |
| **Equity attributable to shareholders of the Company** |  |  |  |
| **Non-controlling interests** | 17 |  |  |
| **Total liabilities and shareholders' equity** |  |  |  |
| Commitments and contingencies | 21 |  |  |
| Subsequent events | 25 |  |  |

---

---

| | |
|:---|:---|
| On behalf of the Board: |  |
| */s/ Zeeshan Saeed* | */s/ Eric Hoskins* |
| Zeeshan Saeed | Eric Hoskins |
| Director | Director |

---

*The accompanying notes are an integral part of these condensed consolidated interim financial statements.*

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**CONDENSED CONSOLIDATED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS**

[unaudited] [expressed in United States dollar, except number of shares]

---

| | |
|:---|:---|
|  | **Notes** |
| **Expenses** |  |
| General and administrative | 19 |
| External research and development fees |  |
| Share-based payments | 1617 |
| Depreciation and amortization | 10 |
| **Total operating expenses** |  |
| **Loss from operations))** |  |
| Interest income | 206**))** |
| Other income | 21**))** |
| Finance expense, net |  |
| Accretion and interest expense | 14 |
| (Gain) loss on settlement of debt | 15**)** |
| Unrealized gain (loss) on change in fair value of derivative liabilities and warrant liability | 1214) |
| Unrealized gain on change in fair value of digital assets | 9**))** |
| Realized gain on sale of digital assets | 9**))** |
| Change in fair value of investments | 7**))** |
| Loss on issuance of convertible debt | 14 |
| **Net loss))** |  |
| **Other comprehensive loss** |  |
| Items that may be subsequently reclassified to loss: |  |
| Exchange gain (loss) on translation of foreign operations |  |
| **Comprehensive loss))** |  |
| **Net loss attributable to:** |  |
| Equity owners of the Company**))** |  |
| Non-controlling interests | 17**))** |
|  | **))** |
| **Net (loss) per share** |  |
| Basic and diluted - continuing operations | 18**))** |
| Weighted average number of shares outstanding – basic and diluted | 18 |

---

*The accompanying notes are an integral part of these condensed consolidated interim financial statements.*

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY**

For the six months ended June 30, 2025, and 2024

[unaudited] [expressed in United States dollars, except number of shares]

 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Class A<br> shares** | **Class A<br> shares <br> to be<br> issued** | **Class A<br> shares <br> to be<br> issued** | **Class B <br> shares** | **Class B <br> shares** | **Warrants** | **Warrants** | |
|  | **#** | $**#** | **#** | $**#** | **#** | $**#** | **#** | **Contributed<br> surplus**<br>**$** |
| **Balance, December 31, 2023** | **2** |  | **—** |  | **605796** |  | **158832** |  |
| Shares issued [note 15] |  |  |  |  | 104590 |  |  |  |
| Shares for debt [note 15] |  |  |  |  | 17528 |  |  |  |
| Share-based payments [note 16] |  |  |  |  |  |  |  |  |
| Warrants expired [note 15] |  |  |  |  |  |  | (20769) |  |
| Exercise of options [note 15,16] |  |  |  |  | 1446 |  | —) |  |
| Comprehensive loss for the period |  |  |  |  |  |  |  |  |
| **Balance, June 30, 2024** | **2** |  | **—** |  | **729360** |  | **138063** |  |
| **Balance, December 31, 2024** | **12** |  | **—** |  | **2299502** |  | **210370))** |  |
| Shares issued - convertible debt [note 14,15] |  |  |  |  | 984792 |  |  |  |
| Shares to be issued [note 15] |  |  | 12 |  |  |  |  |  |
| Shares for debt [note 15] |  |  |  |  | 46003 |  |  |  |
| Warrants issued [note 14] |  |  |  |  |  |  | 346806 |  |
| Warrants expired [note 15] |  |  |  |  |  |  | (55942) |  |
| Exercise of warrants [note 14,15] |  |  |  |  | 8500 |  | (8500) |  |
| Share-based payments [note 16] |  |  |  |  |  |  |  |  |
| Exercise of RSUs [note 15,16] |  |  |  |  | 92690 |  | —) |  |
| Exercise of options [note 15,16] |  |  |  |  | 37192 |  | —) |  |
| Comprehensive loss for the period |  |  |  |  |  |  |  |  |
| **Balance, June 30, 2025** | **12** |  | **12** |  | **3468679** |  | **492734** |  |

---

*The accompanying notes are an integral part of these condensed consolidated interim financial statements.*

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN CASH FLOWS**

For the six months ended June 30, 2025, and 2024

[unaudited] [expressed in United States dollar]

---

| |
|:---|
| **Operating activities** |
| Net loss**)** |
| Add (deduct) items not affecting cash |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization |
| &nbsp;&nbsp;&nbsp;Interest expense |
| &nbsp;&nbsp;&nbsp;Accretion expense |
| &nbsp;&nbsp;&nbsp;Share-based payments |
| &nbsp;&nbsp;&nbsp;Change in fair value of investments**)** |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative liabilities) |
| &nbsp;&nbsp;&nbsp;Loss on issuance of convertible debt |
| &nbsp;&nbsp;&nbsp;Unrealized foreign exchange (gain) loss**)** |
| &nbsp;&nbsp;&nbsp;Unrealized loss on change in fair value of digital assets**)** |
| &nbsp;&nbsp;&nbsp;Realized loss on sale of digital assets**)** |
| &nbsp;&nbsp;&nbsp;(Gain) loss on settlement of debt**)** |
| Changes in non-cash working capital balances |
| &nbsp;&nbsp;&nbsp;Finance receivables |
| &nbsp;&nbsp;&nbsp;Other receivables |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and deposits**)** |
| &nbsp;&nbsp;&nbsp;Inventory |
| &nbsp;&nbsp;&nbsp;Deferred income**)** |
| &nbsp;&nbsp;&nbsp;Trade and other payables |
| **Cash used in operating activities** |
| **Investing activities** |
| Redemption of investments |
| Purchase of investments) |
| Purchases of digital assets**)** |
| Proceeds from sale of digital assets |
| **Cash (used in) provided by investing activities** |
| **Financing activities** |
| Proceeds from issuance of shares, net |
| Proceeds from shares to be issued |
| Proceeds from convertible debentures |
| Proceeds from exercise of warrants |
| Payment of lease obligation**)** |
| Share options exercised |
| Repayment of loans from tax rebate refund**)** |
| Proceeds from loans |
| **Cash provided by financing activities** |
| **Net increase (decrease))** |
| Cash and cash equivalents, beginning of the period |
| **Cash and cash equivalents, end of the period** |
| **Non-cash transactions** |
| Shares issued for debt |
| Exercise of options - shares issued for services |

---

*The accompanying notes are an integral part of these condensed consolidated interim financial statements.*

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

**1. Nature of business** 

Quantum BioPharma Ltd. (formerly, FSD Pharma Inc.) ("Quantum" or the "Company") is a biopharmaceutical company dedicated to building a portfolio of innovative assets and biotech solutions for the treatment of challenging neurodegenerative, inflammatory and metabolic disorders and alcohol misuse disorders with drug candidates in different stages of development. Through its wholly owned subsidiary, Lucid Psycheceuticals Inc. ("Lucid"), Quantum is focused on the research and development of its lead compound, Lucid-MS (formerly Lucid-21-302) ("Lucid-MS"). Lucid-MS is a patented new chemical entity shown to prevent and reverse myelin degradation, the underlying mechanism of multiple sclerosis, in preclinical models. The Company also maintains selective R&D programs for inflammatory diseases (*FSD-PEA*) and depression (*Lucid-PSYCH*), though these initiatives remain secondary priorities. Quantum is also focused on the research and development of a treatment for alcohol misuse for application in hospitals and other medical practices. Quantum maintains a portfolio of strategic investments through its wholly owned subsidiary, FSD Strategic Investments Inc. ("FSD Strategic Investments"), which represent loans secured by residential property.

The Company's registered office is located at 55 University Avenue, Suite 1003, Toronto, Ontario, M5J 2H7. On August 15, 2024, the Company consolidated its Class A Multiple Voting Shares and Class B Subordinate Voting Shares (each as defined hereinafter) on a 65:1 basis and changed its name to "Quantum BioPharma Ltd." with a new trading symbol "QNTM" on both NASDAQ and CSE.

On July 31, 2023, the Company entered into an exclusive intellectual property license agreement (the "License Agreement") with Celly Nutrition Corp. ("Celly"). Celly changed its name to "Unbuzzd Wellness Inc." ("Unbuzzd"), effective May 23, 2025. The License Agreement provides Unbuzzd access to proprietary information for the purposes of consumer product development and marketing. The License Agreement grants Unbuzzd the rights to a proprietary formulation of natural ingredients, vitamins, and minerals to help with liver and brain function for the purposes of potentially quickly relieving from the effects of alcohol consumption, such as inebriation, and restoring normal lifestyle. The License Agreement also grants Unbuzzd rights to certain trademarks. In exchange, Quantum received 200,000,000 Unbuzzd Common Shares (as defined below) following a 2:1 share-split. The Company also received an anti-dilution Warrant Certificate that entitles Quantum to purchase up to 25% of the Unbuzzd Common Shares deemed outstanding less the 200,000,000 Unbuzzd Common Shares issued under the License Agreement and from time to time as a result of any partial exercise under the anti-dilution Warrant Certificate. Quantum is also entitled to certain license fees and royalties under the License Agreement. Through the License Agreement, Quantum acquired 34.66% of Unbuzzd. On July 31, 2023, the Company and Unbuzzd entered into a loan agreement for gross proceeds of C$1,000,000. The loan was funded on August 1, 2023, and accrues interest at a rate of 10% per annum. Interest is payable annually and the loan matures on July 31, 2026. On April 3, 2024, an amendment to the loan agreement was approved for additional gross proceeds of C$300,000. In November 2023, through the Plan of Arrangement the Company distributed 45,712,529 of its 200,000,000 shares of Unbuzzd to its shareholders. The License Agreement was amended and restated on August 14, 2024. The condensed consolidated interim financial statements incorporate the assets and liabilities of Unbuzzd as of June 30, 2025, and the results of operations and cash flows for the three and six months ended June 30, 2025. As of June 30, 2025, the Company had a 20.10% (December 31, 2024 – 22.95%) ownership interest in Unbuzzd through Unbuzzd Common Shares.

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

**Subsidiaries** 

These condensed consolidated interim financial statements are comprised of the financial results of the Company and its subsidiaries, which are the entities over which the Company has control. An investor controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and can affect those returns through its power over the investee. The Company has the following subsidiaries:

---

| | | | |
|:---|:---|:---|:---|
| <br>**Entity Name** | <br>**Country** | **Ownership<br> percentage<br> as at**<br>**June 30,<br> 2025** | **Ownership<br> percentage<br> as at**<br>**December 31,<br> 2024** |
|  |  | **%** | **%** |
| FSD Biosciences Inc. | USA | 100.00 | 100.00 |
| Prismic Pharmaceuticals Inc. ("Prismic") | USA | 100.00 | 100.00 |
| FV Pharma Inc. | Canada | 100.00 | 100.00 |
| Lucid Psycheceuticals Inc. | Canada | 100.00 | 100.00 |
| FSD Strategic Investments Inc. | Canada | 100.00 | 100.00 |
| FSD Pharma Australia Pty Ltd ("FSD Australia") | Australia | 100.00 | 100.00 |
| Unbuzzd Wellness Inc. | Canada | 20.10 | 22.95 |
| Huge Biopharma Australia Pty Ltd ("Huge Biopharma") | Australia | 100.00 | 100.00 |

---

Non-controlling interests ("NCI") represent ownership interests in consolidated subsidiaries by parties that are not shareholders of the Company. They are shown as a component of total equity in the condensed consolidated interim statements of financial position, and the share of income (loss) attributable to non-controlling interests is shown as a component of net income (loss) in the condensed consolidated interim statements of loss and comprehensive loss. Changes in the parent company's ownership that do not result in a loss of control are accounted for as equity transactions.

**2. Basis of presentation**

**[a] Statement of compliance** 

These condensed consolidated interim financial statements ("financial statements') were prepared using the same accounting policies and methods as those used in the Company's audited consolidated financial statements for the year ended December 31, 2024. These financial statements have been prepared in compliance with IAS 34 – Interim Financial Reporting. Accordingly, certain disclosures normally included in annual financial statements prepared in accordance with IFRS® Accounting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"), have been omitted or condensed. These financial statements should be read in conjunction with the Company's audited consolidated financial statements for the year ended December 31, 2024.

These financial statements were approved and authorized for issuance by the Board of Directors (the "Board") of the Company on August 6, 2025.

**[b] Functional currency and presentation currency** 

The financial statements of each company within the consolidated group are measured using their functional currency, which is the currency of the primary economic environment in which an entity operates. These condensed consolidated interim financial statements are presented in United States dollars ("USD"), which is the Company's functional and presentation currency for all periods presented. The Company's functional currency is the United States dollar, and the functional currencies of its subsidiaries are as follows:

---

| | |
|:---|:---|
| FSD Biosciences Inc. | United States Dollar |
| Prismic Pharmaceuticals Inc. | United States Dollar |
| FV Pharma Inc. | Canadian Dollar |
| Lucid Psycheceuticals Inc. | Canadian Dollar |
| FSD Strategic Investments Inc. | Canadian Dollar |
| FSD Pharma Australia Pty Ltd | Australian Dollar |
| Unbuzzd Wellness Inc. | Canadian Dollar |
| Huge Biopharma Australia Pty Ltd | Australian Dollar |

---

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

**[c] Use of estimates and judgments**

The preparation of these consolidated financial statements in conformity with IFRS requires management to make estimates, judgements and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, consistent with those disclosed in the audited consolidated financial statements for the year ended December 31, 2024, and described in these financial statements. Actual results could differ from these estimates.

Estimates are based on management's best knowledge of current events and actions that the Company may undertake in the future. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

**3. New standards, amendments and interpretations adopted by the Company**

The Company did not adopt any new standards, amendments and interpretations during the period ended June 30, 2025.

**4. Other receivables**

The Company's other receivables are comprised of the following as at:

---

| | | |
|:---|:---|:---|
| | **June 30, <br> 2025**<br>**$** | December 31,<br> 2024<br>$ |
| Sales tax recoverable | **130674** | 367480 |
| Interest receivable | **164** | 156 |
| Other receivables | **62360** | 7042 |
|  | **193198** | 374678 |

---

**5. Prepaid expenses and deposits** 

The Company's prepaid expenses and deposits include the following:

---

| | | |
|:---|:---|:---|
| | **June 30,<br> 2025**<br>**$** | December 31,<br> 2024<br>$ |
| Research and development | **27790** | 26348 |
| Insurance | **47197** | 36162 |
| Other prepaids and deposits | **378237** | 6526 |
|  | **453224** | 69036 |

---

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

**6. Finance receivables** 

Finance receivables consist of secured loan receivables measured at amortized cost, net of allowance for expected credit losses. Finance receivables as at June 30, 2025, are as follows:

---

| | |
|:---|:---|
| | **$** |
| **Balance – December 31, 2024** |  |
| Additions |  |
| Add: Interest income |  |
| Less: Interest payments) |  |
| Less: Principal payments) |  |
| Effects of foreign exchange |  |
| **Balance – June 30, 2025** |  |
| Current |  |
| Non-current |  |
| **Balance – June 30, 2025** |  |

---

Allowances for expected credit losses as at June 30, 2025, were $nil (December 31, 2024 - $nil). Finance receivables earn fees at fixed rates between 7%-8.5% per annum and have an average term to maturity of one year from the date of issuance. The loans are secured by residential property with a first or second collateral mortgage on the secured property. Loans are issued up to 55% of the initial appraised value of the secured property at the time of issuance.

Finance receivables include the following as at June 30, 2025:

---

| | |
|:---|:---|
| | **$** |
| Minimum payments receivable | 2983532 |
| Unearned income | 55328 |
| Net investment | 3038860 |
| Allowance for credit losses |  |
| **Finance receivables, net** | **3038860** |

---

As at June 30, 2025, all loans were classified at amortized cost.

**7. Investments**

The following tables outline changes in investments during the period:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| <br>**Entity** | <br>**Instrument** |<br>**Note** | **Balance at<br> December 31,<br> 2024**<br>**$** | **Redemptions**<br>**$** | **Change in <br> fair value<br> through <br> profit or loss**<br>**$** | **Effects of<br> foreign<br> exchange**<br>**$** | **Balance at<br> June 30, <br> 2025**<br>**$** |
| A2ZCryptoCap Inc. | Shares | (i) | 2224 |  | 6572 |  | 8796 |
| Royal Bank of Canada | GIC | (ii) | 20850 |  |  | 1140 | 21990 |
| Meridian | GIC | (iii) | 1181499 |  |  |  |  |
|  |  |  | **1204573** |  | **6572** | **1140** | **30786** |
|  |  |  |  |  |  | **Current** | **30786** |
|  |  |  |  |  |  | **Non-Current** |  |
|  |  |  |  |  |  |  | **30786** |

---

(i) On
June 23, 2022, the Company acquired 80,000 shares of A2Z for C$0.10 per share. As at June 30, 2025, the fair value of the shares was
determined based on the quoted market price of the shares of C$0.15 per share (December 31, 2024 – C$0.04).

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

ii) During the year ended December 31, 2024, the Company purchased four GICs for a total amount of C$4,030,000 from RBC with maturity dates ranging from February 14, 2025, to September 12, 2025. The GICs pay variable interest ranging from 4.20% to 4.95% per annum. As of June 30, 2025, the total balance outstanding was C$30,000 (December 31, 2024 – C$30,000) as three GICs out of the four were effectively redeemed during the year ended December 31, 2024.

(iii) During
the year ended December 31, 2024, the Company purchased three GICs for a total amount of C$4,520,000 from Meridian Credit Union ("Meridian")
with maturity dates ranging from December 21, 2024, to March 25, 2025. The GICs pay variable interest ranging from 3.52% to 3.78% per
annum. As of June 30, 2025, the total balance outstanding was $ Nil as the remaining GICs were redeemed during the period (December 31,
2024 - C$1,700,000).

**8. Inventory**

Inventories consist of purchased raw materials that will be used in the manufacturing of finished goods and are valued at lower of cost or net realizable value. The cost of inventory is determined on a first-in, first-out basis. The cost of work in-process and finished goods are valued at the lower of cost or net realizable value. As at June 30, 2025, the Company's inventory consisted of the following balances:

---

| | |
|:---|:---|
| | **$** |
| Raw materials | 55568 |
| Finished goods | 21301 |
| **Outstanding as at June 30, 2025** | **76869** |

---

**9. Digital assets**

&nbsp;&nbsp;&nbsp;&nbsp;(a) The
changes in the digital assets balance for the following periods are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **January 1,<br> 2025 <br> Balance**<br>$ | **Additions**<br>$ | **June 30, <br> 2025 <br> Balance**<br>$ |
| Bitcoin | 356877 | 2137000 | **2942569** |
| Dogecoin | 154314 | 200000) | **202023** |
| Solana | 350039 | 1760000) | **1760151** |
| ETH |  | 50 | **50** |
| XRP |  | 150000 | **148285** |
|  | 861230 | 4247050 | **5053078** |

---

---

| | | |
|:---|:---|:---|
| | **January 1,<br> 2024 <br> Balance**<br>$ | **December 31,<br> 2024, <br> Balance**<br>$ |
| Bitcoin | 401000) | **356877** |
| Dogecoin | 201000) | **154314** |
| Solana | 401000 | **350039** |
|  | 1003000 | **861230** |

---

Digital currency prices are affected by various forces including global supply and demand, interest rates, exchange rates, inflation or deflation and the global political and economic conditions. Digital assets have a limited history, and the fair value historically has been very volatile. The Company may not be able to liquidate its inventory of digital assets currency at its desired price if required. The Company has recognized an unrealized gain in change in fair value of $913,625 and $194,798 for the three and six months ended June 30, 2025, respectively (2024 - $nil and $nil, respectively).

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

During the six months ended June 30, 2025, the Company invested an additional $4,247,050 in digital assets. The Company also sold $250,000 in digital assets for total gross proceeds of $354,013 and recognized a gain on sale of digital assets of $35,720 and $104,013, respectively (2024 - $nil and $nil, respectively).

The following table presents the Company's digital assets, measured at fair value less and categorized into levels of the fair value hierarchy on the condensed consolidated interim statements of financial position as at the following:

**As at June 30, 2025**

---

| | | | |
|:---|:---|:---|:---|
| <br>**Digital assets, at fair value** | **Level 1**<br>**Quoted <br> market <br> price** | **Level 2**<br>**Valuation<br> technique -<br> observable<br> market <br> inputs** | **Level 3**<br>**Valuation<br> technique -<br> unobservable<br> market <br> inputs** |
| | **$** | **$** | **$** |
| Digital coins |  | **5053078** |  |

---

As at December 31, 2024

---

| | | | |
|:---|:---|:---|:---|
| <br>**Digital assets, at fair value** | **Level 1**<br>**Quoted <br> market <br> price** | **Level 2**<br>**Valuation<br> technique -<br> observable<br> market <br> inputs** | **Level 3**<br>**Valuation<br> technique -<br> unobservable<br> market <br> inputs** |
| | **$** | **$** | **$** |
| Digital coins |  | 861230 |  |

---

**10. Intangible assets**

Intangible assets as at June 30, 2025, are as follows:

---

| | |
|:---|:---|
| **Cost** | **Lucid** |
|  | **$** |
| **As at December 31, 2024, and June 30, 2025** | **6314571** |
| **Accumulated amortization** | **$** |
| As at December 31, 2024 | 1380700 |
| Amortization | 208601 |
| **As at June 30, 2025** | **1589301** |
| **Net book value** |  |
| **As at June 30, 2025** | **4725270** |
| As at December 31, 2024 | 4933871 |

---

The Company's intangible asset for Lucid represents the license agreement with the University Health Network giving the Company world-wide exclusive rights to the Lucid-MS compound and related patents.

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

**11. Trade and other payables**

Trade and other payables consist of the following as at:

---

| | | |
|:---|:---|:---|
| | **June 30, <br> 2025**<br>**$** | December 31,<br> 2024<br>$ |
| Trade payables | **1871197** | 3254838 |
| Accrued liabilities (i) | **1321367** | 1107230 |
|  | **3192564** | 4362068 |

---

(i) Accrued liabilities consist of the following as at:

---

| | | |
|:---|:---|:---|
| | **June 30, <br> 2025**<br>**$** | December 31,<br> 2024<br>$ |
| External research and development fees | **—** | 55670 |
| Operational expenses | **150700** | 178307 |
| Professional and other fees | **761474** | 464060 |
| Accrued interest | **409193** | 409193 |
|  | **1321367** | 1107230 |

---

**12. Warrants Liability**

**[a] August 2022 Warrants**

In August 2020, the Company issued 42,499 Class B Subordinate Voting Shares and 21,250 warrants to purchase Class B Subordinate Voting Shares for total cash proceeds of $9,999,997. Each warrant is exercisable to purchase one Class B Subordinate Voting Share of the Company at an exercise price of $276.90 per share and expire five years from the date of issuance. The fair value of these warrants is classified as Level 2 in the fair value hierarchy.

On initial recognition the Company determined that these warrants did not meet the IFRS definition of equity due to the exercise price being denominated in United States dollar, which was not the functional currency of the Company at the time resulting in variability in exercise price. The change in functional currency on October 1, 2020, was determined to be a change in circumstance and, as such, the Company has made an accounting policy choice to continue to recognize the warrants as a financial liability classified at fair value through profit or loss.

The fair value of the warrants liability as at June 30, 2025, was $Nil (December 31, 2024 – $2) resulting in a gain on change in fair value of $2 for the six months ended June 30, 2025 (2024 – $31,337). The fair value was determined using the Black-Scholes option pricing model and the following assumptions as at:

---

| | | |
|:---|:---|:---|
| | **June 30, <br> 2025** | **December 31,<br> 2024** |
| Share price | $20.25 | $3.68 |
| Exercise price | $276.90 | $276.90 |
| Expected dividend yield |  |  |
| Risk free interest rate | 2.60% | 2.91% |
| Expected life | 0.10 | 0.60 |
| Expected volatility | 187% | 134% |

---

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

**[b] December 2024 Warrants**

During the year ended December 31, 2024, the Company issued warrants attached to its convertible debenture (Note 14).

The Company determined that these warrants were exchangeable into a variable number of shares due to foreign exchange, and as such, the warrants were classified as financial liabilities measured at fair value through profit or loss ("FVTPL"). The Company uses the Black-Scholes pricing model to estimate fair value. Expected volatility has been based on an evaluation of the historical volatility of the Company's share price. The risk-free interest rate for the life of the warrants was based on the yields available on government benchmark bonds with a term approximating the remaining term of the warrants. The life of the warrants is based on the contractual term. The fair value of the warrant liability as at December 13, 2024, the date of issuance was $245,147. The fair value of the warrants as of June 30, 2025, was $1,479,704 (December 31, 2024 - $212,000) resulting in a loss on change in fair value of $1,267,704 (2024 - $Nil). The fair value was determined using the Black-Scholes option pricing model and the following assumptions as at:

---

| | | | |
|:---|:---|:---|:---|
| | **December 13,<br> 2024** | **December 31,<br> 2024** | **June 30, <br> 2025** |
| Share price (CAD) | $5.80 | $5.20 | $27.63 |
| Exercise price (CAD) | $7.00 | $7.00 | $7.00 |
| Expected dividend yield |  |  |  |
| Risk free interest rate | 2.97% | 2.96% | 2.83% |
| Expected life | 5.00 | 4.95 | 4.46 |
| Expected volatility | 104.39% | 104.52% | 118.92% |
| Foreign exchange rate | 0.70 | 0.70 | 0.73 |

---

**[c] January 2025 Warrants**

On January 20, 2025**,** the Company issued warrants attached to its convertible debenture (Note 14). The fair value of the warrant liability at the date of issuance on January 20, 2025, was $405,656. The fair value of the warrants as of June 30, 2025, was $2,874,710, resulting in a loss on change in fair value of $2,469,154 (2024 - $Nil) (Note 15). The fair value was determined using the Black-Scholes option pricing model and the following assumptions as at:

---

| | | |
|:---|:---|:---|
| | **January 20,<br> 2025** | **June 30, <br> 2025** |
| Share price (CAD) | $4.90 | $27.63 |
| Exercise price (CAD) | $5.25 | $5.25 |
| Expected dividend yield |  |  |
| Risk free interest rate | 2.99% | 2.83% |
| Expected life | 5.00 | 4.56 |
| Expected volatility | 106.90% | 118.92% |
| Foreign exchange rate | 0.70 | 0.73 |

---

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

**[d] March 6, 2025 Warrants**

On March 6, 2025, the Company issued warrants attached to its convertible debenture (Note 14). The fair value of the warrant liability as at date of issuance on March 6, 2025, was $38,702. The fair value of the warrants as of June 30, 2025, was $194,638, resulting in a loss on change in fair value of $155,935 (2024 - $Nil) (Note 15). The fair value was determined using the Black-Scholes option pricing model and the following assumptions as at:

---

| | | |
|:---|:---|:---|
| | **March 6, <br> 2025** | **June 30, <br> 2025** |
| Share price (CAD) | $6.44 | $27.63 |
| Exercise price (CAD) | $5.25 | $5.25 |
| Expected dividend yield |  |  |
| Risk free interest rate | 2.72% | 2.83% |
| Expected life | 5.00 | 4.68 |
| Expected volatility | 115.20% | 118.92% |
| Foreign exchange rate | 0.70 | 0.73 |

---

**[e] March 28, 2025 Warrants**

On March 28, 2025, the Company issued warrants attached to its convertible debenture (Note 14). The fair value of the warrant liability as at date of issuance was $1,218,875 (Note 15). The fair value of the warrants as of June 30, 2025, was $3,267,864, resulting in a loss on change in fair value of $2,048,989 (2024 - $Nil). The fair value was determined using the Black-Scholes option pricing model and the following assumptions as at:

---

| | | |
|:---|:---|:---|
| | **March 28,<br> 2025** | **June 30, <br> 2025** |
| Share price (CAD) | $11.08 | $27.63 |
| Exercise price (CAD) | $7.00 | $7.00 |
| Expected dividend yield |  |  |
| Risk free interest rate | 2.61% | 2.83% |
| Expected life | 5.00 | 5.00 |
| Expected volatility | 116.80% | 118.92% |
| Foreign exchange rate | 0.70 | 0.73 |

---

On June 24, 2025, 8,500 warrants were exercised at a price of $7.00 for total gross proceeds of $43,257 (C$59,500) (Note 15).

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

**13. Notes payable**

As at June 30, 2025, the Company has total notes payable balance of $1,944,493 (December 31, 2024 - $619,029).

 

*RH Capital Finance CO LLC ("RH Capital")*

 

The loans structured with RH Capital allows the two Australian-based subsidiaries of the Company, FSD Australia and Huge Biopharma, to access liquidity as part of the Australian tax rebate scheme structure to finance its research and developments activities in Australia.

i) During the six months ended June 30, 2025, the Company, through its subsidiary Huge Biopharma, issued a note payable of $466,506 (AUD $710,000) to RH Capital, with an interest rate of 17.0% per annum and maturing in June 2025. During the six months ended June 30, 2025, the Company accrued interest of $27,950 (AUD $42,538) and the total outstanding balance was $494,455 (AUD $752,538).

ii) During the year ended December 31, 2024, the Company, through its subsidiary Huge Biopharma, issued a note payable of $328,525 (AUD $500,000) to RH Capital with an interest rate of 17.0% per annum and maturing in June 2025. The total outstanding balance including interest was $368,981 (AUD $558,528) as of June 30, 2025 (December 31, 2024 - $318,480).

iii) During the six months ended June 30, 2025, the Company was awarded a tax rebate refund of AUD 1,564,069 by the Australian government. The rebate was initially disbursed from the Australian government to RH capital, which applied that amount against the outstanding debt owed by Huge Biopharma of AUD 1,311,067. The remaining balance of AUD 253,002 was subsequently transferred to Huge Biopharma.

iv) On May 15, 2025, the Company, through its subsidiary FSD Australia, issued a note payable of $630,768 (AUD $960,000) to RH Capital, with an interest rate of 16.0% per annum and maturing on November 30, 2025. During the six months ended June 30, 2025, the Company accrued interest of $13,176 (AUD $20,053) and the total outstanding balance was $643,944 (AUD $980,053).

*BitGo*

On June 4, 2025, the Company obtained a $1,000,000 loan from its primary crypto assets custodian, BitGo Trust Company, Inc., secured by 14.87584 Bitcoin units pledged as collateral. The pledged Bitcoin collateral of 14.87584 units is subject to trading restrictions while securing the loan facility. However, the Company retains the contractual right to recall the collateral at its sole discretion, upon which the Bitcoin would be immediately released from trading restrictions and available for corporate use. The loan carries an annual interest rate of 9%, payable monthly, and has an open-ended duration, allowing the Company to terminate the loan at its discretion. The collateralization level was set at 150%, with a margin call threshold of 140%, corresponding to a Bitcoin price of approximately $94,000. An origination fee of $5,000 was incurred at the initiation of the transaction.

*Prismic*

The remaining note payable balance of $300,549 was assumed on the acquisition of Prismic and is due on demand.

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

For the three and six months ended June 30, 2025, and 2024

[unaudited] [expressed in United States dollars]

**14. Convertible debentures** 

*December 2024 Debentures* 

 

In December 2024, the Company issued a total of 1,000 convertible debenture units of the Company (the "2024 Debenture Units") at a price of C$1,000 per 2024 Debenture Unit for total gross proceeds of $702,700 (C$1,000,000) ("Tranche 1 and 2"). The December 2024 Debenture Units were issued to an entity, which is owned by a family member of an executive officer of the Company. Each 2024 Debenture Unit consists of (i) one convertible debenture having a face value of C$1,000 (each a "December 2024 Debenture"); and (ii) 80 class B Subordinate Voting Share purchase warrants (each a "December 2024 Warrant") exercisable for 80 Class B subordinate voting shares in the Company (each, a " Subordinate Voting Share"). The Debentures mature 36 months from the date of issuance (the "December 2024 Debenture Maturity Date") and bear interest at a rate of 1.25% per month, beginning on the date of issuance and payable in cash on the last day of each calendar quarter. If the holder ("2024 Denture Holder") of the December 2024 Debenture elects, in its sole and absolute discretion, interest may be paid in Shares at the Conversion Price in effect on the date of payment. The principal sum of the Debentures, or any portion thereof, and any accrued but unpaid interest, may be converted into class B Shares at a conversion price of C$6.25 per Share subject to adjustment ("Conversion Price"). Each December 2024 Warrant shall entitle the holder to acquire one a "December 2024 Warrant Share" at a price of C$7.00 per December 2024 Warrant Share, for a period of five years from the date of issuance. If the entire amount owing on the December 2024 Debenture is converted within 6 months of the issuance date, the Holder is entitled to receive a cash amount equal to half the sum of all payments of interest on the December 2024 Debenture that would be due through to the December 2024 Debenture Maturity Date, which the holder may convert all of any part into Class B Subordinate Voting Shares at the Conversion Price.

The Company may redeem the December 2024 Debentures at any time prior to maturity, in whole or in part, upon fifteen days' notice and payment of certain penalties as applicable. The December 2024 Debenture was determined to be a financial instrument comprising a host debt component, a conversion feature and a warrant component which are both considered to be embedded derivatives due to variable consideration payable upon conversion caused by foreign exchange. On initial recognition, the fair value of the embedded derivatives is calculated first, with the residual value being assigned to the host financial liability. The initial fair value of the warrants is $245,147 (Note 12).

The fair value of the conversion feature is determined by using with-and-without method ("with-and-without method') that considers change in expected cash flows due to the conversion. The model includes all terms of the December 2024 Debenture described above as well as the probability of conversion, the impact of default barrier and the implied credit spread of the Company. The fair value of the conversion feature as at December 13, 2024, the date of issuance was $320,000. The fair value of the conversion feature as at June 30, 2025, was $Nil (December 31, 2024 - $280,000) as the entire amount of the December 2024 Debenture was converted during the period ended June 30, 2025.

On May 5, 2025, the December 2024 Holder converted a partial amount of the December 2024 Debenture into an aggregate of 103,534 Class B Subordinate Voting Shares (Note 15). On May 23, 2025, the December 2024 Holder converted the remaining amount of the December 2024 Debenture into an aggregate amount of 105,840 Class B Subordinate Voting Shares (Note 15). Thus, the total amount of Class B Subordinate Voting Shares converted under the December 2024 Debenture was 209,374.

The fair value of the conversion feature as at dates of conversion on May 5, 2025, and May 23, 2025, was $1,088,190, and $739,260, respectively. Where the original terms of the December 2024 Debentures permit the December 2024 Holder to convert at any time before maturity, and the note is subsequently converted early at the holder's option, the conversion date is deemed to be the instrument's maturity date.

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

The fair values were determined using the assumptions below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 13,<br> 2024** | **December 31,<br> 2024** | **May 5, <br> 2025** | **May 23, <br> 2025** |
| Share price (CAD) | $5.85 | $5.20 | $11.86 | $15.89 |
| Conversion price (CAD) | $6.25 | $6.25 | $6.25 | $6.25 |
| Expected Volatility | 98.04% | 100.68% | 109.68% | 111.59% |
| Risk free interest rate | 2.78% | 2.70% | 2.83% | 2.83% |
| Expected life | 3.00 | 2.95 | 2.64 | 2.60 |
| Credit Spread | 12.25% | 12.25% | 12.25% | 12.25% |
| Foreign exchange rate | 0.7025 | 0.6952 | 0.7240 | 0.7270 |

---

As of June 30, 2025, the Company had the following December 2024 Debenture balance outstanding:

---

| | |
|:---|:---|
| Proceeds | $702700 |
| Value of conversion option | 320000 |
| Value of warrants (Note 12 [b]) | 245147 |
| **Initial recognition of debt** | $**137553** |
| Accretion expense | 14560 |
| **Balance, December 31, 2024** | $**152113** |
| Accretion expense | 7426 |
| **Balance, date of conversion, May 5, 2025** | $**159539** |
| Amount converted | (81079) |
| **Balance, May 5, 2025** | $**78460** |
| Accretion expense | 2630 |
| **Balance, date of conversion, May 23, 2025** | $**81090** |
| Amount converted | (81090) |
| **Balance, June 30, 2025** | $**-** |

---

 

*January 2025 Debentures* 

On January 20, 2025**,** the Company closed the third tranche of the December 2024 Offering ("Tranche 3") and issued 1,480 December 2024 Debenture Units for aggregate gross process of $1,032,744 (C$1,480,000). The Tranche 3 December 2024 Debenture Units were issued to an entity, which is owned by a family member of an executive officer of the Company. Tranche 3 was completed under amended terms, including a reduced conversion price of C$4.85 per share, an increased warrant ratio of 103.093 December 2024 Warrants per December 2024 Debenture Unit, and a reduced exercise price of C$5.25 per December 2024 Warrant Share.

On initial recognition, the fair value of the embedded derivatives is calculated first, with the residual value being assigned to the host financial liability. The initial fair value of the warrants is $405,656 (Note 12). The fair value of the conversion feature is determined by using with-and-without method. The fair value of the conversion feature as at January 20, 2025, as at the date of issuance was $599,770.

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

On February 7, 2025, the debt holder converted a partial amount of the December 2024 Debenture into an aggregate of 152,577 Class B Subordinate Voting Shares (Note 15). On February 26, 2025, the debt holder converted the remaining amount of the December 2024 Debenture into an aggregate amount of 221,237 Class B Subordinate Voting Shares (Note 15). Thus, the total amount of Class B Subordinate Voting Shares converted under the December 2024 Debenture was 373,814.

The fair value of the conversion feature as at dates of conversion on February 7 and February 26, 2025, was $2,912,862, and $656,513, respectively. Where the original terms of the debentures permit the holder to convert at any time before maturity, and the note is subsequently converted early at the holder's option, the conversion date is deemed to be the instrument's maturity date.

The fair values were determined using the assumptions below:

---

| | | | |
|:---|:---|:---|:---|
| | **January 20,<br> 2025** | **February 7,<br> 2025** | **February 26,<br> 2025** |
| Share price (CAD) | $4.90 | $16.16 | $8.27 |
| Conversion price (CAD) | $4.85 | $4.85 | $4.85 |
| Expected Volatility | 93.66% | 105.28% | 104.91% |
| Risk free interest rate | 2.99% | 2.63% | 2.70% |
| Expected life | 3.00 | 2.95 | 2.90 |
| Credit Spread | 12.50% | 12.50% | 12.50% |
| Foreign exchange rate | 0.6978 | 0.6994 | 0.6974 |

---

The carrying amount of the host liability, at amortized cost, updated to the date of conversion, together with carrying amount of the derivative liability, which is remeasured to fair value immediately before conversion, is transferred to equity such that no gain or loss is recognized on settlement. The Company also incurred a total of $210,872 interest penalties for early conversion of the debentures. This amount was transferred to share capital.

As of June 30, 2025, the Company had the following January 2025 Debenture balance outstanding:

---

| | |
|:---|:---|
| Proceeds | $1032744 |
| Value of conversion option | 599770 |
| Value of warrants (Note 12 [c]) | 405656 |
| **Initial recognition of debt – January 20, 2025** | $**27318** |
| Accretion expense | 14186 |
| **Balance, date of conversion – February 7, 2025** | $**41504** |
| Amount converted | (27845) |
| **Balance, February 7, 2025** | $**13659** |
| Accretion expense | 7519 |
| **Balance, date of conversion, February 26, 2025** | $**21178** |
| Amount converted | (21178) |
| **Balance, June 30, 2025** | $**-** |

---

 

*March 6, 2025 Debentures* 

On March 6, 2025, the Company closed the fourth tranche of the December 2024 Offering ("Tranche 4") and issued 100 December 2024 Debenture Units for aggregate gross process of $69,890 (C$100,000). Tranche 4 was completed under the same terms as the amended December 2024 Debentures, including a conversion price of C$4.85 per share, an increased warrant ratio of 103.093 December 2024 Warrants per December 2024 Debenture Unit, and an exercise price of C$5.25 per December 2024 Warrant share.

On initial recognition, the fair value of the embedded derivatives is calculated first, with the residual value being assigned to the host financial liability. The initial fair value of the warrants is $38,702 (Note 12). The fair value of the conversion feature is determined by using with-and-without method. The fair value of the conversion feature as at March 6, 2025, the date of issuance was $30,000.

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

On March 25, 2025, the debt holder converted the December 2024 Debenture into an aggregate of 25,257 Class B Subordinate Voting Shares (Note 15). The fair value of the conversion feature as at date of conversion on March 25, 2025, did not change from the value on the date of issuance.

The fair values were determined using the assumptions below:

---

| | |
|:---|:---|
| | **March 6, <br> 2025** |
| Share price (CAD) | $6.44 |
| Conversion price (CAD) | $4.85 |
| Expected Volatility | 106.09% |
| Risk free interest rate | 2.72% |
| Expected life | 3.00 |
| Credit Spread | 12.50% |
| Foreign exchange rate | 0.6989 |

---

The carrying amount of the host liability, at amortized cost, updated to the date of conversion, together with carrying amount of the derivative liability, which is remeasured to fair value immediately before conversion, is transferred to equity such that no gain or loss is recognized on settlement. There was no change in accretion amount from date of issuance to date of conversion.

As of June 30, 2025, the Company had the following March 6, 2025, Debenture balance outstanding:

---

| | |
|:---|:---|
| Proceeds | $69890 |
| Value of conversion option | 30000 |
| Value of warrants (Note 12 [d]) | 38702 |
| **Initial recognition of debt - March 6, 2025 and date of conversion, March 25, 2025** | $**1188** |
| Amount converted | (1188) |
| **Balance, June 30, 2025** | $**-** |

---

 

*March 28, 2025 Debentures* 

On March 28, 2025, the Company closed the final tranche of the December 4, 2024 Offering ("Tranche 5") and issued 2,420 December 2024 Debenture Units for aggregate gross proceeds of $1,683,352 (C$2,420,000). Tranche 5 was completed under amended terms, including an increased conversion price of C$6.60 per share, a reduced warrant ratio of 76 December 2024 Warrants per December 2024 Debenture Unit, and an increased exercise price of C$7.00 per December 2024 Warrant Share.

On initial recognition, the fair value of the embedded derivatives is calculated first, with the residual value being assigned to the host financial liability. The initial fair value of the warrants is $1,218,875 (Note 12). The fair value of the conversion feature is determined by using with-and-without method. The fair value of the conversion feature as at March 28, 2025, the date of issuance was $1,954,755. As the fair value of warrants and conversion feature are higher than the principal debt amount on the date of issuance, there was a loss on issuance of convertible debt of $1,490,278 for the period ended June 30, 2025.

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

Of the 2,420 December 2024 Debenture Units issued, 330 December 2024 Debenture Units were issued to a related party of the Company, which is an entity controlled by a director of the Company, 330 December 2024 Debenture Units were issued to an entity, which is controlled by a family member of a director of the Company, and 1,060 December 2024 Debenture Units were issued to an entity, which is owned by a family member of an executive officer of the Company. Of the total loss on issuance of convertible debt of $1,490,278, $1,059,206 was allocated to related parties, therefore disclosed as part of the share-based compensation balance in the key management disclosure in Note 22.

During the period ended June 30, 2025, debt holders converted partial amounts of the December 2024 Debentures into Class B Subordinate Voting Shares on various dates. As of June 30, 2025, the entire December 2024 Debenture was converted, and a total of 376,347 Class B Subordinate Voting Shares were issued.

Where the original terms of the debentures permit the holder to convert at any time before maturity, and the note is subsequently converted early at the holder's option, the conversion date is deemed to be the instrument's maturity date. The fair values of the conversion feature and assumptions used to determine such values, on the date of issuance and conversions are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **March 28,<br> 2025** | **April 10, <br> 2025** | **April 23, <br> 2025** | **May 12, <br> 2025** | **May 21, <br> 2025** | **June 5, <br> 2025** |
| Share price (CAD) | $11.08 | $9.38 | $9.53 | $12.77 | $17.03 | $18.78 |
| Conversion price (CAD) | $6.60 | $6.60 | $6.60 | $6.60 | $6.60 | $6.60 |
| Expected Volatility | 108.64% | 107.93% | 108.27% | 106.62% | 107.09% | 107.90% |
| Risk free interest rate | 2.61% | 2.81% | 2.84% | 2.80% | 2.97% | 2.86% |
| Expected life | 3.00 | 3.00 | 2.98 | 2.93 | 2.9 | 2.86 |
| Credit Spread | 12.25% | 12.25% | 12.25% | 12.25% | 12.25% | 12.25% |
| Foreign exchange rate | 0.6952 | 0.7135 | 0.7209 | 0.7144 | 0.7221 | 0.7321 |
| **Conversion value** | $**1954755** | $**2029678** | $**2001723** | $**2612294** | $**3404094** | $**3740737** |

---

As of June 30, 2025, the Company had the following March 28, 2025 Debenture balance outstanding

---

| | |
|:---|:---|
| Proceeds | $1683352 |
| Value of conversion option | 1954755 |
| Value of warrants (Note 12 [e]) | 1218875 |
| Loss on issuance of convertible | (1490278) |
| **Initial recognition of debt - March 28, 2025** | $**-** |

---

The Company has a derivative liabilities and convertible debentures balance of $Nil as of June 30, 2025.

 

*Convertible Debentures issued by Unbuzzd*

As of June 30, 2025, the derivative liabilities of $31,610 and convertible debentures of $164,075 remaining on the consolidated interim statements of financial position are related to Unbuzzd.

In April 2025, Unbuzzd issued a total of 172 unsecured convertible debenture units of Unbuzzd (each a 'Unbuzzd Debenture') at a price of US$1,000 per Unbuzzd Debenture for gross proceeds of $177,416 (C$241,226). Each Unbuzzd Debenture includes an interest rate at 8% per annum, accruing annually and is added to the principal of the Unbuzzd Debenture when accrued, payable upon the earlier of April 15, 2027 (the "Unbuzzd Maturity Date") or date of conversion. If Unbuzzd has not completed a Liquidity Event (defined below) on or before April 15, 2026, an additional 10% per annum (for an aggregate of 18%) will begin to accrue monthly starting April 16, 2026.

The Unbuzzd Debenture holder has the right, from time to time and at any time while any portion of the principal amount or any accrued and unpaid interest on the Unbuzzd Debenture is outstanding, to convert all or any portion of the outstanding principal amount and interest into units of Unbuzzd (each, a "Unbuzzd Unit") at the Unbuzzd Conversion Price (defined below).

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

Each Unbuzzd Unit consists of one (1) common share in the capital of Unbuzzd (each, a "Unbuzzd Common Share") and (ii) one half of a one (1/2) Unbuzzd Common Share purchase warrant (each whole warrant, a "Unbuzzd Warrant"). Each Unbuzzd Warrant entitles the holder to acquire one additional Unbuzzd Common Share on or before April 15, 2027 for 115% of the Unbuzzd Liquidity Event Price.

The conversion price ("Unbuzzd Conversion Price") is equal to:

&nbsp;&nbsp;&nbsp;&nbsp;i) US$0.15
per Unbuzzd Unit;

ii) In the event of a Unbuzzd Qualified Financing, then 0.80 multiplied by the Unbuzzd Qualified Financing Price; or

iii) In the event of a Unbuzzd Liquidity Event, then 0.80 multiplied by the Unbuzzd Liquidity Event Price:

Following the completion of a Unbuzzd Qualified Financing or immediately prior to a Unbuzzd Liquidity Event, Unbuzzd shall have the option to force a conversion of the principal amount of each Unbuzzd Debenture, and if Unbuzzd elects, the accrued but unpaid Interest, into Unbuzzd Units at the Unbuzzd Conversion Price.

Unbuzzd Qualified Financing means the completion of an equity financing by Unbuzzd, including but not limited to a Series A financing, after the date hereof for aggregate gross proceeds of not less than US$2,000,000. Unbuzzd Liquidity Event means a takeover transaction or going public transaction.

The convertible debenture was determined to be a financial instrument comprising a host debt component, a conversion feature and a warrant component which are both considered to be embedded derivatives due to variable consideration payable upon conversion caused by foreign exchange as well as failing the fixed-to-fixed clause for classifying as equity. On initial recognition, the fair value of the embedded derivatives is calculated first, with the residual value being assigned to the host financial liability. The initial fair value of the warrants is $2 (see below).

 

*Conversion feature*

 

The fair value of the conversion feature is determined by using with-and-without method that considers the change in expected cash flows due to the conversion. The model includes all terms of the convertible debenture described above as well as the probability of conversion and the implied credit spread of Unbuzzd. Expected volatility was estimated by using historical volatility of Quantum as Unbuzzd considers it comparable for its own trading and volatility history. The share price used is consistent with the pricing of Unbuzzd's latest financing prior to the issuance of the debentures. The fair value of the conversion feature as at April 15, 2025, the date of issuance was $15,142 (C$19,922). The fair value of the conversion feature as at June 30, 2025, was $31,610 (C$43,120) resulting in a loss on change in fair value of $16,467 (C$23,198). The fair value was determined using the assumptions below:

---

| | | |
|:---|:---|:---|
| | **April 15, <br> 2025** | **June 30, <br> 2025** |
| Share price (USD) | $0.03 | $0.03 |
| Conversion price (USD) | $0.15 | $0.15 |
| Expected Volatility | 119.78% | 120.65% |
| Risk free interest rate | 2.54% | 2.54% |
| Expected life (years) | 2.00 | 1.96 |
| Credit Spread | 25% | 25% |
| Foreign exchange rate | 1.39 | 1.38 |

---

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

As of June 30, 2025, Unbuzzd had the following Unbuzzd Debenture balance outstanding:

---

| | |
|:---|:---|
| Proceeds | $177416 |
| Value of conversion option | 15142 |
| Value of warrants (see below) | 1 |
| **Initial recognition of debt** | $**162273** |
| Accretion and interest expense | 1802 |
| **Balance, June 30, 2025** | $**164075** |

---

*Warrant liability*

During the period ended June 30, 2025, Unbuzzd issued warrants attached to its convertible debenture.

Unbuzzd determined that these warrants were exchangeable into a variable number of shares due to foreign exchange, and as such, the warrants were classified as financial liabilities measured at fair value through profit or loss ("FVTPL"). Unbuzzd uses the Black-Scholes pricing model to estimate fair value. Expected volatility was estimated by using historical volatility of other companies that the Company considers comparable that have trading and volatility history. The risk-free interest rate for the life of the warrants was based on the yields available on government benchmark bonds with a term approximating the remaining term of the warrants. The life of the warrants is based on the contractual term. The fair value of the warrant liability as at April 15, 2025, the date of issuance was $1. The fair value of the warrants as of June 30, 2025, was $1 resulting in a loss on change in fair value of $Nil. The fair value was determined using the Black-Scholes option pricing model and the following assumptions as at:

---

| | | |
|:---|:---|:---|
| | **April 15, <br> 2025** | **June 30, <br> 2025** |
| Share price (USD) | $0.030 | $0.030 |
| Exercise price (USD) | $0.035 | $0.035 |
| Expected dividend yield |  |  |
| Risk free interest rate | 2.54% | 2.54% |
| Expected life | 2.00 | 1.96 |
| Expected volatility | 119.78% | 120.65% |
| Foreign exchange rate | 1.39 | 1.38 |

---

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

**15. Share capital**

**[a] Authorized**

The Company is authorized to issue an unlimited number of class A multiple voting shares ("Class A Multiple Voting Shares") and an unlimited number of Class B Subordinate Voting Shares, all without par value. All shares are ranked equally regarding the Company's residual assets.

The Class B Subordinate Voting Shares are "restricted securities" within the meaning of such term under applicable Canadian securities laws, as these securities do not carry equal voting rights as compared with the Class A Multiple Voting Shares.

The holders of Class A Multiple Voting Shares are entitled to 276,660 votes per Class A Multiple Voting Share held. Class A Multiple Voting Shares are held by the Chief Executive Officer ("CEO"), President, Executive Co-Chairman of the Board and the Director and Executive Co-Chairman of the Board. The holders of Class B Subordinate Voting Shares are entitled to one (1) vote per share held.

**[b] Issued and outstanding**

During the year ended December 31, 2024, the Company consolidated its Class A and Class B shares on a 65:1 basis, and the effect was applied retroactively for all comparative periods presented.

Reconciliation of the Company's share capital is as follows, adjusted for the share consolidation:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | **Class A shares** | **Class A shares** | | | | | |
| |<br>**Class A shares** | **To be issued** | **To be issued** | **Class B shares** | **Class B shares** | **Warrants** | **Warrants** | |
| | **#** | $**#** | **#** | $**#** | **#** | $**#** | **#** | **$** |
| **Balance, December 31, 2023** | 2 |  |  |  | 605796 |  | 158832 |  |
| Shares issued [a] |  |  |  |  | 104590 |  |  |  |
| Shares for debt [b] |  |  |  |  | 17528 |  |  |  |
| Warrants expired [note c] |  |  |  |  |  |  | (20769) |  |
| Exercise of options [d] |  |  |  |  | 1446 |  |  |  |
| **Balance, June 30, 2024** | 2 |  |  |  | 729360 |  | 138063 |  |
| **Balance, December 31, 2024** | **12** |  | **—** |  | **2299502** |  | **210370** |  |
| Shares issued - convertible debentures [e] |  |  |  |  | 984792 |  |  |  |
| Exercise of options [f] |  |  |  |  | 37192 |  |  |  |
| Warrants issued [g] |  |  |  |  |  |  | 346806 |  |
| Warrants expired [h] |  |  |  |  |  |  | (55942) |  |
| Exercise of warrants [i] |  |  |  |  | 8500 |  | (8500) |  |
| Exercise of RSUs [j] |  |  |  |  | 92690 |  |  |  |
| Shares issued for debt [k] |  |  |  |  | 46003 |  |  |  |
| Shares to be issued [l] |  |  | 12 |  |  |  |  |  |
| **Balance, June 30, 2025** | **12** |  | **12** |  | **3468679** |  | **492734** |  |

---

*Activity during the six months ended June 30, 2024*

---

| | |
|:---|:---|
| [a] | During the six months ended June 30, 2024, the Company entered into an at-the-market offering agreement (the "ATM Agreement") to sell Class B Subordinate Voting Shares, having an aggregate offering price up to $11,154,232. During the six months ended June 30, 2024, the Company issued 104,590 Class BSubordinate Voting Shares for gross proceeds of $2,234,790. A cash commission of $67,044, based on 3.0% of the aggregate gross proceeds, plus other trading expenses of $27,938, resulted in total share issuance costs of $94,982. The net proceeds from this raise were $2,139,808. |

---

---

| | |
|:---|:---|
| [b] | In March 2024, the Company settled an aggregate of $524,324 (C$637,750) of amounts owing to an arm's length creditor through the issuance of 9,231 Class B Subordinate Voting Shares at a price of $58.70 per Class B Subordinate Voting Share for total value of $541,800. Included in this amount is 846 Class B Subordinate Voting Shares issued pursuant to the conversion of RSUs, which vested immediately upon grant (Note 12). Each RSU entitled the holder to acquire one Class B Subordinate Voting Share upon vesting. The Company incurred a loss on settlement of debt of $17,476 as the share price on the date of issuance was higher than the price stated in the agreement. |

---

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

In February 2024, the Company issued 605 Class B Subordinate Voting Shares at a deemed price of $55.90 per Class B Subordinate Voting Share to settle an aggregate amount of $33,636 owing to an arm's length creditor.

In June 2024, the Company settled an aggregate of $109,614 (C$150,000) of amounts owing to arm's length creditors through the issuance of 7,692 Class B Subordinate Voting Shares at a price of $14.30 per Class B Subordinate Voting Share for total value of $109,614. The agreements state that the creditors will accept shares as payment and settlement of debt, provided that upon selling the debt settlement shares, the creditors have received net proceeds from the sale equal to the debt. For any losses, if any, calculated as the total debt minus the net proceeds, shall be added back to the debt amount on a dollar-for-dollar basis by the amount of the loss.

[c] During the six months ended June 30, 2024, 20,769 warrants expired unexercised.

---

| | |
|:---|:---|
| [d] | During the six months ended June 30, 2024, 1,446 share options were exercised with a price of $71.50 (C$97.50) in exchange for 1,446 Class B Subordinate Voting Shares. The shares were issued in exchange for services. |

---

 

*Activity during the six months ended June 30, 2025:*

---

| | |
|:---|:---|
| [e] | On February 7, 2025, a partial amount of the December 2024 Debentures (Tranche 3) was converted into an aggregate of 152,577 Class B Subordinate Voting Shares (Note 14). On February 26, 2025, the remaining amount was converted into an aggregate of 221,237 Class B Subordinate Voting Shares (Note 14). Thus, the total number of Class B Subordinate Voting Shares issued upon conversion of the December 2024 Debentures (Tranche 3) was 373,814 with a total value of $2,372,839 transferred to share capital. |

---

On March 25, 2025, the full amount of the March 6, 2025 December 2024 Debenture of $100,000 was converted into an aggregate of 25,257 Class B Subordinate Voting Shares with a value of $31,188 (Note 14).

On May 5, 2025, a partial amount of the December 2024 Debentures was converted into an aggregate of 103,534 Class B Subordinate Voting Shares (Note 14). On May 23, 2025, the remaining amount was converted into an aggregate of 105,840 Class B Subordinate Voting Shares (Note 14). Thus, the total number of Class B Subordinate Voting Shares issued upon conversion of the entire December 2024 Debentures was 209,374 with a total value of $1,603,513 transferred to share capital.

During the six months ended June 30, 2025, the full amount of the March 28, 2025 December 2024 Debenture was converted into an aggregate of 376,347 Class B Subordinate Voting Shares on various dates (Note 14), with a total value of $4,184,705 transferred to share capital.

---

| | |
|:---|:---|
| [f] | During the six months ended June 30, 2025, the Company issued an aggregate of 37,192 Class B Subordinate Voting Shares upon the exercise of 37,192 share options with exercise price ranging from C$5.25 to C$6.60 for total gross proceeds of $148,086. Total amount of $232,444 was transferred to share capital. The market prices on the dates of option exercise ranged between C$18 to C$38 per Class B Subordinate Voting Share. |

---

[g] During the six months ended June 30, 2025, 152,577 warrants of the Company were issued as part of the issuance of December 2022 Debentures (Tranche 3) (Note 14).

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

During the six months ended June 30, 2025, 10,309 warrants of the Company were issued as part of the issuance of March 6, 2025 December 2024 Debentures (Note 14).

During the six months ended June 30, 2025, 183,920 warrants of the Company were issued as part of the issuance of March 28, 2025 December 2024 Debentures (Note 14).

[h] During the six months ended June 30, 2025, 55,942 warrants expired unexercised.

---

| | |
|:---|:---|
| [i] | During the six months ended June 30, 2025, 8,500 warrants were exercised into cash proceeds of $43,257. Total amount transferred to share capital is $99,588, which includes the reversal of warrant liability of $56,331. The warrants were issued as part of the issuance of March 28, 2025 December 2024 Debentures (Note 12). |

---

---

| | |
|:---|:---|
| [j] | During the six months ended June 30, 2025, 32,690 RSUs were exercised into 32,690 Class B Subordinate Voting Shares. Total of $137,625 was transferred to share capital. |

---

During the six months ended June 30, 2025, 60,000 RSUs were exercised with a price of $6.30 in exchange for 60,000 Class B Subordinate Voting Shares. Total of $378,000 was transferred to share capital.

---

| | |
|:---|:---|
| [k] | During the six months June 30, 2025, the Company settled an aggregate of $451,743 of amounts owing to various arm's length creditors through the issuance of 46,003 Class B Subordinate Voting Shares at prices ranging between $7.21 to $29.99 per Class B Subordinate Voting Share. The Company incurred a net gain on settlement of debt of $74,863 for the six months ended June 30, 2025. This net gain resulted from a significant gain on the settlement of one debt obligation, which fully offset losses recognized on other debt settlements during the period. |

---

---

| | |
|:---|:---|
| [l] | During the six months ended June 30, 2025, the Company received total proceeds of $439 (C$600) for 12 Class A Multiple Voting Shares at a price of C$50 per share, which are set to be issued subsequent to period end and classified as shares to be issued as at June 30, 2025. |

---

The changes in the number of warrants outstanding during the six months ended June 30, 2025, and 2024:

---

| | | |
|:---|:---|:---|
| | **Number of<br> warrants**<br>**#** | **Weighted<br> average<br> exercise<br> price**<br>**C$** |
| **Outstanding as at December 31, 2024** | **210370** | **250.33** |
| Issued | 346806 | 6.18 |
| Expired | (55942) | 7.06 |
| Exercised | (8500) | 7.00 |
| **Outstanding as at June 30, 2025** | **492734** | **58.96** |

---

---

| | | |
|:---|:---|:---|
| | **Number of<br> warrants**<br>**#** | **Weighted<br> average<br> exercise<br> price**<br>**C$** |
| **Outstanding as at December 31, 2023** | **158831** | **328.25** |
| Expired | (20769) | 232.05 |
| **Outstanding as at June 30, 2024** | **138062** | **382.85** |

---

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

**Measurement of fair values**

During the six months ended June 30, 2025, a total of 346,806 warrants of the Company were issued in connection with the issuance of the December 2024 Debentures (Tranche 3), March 6, 2025 December 2024 Debentures, and March 28, 2025 December 2024 Debentures (Note 14). These warrants are classified as derivative liabilities (Note 12 b-e).

There were no warrants issued during the six months ended June 30, 2025, and 2024, under equity.

The following table is a summary of the Company's warrants outstanding as at June 30, 2025:

---

| | | |
|:---|:---|:---|
| <br>**Expiry Date** | **Exercise <br> price**<br>**C$** | **Number<br> outstanding**<br>**#** |
| August 6, 2025 (i) | 503.56 | 21249 |
| October 20, 2025 (i) | 294.48 | 53147 |
| January 16, 2026 | 1737.65 | 26 |
| January 20, 2026 | 1737.65 | 6 |
| December 13, 2029 | 7.00 | 80000 |
| January 20, 2030 | 5.25 | 152577 |
| March 6, 2030 | 5.25 | 10309 |
| March 28, 2030 | 7.00 | 175420 |
|  | **58.96** | **492734** |

---

(i) Warrants
were issued in US$

**16. Share-based compensation** 

The Company has established a share option plan (the "Option Plan") for directors, officers, employees and consultants of the Company. The Company's Board determines, among other things, the eligibility of individuals to participate in the Option Plan, the term and vesting periods, and the exercise price of options granted to individuals under the Option Plan.

Each share option is converted into one Class B Subordinate Voting Share on exercise. No amounts are paid or payable by the individual on receipt of the option. The options carry neither rights to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of their expiry.

**[i] Share-based payment arrangements**

During the six months ended June 30, 2025, the Company granted a total of 57,692 (2024 – 12,308) share options.

During the six months ended June 30, 2025, an aggregate of nil (2024 – 904) share options expired.

During the six months ended June 30, 2025, an aggregate of 37,192 (2024 – 1,446) share options were exercised for total gross proceeds of $148,086. The total contributed surplus of $84,358 was transferred share capital.

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

The changes in the number of share options outstanding during the periods ended June 30, 2025, and 2024 are as follows:

---

| | | |
|:---|:---|:---|
| | **Number of<br> options**<br>**#** | **Weighted<br> average<br> exercise <br> price**<br>**C$** |
| Outstanding as at December 31, 2024 | 42456 | 6.97 |
| Granted | 57692 | 9.90 |
| Exercised | (37192) | 5.53 |
| **Outstanding as at June 30, 2025** | **62956** | **10.10** |
| **Exercisable as at June 30, 2025** | **58789** | **10.42** |

---

---

| | | |
|:---|:---|:---|
| | **Number of<br> options**<br>**#** | **Weighted<br> average<br> exercise <br> price**<br>**C$** |
| Outstanding as at December 31, 2023 | 37856 | 101.40 |
| Granted | 12308 | 97.50 |
| Exercised | 1446 | 97.50 |
| Expired | (904) | 352.95 |
| **Outstanding as at June 30, 2024** | **50706** | **96.20** |
| **Exercisable as at June 30, 2024** | **41023** | **95.55** |

---

**Measurement of fair values**

The fair value of share options granted during the six months ended June 30, 2025, and 2024, were estimated at the date of grant using the Black-Scholes option pricing model with the following inputs:

---

| | | |
|:---|:---|:---|
| | **2025** | 2024 |
| Grant date share price | **C$6.64-C$9.92** | C$72.15-C$78.00 |
| Exercise price | **C$6.60-C$9.90** | C$97.50 |
| Expected dividend yield | **—**  |  |
| Risk free interest rate | **2.60%-2.61%** | 3.98% - 4.20 |
| Expected life | **2 years** | 2 years |
| Expected volatility | **132%-136%** | 66% |

---

Expected volatility was estimated by using the annualized historical volatility of the Company. The expected option life represents the period that options granted are expected to be outstanding. The risk-free interest rate is based on Canadian government bonds with a remaining term equal to the expected life of the options.

The following table is a summary of the Company's share options outstanding as at June 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Exercise price** | **Number <br> outstanding** | **Weighted <br> average <br> remaining <br> contractual <br> life [years]** | **Exercise <br> price** | **Number <br> exercisable** |
| C$ | # | # | C$ | # |
| 154.39 | 228 | 0.66 | 154.39 | 228 |
| 156.55 | 228 | 0.73 | 156.55 | 228 |
| 5.60 | 12500 | 1.19 | 5.60 | 8333 |
| 9.90 | 50000 | 1.74 | 9.90 | 50000 |
| **10.10** | **62956** | **1.62** | **10.42** | **58789** |

---

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

**[ii] Performance Share Units ("PSUs") and Restrictive Share Units ("RSUs")**

In May 2022, the Company established a performance share unit plan ("PSU Plan") and a restrictive unit plan ("RSU Plan"), for directors, offers, employees and consultants of the Company. The Company's Board determines the eligibility of individuals to participate in the PSU Plan and RSU Plan to align their interests with those of the Company's shareholders.

No amounts are paid or payable by the individual on receipt of the PSUs and RSUs. Each PSU and RSU converts into one Class B Subordinate Voting Share at $nil exercise price. The Company's PSU Plan and RSU Plan provides that the number of Class B Subordinate Voting Shares reserved for issuance may not exceed 10% of the aggregate number of Class B Subordinate Voting Shares that are outstanding unless the Board has increased such limit by a Board resolution.

***PSUs***

There were no PSUs issued during the six months ended June 30, 2025, and 2024. As at June 30, 2025, there were no PSUs outstanding (December 31, 2024 - Nil).

***RSUs***

On February 23, 2024, the Company granted 846 RSUs pursuant to the shares for debt transaction. The RSUs vested immediately upon grant and 846 Class B Subordinate Voting Shares were issued with a total fair value of $49,665, which was determined based on the share price of the Company on the date of the grant.

On August 23, 2024, the Company granted an aggregate of 32,690 RSUs at a price of $4.21 per unit for a total value of $137,625 based on the share price at the date of issuance. Each RSU granted vests the earlier of: (i) one year; and (ii) the successful implementation of the MS MAD study conducted by Ingenu of Australia, subject to acceleration in the event of a takeover bid or change of control. During the six months ended June 30, 2025, the Company recognized $88,568 (2024 - $nil) as share-based compensation expense and contributed surplus. On April 3, 2025, the total amount of 32,690 RSUs were exercised and converted into 32,690 Class B Subordinate Voting Shares.

On September 6, 2024, the Company granted 7,500 RSUs at a price of $4.13 per unit for a total value of $31,009 based on the Class B Subordinate Voting Share price at the date of issuance, which was recognized as share-based compensation expense. The RSUs vested immediately upon issuance and 7,500 Class B Subordinate Voting Shares were issued for the same value.

On April 15, 2025, the Company granted 60,000 RSUs at a price of $6.30 per unit for a total value of $378,000, which was recognized as share-based compensation expense. The RSUs vested immediately upon issuance and were exercised and converted into 60,000 Class B Subordinate Voting Shares for the same value during the period ended June 30, 2025.

The change in the number of RSUs during the periods ended June 30, 2025, and 2024, is as follows:

---

| | |
|:---|:---|
| | **Number of<br> RSUs**<br>**#** |
| Outstanding as at December 31, 2024 | 32690 |
| Granted | 60000 |
| Converted to common shares | (92690) |
| **Outstanding as at June 30, 2025** |  |

---

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

---

| | |
|:---|:---|
| | **Number of<br> RSUs**<br>**#** |
| Outstanding as at December 31, 2023 |  |
| Granted | 846 |
| Converted to common shares | (846) |
| **Outstanding as at June 30, 2024** |  |

---

The Company recognized share-based compensation as follows for the three and siox months ended June 30, 2025, and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the three months ended <br> June 30,** | **For the three months ended <br> June 30,** | **For the six months ended <br> June 30,** | **For the six months ended <br> June 30,** |
|  | **2025** | 2024 | **2025** | 2024 |
| | **$** | $ | **$** | $ |
| Share options (i) | **416978** | 111524 | **674287** | 169267 |
| RSUs | **432606** |  | **466569** |  |
|  | **849584** | 111524 | **1140856** | 169267 |

---

(i) Includes
$416,978 share-based compensation from Unbuzzd.

**17.** **Non-controlling interests** 

Through the License Agreement, Quantum acquired 34.66% of Unbuzzd on July 31, 2023. As of June 30, 2025, the Company has a 20.10% (December 31, 2024 – 22.95%) ownership interest in Unbuzzd through Unbuzzd Common Shares. The non-controlling interest represents the Unbuzzd Common Shares not attributable to the Company.

Reconciliation of non-controlling interest is as follows:

---

| | |
|:---|:---|
| | **$** |
| **Balance, December 31, 2024** | (1040306) |
| Net loss for the period | (676418) |
| **Balance, June 30, 2025** | **(1716724)** |

---

The condensed consolidated interim financial statements incorporate the assets and liabilities of Unbuzzd as of June 30, 2025.

**18.** **Loss per share** 

Net loss per Class B Subordinate Voting Share represents net loss attributable to common shareholders divided by the weighted average number of Class B Subordinate Voting Shares outstanding during the period.

For all the periods presented, diluted loss per share equals basic loss per share due to the anti-dilutive effect of warrants, share options, PSUs, RSUs and convertible debentures. The outstanding number and type of securities that could potentially dilute basic net loss per share in the future but would have decreased the loss per share (anti-dilutive) for the six months ended June 30, 2025 and 2024:

---

| | | |
|:---|:---|:---|
| | **June 30, 2025**<br>**#** | June 30, 2024

# |
| Warrants | **492734** | 138062 |
| Share Options | **62956** | 47814 |
| RSUs | **—** |  |
|  | **555690** | 185876 |

---

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

**19.** **General and administrative** 

Components of general and administrative expenses for the three and six months ended June 30, 2025, and 2024 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the three months ended<br> June 30, | For the three months ended<br> June 30, | For the six months ended<br> June 30, | For the six months ended<br> June 30, |
|  | **2025** | 2024 | **2025** | 2024 |
|  | **$** | **$** | **$** | **$** |
| Professional fees | **1602570** | 958377 | **1958292** | 1816800 |
| Investor relations | **781726** | 561054 | **1140627** | 833216 |
| Salaries, wages and benefits | **476391** | 436687 | **814230** | 816139 |
| Consulting fees | **155355** | 204492 | **280499** | 423453 |
| Office and general administrative | **357584** | 163958 | **496289** | 350029 |
| Foreign exchange loss (gain) | **(60351)** | (14285) | **(48551)** | (10142) |
|  | **3313275** | 2310283 | **4641386** | 4229495 |

---

**20.** **Segment information** 

Reportable segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker, with appropriate aggregation. The chief operating decision maker is the CEO who is responsible for allocating resources, assessing the performance of the reportable segment and making key strategic decisions. The Company operates in two segments: Biopharmaceutical and Strategic Investments.

The Company's Biopharmaceutical segment is focused on furthering the research and development of the Company's drug candidates and the development of a treatment for alcohol misuse for application in hospitals and other medical practices. The Biopharmaceutical segment primarily earns interest income on excess cash on hand invested in short-term guaranteed investment certificates.

The Company's Strategic Investments segment is focused on generating returns and cash flow through the issuance of loans secured by residential property, with FSD Strategic Investments having a first or second collateral mortgage on the secured property.

The following tables summarize the Company's total current and non-current assets and current and non-current liabilities as of June 30, 2025, and December 31, 2024, on a segmented basis:

---

| | | | |
|:---|:---|:---|:---|
|  | **As at June 30, 2025** | **As at June 30, 2025** | **As at June 30, 2025** |
|  | **Biopharmaceutical** | **Strategic Investments** | **Total** |
|  | **$** | **$** | **$** |
| Current assets | 7304731 | 3038860 | **10343591** |
| Non-current assets | 4953440 |  | **4953440** |
| Current liabilities | 13249998 |  | **13249998** |
| Non-current liabilities |  |  | **—** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **As at December 31, 2024** | **As at December 31, 2024** | **As at December 31, 2024** |
|  | **Biopharmaceutical** | **Strategic Investments** | **Total** |
|  | **$** | **$** | **$** |
| Current assets | 8620407 | 3432340 | **12052747** |
| Non-current assets | 5066477 |  | **5066477** |
| Current liabilities | 6678992 |  | **6678992** |
| Non-current liabilities |  |  | **—** |

---

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

The following tables summarize the Company's interest income, total operating expenses, and net loss for the three and six months ended June 30, 2025, and 2024 on a segmented basis:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the six months ended June 30, 2025** | **For the six months ended June 30, 2025** | **For the six months ended June 30, 2025** |
|  | **Biopharmaceutical** | **Strategic Investments** | **Total** |
|  | **$** | **$** | **$** |
| Interest expense (income) | (24727) | (133222) | **(157949)** |
| Total operating expenses | 8250414 | 448 | **8250862** |
| Net (loss) income | (18638981) | 132773 | **(18506208)** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | <br>**For the three months ended June 30, 2025** | <br>**For the three months ended June 30, 2025** | <br>**For the three months ended June 30, 2025** |
|  | **Biopharmaceutical** | **Strategic Investments** | **Total** |
|  | **$** | **$** | **$** |
| Interest expense (income) | (22144) | (68589) | **(90733)** |
| Total operating expenses | 4853313 | 126 | **4853439** |
| Net (loss) income | (9834790) | 68463 | **(9766327)** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **For the six months ended June 30, 2024** | **For the six months ended June 30, 2024** | **For the six months ended June 30, 2024** |
|  | **Biopharmaceutical** | **Strategic Investments** | **Total** |
|  | **$** | **$** | **$** |
| Interest expense (income) | 12109 | (289057) | **(276948)** |
| Total operating expenses | 5713717 | 245 | **5713962** |
| Net (loss) income | (5732736) | 288812 | **(5443924)** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | <br> **For the three months ended June 30, 2024** | <br> **For the three months ended June 30, 2024** | <br> **For the three months ended June 30, 2024** |
|  | **Biopharmaceutical** | **Strategic Investments** | **Total** |
|  | **$** | **$** | **$** |
| Interest expense (income) | 31266 | (135690) | **(104424)** |
| Total operating expenses | 3456556 | 50 | **3456606** |
| Net (loss) income | (3488139) | 135640 | **(3352499)** |

---

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

**21.** **Commitments and contingencies** 

**Commitments**

 

*Lucid-MS Agreement*

 

The Company has entered into a license agreement that governs the Lucid-MS compound. Under the terms of the agreement, the Company shall pay a yearly license maintenance fee of C$100,000 until the first commercial sale of a product is made.

Under the agreement the Company is committed to minimum milestone payments of $nil and maximum milestone payments of C$12,500,000 if all product development and regulatory milestones are met. Furthermore, the Company is also responsible for paying revenue milestone payments and royalties if revenue milestones from commercial sales are achieved. Milestones can be extended by mutual agreement. No payments have been made to date related to these milestones.

**Contingencies**

 

*Legal Matters*

 

From time to time, the Company is named as a party to claims or involved in proceedings, including legal, regulatory and tax related, in the ordinary course of its business. While the outcome of these matters may not be estimable at the reporting date, the Company makes provisions, where possible, for the estimated outcome of such claims or proceedings. Should a loss result from the resolution of any claims or proceedings that differs from these estimates, the difference will be accounted for as a charge to the condensed consolidated interim statements of loss and comprehensive loss in that period.

*GBB Drink Lab, Inc. ("GBB")*

 

On May 12, 2023, the Company announced receipt of a lawsuit filed in United States District Court for the Southern District of Florida by GBB against the Company, alleging breach of a mutual non-disclosure agreement and misappropriation of trade secrets. GBB claims that its assets were, as of August 30, 2022 (prior to the misappropriation and material breach) valued at US$53,047,000. The Company believes the allegations are without merit and continues to defend itself in the lawsuit.

On June 23, 2023, the Company filed a motion to dismiss GBB's Amended Complaint, which the Court denied on January 8, 2024. On January 22, 2024, the Company filed a third-party complaint against Joseph Romano (a former director of the Company), and a counterclaim against GBB. The Company alleges that Mr. Romano breached his fiduciary duty by providing or fabricating confidential information to GBB, and that GBB aided and abetted this breach. On October 9, 2024, Judge Melissa Damian denied Mr. Romano's motion to dismiss, finding that the Company plausibly alleged Romano breached fiduciary duties, including his duties of loyalty, confidentiality, and to act in the Company's best interests. GBB and Romano have denied the allegations in their respective answers.

Discovery ended in July 2025. On July 21, 2025, the parties filed various pre-trial motions. These motions included the Company's motion for summary judgment, which seeks judgment in the Company's favor on all GBB's claims. Likewise, GBB filed a motion for summary judgment on its breach of contract claim and Romano filed a motion for summary judgment seeking to have all claims against him dismissed. If summary judgment motions do not resolve the case, it is expected to proceed to trial in November 2025.

 

 

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

 

*Raza Bokhari* 

 

On May 21, 2025, the Company entered into a comprehensive settlement agreement with Dr. Raza Bokhari, its former CEO, resolving all outstanding litigation in Canada and the U.S. This concludes disputes originating from Dr. Bokhari's 2021 termination and subsequent legal actions, including:

● A wrongful dismissal arbitration (initially claiming $30.2 million), dismissed in 2022 with costs awarded to the Company.

● Multiple court proceedings related to share cancellations, indemnification claims, and U.S. enforcement of arbitration awards.

Quantum received a one-time payment of $2,350,000, recorded as other income during period ended June 30, 2025. All outstanding cost awards and claims were mutually waived.

This settlement eliminated all future legal uncertainties and associated costs as announced in the Company's May 30, 2025 press release, which confirmed a $2.35 million payment from Dr. Bokhari to fully resolve all outstanding claims in Canada and the United States.

 

*Deferred Income*

On December 24, 2024, the Company entered into a Prepaid Forward Purchase Agreement (the "Purchase Agreement") with Sports Coat LLC ("Buyer"). Under the terms of the agreement, the Buyer agreed to provide financing of US$1,000,000 to the Company in exchange for the right to receive a portion of the proceeds from certain ongoing litigations.

These litigations include, but are not limited to, claims relating to either:

● Alleged market manipulation involving FSD Pharma Inc., Quantum BioPharma Ltd., or any other related entity; or

● Matters involving Dr. Raza Bokhari.

The financing provided under the Purchase Agreement is non-recourse, which stipulates that the Company is not obligated to repay the $1,000,000 if no proceeds are realized from the litigations. The Buyer assumes the risk of loss in the event of non-collection of litigation proceeds. The agreement does not include a predefined repayment schedule, a specified due date, or a general pledge of the Company's assets as collateral for repayment.

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

The Purchase Agreement specifies events of default, including failure to pay amounts due, breach of material terms, termination of legal representation without cause, misrepresentation, misappropriation of litigation proceeds, insolvency, or challenges to the agreement's validity. In such cases, the Buyer may declare the full amount immediately due and enforce its security interest.

The Company received the full $1,000,000, which has been recorded as deferred income as at December 31, 2024.

During the six months ended June 30, 2025, the Company received $2,350,000 in litigation proceeds as part of a settlement related to the Raza Bokhari Claims. In accordance with the agreement with the Buyer, the Company paid $1,420,000 to the Buyer, representing the full repayment of the principal and the additional return calculated under the Purchase Agreement. The $1,000,000 initially recorded as deferred income was recognized as other income during the period ended June 30, 2025. The remaining settlement proceeds of $930,000 were also recognized as other income.

**22.** **Related party transactions** 

Related parties and related party transactions impacting the condensed consolidated interim financial statements are summarized below and include transactions with the following individuals or entities:

**Key management personnel**

Related parties include directors, officers, close family members, certain consultants and enterprises that are controlled by these individuals as well as certain individuals performing similar functions.

Key management personnel are those individuals who have authority and responsibility for planning, directing and controlling the activities of the Company directly or indirectly, including any directors (executive and non-executive) of the Company.

Transactions with key management and directors comprise the following:

&nbsp;&nbsp;&nbsp;&nbsp;a) Director's compensation for the three and six months ended June 30, 2025, is $30,777 and $60,363,
respectively (2024 – $33,201 and $99,716).

&nbsp;&nbsp;&nbsp;&nbsp;b) During the six months ended June 30, 2025, the Company granted 57,692 options to officers and employees
of the Company each with exercise prices ranging from C$6.60 to C$9.90 and expiring two years from the date of issuance.

&nbsp;&nbsp;&nbsp;&nbsp;c) During the year ended December 31, 2023, the Company entered into a secured loan agreement with the CEO
for C$1,200,000, with monthly payments of C$6,000 based on an annual interest rate of 6%. The loan had a maturity date of April 26, 2025,
and was part of FSD Strategic Investments' portfolio of finance receivables. During the year ended December 31, 2024, a payment
of C$400,000 was made by the CEO, and monthly payments were subsequently reduced to C$4,000. During the six months ended June 30, 2025,
the CEO made a payment of C$800,000 towards the loan, thereby settling the total debt outstanding owed to FSD Strategic Investments.

Key management personnel compensation during the three and six months ended June 30, 2025, and 2024, is comprised of:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months ended June 30,** | **For the three months ended June 30,** | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2025** | 2024 | **2025** | 2024 |
| | **$** | $ | **$** | $ |
| Salaries, benefits, bonuses and consulting fees | **216641** | 152286 | **424773** | 476528 |
| Share-based payments | **—** |  | **1316483** |  |
|  | **216641** | 152286 | **1741256** | 476528 |

---

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

As at June 30, 2025, the Company owed an executive officer $Nil (December 31, 2024 - $Nil), for legal fees incurred by the Company and paid by the executive officer on behalf of the Company. The amount owed is recorded within trade and other payables.

As at June 30, 2025, the Company has $Nil owing to related parties included in accounts payable and accrued liabilities (December 31, 2024 - $Nil).

**23.** **Capital Management** 

The Company defines capital as the aggregate of its capital stock and borrowings and convertible debentures.

As at June 30, 2025, the Company's share capital was $159,961,970 (December 31, 2024 – $150,470,325). The Company does not have any long-term debt.

The Company manages its capital structure in accordance with changes in economic conditions. To maintain or adjust its capital structure, the Company may elect to issue or repay financial liabilities, issue shares, repurchase shares or undertake any other activities as deemed appropriate under specific circumstances. The Company is not subject to any externally imposed capital requirements. There were no changes in capital management during the periods ended June 30, 2025, and 2024.

**24.** **Financial Instruments and Risk Management** 

 

*Credit risk*

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from deposits with banks and outstanding other receivables and finance receivables. The Company trades only with recognized, creditworthy third parties.

The Company does not hold any collateral as security for its outstanding finance receivables but mitigates this risk by dealing only with what management believes to be financially sound counterparties and, accordingly, does not anticipate significant loss for non-performance. The loans are secured by real estate properties, and the Company is granted a first or second collateral charge mortgage on the properties for a sum equal to the interest payments plus the principal amount. The Company performs assessments on factors such as timing of payments, loan to value, communications with the borrower and external macro factors such as interest rates and economic conditions to mitigate risks.

 

*Liquidity risk*

Liquidity risk is the risk the Company will not be able to meet its financial obligations as they come due. The Company's exposure to liquidity risk is dependent on the Company's ability to raise additional financing to meet its commitments and sustain operations. The Company mitigates liquidity risk by management of working capital, cash flows, the issuance of share capital and if desired, the issuance of debt. The Company's trade and other payables and notes payables are all due within twelve months from the date of these financial statements.

If unanticipated events occur that impact the Company's ability to carry out the planned clinical trials, the Company may need to take additional measures to increase its liquidity and capital resources, including issuing debt or additional equity financing or strategically altering the business forecast and plan. In this case, there is no guarantee that the Company will obtain satisfactory financing terms or adequate financing. Failure to obtain adequate financing on satisfactory terms could have a material adverse effect on the Company's results of operations or financial condition.

 

 

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

 

*Market risk*

Market risk is the risk the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: foreign currency risk, interest rate risk and other price risk.

● Foreign currency risk

Foreign currency risk arises on financial instruments that are denominated in a currency other than the functional currency in which they are measured. The Company's primary exposure with respect to foreign currencies is from Canadian dollar denominated cash, investments and trade and other payables. A 1% change in the foreign exchange rates would not result in any significant impact to the financial statements.

● Interest rate risk

Interest rate risk is the risk the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company does not have any material long-term borrowings outstanding subject to variable interest rates. Therefore, the Company is not exposed to interest rate risk as at June 30, 2025.

● Other price risk

Other price risk is the risk the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. The Company is not exposed to other price risks as at June 30, 2025.

 

*Fair values*

 

The carrying values of cash, other receivables, trade and other payables and notes payable approximate fair values due to the short-term nature of these items, or they are being carried at fair value or, for notes payable, interest payables are close to the current market rates. The risk of material change in fair value is not considered to be significant. The Company does not use derivative financial instruments to manage this risk.

Financial instruments recorded at fair value on the condensed consolidated interim statement of financial position are classified using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The Company categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Company's valuation techniques. A level is assigned to each fair value measurement based on the lowest-level input significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows:

● Level 1 – Unadjusted quoted prices as at the measurement date for identical assets or liabilities in active markets.

● Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

● Level 3 – Significant unobservable inputs that are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**Notes to the condensed consolidated interim financial statements**

[unaudited] [expressed in United States dollars]

For the three and six months ended June 30, 2025, and 2024

The fair value hierarchy requires the use of observable market inputs whenever such inputs exist. A financial instrument is classified to the lowest level of the hierarchy for which a significant input has been considered in measuring fair value. During the period ended June 30, 2025, there were no transfers of amounts between levels.

**25.** **Subsequent Events** 

● On July 2, 2025, the Company issued 31,035 Class B Subordinate Voting Shares upon the cashless exercise of warrants to one investor attached to convertible debentures purchased pursuant to tranches 4 and 5 of the December 2024 Offering.

● On July 3, 2025, the Company issued 266,096 Class B Subordinate Voting Shares upon the cashless exercise of warrants to one investor attached to convertible debentures purchased pursuant to tranches 1, 2, 3, and 5 of the December 2024 Offering.

● On July 7, 2025, the Company issued 8,344 Class B Subordinate Voting Shares upon the cashless exercise of warrants to one investor attached to convertible debentures purchased pursuant to tranche 5 of the December 2024 Offering.

● On July 8, 2025, the Company issued 8,344 Class B Subordinate Voting Shares upon the cashless exercise of warrants to one investor attached to convertible debentures purchased pursuant to tranche 5 of the December 2024 Offering.

● On July 10, 2025, the Company issued (i) 11,699 and (ii) 17,698 Class B Subordinate Voting Shares upon the cashless exercise of warrants to two investors attached to convertible debentures purchased pursuant to tranche 5 of the December 2024 Offering.

● On July 10, 2025, the Company renewed an existing residential mortgage in its portfolio, extending its maturity by one year, with a principal amount of C$925,000.

● On July 22, 2025, the Company announced (i) the purchase of 2,000 shares of GameStop Corp. (NYSE: GME), and (ii) the completion of debt settlements with an arm's length creditor totaling $40,000, comprising (a) a June 18, 2025 settlement of $30,000 satisfied through the issuance of 1,000 Class B Subordinate Voting Shares at C$41.14 per Class B Subordinate Voting Share, which has been reflected in Quantum's financial statements for the six months ended June 30, 2025, and (b) a July 9, 2025 settlement of $10,000 satisfied through the issuance of 680 Class B Subordinate Voting Shares at C$23.85 per Class B Subordinate Voting Share.

● On July 24, 2025, the Company purchased 38,129 shares of Genius Group Limited (AMEX: GNS).

● On August 1, 2025, the Company issued 3,014 Class B Subordinate Voting Shares upon the cashless exercise of warrants to one investor attached to the convertible debentures purchased pursuant to tranche 5 of the December 2024 Offering.

## Exhibit 99.2

**Exhibit 99.2**

**QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)**

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF**

**OPERATIONS**

 

*As used in this management's discussion and analysis of financial condition and results of operations (this "MD&A"), unless the context indicates or requires otherwise, all references to the "Company", "Quantum", "Quantum BioPharma", "we", "us" or "our" refer to Quantum BioPharma Ltd., together with our subsidiaries, on a consolidated basis as constituted on June 30, 2025..*

 

*This MD&A for the three and six months ended June 30, 2025, and 2024 should be read in conjunction with the Company's unaudited condensed consolidated interim financial statements and the accompanying notes for the three and six months ended June 30, 2025, and 2025 (the "financial statements"). The financial information presented in this MD&A is derived from the financial statements which have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board. All amounts are in United States dollars except where otherwise indicated.*

 

*This MD&A is dated as of August 6, 2025.* 

 ****

**About Quantum BioPharma Ltd.**

 

Quantum BioPharma is a biopharmaceutical company dedicated to building a portfolio of innovative assets and biotech solutions for the treatment of challenging neurodegenerative, inflammatory and metabolic disorders and alcohol misuse disorders with drug candidates ("Product Candidates") in different stages of development Through its wholly-owned subsidiary, Lucid Psycheceuticals, Inc. ("Lucid"), the Company is currently focused on the R&D of its lead compound, Lucid-MS (formerly Lucid-21-302). Lucid-MS is a patented new chemical entity shown to prevent and reverse myelin degradation, the underlying mechanism of multiple sclerosis, in preclinical models. The Company has also licensed, Unbuzzd, a proprietary formulation of natural ingredients, vitamins, and minerals to help with liver and brain function (Unbuzzd Wellness "IP License Agreement") for the purposes of quickly relieving individuals from the effects of alcohol consumption, to Unbuzzd Wellness, Inc., formerly known as Celly Nutrition Corp. and its U.S. affiliate. The Company is entitled to a royalty on the revenue generated by Unbuzzd Wellness and its affiliate from sales of products created using the technology rights granted under the IP License Agreement. Further, the Company is also focused on the R&D of novel formulations for the treatment of alcohol misuse for application in hospitals and other medical practices. The Company also maintains selective R&D programs for inflammatory diseases (FSD-PEA) and depression (Lucid-PSYCH), though these initiatives remain secondary priorities.

In addition, the Company maintains a portfolio of strategic residential investments through its wholly owned subsidiary, FSD Strategic Investments, which is focused on generating returns and cashflow through the issuance of loans secured by residential real estate property, with FSD Strategic Investments having a first or second collateral mortgage on the secured property.

Finally, the Company has expanded its corporate treasury management function to include investments in cryptocurrencies. This initiative is aligned with the Company's financial diversification goals and supports its long-term strategic objectives.

On August 15, 2024, the Company consolidated its class A multiple voting shares ("Class A Multiple Voting Shares") and class B subordinate voting shares ("Class B Subordinate Voting Shares"), on a 65:1 basis and changed its name to "Quantum BioPharma Ltd." with a new trading symbol "QNTM" on both the Nasdaq Stock Market LLC ("Nasdaq") and Canadian Securities Exchange (the "CSE") stock exchanges.

The Class B Subordinate Voting Shares are "restricted securities" within the meaning of such term under applicable Canadian securities laws, as these securities do not carry equal voting rights as compared with the Class A Multiple Voting Shares. For more information, please see the section entitled "*Outstanding Share Data"*.

**FORWARD-LOOKING INFORMATION**

 

*This MD&A contains forward-looking statements within the meaning of applicable securities laws. These statements, which are not historical facts, often include terms such as "plans," "expects," "estimates," "intends," or similar language and refer to future events, business prospects, or results. Forward-looking statements are based on assumptions made as of the date of this MD&A, and actual outcomes may differ significantly due to risks and uncertainties. The forward-looking information and forward-looking statements contained herein include, but are not limited to, statements regarding the future of the Company, and are based on certain assumptions that the Company has made in respect thereof as of the date of this MD&A. The Company cannot give any assurance that such forward-looking statements will prove to have been correct.*

 

 

*Since forward-looking statements relate to future events and conditions, by their very nature they require making assumptions and involve inherent risks and uncertainties. The Company cautions that although it believes the expectations and material factors and assumptions reflected in these forward-looking statements are reasonable as of the date hereof, there can be no assurance that these expectations, factors and assumptions will prove to be correct, and these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set out in the forward-looking statements. Key risks affecting these statements include uncertainties in the development and commercialization of our pharmaceutical products (such as Lucid-MS and PEA), reliance on Unbuzzd Wellness, our licensing partner to commercialize Unbuzzd, unpredictable clinical trial results, regulatory uncertainties, volatility in our crypto-asset holdings, challenges in securing adequate capital, the fact that results of preclinical studies and early-stage clinical trials may not be predictive of the results of later stage clinical trials; the uncertain outcome, cost, and timing of product development activities, preclinical studies and clinical trials of Lucid; the uncertain clinical development process, including the risk that clinical trials may not have an effective design or generate positive results; the potential inability to obtain or maintain regulatory approval of the drug product candidates of Lucid; the introduction of competing drugs that are safer, more effective or less expensive than, or otherwise superior to, the Company's drug product candidates; the potential inability to obtain or maintain intellectual property protection for the drug product candidates; and competition from better-funded companies and other risks described in our Annual Report on Form 20-F for our fiscal year ended December 31, 2025, filed with the SEC on March 28, 2025, as amended ("Annual Report on Form 20-F").* 

 

*This list of risk factors contained herein and in our Annual Report on Form 20-F should not be construed as exhaustive. Readers are cautioned that events or circumstances are not guarantees of performance and could cause results to differ materially from those predicted, forecasted or projected. The forward-looking statements contained in this document speak only as of the date of this document. Quantum does not undertake any obligation to publicly update or revise any forward-looking statements or information contained herein, except as required by applicable laws. Additional information relating to Quantum can be found on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov.*

 

**OVERVIEW** 

&nbsp;&nbsp;&nbsp;&nbsp;***1.***  ***Corporate Structure*** 

 ****

Effective November 1, 1998, pursuant to the amalgamation of Olympic ROM World Inc., 1305206 Ontario Company, 1305207 Ontario Inc., Century Financial Capital Group Inc. and Dunberry Graphic Associates Ltd. in accordance with the provisions of the *Business Corporations Act* (Ontario) (the "OBCA"), the Company was formed.

Effective May 24, 2018, following receipt of shareholder approval at the March 15, 2018 annual and special meeting of the proposed amendments to the Company's articles, and pursuant to the articles of amendment, the Company changed its name to "FSD Pharma Inc." and the capital structure of the Company was reorganized to create a new class of Class A multiple voting shares (the "Class A Multiple Voting Shares"), amended the terms of and re-designated the existing common shares as Class B subordinate voting shares (the "Class B Subordinate Voting Shares"), and eliminate the existing non-voting class A preferred shares and non-voting class B preferred shares.

Effective May 29, 2018, the Class B Subordinate Voting Shares commenced trading on the CSE under the trading symbol "HUGE".

Effective October 16, 2019, the Company completed a 201:1 consolidation.

On January 9, 2020, the Class B Subordinate Voting Shares commenced trading on the Nasdaq under the trading symbol "HUGE".

On August 15, 2024, the Company completed the 2024 Consolidation and changed its name to "Quantum BioPharma Ltd.". In connection with the name change, the Company's trading symbol was changed to "QNTM" on both the Nasdaq and CSE.

The Company's principal office is located at 55 University Avenue, Suite 1003, Toronto, Ontario, M5J 2H7, Canada, and its telephone number is +1-833-571-1811. As at the date of this report, the Company is a reporting issuer in each of the provinces and territories of Canada. The Company's registrar and transfer agent is Marrelli Trust Company Limited. The Company's agent for service in the United States is CT Company, 28 Liberty Street, New York, New York 10005.

 ****

&nbsp;&nbsp;&nbsp;&nbsp;***2.***  ***Business Segments*** 

 ****

Quantum BioPharma's operations are organized into two primary business segments: Biopharmaceutical and Strategic Investments. The Biopharmaceutical segment is dedicated to developing therapies for neurodegenerative, inflammatory, and metabolic disorders, as well as alcohol misuse. Key initiatives include advancing Lucid-MS, a patented clinical-stage compound targeting myelin restoration in multiple sclerosis, and monetizing unbuzzd™, a licensed alcohol-recovery formulation, through a royalty-generating IP License Agreement with Unbuzzd Wellness and its U.S. affiliate.

Through its subsidiary FSD Strategic Investments, the Company maintains a portfolio of residential real estate-backed loans, secured by first or second mortgages, to generate stable cash flow and capital returns.

Separately, Quantum BioPharma has expanded its corporate treasury management to include cryptocurrency investments, aligning with its strategy for financial diversification and long-term growth.

As of the date hereof, the Company currently has the following subsidiaries:

&nbsp;&nbsp;&nbsp;&nbsp;(i) FSD
 BioSciences Inc. ("FSD Biosciences"), which is wholly owned by the Company and
 incorporated under the laws of the State of Delaware;

&nbsp;&nbsp;&nbsp;&nbsp;(ii) Prismic
 Pharmaceuticals Inc. ("Prismic"), which is wholly owned by the Company and incorporated
 under the laws of the State of Arizona;

&nbsp;&nbsp;&nbsp;&nbsp;(iii) FV
 Pharma Inc. ("FV Pharma"), which is wholly owned by the Company and incorporated
 under the OBCA;

&nbsp;&nbsp;&nbsp;&nbsp;(iv) Lucid
 Psycheceuticals Inc. ("Lucid"), which is wholly owned by the Company and incorporated
 under the OBCA;

&nbsp;&nbsp;&nbsp;&nbsp;(v) FSD
 Strategic Investments Inc. ("FSD Strategic Investments"), which is wholly owned
 by the Company and incorporated under the OBCA;

&nbsp;&nbsp;&nbsp;&nbsp;(vi) FSD
 Pharma Australia Pty Ltd. ("FSD Australia"), which is wholly owned by the Company
 and incorporated under the laws of Australia;

&nbsp;&nbsp;&nbsp;&nbsp;(vii) Unbuzzd
 Wellness Inc. formerly Celly Nutrition Corp ("Unbuzzd Wellness') an entity controlled
 by the Company and incorporated under the British Columbia Business Corporations Act. Celly
 Nutritio Corp. changed its name to "Unbuzzd Wellness Inc.", effective May 23,
 2025.

&nbsp;&nbsp;&nbsp;&nbsp;(viii) Huge
 Biopharma Australia Pty Ltd ("Huge Biopharma"), which is wholly owned by the
 Company and incorporated under the laws of Australia.

**IMPORTANT EVENTS IN THE DEVELOPMENT OF THE COMPANY'S BUSINESS IN FISCAL YEAR 2024 TO THE DATE OF THIS MD&A REPORT.**

January 4, 2024: the Company's registration statement on Form F-3 (File No. 333-276264) filed under the Securities Act with the SEC containing a base shelf prospectus with the SEC on December 22, 2023 (the "U.S. Base Prospectus") was declared effective (the "January 2024 Registration Statement")**.** The January 2024 Registration Statement qualifies the offer, and sale, from time to time of Class B Subordinate Voting Shares up to an aggregate amount of US$50,000,000, subject to limitations, as applicable, under Form F-3. The January 2024 Registration Statement is available for use by the Company until the earlier of January 4, 2027. The terms of any Securities to be offered under the January 2024 U.S. Base Prospectus will be specified in a prospectus supplement, which will be filed with the SEC in connection with any such offer.

January 8, 2024: the United States District Court for the Southern District of Florida dismissed the Company's request for a motion to dismiss the complaint filed against it by GBB Drink Lab, Inc. ("GBB").

January 24, 2024: the Company entered into an agreement with SBS Intl Group LLC. ("SBS") to assist the Company in enhancing its market awareness and foster productive, continuing dialogues with shareholders and other market participants. The agreement granted SBS 1,539 Options with an exercise price of C$68.25 and expiry date of January 24, 2026. As of the date of this report, this agreement has been terminated, and all share-based compensation forfeited.

January 24, 2024: the Company entered into an agreement with Draper, Inc. ("Draper") and Carriage House Capital, Corp. ("Carriage House") to assist the Company on in enhancing its market awareness and foster productive, continuing dialogues with Shareholders and other market participants. The agreement granted Draper and Carriage 5,385 Options each with the exercise price of C$68.25 and expiry date of January 24, 2026. As of the date of this report, this agreement has been terminated, and all share-based compensation forfeited.

January 29, 2024: the Company appointed Dr. Sanjiv Chopra, MD to the Board to replace Nitin Kaushal.

February 6, 2024: the Court of Appeal for Ontario ("ONCA") affirmed the ONSC's judgement in the amount of C$2.8 million plus C$175,000 against Dr. Raza Bokhari. An additional C$5,000 in costs was awarded to the Company by the ONCA in respect of Dr. Raza Bokhari's failed motion for leave to appeal.

February 6, 2024: the Company incorporated Huge Biopharma to conduct research related to Lucid-MS in Australia.

February 11, 2024: the Company engaged MZHCI, LLC, an MZ Group Company ("MZ") to lead a comprehensive strategic investor relations and financial communications program across all key markets (the "MZ Agreement"). Pursuant to the MZ Agreement, MZ is paid US$10,000 per month. Either party has the right to terminate the MZ Agreement upon fifteen days' notice. As of the date of this report, the MZ Agreement remains in effect.

February 16, 2024: the Company entered into an at-the-market offering agreement (the "ATM Agreement") with H.C. Wainwright & Co., LLC ("Wainwright"), pursuant to which the Company, at its discretion, may offer and sell, from time to time, through Wainwright as sales agent, Class B Subordinate Voting Shares, having an aggregate offering price of up to US$11,154,232 (the "ATM Offering"). A cash commission of 3.0% on the aggregate gross proceeds raised under the ATM Offering is payable to Wainwright in connection with its services. The ATM Offering was made in the United States pursuant to the January 2024 Registration Statement and the prospectus supplement dated February 16, 2024, and as amended pursuant to the Amendment No. 1 to the prospectus supplement dated August 26, 2024 (together with January 2024 Registration Statement, the "ATM U.S. Prospectus") filed with the SEC.

 

Sales of the Class B Subordinate Voting Shares under the ATM U.S. Prospectus will and have been made in transactions that are deemed to be "at-the-market" offering as defined in Rule 415(a)(4) promulgated under the Securities Act of 1933, as amended, (the "Securities Act") including sales made directly on or through the Nasdaq. The Class B Subordinate Voting Shares will be distributed at the prevailing market prices at the time of each sale. As a result, prices may vary between purchasers and during the period of distribution. No Class B Subordinate Voting Shares in the ATM Offering will be sold on the CSE or any other trading market in Canada.

The volume and timing of sales, if any, will be determined at the sole discretion of the Company's management and in accordance with the terms of the ATM Agreement. If the Company chooses to sell Class B Subordinate Voting Shares under the ATM Offering, the Company intends to use the net proceeds of the ATM Offering (i) to fund various clinical studies, trials and development programs, (ii) to fund R&D, and (iii) for general corporate purposes and working capital.

From February 16, 2024, through June 30, 2025, the Company sold an aggregate of 1,384,781 Class B Subordinate Voting Shares on a post-consolidation basis, pursuant to the ATM U.S. Prospectus for gross proceeds of approximately US$11,746,730. The Company did not sell any Class B Subordinate Voting Shares on a post-consolidation basis from December 31, 2024, to June 30, 2025.

February 19, 2024: Huge Biopharma entered into an agreement with Ingenu CRO Pty Ltd. ("Ingenu") to conduct the METAL-1 TRIAL.

 

February 28, 2024: the Company announced the settlement of an aggregate of US$492,135 of amounts owing to arm's length creditors through the issuance of 8,385 Class B Subordinate Voting Shares at the deemed price of US$0.903 per Class B Subordinate Voting Share.

March 11, 2024: the Company, through Huge BioPharma, submitted a Clinical Trial Application ("CTA") or a planned Phase-1b clinical trial to Assess the Safety and Efficacy of unbuzzd™ in Healthy Volunteers in an Induced State of Alcohol Intoxication ("METAL-1 TRIAL") to a human ethics review committee ("HREC") in Australia.

March 26, 2024: Huge Biopharma entered into agreement with Ingenu to conduct a trial in connection with Lucid-21-302.

March 31, 2024: the principal amount of the C$1,000,000 million loan that the Company advanced to Unbuzzd Wellness (the "Unbuzzd Loan") was increased by C$300,000.00, pursuant to the amendment to the Loan Agreement between the Company and Unbuzzd Wellness, dated as of April 3, 2024, with an effective date of March 31 2024. No retroactive interest was to be charged on the increased amount. Thus, the total principal amount of the Unbuzzd Loan equates to C$1,300,000.00 as of June 30, 2025. The interest rate per annum remained unchanged.

April 5, 2024: the Company received a written notification (the "April 2024 Nasdaq Notification Letter") from Nasdaq that the Company was not in compliance with the minimum bid price requirement set forth in Nasdaq's Listing Rule rules for continued listing on the Nasdaq. The April 2024 Nasdaq Notification Letter was a deficiency notice, not a delisting notice, and did not affect the trading of the Class B Subordinating Voting Shares. Nasdaq Listing Rule 5550(a)(2) requires securities listed on Nasdaq to maintain a minimum bid price of US$1.00 per share, and Listing Rule 5810(c)(3)(A) provides that a failure to meet the minimum bid price requirement exists if the deficiency continues for a period of 30 consecutive business day. The Class B Subordinate Voting Shares traded at a price of less than $1.00 per share for 30 consecutive business days between from February 22 to April 4, 2024. The Company was given until October 2, 2024, to regain compliance by maintaining a closing bid price of at least $1.00 for 10 consecutive business days. The Company regained compliance on September 6, 2024.

April 22, 2024: Unbuzzd Wellness announced a strategic partnership with BevSource, a provider of beverage development, production and operations solutions.

April 24, 2024: the Company entered into an agreement with Applied Science and Performance Institute ("ASPI") in Tampa, Florida, to conduct a "A Randomized, Double-Blind, Placebo-Controlled Crossover Study to Assess the Safety and Efficacy of unbuzzd™ in Healthy Volunteers in an Induced State of Alcohol Intoxication (METAL-2 TRIAL").

April 25, 2024: Unbuzzd Wellness announced its partnership with Six+One, a branding, advertising and production agency.

May 7, 2024: the Company announced the submission to the HERC in Australia of a trial entitled "A Phase 1, Randomized, Double-Blind, Placebo-Controlled, Multiple Ascending Dose Study to Evaluate the Safety and Pharmacokinetics of Lucid-21-302 in Healthy Adult Participants."

 

May 16, 2024: Unbuzzd Wellness announced its newly designed packaging and logo.

May 22, 2024: the Company entered into an investor relations services agreement with IR Agency LLC ("IR Agency"). Pursuant to the agreement, IR Agency agreed to communicate information about the Company to the financial community including, but not limited to, creating company profiles, media distribution and building a digital community with respect to the Company for a period of one month beginning on May 28, 2024, in exchange for a fee of US$245,000. At the date of this report, the Company discontinued its engagement with IR Agency.

May 28, 2024: the Company submitted a clinical trial protocol the Institutional Review Board in the United States for its METAL-2 TRIAL.

June 11, 2024: the Company entered into an option agreement with the University of Southern California ("USC") to evaluate dietary supplement technology for commercialization (the "USC Agreement"). The USC Agreement allowed the Company to exclusively evaluate its novel technology for a 6-month term. At the end of this USC Agreement, the Company decided not to extend the USC Agreement.

June 27, 2024: the Company received approval from the HREC in Australia for its trial in connection with Lucid 21-302.

June 27, 2024: the United States District Court for the Eastern District of Pennsylvania granted judgement in favor of the Company in its case against Dr. Raza Bokhari.

June 28, 2024: the Company retained the services of Totaligent, Inc. ("Totaligent"), a market awareness firm with 25 years of experience and a 32-million investor database, for a 30-day contract valued at US$30,000, ending July 28, 2024, unless renewed, with both parties maintaining a 5-day termination notice option. As at today's date, the Company discontinued its engagement with Totaligent.

August 13, 2024: the Company entered into an agreement with Ingenu to conduct a clinical study to observe and quantify disease progression in patients with primary progressive multiple sclerosis. This study will facilitate a future phase 2 clinical trial with Lucid-MS. This agreement is still in place.

August 14, 2024: the Unbuzzd Wellness IP License Agreement (i) was amended to add the U.S. subsidiary of Unbuzzd Wellness, as a licensee to the Unbuzzd Wellness IP License Agreement, effective as of the August 14, 2024, and granted the U.S. subsidiary of Unbuzzd Wellness exclusive global rights to commercialize the Licensed IP from August 14, 2024, (ii) noted that Unbuzzd Wellness became the sole and exclusive owner of the unbuzzd™ trademark pursuant to an intellectual property purchase agreement with the Company dated October 2, 2023, and amended the definition of the Licensed IP in the Unbuzzd Wellness P License Agreement to exclude unbuzzd™ any time after the unbuzzd™ trademark assignment date, and (iii) confirmed that Unbuzzd Wellness retained an exclusive global license to commercialize the Licensed IP since July 31, 2023, the effective date of the Unbuzzd Wellness License Agreement. All other terms in the Unbuzzd Wellness License Agreement remained substantially the same.

August 15, 2024: the Company completed the 2024 Consolidation and changed its name to "Quantum BioPharma Ltd.". In connection with the name change, the Company's trading symbol was changed to "QNTM" on both the Nasdaq and CSE. The new CUSIP and ISIN for the Class B Subordinate Voting Shares were changed to 74764Y205 and CA74764Y2050, respectively. After giving effect to the 2024 Consolidation, the Class B Subordinate Voting Shares were reduced from 84,531,149 to approximately 1,300,727 Class B Subordinate Voting Shares and the Class A Multiple Voting Shares were reduced from 72 to 2 Class A Multiple Voting Shares. No fractional Class A Multiple Voting Shares and Class B Subordinate Voting Shares were issued in connection with the 2024 Consolidation. Instead, all fractional Class A Multiple Voting Shares or Class B Subordinate Voting Shares were rounded up to the nearest whole number. The exercise price and/or conversion price and number of Class B Subordinate Voting Shares issuable under any of the Company's outstanding convertible securities were proportionately adjusted in connection with the 2024 Consolidation.

August 15, 2024: the Company closed a non-brokered private placement and issued four (4) Class A Multiple Voting Shares at a price of C$18.00 per Class A Multiple Voting Share for aggregate gross proceeds of C$72.00 (the "August 2024 Class A Multiple Voting Share Private Placement Offering"). Xorax Family Trust, a trust of which Zeeshan Saeed, the Chief Executive Officer ("CEO") and Co-Executive Chairman of Quantum BioPharma is a beneficiary ("Xorax"), and Fortius Research and Trading Corp., a corporation controlled by Anthony Durkacz, a Co-Executive Chairman of Quantum BioPharma, is a director ("Fortius"), purchased all the Class A Multiple Voting Shares issued pursuant to the August 2024 Class A Multiple Voting Share Private Placement Offering. The participation by such insiders is considered a "related-party transaction" within the meaning of MI 61-101.

August 23, 2024: the Company canceled an aggregate of 47,358 Options ("August 2024 Options") to purchase Class B Subordinate Voting Shares, which were previously granted to board members, advisory board members, employees, advisors and consultants of the Company (each a "August 2024 Option Participant"). Management reviewed the Company's outstanding August 2024 Options and determined that certain August 2024 Options granted to such August 2024 Option Participants under the Company's Equity Incentive Plan, at exercise prices, ranging from C$84.50 to C$189.15 per Class B Subordinate Voting Share, no longer represented a realistic incentive to motivate the August 2024 Option Participants.

August 23, 2024: the Company announced the grant of RSUs (August 2024 RSUs") pursuant to the Equity Incentive Plan. The Company granted an aggregate of 32,690 August 2024 RSUs to certain officers, directors, and employees of the Company. Each August 2024 RSU granted vests the earlier of: (i) one year; and (ii) the successful implementation of the Lucid-MS MAD study conducted by Ingenu, subject to acceleration in the event of a takeover bid or change of control.

August 23, 2024: the Board authorized and approved bonuses in the amount of C$450,000 to each of Anthony Durkacz, Zeeshan Saeed and Donal Carroll, officers of the Company, (together, the "Executives") pursuant to the terms and conditions of certain executive agreements entered into between the Company and each of the Executives (together, the "Executive Agreements"). Pursuant to the terms and conditions of the respective Executive Agreements, each Executive was entitled to certain annual bonuses, based on the Executive and Company meeting certain performance milestones, calculated on the basis of 70% of the respective Executive's base salary for the second year of employment and 80% of the respective Executive's base salary for the third year of employment, which equates to a bonus payment of C$210,000 and C$240,000, respectively, for each Executive for each year of service (each, a "August 2024 Bonus Payment"). Subject to compliance with CSE policies, the Company and Executives determined that to preserve the Company's cash, it settled the August 2024 Bonus Payments into Class B Subordinate Voting Shares at a deemed price of C$5.44 per Class B Subordinate Voting Share.

August 26, 2024: the Company filed an amendment to the ATM U.S. Prospectus.

August 30, 2024: Donal Carroll assumed the role of Chief Financial Officer, and Nathan Coyle assumed the role of Controller. In addition, the Company appointed Jason Sawyer as the Head of Finance and Mergers and Acquisitions.

August 30, 2024: Unbuzzd Wellness launched unbuzzd™ Clear Eyed Citrus Powder grab-and-go stick packs on Amazon.com.

September 6, 2024: the Company regained compliance with Nasdaq's continued listing requirements after receiving the April 2024 Nasdaq Notification Letter. See "*April 5,* 2024" for more information.

September 6, 2024: the Company completed debt settlements in the amount of C$450,000 with the Executives to preserve the Company's cash through the issuance of 248,160 Class B Subordinate Voting Shares, at a deemed price of C$5.44 per Class B Subordinate Voting Share.

September 6, 2024: the Company granted an aggregate of 12,500 Options (the "September 2024 Options"), and an aggregate of 7,500 RSUs (the "September 2024 RSUs") to a director and certain consultants of the Company. Each September 2024 Option is exercisable at a price of C$5.60 per Class B Subordinate Voting Share, expires two years from the date of grant and vest in one-third increments with the first batch vesting immediately and the remaining two thirds vesting equally on the 6 month and 12-month anniversary of the date of grant. Each September 2024 Option is exercisable to purchase one Class B Subordinate Voting Share. Each September 2024 RSU granted vested immediately.

September 6, 2024: the Company canceled an aggregated of 7,692 warrants to purchase Class B Subordinate Voting Shares, which were previously granted to a board member. Management reviewed the Company's outstanding warrants and determined that the warrants granted to such individual at an exercise price of C$97.50 per Class B Subordinate Voting Share no longer represented a realistic inventive to motivate such individual.

September 13, 2024: the Company closed a non-brokered private placement and issued six Class A Multiple Voting Shares at a price of C$6.00 per Class A Multiple Voting Share for gross proceeds of C$36.00 (the "September 2024 Class A Multiple Voting Share Private Placement Offering"). Xorax and Fortius purchased all the Class A Multiple Voting Shares issued pursuant to the September 2024 Class A Multiple Voting Share Private Placement Offering. The participation by such insiders was considered a "related-party transaction" within the meaning of MI 61-101. The Company relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in respectively, sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of related party participation in the September 2024 Class A Multiple Voting Share Private Placement Offering as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involved the related parties, exceeded 25% of the Company's market capitalization (as determined under MI 61- 101). Fortius, Xorax and the Company entered into a Shareholder Agreement dated September 13, 2024 ("Shareholder Agreement"), which prohibits unauthorized transfers of the Class A Multiple Voting Shares. See "*Item 7. Major Shareholders and Related Party Transactions B. Related Party Transactions – Shareholder Agreement*" in the Company's Annual Report on Form 20-F filed with the SEC on March 28, 2025., as amended.

September 27, 2024: the Company announced the grant of 29,500 Options to certain directors, officers, employees, and consultants (the "September 2024 Options"). Each September 2024 Option granted vests immediately and is exercisable at a price of C$5.25 for a period of two years from the issue date. A director of the Company received 7,500 of the September 2024 Options, and thus, the foregoing as it applies to such party represents a related-party transaction under MI 61-101. However, the transaction was exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the subject matter of the transaction nor the consideration exceeds 25% of the Company's market capitalization.

September 27, 2024: the Company announced it has retained the services of Cambridge Consultants Inc. ("Cambridge") for $35,000, TD Media LLC dba Life Water Media ("LWM") for $75,000, and King Tide Media LLC ("KTM") for $50,000. As at today's date, the Company has discontinued its engagement with Cambridge, LWM, and KTM pursuant to this agreement.

October 7, 2024: the Company announced that Celly U.S. signed a master distribution agreement with FUSION.

October 20, 2024: On October 20, 2024, the Company filed a complaint in the U.S. District Court for the Southern District of New York against CIBC World Markets, Inc., RBC Dominion Securities Inc., and John Does 1-10.

October 29, 2024: the Company engaged Agoracom Independent Trading Group ("Agoracom") for C$25,000, Buyins, Inc. ("Buyins") for US$15,000, and Stockjock.com LP ("Stockjock") for US$15,000, to enhance market awareness and shareholder engagement, following a capital review and in compliance with CSE policies. Agoracom and ITG agreements require 30 days' termination notice, while Buyins and Stockjock require 10 days' notice. As of the date of this report, the Company remains engaged in these agreements.

October 31, 2024: The Company further decreased its outstanding debt to a creditor through a debt settlement agreement involving cash payments. Previously reported on the balance sheet at approximately US$611,000, the debt has been reduced to around US$211,000, reflecting a substantial reduction of approximately US$400,000.

November 5, 2024: the Company settled its total outstanding debt to a creditor, which was previously reported on the balance sheet at approximately US$278,000. The Company and the creditor reached a debt settlement agreement, whereby the creditor would be compensated by an external party to the Company.

December 5, 2024: the Company announced it intended to complete a non-brokered private placement offering (the "December 2024 Offering") of up to 5,000 convertible debenture units of the Company (each, a "December 2024 Debenture Unit") at a price of C$1,000 per Debenture Unit. Each December 2024 Debenture Unit consists of (i) one convertible debenture having a face value of C$1,000.00 (each a "December 2024 Debenture"); and (ii) 80 Class B Subordinate Voting Share purchase warrants (each a "December 2024 Warrant") exercisable for 80 Class B Subordinate Voting Shares. The December 2024 Debentures matures on the date that is 36 months from the date of issuance and bears interest at a rate of 1.25% per month, beginning on the date of issuance and is payable in cash on the last day of each calendar quarter. The principal sum of the December 2024 Debenture, or any portion thereof, and any accrued but unpaid interest, may be converted into Class B Subordinate Voting Shares at a conversion price of C$6.25 per Class B Subordinate Voting Share. Each December 2024 Warrant shall entitle the holder to acquire one additional Class B Subordinate Voting Share at a price of C$7.00 per Class B Subordinate Voting Share, for a period of five (5) years from the date of issuance. The December 2024 Debenture contained normal course default provisions, and a default if the volume weighted average price of the Class B Subordinate Voting Shares on the Canadian Securities Exchange is at or below C$5.3125 for any period of 10 consecutive trading days (the "VWAP Default"). The December 2024 Debenture and December 2024 Warrant contain a provision that prevents conversion or exercise, as applicable, if the holder's interest in the Company would exceed 9.99%. The Company shall have a ‎right to prepay or redeem a part or the entire principal amount of the ‎ December 2024 Debenture for a cash amount equal to the sum of all payments of interest on the December 2024 Debenture, that would be due through to the maturity date (the "Prepayment Penalty"). In the event the holder converts the entire amount owing on the December 2024 Debenture within 6 months of the issuance date, the holder shall be entitled to receive a cash amount equal to half the sum of all payments of interest on the December 2024 Debenture that would be due through to the maturity date, or at the option of the holder Class B Subordinate Voting Shares at the conversion price (the "Conversion Bonus"). The Company would use proceeds from the December 2024 Offering for the ongoing development of the Company's business model and for general working capital purposes.

December 10, 2024: the Company's safety review committee recommended commencing dosing of the second cohort in its trial entitled "A Phase 1, Randomised, Double-Blind, Placebo-Controlled, Multiple Ascending Dose Study to Evaluate the Safety and Pharmacokinetics of Lucid-21-302 in Healthy Adult Participants."

 

December 13, 2024: the Company closed an initial tranche of the December 2024 Offering and issued 500 December 2024 Debenture Units for C$500,000. See "*December 5, 2024*" above for more details on the December 2024 Offering.

December 18, 2024: the Company entered into an investor relations services agreement with Enterprise Canada Inc. ("Enterprise"). Pursuant to the agreement ("Enterprise Agreement"), Enterprise has been engaged for an indefinite period. The Enterprise Agreement is structured in three phases, with C$10,000 paid to Enterprise at the start of phase 1, C$2,500 on the completion of phase 2, and C$5,000 due monthly as a public relations retainer (phase 3). Enterprise will be assisting the Company with its public relations strategy, which includes developing the Company's narrative, key messages, and pitching strategies with identified targets. As of the date of this report, the parties remain engaged in the Enterprise Agreement.

December 20, 2024: the Company closed the second tranche of the December 2024 Offering and issued 500 December 2024 Debenture Units for C$500,000. See "*December 5, 2024*" above for more details on the December 2024 Offering.

December 20, 2024: the Company purchased US$1,000,000 of Bitcoin and other cryptocurrencies as part of its strategic efforts.

December 24, 2024: the Company entered into a prepaid forward purchase agreement ("Sports Coat Prepaid Purchase Agreement") with Sports Coat LLC ("Sports Coat"), whereas Sports Coat agreed to provide financing of US$1,000,000 to the Company as consideration for purchasing proceeds of the litigations (the "Litigation Proceeds") which includes any of the following involving: (i) claims relating to market manipulation / securities / commodities / exchanges brought by or on behalf of Quantum Biopharma Ltd. or any related entity: or (ii) Dr. Raza Bokhari. Per terms stated in the Sports Coat Prepaid Purchase Agreement, the Company is not obligated to repay US$1,000,000 to Sports Coat if no proceeds are realized from the lawsuit as the financing is considered non-recourse. Sports Coat bears risk of loss in the event of non-collection of the Litigation Proceeds. The Sports Coat Prepaid Purchase Agreement does not have a predefined repayment schedule, or specified due date, and the Company has not generally pledged its assets as collateral to ensure repayment.

January 7, 2025: the Company was approved to dual list its shares on Upstream, a MERJ Exchange market and global securities trading application. The dual listing on Upstream is designed to provide the Company the opportunity to access a global investor base outside of the U.S. that can trade using a credit/debit card, PayPal, USD, or USDC (a stable coin pegged to the USD); unlocking liquidity and enhancing price discovery while globalizing the opportunity to invest in the Company. The Upstream market is open to non U.S. investors 7 days a week 20 hours a day, Monday to Sunday: 10:00am to 06:00am UTC+4 (1:00am to 9:00pm EST). Traders on Upstream's smart-contract powered market will experience real-time trading and settlement, and a transparent orderbook which does not permit common market manipulations.

January 14, 2025: the Class B Subordinate Voting Shares started trading on the MERJ Exchange at 10:00am ET under the ticker symbol "QNTM". See "*January 7, 2025*" above for more information.

January 20, 2025: the Company closed the third tranche of the December 2024 Offering and issued 1,480 December 2024 Debenture Units for aggregate gross process of C$1,480,000. This third tranche was completed under amended terms, including a reduced conversion price of C$4.85 per share, an increased warrant ratio of 103.093 Warrants per Debenture Unit, and a reduced exercise price of C$5.25 per Warrant share. On February 7, 2025, the investor converted a partial amount of this Debenture into an aggregate of 152,577 shares of the Company's Class B Subordinate Voting Shares. On February 26, 2025, the investor converted the remaining amount of the Debenture into an aggregate amount of 221,237 shares of the Company's Class B Subordinate Voting Shares. Thus, the total amount of Class B Subordinate Voting Shares converted under this Debenture was 373,814. See "*December 5, 2024*" above for more details on the December 2024 Offering.

January 24, 2025: the Company sought a court order from the ONSC declaring Dr. Bokhari to be a vexatious litigant.

February 4, 2025: the Company announced that it completed a double-blind, randomized, placebo-controlled crossover design clinical trial (NCT06505239) of unbuzzd™. For more information about unbuzzd™ Clinical Trials, please see the Company's Annual Report on Form 20-F, "*Item 4B. – Business Overview – (i)unbuzzd™ Retail Product Treatment for Alcohol Misuse"* filed with the SEC on March 28, 2025.

 

February 6, 2025: Unbuzzd Wellness entered into a letter of engagement with a leading New York investment bank to raise up to US$10,000,000 in capital and explore an initial public offering on a major US public exchange.

February 7, 2025: the Company and Empire Market Ventures, LLC ("Empire") entered into an investor relations services agreement (the "Empire Agreement"). Pursuant to the Empire Agreement, Empire was engaged for a period of three months. The Company paid Empire US$25,000 in fees. Empire will be providing the Company with investor awareness and marketing services, which includes giving the Company access to an exclusive Nasdaq, TSX, and ASX mailing list and investor contacts, content creation, media appearances, branding and consulting, and other services aimed at increasing the Company's engagement with investors.

February 18, 2025: the Company purchased an additional US$1,000,000 worth of Bitcoin and other cryptocurrencies as part of its strategic efforts.

March 6, 2025: the Company closed the fourth tranche of the December 2024 Offering and issued 100 January 2025 Debenture Units for aggregate gross process of C$100,000. On March 25, 2025, the investor converted this Debenture into an aggregate of 25,257 Class B Subordinate Voting Shares. In addition, the Company announced it may complete additional tranches of the December 2024 Offering, adjusting each convertible debenture units (each, a "March 2025 Debenture Unit") to include 76 warrants, with an increased conversion price of C$6.60 (the "March 2025 Debenture") and an increased exercise price per warrant of C$7.00 (the "January 2025 Warrants"). In addition, the March 2025 Debenture removed the VWAP Default, the Prepayment Penalty and the Conversion Bonus.

March 7, 2025: the Company cancelled an aggregate of 7,692 warrants to purchase Class B Subordinate Voting Shares which were previously granted to Mr. Zapolin. The Company and Mr. Zapolin entered into a warrant cancellation agreement, pursuant to which Mr. Zapolin agreed to cancel the warrants. Management had reviewed Mr. Zapolin's outstanding warrants and determined that the warrants granted to Mr. Zapolin under the Equity Incentive Plan no longer represented a realistic incentive to motivate Mr. Zapolin. Concurrently, the Company granted an aggregate of 7,692 Options to Mr. Zapolin to acquire Class B Subordinate Voting Shares (each, a "Zapolin Option") pursuant to the Equity Incentive Plan, with an exercise price of C$6.60 per Class B Subordinate Voting Share. Each Zapolin Option granted vested immediately, and the expiry date of the Zapolin Options are on March 7, 2027. If Mr. Zapolin ceases to be a participant under the Equity Incentive Plan for any reason, the expiry date of the Zapolin Options shall be 90 days following the date Mr. Zapolin ceases to be a participant under the Equity Incentive Plan.

March 20, 2025: The Company increased its cryptocurrency holdings with the purchase of an additional US$1,500,000 worth of Bitcoin and other cryptocurrencies.

March 26, 2025: Unbuzzd Wellness released unbuzzd™ "On-the-Go Powder Stick Packs" in an 8-pack display box, facilitating the sale of unbuzzd™ in convenience, liquor, and drug stores across the United States. The 8-pack display box is available for direct sale to consumers on both amazon.com and unbuzzd.com.

March 26, 2025: the Company retained the services of LWM to enhance its market awareness. This engagement is for a period of 45 days, for $55,000. As of the date of this report, the Company engages with LWM.

March 27, 2025: the Company appointed Terry Lynch to the Board to replace Dr. Sanjiv Chopra.

March 31, 2025: the Company announced that it has closed the final tranche ("Final Tranche") of the offering announced on December 5, 2024 (the "December 5 NR") as amended on January 20, 2025, and based on the better terms announced on March 7, 2025 (the "March 7 NR"). The Company issued 2,420 Debenture Units (as defined in the December 5 NR, as amended by the March 7 NR) for C$2,420,000 as part of this Final Tranche bringing the total amount raised to C$5 million.

March 31, 2025: the Company entered into a joint clinical study with Massachusetts General Hospital (MGH) scientists to validate a novel positron emission tomography (PET) imaging technique to monitor myelin integrity and demyelination in people with multiple sclerosis (MS).

April 3, 2025 – Unbuzzd Wellness launched unbuzzd in Puerto Rico with distribution partner FUSION Distribution Group, a leading distributor of health-conscious food and beverage offerings across Puerto Rico, the Caribbean, and parts of Central and South America.

April 10, 2025 – Unbuzzd Wellness has secured a landmark partnership with the Asian American Trade Associations Council ("AATAC") to expand the retail availability of unbuzzd™, increase sales, and recruit new customers. This partnership will focus on unbuzzd™'s convenient "On-the-Go Powder Stick Packs" which have been scientifically proven to accelerate the reduction of blood alcohol levels and restore mental alertness.

April 14, 2025: the Company announced that the reconsideration motion by Dr. Raza Bokhari at the Court of Appeal for Ontario was dismissed entirely in favour of Quantum BioPharma. As previously disclosed in Quantum BioPharma's news releases issued May 11, 2023, October 4, 2023, and February 5, 2024, and January 17, 2025, Arbitrator Cunningham dismissed Dr. Bokhari's claim that the Company had wrongfully dismissed him, awarding the Company approximately CDN$2.81 million in costs of the arbitration plus interest. Also, $175,000 in costs were awarded by Justice Conway in respect of the set aside application, and $5,000 in costs were awarded by the Court of Appeal totaling $180,000 in respect of Dr. Raza Bokhari's failed motion for leave to appeal. Dr. Raza Bokhari filed a re-consideration motion with the Court of Appeal for Ontario which is now dismissed entirely and $180,000 in awards is now due.

April 18, 2025: the Company announced the grant of 60,000 restricted share units (each, an "RSU") pursuant to the Company's equity incentive plan, to Malone Wealth Ventures, LLC.

April 18, 2025: The Company announced that the board of directors of the Company authorized and approved the settlement of outstanding debt owed to arm's length parties by issuing Class B Shares at a deemed price of US$6.75 per Class B Share. The Class B Shares upon issuance will be subject to a four month and one day hold period pursuant to the polices of the CSE and applicable securities laws.

April 22, 2025: the Company announced the appointment of Kevin Malone as an advisor to the Board of Directors.

On April 23, 2025, the Company expanded its portfolio of residential mortgages by issuing one new mortgage loan, with a principal amount of C$105,000 with a maturity of one year.

May 5, 2025: the Company announced that it had filed an amended complaint, to the original complaint filed on October 21, 2024, in the US District Court for the Southern District of New York, in response to the Motion to Dismiss filed by the defendants on January 31, 2025.

May 12, 2025: the Company announced the completion of dosing in 90-day repeated dose oral toxicity for Lucid-MS.

May 19, 2025: the Company purchased an additional USD$1,000,000 worth of Bitcoin and expanded its cryptocurrency holdings to a total value of $4,500,000.

May 20, 2025: the Company announced an agreement signing with a Global Pharmaceutical Contract Research Organization to prepare an application for Lucid-MS.

May 28, 2025: the Company received an ethics committee approval for Phase 2 clinical for the drug product containing ultra-micronized palmitoylethanolamide (PEA) to address the MCAS disease.

May 29, 2025: Unbuzzd retained MNP as auditor for its capital raise and changed its name to "Unbuzzd Wellness Inc." effective May 23, 2025.

May 30, 2025: the Company received $2,350,000 from settlement with Dr. Raza Bokhari. This settlement concluded all outstanding issues and prevented any future litigation in various courts in Canada. In accordance with the Sports Coat Prepaid Purchase Agreement, the Company paid $1,420,000 the proceeds received from Dr. Bokhari to Sports Coat, representing the full repayment of the principal and the additional return calculated under the Sports Coat agreement.

June 10, 2025: the Company announced that it purchased additional Bitcoin and other cryptocurrencies, and expanded its cryptocurrency portfolio to a total value of $5,000,000.

June 13, 2025: the Company announced the intention to declare special dividend consisting of Contingent Value Rights based on proceeds from a future litigation settlement to be issued on a 1:1 basis to holders of the Company's Class B Subordinate Voting Shares.

June 17, 2025: the Company announced a first person with MS scanned in a joint study with Massachusetts General hospital.

June 18, 2025: the Company entered into a consulting agreement with Malone Wealth Ventures, LLC ("Malone Wealth") to be effective as of April 15, 2025 to provide consulting services and general business services related to naked short-selling, corruption in the brokerage community and other corporate issues. The Company issued 30,000 Class B Subordinate Voting Shares on April 24, 2025, for prior services, and 60,000 RSUs, which vested in two 30,000-share tranches on June 12 and June 18, 2025, based on market capitalization targets.

June 25, 2025: the Company terminated the consulting agreement with Malone Wealth and his services as a Board Advisor on June 25, 2025.

June 26, 2025: Unbuzzd Wellness announced its intention to complete a $5,000,000 capital raise through Regulation D506(c) offering.

June 27, 2025: the Company announced a non-brokered private placement offering to issue twelve Class A Multiple Voting Shares at a price of C$50.00 per Class A Multiple Voting Share for gross proceeds of C$600.00. It is intended that Xorax and Fortius will purchase all the Class A Multiple Voting Shares, and the Company filed a material change report more than 21 days before the expected closing of the private placement.

July 1, 2025: Malone Wealth was rehired as a Board Advisor on July 1, 2025.

July 2, 2025: the Company issued 31,035 Class B Subordinate Voting Shares upon the cashless exercise of warrants to one investor attached to convertible debentures purchased pursuant to tranches 4 and 5 of the December 2024 Offering.

July 3, 2025: the Company issued 266,096 Class B Subordinate Voting Shares upon the cashless exercise of warrants to one investor attached to convertible debentures purchased pursuant to tranches 1, 2, 3, and 5 of the December 2024 Offering.

July 7, 2025: the Company issued 8,344 Class B Subordinate Voting Shares upon the cashless exercise of warrants to one investor attached to convertible debentures purchased pursuant to tranche 5 of the December 2024 Offering.

July 8, 2025: the Company issued 8,344 Class B Subordinate Voting Shares upon the cashless exercise of warrants to one investor attached to convertible debentures purchased pursuant to tranche 5 of the December 2024 Offering.

July 8, 2025: the Company through its subsidiary, Huge Biopharma Australia Pty Ltd., the submission of its patented candidate breakthrough drug, Lucid-21-302 (Lucid-MS), to the Innovative Licensing and Access Pathway (ILAP) Passport program in the United Kingdom (UK). The ILAP Passport application was submitted for Lucid-21-302 as a new, first-in-class treatment for multiple sclerosis (MS).

July 10, 2025: the Company issued (i) 11,699 and (ii) 17,698 Class B Subordinate Voting Shares upon the cashless exercise of warrants to two investors attached to convertible debentures purchased pursuant to tranche 5 of the December 2024 Offering.

July 10, 2025: the Company renewed an existing residential mortgage in its portfolio, extending its maturity by one year, with a principal amount of C$925,000.

July 22, 2025: the Company announced (i) the purchase of 2,000 shares of GameStop Corp. (NYSE: GME), and (ii) the completion of debt settlements with an arm's length creditor totaling $40,000, comprising (a) a June 18, 2025 settlement of $30,000 satisfied through the issuance of 1,000 Class B Subordinate Voting Shares at C$41.14 per Class B Subordinate Voting Share, which has been reflected in Quantum's financial statements for the six months ended June 30, 2025, and (b) a July 9, 2025 settlement of $10,000 satisfied through the issuance of 680 Class B Subordinate Voting Shares at C$23.85 per Class B Subordinate Voting Share.

July 24, 2025: the Company purchased 38,129 shares of Genius Group Limited (AMEX: GNS).

July 31, 2025: Further to the Company's press release dated June 26, 2025, Unbuzzd Wellness launched its $5,000,000 capital raise through Regulation D506(c) offering to fund growth and establish a path to a possible initial public offering.

August 1, 2025: the Company issued 3,014 Class B Subordinate Voting Shares upon the cashless exercise of warrants to one investor attached to the convertible debentures purchased pursuant to tranche 5 of the December 2024 Offering.

**LEGAL PROCEEDINGS**

The Company is engaged in certain legal proceedings, as further described below. Litigation has been, and is expected to be, costly and time-consuming and could divert the attention of management and key personnel from our business operations. Although we intend to vigorously defend ourselves against any pending claims, and future claims that may occur, we cannot assure that we will succeed in defending any of these claims and that the judgments will not be upheld against us. If we are unsuccessful in our defense of these claims or unable to settle the claims in a manner satisfactory to us, we may be faced with outcomes that could have a material adverse effect on the Company and its financial condition. Except as otherwise disclosed below, there are no material outstanding legal proceedings or regulatory actions to which the Company is party, nor, to Company's knowledge, are there any such proceedings or actions contemplated.

*GBB Drink Lab Litigation*

 

On May 12, 2023, the Company announced receipt of a lawsuit filed in United States District Court for the Southern District of Florida by GBB against the Company, alleging breach of a mutual non-disclosure agreement and misappropriation of trade secrets. GBB claims that its assets were, as of August 30, 2022 (prior to the misappropriation and material breach) valued at US$53,047,000. The Company believes the allegations are without merit and continues to defend itself in the lawsuit.

On June 23, 2023, the Company filed a motion to dismiss GBB's Amended Complaint, which the Court denied on January 8, 2024. On January 22, 2024, the Company filed a third-party complaint against Joseph Romano (a former director of the Company), and a counterclaim against GBB. The Company alleges that Mr. Romano breached his fiduciary duty by providing or fabricating confidential information to GBB, and that GBB aided and abetted this breach. On October 9, 2024, Judge Melissa Damian denied Mr. Romano's motion to dismiss, finding that the Company plausibly alleged Romano breached fiduciary duties, including his duties of loyalty, confidentiality, and to act in the Company's best interests. GBB and Romano have denied the allegations in their respective answers.

Discovery ended in July 2025. On July 21, 2025, the parties filed various pre-trial motions. These motions included the Company's motion for summary judgment, which seeks judgment in the Company's favor on all of GBB's claims. Likewise, GBB filed a motion for summary judgment on its breach of contract claim and Romano filed a motion for summary judgment seeking to have all claims against him dismissed. If summary judgment motions do not resolve the case, it is expected to proceed to trial in November 2025.

*Raza Bokhari* 

 

On May 21, 2025, the Company entered into a comprehensive settlement agreement with Dr. Raza Bokhari, its former CEO, resolving all outstanding litigation in Canada and the U.S. This concludes disputes originating from Dr. Bokhari's 2021 termination and subsequent legal actions, including:

● A wrongful dismissal arbitration (initially claiming $30.2 million), dismissed in 2022 with costs awarded to the Company.

● Multiple court proceedings related to share cancellations, indemnification claims, and U.S. enforcement of arbitration awards.

Quantum received a one-time payment of $2,350,000, recorded as other income during the second quarter of 2025. All outstanding cost awards and claims were mutually waived.

This settlement eliminated all future legal uncertainties and associated costs as announced in the Company's May 30, 2025 press release, which confirmed a $2.35 million payment from Dr. Bokhari to fully resolve all outstanding claims in Canada and the United States.

*Lawsuit against CIBC World Markets, RBC Dominion Securities, and John Does 1-10*

 

On October 20, 2024, the Company filed a complaint in the U.S. District Court for the Southern District of New York against CIBC World Markets, Inc., RBC Dominion Securities Inc., and John Does 1-10. The complaint alleges market manipulation through spoofing activities between January 1, 2020, and August 15, 2024. The Company is seeking damages of more than US$700 million. On May 1, 2025, the Company filed an amended complaint, in response to the Motion to Dismiss filed by the banks on January 31, 2025.

The complaint alleges that between January 1, 2020, and August 15, 2024, the defendants engaged in "spoofing," an unlawful trading practice, to manipulate the market price of Quantum's shares. The complaint details that the defendants placed thousands of spoofing orders to sell, creating the illusion that Quantum's share price was declining. This practice allegedly "tricked" other investors into selling their shares at lower prices, driving the company's share price downward. The defendants then purchased shares at artificially depressed prices, positioning themselves to profit when the market price rebounded. The Company claims to have suffered significant damage and seeks to recover more than USD 700 million. It alleges that it sold approximately 90 million shares of its stock on U.S. and Canadian exchanges during the relevant period at artificially depressed prices due to the defendants' spoofing activities. The complaint names CIBC World Markets, Inc., RBC Dominion Securities Inc., and John Does 1 through 10 as defendants. It asserts three claims for relief: violation of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5(a) and (c), violation of Section 9(a)(2) of the Securities Exchange Act of 1934, and New York Common Law Fraud.

The defendants filed a joint motion to dismiss the case, which the Company opposed on July 31, 2025. The Company argues that the complaint sufficiently alleges market manipulation and fraud and continues to seek damages exceeding $700 million.

**Additional Regulatory Matters**

In response to OSC inquiries regarding our securities trading activity, the Company has maintained an active investigation into potential market irregularities. Below we provide historical context regarding this ongoing matter, which represents an important element of our regulatory compliance efforts:

*Quantum Response to OSC Inquiry*

On August 11, 2023, external legal counsel sent a letter to the Ontario Securities Commission ("OSC"). This letter was in response to a comment letter from the OSC regarding the Company's Preliminary Short Form Base Shelf Prospectus filed on July 11, 2023. The letter addressed inquiries from the OSC about the Company's investigation into possible naked short selling and market manipulation of the Company's securities.

Key points of the letter:

● The Company's external counsel and Christian Attar (collectively referred to as "Law Firms") were jointly representing Quantum in the matter concerning possible naked short selling and market manipulation of the Company's securities.

● Quantum had first suspected share price manipulation in 2021 when it discovered imbalances between reported shares held by brokers and authorized shares on deposit in both Canadian and U.S. exchanges.

● The Board of Directors discussed naked short selling and market manipulation in a meeting on June 29, 2023, and decided to retain Christian Attar.

● Other than an information package submitted to the OSC on June 23, 2023, Quantum had not been in contact with other regulatory bodies regarding this matter.

● The investigation was ongoing at the time, with the Law Firms reviewing documents, trading data, and interviewing witnesses.

● The Company has an Insider Trading and Blackout Period policy, but the disclosure of the possible naked short selling and market manipulation did not trigger a blackout period.

● The letter emphasized the preliminary nature of the investigation and its ongoing status. It stated that it was premature to identify any parties or individuals who might be implicated in the matter. Furthermore, the Law Firms were unable to provide an accurate timeline for the completion of their investigations at that point.

● The letter also noted that any decision regarding potential litigation against third parties would depend on the investigation's findings and could not be determined until the inquiry was concluded.

**SELECTED FINANCIAL HIGHLIGHTS** 

The following table presents selected financial information for the three and six months ended June 30, 2025, and 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended <br> June 30,** | **Three months ended <br> June 30,** | **Six months ended <br> June 30,** | **Six months ended <br> June 30,** |
|  | **2025** | 2024 | **2025** | 2024 |
|  | **$** | **$** | **$** | **$** |
| **Expenses** |  |  |  |  |
| General and administrative |  |  |  |  |
| External research and development fees |  |  |  |  |
| Share-based payments |  |  |  |  |
| Depreciation and amortization |  |  |  |  |
| **Total operating expenses** |  |  |  |  |
| **Loss from operations))** |  |  |  |  |
| **Net loss from operations))** |  |  |  |  |

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**REVIEW OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025, AND 2024**

 

*General and administrative*

 

General and administrative expenses for the three and six months ended June 30, 2025, and 2024 are comprised of:

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| | | |
|:---|:---|:---|
|  | **Change %** | **Change %** |
| Professional fees | 67% | 8% |
| Investor relations | 39% | 37% |
| Salaries, wages and benefits | 9%) | -0.23% |
| Consulting fees) | -24%) | -34% |
| Office and general administrative | 118% | 42% |
| Foreign exchange loss (gain) | 322% | 379% |
|  | 43% | 10% |

---

 

*Professional fees*

Professional fees were $1,602,570 and $1,958,292 for the three and six months ended June 30, 2025, respectively, compared to $958,377 and $1,816,800 for the equivalent periods in 2024. This represents an increase of $644,193 or 67% for the three months ended June 30, 2025, and an increase of $141,492 or 8% for the six months ended June 30, 2025. The Company incurred significant costs in legal fees during the second quarter of 2025 primarily related to the outstanding GBB Drink Lab litigation compared to the first quarter of 2025. Ongoing developments in the litigation process are variable quarter to quarter and may not be controlled by the Company.

 

*Investor relations* 

Investor relations expenses were $781,726 and $1,140,627 for the three and six months ended June 30, 2025, respectively, compared to $561,054 and $833,216 for the equivalent periods in 2024. This represents an increase of $220,672 or 39% for the three months ended June 30, 2025, and an increase of $307,411 or 37% for the six months ended June 30, 2025. The rise reflects heightened media and promotional activities during the year, aligned with strategic initiatives. Expenses typically fluctuate throughout the year based on the timing of campaigns, investor events, and other engagement priorities.

*Salaries, wages and benefits*

 

Salaries, wages and benefits expenses were $476,391 and $814,230 for the three and six months ended June 30, 2025, respectively, compared to $436,687 and $816,139 for the equivalent periods in 2024. This represents an increase of $39,704 or 9% for the three months ended June 30, 2025, and a decrease of $1,909 or 0.34% for the six months ended June 30, 2025, compared to the equivalent periods in the prior year. The increase for the three-month period was primarily driven by higher accruals for vacation and salaries.

 

*Consulting fees*

Consulting fees were $155,355 and $280,499 for the three and six months ended June 30, 2025, respectively, compared to $204,492 and $423,453, for the equivalent periods in 2024. This represents a decrease of $49,137 or 24% for the three months ended June 30, 2025, and a decrease of $142,954 or 34% for the six months ended June 30, 2025. The decrease for the six-month period was primarily due to the absence of significant costs from hiring subcontractors for the Unbuzzd subsidiary.

 

*General office, insurance, and administration expenditures* 

General office, insurance and administration expenditures for the three and six months ended June 30, 2025, and 2024 are comprised of the following:

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the three months ended June 30,** | **For the three months ended June 30,** | | | | **For the six months ended June 30,** | **For the six months ended June 30,** | | | |
|  | **2025** | 2024 | | **Change** | **Change** | **2025** | 2024 | | **Change** | **Change** |
|  | **$** | **$** | **Change**<br>**$** | $**%** | **%** | **$** | **$** | Change<br>$ | $**%** | **%** |
| Insurance, shareholders and public company costs | **105278** | 81050 | 24228 | 30% | 30% | **200435** | 178889 | 21546 | 12% | 12% |
| Travel, meals and entertainment | **140629** | 38226 |  |  | 268% | **140629** | 70628 |  |  | 99% |
| Office and general administrative | **111677** | 44682 |  |  | 150% | **155225** | 100512 |  |  | 54% |
| Total | **357584** | 163958 |  |  | 118% | **496289** | 350029 |  |  | 42% |

---

 

*Insurance, shareholders, and public company costs*

Insurance, shareholders and public company costs were $105,278 and $200,435 for the three and six months ended June 30, 2025, respectively, compared to $81,050 and $178,889 for the equivalent periods in 2024. This represents an increase of $24,228 or 30% for the three months ended June 30, 2025, and an increase of $21,546 or 12% for the six months ended June 30, 2025. Expenses mainly consisted of ongoing Director insurance premiums, stock exchange listing fees (CSE and NASDAQ), shareholder communication costs, filing fees, and regulatory expenses.

 

*Travel, meals and entertainment*

Travel, meals and entertainment expenses were $140,629 for the three and six months ended June 30, 2025, respectively, compared to 38,226 and $70,628 for the equivalent periods in 2024. This represents an increase of $102,403 or 268% for the three months ended June 30, 2025, and an increase of $70,001 or 99% for the six months ended June 30, 2025. Travel, meals and entertainment expenses fluctuate from period to period based on the nature of the transactions the Company undertakes.

 

*Office and general administrative*

Office and general administrative expenses were $111,677 and $155,225 for the three and six months ended June 30, 2025, respectively, compared to $44,682 and $100,512 for the equivalent period in 2024. This represents an increase of $66,995 or 150% for the three months ended June 30, 2025, and an increase of $54,713 or 54% for the six months ended June 30, 2025. The higher costs during the second quarter of 2025 were primarily driven by expanded marketing initiatives and inventory impairment costs from Unbuzzd Wellness.

 

*Foreign exchange loss*

Foreign exchange gain was $60,351 and $48,551 for the three and six months ended June 30, 2025, respectively, compared to $14,285 and $10,142, respectively, for the equivalent periods in 2024. This represents an increase of $46,066 or 322% for the three months ended June 30, 2025, and an increase of $38,409 or 379% for the six months ended June 30, 2025. Foreign exchange gains in the first half of 2025 were driven by strong depreciation of the US dollar against the Canadian dollar, benefiting cash holdings denominated in Canadian dollar.

*External research and development fees*

External research and development fees were $549,197 and $2,197,547 for the three and six months ended June 30, 2025, respectively, compared to $897,986 and $1,058,246 for the equivalent periods in 2024. This represents a decrease of $348,789 or 39% for the three months ended June 30, 2025, and an increase of $1,139,301 or 108% for the six months ended June 30. The Company reinitiated investments in its FSD-201 research initiatives in 2025, in which expenses were incurred in the FSD Australia subsidiary, representing approximately 40% of total cost. The remainder cost of 60% was incurred through Huge Biopharma, for its research initiatives in the MS asset.

*Share-based payments*

Share-based payments were $849,584 and $1,140,856 for the three and six months ended June 30, 2025, respectively, compared to $111,524 and $169,267, for the equivalent periods in 2024. This represents an increase of $738,060 or 662% for the three months ended June 30, 2025, and an increase of $971,589 or 574% for the six months ended June 30, 2025. Share-based payments expense changes based on the variability in the number of options granted, vesting periods of the options, the number of Performance Share Units ("PSUs") granted, the number of RSUs granted, vesting periods of the PSUs and RSUs, number of warrants granted, vesting periods of the warrants, the grant date fair values of share-based awards, and share-based bonuses issued. During the six months ended June 30, 2025, the Company granted 57,692 options to two directors of the Company, and incurred vesting expenses related to RSUs, which represented a total expense of $723,878. The remainder of the share-based payments expense of $416,978 related to share-based equity compensation of Unbuzzd during the first half of 2025.

 

*Depreciation and amortization* 

Depreciation and amortization were $141,383 and $271,073 for the three and six months ended June 30, 2025, respectively, compared to $136,813 and $256,954, for the equivalent periods in 2024. This represents an increase of $4,570 or 3% for the three months ended June 30, 2025, and an increase of $14,119 or 5% for the six months ended June 30, 2025. The Company's intangible asset for Lucid, representing the license agreement with University Health Network, is the primary driver of approximately 80% of depreciation and amortization expense during the first half of 2025.

 

*Interest income* 

Interest income was $90,733 and $157,949 for the three and six months ended June 30, 2025, respectively, compared to $104,424 and $276,948, for the equivalent periods in 2024. This represents a decrease of $13,691 or 13% for the three months ended June 30, 2025, and a decrease of $118,999 or 43% for the six months ended June 30, 2025. Interest income is primarily consisted of interest earned from the residential property investments through the FSD Strategic Investment entity.

 

*Other income* 

During the six months ended June 30, 2025, the Company received $2,350,000 in litigation proceeds as part of a settlement related to the Raza Bokhari Claims. In accordance with the Sports Coat Prepaid Purchase Agreement, the Company paid $1,420,000 to Sports Coat, representing the full repayment of the principal and the additional return calculated under the agreement. The $1,000,000 initially recorded as deferred income was recognized as other income during the period ended June 30, 2025. The remaining settlement proceeds of $930,000 were also recognized as other income.

 

*(Gain) loss on settlement of debt*

During the three and six months ended June 30, 2025, the Company incurred a loss on settlement of debt of $110,267 and a gain of $74,863, respectively, with arms-length creditors. This net gain resulted from a significant gain on the settlement of one debt obligation, which fully offset losses recognized on other debt settlements during the period.

During the three and six months ended June 30, 2024, the Company incurred a loss on settlement of debt of $nil and $17,476, respectively related to the shares for debt transaction with an arms length creditor.

The Company incurs gains or losses on settlement of debts depending on the price of the shares on the date of debt settlement and prices stated in the agreements.

*Loss (gain) on change in fair value of derivative liability*

 

In August 2020, the Company issued 42,499 Class B Subordinate Voting Shares and 21,249 warrants to purchase Class B Subordinate Voting Shares for total cash proceeds of $9,999,997. Each warrant is exercisable to purchase one Class B Subordinate Voting Share of the Company at an exercise price of $276.90 per share and expires five years from the date of issuance.

The fair value of the warrants liability as at June 30, 2025, was $Nil (December 31, 2024 – $2) resulting in a gain on change in fair value of $219 for the six months ended June 30, 2025 (2024 – $31,337).

During the year ended December 31, 2024, the Company issued 80,000 warrants pursuant to a convertible debenture with derivative liability components. The fair value of the warrants as of June 30, 2025, was $1,479,704 (December 31, 2024 - $212,000) resulting in a loss on change in fair value of $1,267,704 (2024 - $Nil).

The fair value of the conversion feature as at June 30, 2025, was $Nil (December 31, 2024 - $280,000) as the entire amount of the convertible debenture was converted during the period ended June 30, 2025.

On January 20, 2025, the Company issued 152,577 warrants pursuant to a convertible debenture with derivative liability components. The fair value of the warrant liability at the date of issuance on January 20, 2025, was $405,656. The fair value of the warrants as of June 30, 2025, was $2,874,710, resulting in a loss on change in fair value of $2,469,154 (2024 - $Nil).

The fair value of the conversion feature as at dates of conversion on February 7 and February 26, 2025, was $2,912,862, and $656,513, respectively resulting in total net loss on change in fair value of $1,514,174.

On March 6, 2025, the Company issued 10,309 warrants pursuant to the convertible debenture with derivative liability components. The fair value of the warrant liability as at date of issuance on March 6, 2025, was $38,702. The fair value of the warrants as of June 30, 2025, was $194,638, resulting in a loss on change in fair value of $155,935 (2024 - $Nil).

On March 28, 2025, the Company issued 183,920 warrants pursuant to the convertible debenture with derivative liability components. The fair value of the warrants as of June 30, 2025, was $3,267,864, resulting in a loss on change in fair value of $2,048,989 (2024 - $Nil).

During the period ended June 30, 2025, investors converted partial amounts of the Debenture into the Company's Class B Subordinate Voting Shares on various dates. As of June 30, 2025, the entire Debenture was converted and thus conversion feature value was $Nil (December 31, 2024 - $1,954,755).

 

*Unrealized loss on change in fair value of digital assets*

The Company's investments in digital assets are accounted for at fair value through profit or loss. The Company recognized an unrealized gain on change in fair value of $913,625 and $194,798 for the three and six months ended June 30, 2025, respectively (2024 - $nil and $nil, respectively). These games primarily reflected the recovery in cryptocurrency markets during the second quarter of 2025, which partially offset the unrealized losses recorded in the first quarter of 2025.

 

*Realized gain from sale of digital assets*

 

During the six months ended June 30, 2025, the Company invested $4,247,050 in digital assets. The Company sold digital assets, acquired at an initial cost of $250,000, for total gross proceeds of $354,013, and recognized a gain on sale of digital assets of $35,720 and $104,013, for the three and six months ended June 30, 2025, respectively (2024 - $nil and $nil, respectively).

 

*Loss on issuance of convertible debt*

 

They Company incurred a loss on issuance of convertible debt of $1,490,278 for the period ended June 30, 2025, as the fair value of warrants and conversion feature pursuant to the 1,480 2024 December Debenture Units issued on January 20, 2025, were higher than the principal debt amount on the date of issuance.

**SELECTED QUARTERLY INFORMATION**

The following table sets forth selected unaudited quarterly statements of operations results for each of the eight quarters commencing July 1, 2023, and ended June 30, 2025. The information for each of these quarters has been prepared on the same basis as the audited annual financial statements for the year ended December 31, 2024, and the condensed consolidated interim financial statements for the three and six months ended June 30, 2025. This data should be read in conjunction with the audited annual financial statements for the year ended December 31, 2024, and the condensed consolidated interim financial statements for the three and six months ended June 30, 2025. These quarterly operating results are not necessarily indicative of our operating results for a full year or any future period.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **30-Jun-25**<br>$ | **31-Mar-25**<br>$ | **31-Dec-24**<br>$ | **30-Sep-24**<br>$ | **30-Jun-24**<br>$ | **31-Mar-24**<br>$ | **31-Dec-23**<br>$ | **30-Sep-23**<br>$ |
| Interest income | 90733 | 67216 | 132075 | 163868 | 104424 | 172524 | 153791 | 174068 |
| Net loss for the period | 9766327 | 8739881 | 5456278 | 4015327 | 3352499 | 2091425 | 1651566 | 1131200 |
| Net loss per share - basic | 3.23 | 3.53 | 2.89 | 4.37 | 0.08 | 0.05 | 0.04 | 0.03 |
| Net loss per share - diluted | 3.23 | 3.53 | 2.89 | 4.37 | 0.08 | 0.05 | 0.04 | 0.03 |

---

**SEGMENT INFORMATION** 

Reportable segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker, with appropriate aggregation. The chief operating decision maker is the CEO who is responsible for allocating resources, assessing the performance of the reportable segment and making key strategic decisions. The Company operates in two segments: Biopharmaceutical and Strategic Investments.

The Company's Biopharmaceutical segment is focused on furthering the research and development of the Company's drug candidates and the development of a treatment for alcohol misuse for application in hospitals and other medical practices. The Biopharmaceutical segment primarily earns interest income on excess cash on hand invested in short-term guaranteed investment certificates.

The Company's Strategic Investments segment is focused on generating returns and cash flow through the issuance of loans secured by residential property, with FSD Strategic Investments having a first or second collateral mortgage on the secured property.

The following tables summarize the Company's total current and non-current assets and current and non-current liabilities as of June 30, 2025, and December 31, 2024, on a segmented basis:

---

| | | | |
|:---|:---|:---|:---|
|  | **As at June 30, 2025** | **As at June 30, 2025** | **As at June 30, 2025** |
|  | **Biopharmaceutical**<br>**$** | **Strategic Investments**<br>**$** | **Total**<br>**$** |
| Current assets | 7304731 | 3038860 | **10343591** |
| Non-current assets | 4953440 |  | **4953440** |
| Current liabilities | 13249998 |  | **13249998** |
| Non-current liabilities |  |  | **—** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **As at December 31, 2024** | **As at December 31, 2024** | **As at December 31, 2024** |
|  | **Biopharmaceutical**<br>**$** | **Strategic Investments**<br>**$** | **Total**<br>**$** |
| Current assets | 8620407 | 3432340 | **12052747** |
| Non-current assets | 5066477 |  | **5066477** |
| Current liabilities | 6678992 |  | **6678992** |
| Non-current liabilities |  |  | **—** |

---

The following tables summarize the Company's interest income, total operating expenses, and net loss for the three and six months ended June 30, 2025, and 2024 on a segmented basis:

---

| | |
|:---|:---|
|  | **For the six months ended June 30, 2025** |
|  | **Strategic Investments**<br>**$** |
| Interest expense (income)**)** |  |
| Total operating expenses |  |
| Net (loss) income |  |

---

---

| | |
|:---|:---|
|  | <br>**For the three months ended June 30, 2025** |
|  | **Strategic Investments**<br>**$** |
| Interest expense (income)**)** |  |
| Total operating expenses |  |
| Net (loss) income |  |

---

---

| | |
|:---|:---|
|  | **For the six months ended June 30, 2024** |
|  | **Strategic Investments**<br>**$** |
| Interest expense (income)**)** |  |
| Total operating expenses |  |
| Net (loss) income |  |

---

---

| | |
|:---|:---|
|  | <br>**For the three months ended June 30, 2024** |
|  | **Strategic Investments**<br>**$** |
| Interest expense (income)**)** |  |
| Total operating expenses |  |
| Net (loss) income |  |

---

**FINANCIAL POSITION** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **As at** | **June 30,** | **December 31,** | | |
|  | **2025** | **2024** |  |  |
|  | $ | $ | Change $ | Change % |
| **ASSETS** |  |  |  |  |
| **Current assets** |  |  |  |  |
| Cash and cash equivalents |  |  | (4498296) | -75% |
| Other receivables |  |  | (181480) | -48% |
| Prepaid expenses and deposits |  |  | 384188 | 557% |
| Finance receivables, net |  |  | (393480) | -11% |
| Investments |  |  | (1171563) | -97% |
| Inventory |  |  | (40373) | -34% |
| Digital assets |  |  | 4191848 | 487% |
|  |  |  | (1709156) | -14% |
| **Non-current assets** |  |  |  |  |
| Equipment, net |  |  | (4860) | -6% |
| Investments |  |  | (2224) | -100% |
| Right-of-use asset, net |  |  | 102648 | 192% |
| Finance receivables, net |  |  |  | #DIV/0! |
| Intangible assets, net |  |  | (208601) | -4% |
| **Total assets** |  |  | (1822193) | -11% |
| **LIABILITIES** |  |  |  |  |
| **Current liabilities** |  |  |  |  |
| Trade and other payables |  |  | (1169504) | -27% |
| Lease obligations |  |  | 102792 | 191% |
| Warrants liability |  |  | 7548682 | 3561% |
| Derivative liabilities |  |  | (248390) | -89% |
| Deferred income |  |  | (1000000) | 100% |
| Notes payable |  |  | 1325464 | 214% |
| Convertible debentures |  |  | 11962 | 8% |
|  |  |  | 6571006 | 98% |
| **Total liabilities** |  |  | 6571006 | 98% |
| **SHAREHOLDERS' EQUITY** |  |  |  |  |
| Class A share capital |  |  |  | 0% |
| Class A share capital - shares to be issued |  |  | 439 | #DIV/0! |
| Class B share capital |  |  | 9491645 | 6% |
| Warrants |  |  | (968979) | -49% |
| Contributed surplus |  |  | 1509852 | 5% |
| Foreign exchange translation reserve |  |  | 80052 | 158% |
| Accumulated deficit |  |  | (17829790) | 10% |
| **Equity attributable to shareholders of the Company** |  |  | (7716781) | -67% |
| **Non-controlling interests** |  |  | (676418) | 65% |
|  |  |  | (8393199) | -80% |
| **Total liabilities and shareholders' equity** |  |  | (1822193) | -11% |

---

**Assets**

Cash and cash equivalents decreased by $4,498,296, or 75% to $1,497,576 as at June 30, 2025 compared to December 31, 2024, driven by:

● Operating outflows of $6.23 million, reflecting the net loss and working capital changes;

● Investing outflows of $2.76 million, primarily driven from digital asset acquisitions of $4.2 million, partially offset by investment redemptions of $1.1 million; and

● Financing inflows $4.50 million from convertible debenture proceeds and loans.

Other receivables decreased by $181,480, or 48%, primarily due to timing differences in sales tax refunds from the CRA and Australian tax authorities, alongside improved collection cycles.

Finance receivables decreased by $393,480 or 11%, reflecting various portfolio adjustments, as principal repayments from matured loans were not reinvested, reflecting a strategic reduction in portfolio exposure.

Digital assets increased by $4,191,848 or 487%, driven by the company's expansion of its cryptocurrency holdings in the first half of 2025.

The right-of-use assets increased by $102,648, or 35% as at June 30, 2025, due to a new lease acquisition for the Company office operations.

Intangible assets decreased by $208,601, or 4% as at June 30, 2025, due to amortization expense of the Company's intangible asset for Lucid, representing the license agreement with University Health Network.

**Liabilities**

Trade and other payables decreased by $1,169,504 or 27%, driven by working capital management and timing of vendor payments.

Warrants liability increased to $7,760,684 (December 31, 2024 - $212,002). This increase was primarily due to the sharp increase in the Company's share price in June 2025, which resulted in higher valuations for the warrants related to the debentures of the 2024 December Offering.

Derivative liabilities decreased to $31,610 (December 31, 2024 - $280,000), entirely attributable to the conversion feature valuation of Unbuzzd's convertible debentures. The Company's convertible debentures from the 2024 December Offering were fully converted by June 30, 2025, reducing their balance to $Nil (December 31, 2024 - $280,000).

Deferred income decreased to $Nil (December 2024 - $1,000,000) as proceeds from the Sports Coat Prepaid Purchase Agreement were recognised as other income in the first half of 2025.

Convertible debentures increased to $164,075 (December 2024 - $152,113), entirely attributable to the convertible debentures issued by Unbuzzd. The Company's convertible debentures from the 2024 December Offering were fully converted by June 30, 2025, reducing their balance to $Nil (December 31, 2024 - $152,113).

**Shareholders' equity**

Shareholder's equity decreased by $7,716,781 primarily due to:

&nbsp;&nbsp;&nbsp;&nbsp;(i) a
 decrease of $968,979 related to warrants expired during the period;

&nbsp;&nbsp;&nbsp;&nbsp;(ii) a
 decrease of $17,829,790 related to net loss for the period; and

&nbsp;&nbsp;&nbsp;&nbsp;(iii) an
 increase of $9,491,645 related shares issues pursuant to the conversion of debentures and
 issuance of shares upon exercise of options and settlement of debt.

**Non-controlling interests**

Through the License Agreement, Quantum acquired 34.66% of Unbuzzd on July 31, 2023. As of June 30, 2025, the Company has a 20.10% (December 31, 2024 – 22.95%) ownership interest in Unbuzzd through common shares held in Unbuzzd. The non-controlling interest represents the common shares of Unbuzzd not attributable to the Company.

Reconciliation of non-controlling interest is as follows:

---

| |
|:---|
| **Balance, December 31, 2024**) |
| Net loss for the period |
| **Balance, June 30, 2025** |

---

The condensed consolidated interim financial statements incorporate the assets and liabilities of Unbuzzd as of June 30, 2025.

**LIQUIDITY, CAPITAL RESOURCES AND FINANCING**

The general objectives of our capital management strategy are to preserve our capacity to continue operating, provide benefits to our stakeholders and provide an adequate return on investment to our shareholders by continuing to invest in our future that is commensurate with the level of operating risk we assume. We determine the total amount of capital required consistent with risk levels. This capital structure is adjusted on a timely basis depending on changes in the economic environment and risks of the underlying assets. We are not subject to any externally imposed capital requirements.

The financial statements and this MD&A have been prepared on the basis of accounting principles applicable to a going concern, which assumes that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of operations. In making this assessment, management concluded that it has sufficient working capital as of June 30, 2025, to carry out its planned operations over the next twelve months.<br>  ****

***Cash flows for the six months ended June 30, 2025 and 2024***

***Cash Flows (Used in) Operating Activities***

Cash used in operating activities totaled $6,209,938 for the six months ended June 30, 2025, compared to $2,579,876 in the prior year period. The increase in outflows was primarily driven by:

&nbsp;&nbsp;&nbsp;&nbsp;1. A
 higher net loss of $18.5 million (2024 - $5.4 million), adjusted for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. $10.7
 million in fair value changes to derivatives liabilities, primarily due to increased valuations
 of conversion features and warrants attached to the convertible debentures of the 2024 December
 Offering, driven by the Company's stock price appreciation in June 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. $1.1
 million in share-based payments, of which $417K million was attributable to Unbuzzd option
 and RSU grants.

&nbsp;&nbsp;&nbsp;&nbsp;2. Net
 working capital changes including the $0.4 million of principal repayments from FSD Strategic
 Investments' mortgage portfolio, partially offset by the recognition of $1 million
 of deferred income as other income and the funding of an investment categorized during the
 period under prepaid expenses.

 ****

***Cash Flows (Used in) Provided by Investing Activities***

 

For the six months ended June 30, 2025, cash used in investing activities totaled $2,711,538 compared to $716,082 in cash provided by investing activities in the prior year period. The change was primarily driven by:

&nbsp;&nbsp;&nbsp;&nbsp;1. Digital
 asset holdings expansion through $4.2 million in acquisitions, partially offset by $0.35
 million in dispositions of digital assets, reflecting its treasury diversification strategy;
 and

&nbsp;&nbsp;&nbsp;&nbsp;2. $1.2
 million in redemptions contributing to increased cash flow.

***Cash Flows (Used in) Provided by Financing Activities***

 ****

For the six months ended June 30, 2025, cash provided by financing activities totaled $4,423,180, compared to $2,413,395 in the prior year period. The inflows were primarily attributable to proceeds from convertible debentures of $3.0 million and proceeds from loans of $2.1 million, net of repayments of $0.8 million.

**CONTRACTUAL OBLIGATIONS**

We have no significant contractual arrangements other than those noted in our financial statements.

**OFF-BALANCE SHEET ARRANGEMENT**

We have no off-balance sheet arrangements other than those noted in our financial statements.

**TRANSACTIONS WITH RELATED PARTIES**

Related parties and related party transactions impacting the accompanying financial statements are summarized below and include transactions with the following individuals or entities:

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company directly or indirectly, including any directors (executive and non-executive) of the Company.

Transactions with key management and directors comprise the following:

&nbsp;&nbsp;&nbsp;&nbsp;a) Director's
 compensation for the three and six months ended June 30, 2025, is $30,777 and $60,363, respectively
 (2024 – $33,201 and $99,716).

&nbsp;&nbsp;&nbsp;&nbsp;b) During
 the six months ended June 30, 2025, the Company granted 57,692 options to officers and employees
 of the Company each with exercise prices ranging from C$6.60 to C$9.90 and expiring two years
 from the date of issuance.

&nbsp;&nbsp;&nbsp;&nbsp;c) During
 the year ended December 31, 2023, the Company entered into a secured loan agreement with
 the CEO for C$1,200,000, with monthly payments of C$6,000 based on an annual interest rate
 of 6%. The loan had a maturity date of April 26, 2025, and was part of FSD Strategic Investments'
 portfolio of finance receivables. During the year ended December 31, 2024, a payment of C$400,000
 was made by the CEO, and monthly payments were subsequently reduced to C$4,000. During the
 six months ended June 30, 2025, the CEO made a payment of C$800,000 towards the loan, thereby
 settling the total debt outstanding owed to FSD Strategic Investments.

Key management personnel compensation during the three and six months ended June 30, 2025, and 2024, is comprised of:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months ended June 30,** | **For the three months ended June 30,** | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2025** | 2024 | **2025** | 2024 |
| | **$** | $ | **$** | $ |
| Salaries, benefits, bonuses and consulting fees | **216641** | 152286 | **424773** | 476528 |
| Share-based payments | **—** |  | **1316483** |  |
|  | **216641** | 152286 | **1741256** | 476528 |

---

As at June 30, 2025, the Company owed an executive officer $Nil (December 31, 2024 - $Nil), for legal fees incurred by the Company and paid by the executive officer on behalf of the Company. The amount owed is recorded within trade and other payables.

As at June 30, 2025, the Company has $Nil owing to related parties included in accounts payable and accrued liabilities (December 31, 2024 - $Nil).

**FINANCIAL INSTRUMENTS AND OTHER INSTRUMENTS**

 

*Credit risk*

 

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from deposits with banks and outstanding other receivables and finance receivables. The Company trades only with recognized, creditworthy third parties.

The Company does not hold any collateral as security for its outstanding finance receivables but mitigates this risk by dealing only with, what management believes to be, financially sound counterparties and, accordingly, does not anticipate significant loss for non-performance. The loans are secured by residential properties, and the Company is granted a first or second collateral charge mortgage on the properties for a sum equal to the interest payments plus the principal amount. The Company performs assessments on factors such as timing of payments, loan to value ratios, communications with the borrower and external macro factors such as interest rates and economic conditions to mitigate risks.

*Liquidity risk*

Liquidity risk is the risk the Company will not be able to meet its financial obligations as they come due. The Company's exposure to liquidity risk is dependent on the Company's ability to raise additional financing to meet its commitments and sustain operations. The Company mitigates liquidity risk by management of working capital, cash flows, the issuance of share capital and if desired, the issuance of debt. The Company's trade and other payables are all due within twelve months from the date of these financial statements.

If unanticipated events occur that impact the Company's ability to carry out the planned clinical trials, the Company may need to take additional measures to increase its liquidity and capital resources, including issuing debt or additional equity financing or strategically altering the business forecast and plan. In this case, there is no guarantee that the Company will obtain satisfactory financing terms or adequate financing. Failure to obtain adequate financing on satisfactory terms could have a material adverse effect on the Company's results of operations or financial condition.

*Market risk*

Market risk is the risk the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: foreign currency risk, interest rate risk and other price risk.

● Foreign
 currency risk

Foreign currency risk arises on financial instruments that are denominated in a currency other than the functional currency in which they are measured. The Company's primary exposure with respect to foreign currencies is from Canadian dollar denominated cash and trade and other payables. A 1% change in the foreign exchange rates would not result in any significant impact to the financial statements.

● Interest
 rate risk

Interest rate risk is the risk the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's finance receivables are at fixed rates and there are no material long-term borrowings outstanding. The Company is not exposed to interest rate risk as at June 30, 2025.

● Other
 price risk

Other price risk is the risk the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. The Company is not exposed to other price risk as at June 30, 2025.

*Fair values*

The carrying values of cash, other receivables, trade and other payables and notes payable approximate fair values due to the short-term nature of these items or they are being carried at fair value or, for notes payable, interest payables are close to the current market rates. The risk of material change in fair value is not considered to be significant. The Company does not use derivative financial instruments to manage this risk.

Financial instruments recorded at fair value on the consolidated statement of financial position are classified using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The Company categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Company's valuation techniques. A level is assigned to each fair value measurement based on the lowest-level input significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows:

● Level
 1 – Unadjusted quoted prices as at the measurement date for identical assets or liabilities
 in active markets.

● Level
 2 – Observable inputs other than quoted prices included in Level 1, such as quoted
 prices for similar assets and liabilities in active markets; quoted prices for identical
 or similar assets and liabilities in markets that are not active; or other inputs that are
 observable or can be corroborated by observable market data.

● Level
 3 – Significant unobservable inputs that are supported by little or no market activity.
 The fair value hierarchy also requires an entity to maximize the use of observable inputs
 and minimize the use of unobservable inputs when measuring fair value.

The fair value hierarchy requires the use of observable market inputs whenever such inputs exist. A financial instrument is classified to the lowest level of the hierarchy for which a significant input has been considered in measuring fair value.

Private company investments measured at fair value are classified as Level 3 financial instruments. The valuation method and significant assumptions used to determine the fair value of private company investments have been disclosed in the financial statements. The Company did not hold any private company investments as of June 30, 2025. During the period, there were no transfers of amounts between levels.

**CRITICAL ACCOUNTING POLICIES AND ESTIMATES**

Refer to Note 2 and Note 3 of the audited consolidated financial statements for the fiscal year ended December 31, 2024, for a full discussion of our critical accounting policies and estimates.

**OUTSTANDING SHARE DATA**

The Company is authorized to issue an unlimited number of Class A Multiple Voting Shares and an unlimited number of Class B Subordinate Voting Shares, all without par value. All shares are ranked equally with regards to the Company's residual assets.

The Class B Subordinate Voting Shares are "restricted securities" within the meaning of such term under applicable Canadian securities laws, as these securities do not carry equal voting rights as compared with the Class A Multiple Voting Shares.

The holders of Class A Multiple Voting Shares are entitled to 276,660 votes per Class A Multiple Voting Share held. Class A Multiple Voting Shares are held by the CEO, President, Co-Chairman of the Board and the Director, Co-Chairman of the Board.

The Company's outstanding capital was as follows as at the date of this MD&A:

---

| | |
|:---|:---|
| Class A Multiple Voting Shares | 12<sup>(1)</sup> |
| Class B Subordinate Voting Shares | 3815835<sup>(1)</sup> |
| Share options | 62956 |
| Warrants | 74428 |

---

<u>Note:</u>

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Class A Multiple Voting Shares represent approximately 46.5% of the voting rights attached
 to Quantum's outstanding voting securities.

As of the date of this MD&A, the Company had 3,815,835 Class B Subordinate Voting Shares issued and outstanding. The ownership was distributed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;1. 2,515,211
 Class B Subordinate Voting Shares, or 66%, were held through depository nominees (CEDE &
 Co. and CDS & Co.) on behalf of The Depository Trust & Clearing Corporation; and

&nbsp;&nbsp;&nbsp;&nbsp;2. 1,300,624
 Class B Subordinate Voting Shares, or 34%, were held by registered holders with the Company's
 transfer agent.

**DISCLOSURE CONTROLS AND PROCEDURES AND INTERNAL CONTROLS OVER FINANCIAL REPORTING** 

**A. Disclosure Controls and Procedures**

We maintain disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act, which are designed to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms and that such information is accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.

Under the supervision and with the participation of our CEO and CFO, our management has evaluated the effectiveness of our disclosure controls and procedures as of June 30, 2025, the end of the period covered by this report. Based on that evaluation, our CEO and CFO concluded that our disclosure controls and procedures were effective as of June 30, 2025.

The effectiveness of our disclosure controls and procedures and our internal control over financial reporting is subject to various inherent limitations, including cost limitations, judgments used in decision making, assumptions about the likelihood of future events, the soundness of our systems, the possibility of human error, and the risk of fraud. Moreover, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions and the risk that the degree of compliance with policies or procedures may deteriorate over time. Because of these limitations, there can be no assurance that any system of disclosure controls and procedures or internal control over financial reporting will be successful in preventing all errors or fraud or in making all material information known in a timely manner to the appropriate levels of management.

**B. Management's Report on Internal Control over Financial Reporting**

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Our internal control over financial reporting is the process designed by and under the supervision of our CEO and CFO to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of our financial statements for external reporting in conformity with the International Financial Reporting Standards as issued by the International Accounting Standards Board. Management has evaluated the effectiveness of our internal control over financial reporting using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework (2013).

Under the supervision and with the participation of our CEO and CFO, our management has assessed the effectiveness of our internal control over financial reporting as of June 30, 2025, and concluded that it was effective