EX-99.1 2 tm2530953d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

 

 

CARDIOL THERAPEUTICS INC.

 

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

 

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025

  

(EXPRESSED IN CANADIAN DOLLARS) (UNAUDITED) 

 

 

 

 

 

Cardiol Therapeutics Inc.

Condensed Interim Consolidated Statements of Financial Position
(Expressed in Canadian Dollars)

Unaudited

  

 

    As at
September 30,
2025		     As at
December 31,
2024		  
ASSETS                
                 
Current assets                
Cash and cash equivalents (note 3)   $ 11,622,408     $ 30,580,029  
Accounts receivable     37,494       100,366  
Other receivables     158,386       261,255  
Prepaid expenses     988,532       726,509  
Total current assets     12,806,820       31,668,159  
                 
Non-current assets                
Property and equipment (note 4)     140,981       195,592  
Total assets   $ 12,947,801     $ 31,863,751  
                 
EQUITY AND LIABILITIES                
                 
Current liabilities                
Accounts payable and accrued liabilities   $ 3,252,727     $ 6,976,736  
Current portion of lease liability (note 5)     36,925       33,009  
Total current liabilities     3,289,652       7,009,745  
                 
Non-current liabilities                
Lease liability (note 5)     97,274       125,523  
Total liabilities     3,386,926       7,135,268  
                 
Equity                
Share capital (note 7)     187,362,629       179,335,421  
Contributed surplus     28,102,576       24,647,163  
Deficit     (205,904,330 )     (179,254,101 )
Total equity     9,560,875       24,728,483  
Total equity and liabilities   $ 12,947,801     $ 31,863,751  

 

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

 

Commitments (note 11) 

Subsequent events (notes 8 and 14)

 

Approved on behalf of the Board:

 

“David Elsley”, Director  “Guillermo Torre-Amione”, Director

 

- 1 -

 

 

Cardiol Therapeutics Inc.

Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
(Expressed in Canadian Dollars)

Unaudited

  

 

 

   Three Months
Ended
September 30,		   Three Months
Ended
September 30,		   Nine Months
Ended
September 30,		   Nine Months
Ended
September 30,		 
   2025   2024   2025   2024 
Operating expenses (notes 8, 12, 13)                    
General and administration (note 12)  $5,393,522   $10,389,712   $15,009,650   $20,503,966 
Research and development (note 12)   4,786,578    3,750,688    11,275,671    9,783,261 
Loss before other income   (10,180,100)   (14,140,400)   (26,285,321)   (30,287,227)
Interest income (note 3)   122,256    201,864    551,192    886,567 
Gain (loss) on foreign exchange   93,563    (142,033)   (872,176)   638,919 
Change in derivative liability (note 6)   -    1,352,085    -    234,529 
Other income   -    -    -    28,223 
Net loss and comprehensive loss for the period  $(9,964,281)  $(12,728,484)  $(26,606,305)  $(28,498,989)
                     
Basic and diluted net loss per share (note 10)  $(0.12)  $(0.18)  $(0.32)  $(0.42)
Weighted average number of common shares outstanding   84,727,401    69,841,202    83,337,682    68,621,684 

 

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

 

- 2 -

 

 

Cardiol Therapeutics Inc.

Condensed Interim Consolidated Statements of Cash Flows
(Expressed in Canadian Dollars)

Unaudited

  

  

   Nine Months
Ended
September 30,		   Nine Months
Ended
September 30,		 
   2025   2024 
Operating activities          
Net loss and comprehensive loss for the period  $(26,606,305)  $(28,498,989)
Adjustments for:          
Depreciation of property and equipment   76,007    114,263 
Amortization of intangible assets   -    210,358 
Share-based compensation (note 8)   7,686,761    11,130,090 
Change in derivative liability   -    (234,529)
Unrealized foreign exchange (gain)/loss on cash   299,601    (286,123)
Accretion on lease liability   17,199    19,332 
Changes in non-cash working capital items:
Accounts receivable   62,872    85,666 
Other receivables   102,869    (72,500)
Prepaid expenses   (262,023)   (188,553)
Accounts payable and accrued liabilities   (6,333)   (1,746,589)
Net cash used in operating activities   (18,629,352)   (19,467,574)
           
Investing activities          
Purchase of property and equipment   (21,396)   (15,131)
Net cash used in investing activities   (21,396)   (15,131)
           
Financing activities          
Proceeds from stock options exercised   34,260    177,510 
Payment of lease liability   (41,532)   (27,688)
Net cash provided by (used in) financing activities   (7,272)   149,822 
Net change in cash and cash equivalents   (18,658,020)   (19,332,883)
Cash and cash equivalents, beginning of period   30,580,029    34,931,778 
Impact of foreign exchange on cash and cash equivalents   (299,601)   286,123 
Cash and cash equivalents, end of period  $11,622,408   $15,885,018 
           
Supplemental information          
Deferred share issuance costs included in accounts payable and accrued liabilities  $(43,924)  $- 
Accounts payable and accrued liabilities settled through equity  $3,761,600   $- 

 

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

 

- 3 -

 

 

Cardiol Therapeutics Inc.

Condensed Interim Consolidated Statements of Changes in Equity
(Expressed in Canadian Dollars)

Unaudited

  

 

   Share capital        
   Number  Amount  Warrants  Contributed
surplus		  Deficit   Total 
Balance, December 31, 2023   65,352,279  $148,519,136  $3,517,867  $18,786,306  $(142,576,802)  $28,246,507 
Deferred share issuance costs   -   -   -   -   (623,743)   (623,743)
Fair value of expired warrants   -   -   (3,517,867)  3,517,867   -    - 
Restricted share units exercised   2,019,685   2,896,211   -   (2,896,211)  -    - 
Stock options exercised   175,000   177,510   -   -   -    177,510 
Fair value of stock options exercised   -   99,263   -   (99,263)  -    - 
Share-based compensation (note 8)   -   -   -   11,130,090   -    11,130,090 
Performance share units exercised   2,650,000   2,939,038   -   (2,939,038)  -    - 
Net loss and comprehensive loss for the period   -   -   -   -   (28,498,989)   (28,498,989)
Balance, September 30, 2024   70,196,964  $154,631,158  $-  $27,499,751  $(171,699,534)  $10,431,375 
                           
Balance, December 31, 2024   82,608,992  $179,335,421  $-  $24,647,163  $(179,254,101)  $24,728,483 
Deferred share issuance costs   -   -   -   -   (43,924)   (43,924)
Restricted share units exercised   271,485   568,836   -   (568,836)  -    - 
Stock options exercised   25,000   34,260   -   -   -    34,260 
Fair value of stock options exercised   -   22,033   -   (22,033)  -    - 
Performance share units exercised   4,550,245   7,402,079   -   (7,402,079)  -    - 
Share-based compensation (note 8)   -   -   -   11,448,361   -    11,448,361 
Net loss and comprehensive loss for the period   -   -   -   -   (26,606,305)   (26,606,305)
Balance, September 30, 2025   87,455,722  $187,362,629  $-  $28,102,576  $(205,904,330)  $9,560,875 

 

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

 

- 4 -

 

 

Cardiol Therapeutics Inc.

Notes to Condensed Interim Consolidated Financial Statements

Three and Nine Months Ended September 30, 2025

(Expressed in Canadian Dollars)
Unaudited

 

1.Nature of operations

 

Cardiol Therapeutics Inc. was incorporated under the laws of the Province of Ontario on January 19, 2017. The Corporation's registered and legal office is located at 2265 Upper Middle Rd. E., Suite 602, Oakville, Ontario, L6H 0G5, Canada.

 

Cardiol Therapeutics Inc. and its subsidiary (the "Corporation" or "Cardiol") is a clinical-stage life sciences company advancing late-stage, anti-inflammatory and anti-fibrotic therapies for heart disease. The Corporation’s lead small molecule drug candidate, CardiolRx™, modulates inflammasome pathway activation, an intracellular process known to play an important role in the development and progression of inflammation and fibrosis associated with pericarditis, myocarditis, and heart failure.

 

On December 20, 2018, the Corporation completed its initial public offering on the Toronto Stock Exchange (the "TSX") and its common shares commenced trading on the TSX under the symbol "CRDL". On August 10, 2021, the Corporation's common shares commenced trading on The Nasdaq Capital Market under the symbol "CRDL".

 

2.Material accounting policy information

 

Statement of compliance

 

These unaudited condensed interim consolidated financial statements have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting. Accordingly, they do not include all of the information required for full annual financial statements required by International Financial Reporting Standards and International Accounting Standards as issued by the International Accounting Standards Board (IASB) and Interpretations (collectively “IFRS Accounting Standards”).

 

These unaudited condensed interim consolidated financial statements have been prepared on a historical cost basis. In addition, these unaudited condensed interim consolidated financial statements have been prepared using the accrual basis of accounting except for cash flow information.

 

The policies applied in these unaudited condensed interim consolidated financial statements are based on IFRS Accounting Standards issued and outstanding as of November 7, 2025, the date the Board of Directors approved the statements. The same accounting policies and methods of computation are followed in these unaudited condensed interim consolidated financial statements as compared with the most recent annual consolidated financial statements as at and for the year ended December 31, 2024.

 

Any subsequent changes to IFRS Accounting Standards that are given effect in the Corporation’s annual consolidated financial statements for the year ending December 31, 2025, could result in restatement of these unaudited condensed interim consolidated financial statements.

 

3.Cash and cash equivalents

 

Interest earned on cash and cash equivalents for the three and nine months ended September 30, 2025, amounted to $122,256 and $551,192 (three and nine months ended September 30, 2024 - $201,864 and $886,567).

 

- 5 -

 

 

Cardiol Therapeutics Inc.

Notes to Condensed Interim Consolidated Financial Statements

Three and Nine Months Ended September 30, 2025 

(Expressed in Canadian Dollars)
Unaudited

 

4. Property and equipment

 

   Right-of-       Leasehold   Office   Computer     
Cost  use asset   Equipment   improvements   equipment   equipment   Total 
Balance, December 31, 2023  $341,238   $219,809   $237,248   $66,864   $128,657   $993,816 
Additions   -    -    -    -    21,290    21,290 
Disposals   -    (46,855)   -    -    -    (46,855)
Balance, December 31, 2024   341,238    172,954    237,248   $66,864   $149,947   $968,251 
Additions   -    -    -    1,937    19,459    21,396 
Balance, September 30, 2025  $341,238   $172,954   $237,248   $68,801   $169,406   $989,647 

 

    Right-of-         Leasehold    Office    Computer      
Accumulated Depreciation   use asset    Equipment    improvements    equipment    equipment    Total 
Balance, December 31, 2023  $196,668   $131,722   $207,552   $40,355   $80,461   $656,758 
Depreciation for the year   63,984    26,426    29,696    5,302    17,994    143,402 
Disposals   -    (27,501)   -    -    -    (27,501)
Balance, December 31, 2024  $260,652   $130,647   $237,248   $45,657   $98,455   $772,659 
Depreciation for the period   47,988    9,519    -    3,181    15,319    76,007 
Balance, September 30, 2025  $308,640   $140,166   $237,248   $48,838   $113,774   $848,666 

 

    Right-of-         Leasehold    Office    Computer      
Carrying value   use asset    Equipment    improvements    equipment    equipment    Total 
Balance, December 31, 2024  $80,586   $42,307   $-   $21,207   $51,492   $195,592 
Balance, September 30, 2025  $32,598   $32,788   $-   $19,963   $55,632   $140,981 

 

5. Lease liability

 

   Carrying 
   Value 
Balance, December 31, 2023  $174,340 
Repayments   (41,532)
Accretion   25,724 
Balance, December 31, 2024  $158,532 
Repayments   (41,532)
Accretion   17,199 
Balance, September 30, 2025  $134,199 
Current portion   36,925 
Long-term portion  $97,274 

 

(i) When measuring the lease liability for the property lease that was classified as an operating lease, the Corporation discounted the lease payments using its incremental borrowing rate. The original property lease had an expiration date of May 31, 2024, and the lease payments were discounted with a 9% interest rate. During the year ended December 31, 2023, the property lease was extended to October 30, 2028. The lease liability was revalued as of the extension date with lease payments discounted with a 15% interest rate.

 

- 6 -

 

 

Cardiol Therapeutics Inc.

Notes to Condensed Interim Consolidated Financial Statements
Three and Nine Months Ended September 30, 2025

(Expressed in Canadian Dollars)
Unaudited

 

6.Derivative liability

 

On November 5, 2021, the Corporation issued 8,175,000 warrants as part of a unit financing. Each warrant was exercisable into one common share at the price of USD$3.75 per share for a period of three years from closing. The warrants were classified as a derivative liability on the statement of financial position and re-valued at each reporting date, as the warrants were issued in a currency other than the Corporation's functional currency. During the three and nine months ended September 30, 2024, the value of the derivative liability decreased by $1,352,085 and $234,529. During 2024, all 8,175,000 warrants expired unexercised.

 

7.Share capital

 

a) Authorized share capital

 

The authorized share capital consists of an unlimited number of common shares. The common shares do not have a par value. All issued shares are fully paid.

 

b) Common shares issued  Number of     
   common
shares		   Amount 
Balance, December 31, 2023   65,352,279   $148,519,136 
Restricted share units exercised (note 8)   2,019,685    2,896,211 
Fair value of stock options exercised (note 8)   -    99,263 
Stock options exercised (note 8)   175,000    177,510 
Performance share units exercised (note 8)   2,650,000    2,939,038 
Balance, September 30, 2024   70,196,964   $154,631,158 
           
Balance, December 31, 2024   82,608,992   $179,335,421 
Restricted share units exercised (note 8)   271,485    568,836 
Stock options exercised (note 8)   25,000    34,260 
Fair value of stock options exercised (note 8)   -    22,033 
Performance share units exercised (note 8)   4,550,245    7,402,079 
Balance, September 30, 2025   87,455,722   $187,362,629 

 

8. Share-based payments

 

The Corporation has adopted an Omnibus Equity Incentive Plan in accordance with the policies of the TSX, which permits the grant or issuance of options, Restricted Share Units ("RSUs"), Performance Share Units ("PSUs"), and Deferred Share Units ("DSUs"), as well as other share-based payment arrangements. The maximum number of shares that may be issued upon the exercise or settlement of awards granted under the plan may not exceed 15% of the Corporation's issued and outstanding shares from time to time. The Board of Directors determines the price per common share and the number of common shares which may be allotted to directors, officers, employees, and consultants, and all other terms and conditions of the option, subject to the rules of the TSX.

 

During the three and nine months ended September 30, 2025, the total expenses related to share-based compensation amounted to $3,999,605 and $7,686,761 (three and nine months ended September 30, 2024 - $8,422,404 and $11,130,090).

 

- 7 -

 

 

Cardiol Therapeutics Inc.

Notes to Condensed Interim Consolidated Financial Statements

Three and Nine Months Ended September 30, 2025

(Expressed in Canadian Dollars)
Unaudited

 

8.Share-based payments (continued)

 

(a) Stock Options  Number of   Weighted average 
   stock options   exercise price ($) 
Balance, December 31, 2023   1,732,500   $2.44 
Issued   455,000    2.56 
Expired   (555,000)   2.15 
Exercised (i)   (175,000)   1.01 
Balance, September 30, 2024   1,457,500   $2.77 
           
Balance, December 31, 2024   1,487,500   $2.76 
Issued   1,560,000    1.65 
Expired   (350,000)   3.05 
Exercised (ii)   (25,000)   1.37 
Cancelled (iii)   (1,000,000)   1.63 
Balance, September 30, 2025   1,672,500   $2.35 

 

(i) The weighted average share price on date of exercise was $2.62.    
     
(ii) The weighted average share price on date of exercise was $1.70.    

 

(iii) During the period ended September 30, 2025, the Corporation cancelled 1,000,000 stock options held by a consultant, and issued 400,000 PSUs of the Corporation to replace the cancelled stock options. The cancelled stock options were revalued as of the grant date of the PSUs using the Black-Scholes option pricing model with weighted average assumptions that correspond to their time to maturity. The following weighted average assumptions were used for the calculation:

 

Fair value of stock options at cancellation date  $0.95 
Share price  $1.97 
Exercise price  $1.54 
Risk-free interest rate   2.69%
Expected volatility   80%
Expected life in years   1.67 
Expected dividend yield   Nil 

 

The remaining unvested fair value of the cancelled options converted into PSUs will be recorded as share-based compensation expenses.

 

- 8 -

 

 

Cardiol Therapeutics Inc.

Notes to Condensed Interim Consolidated Financial Statements

Three and Nine Months Ended September 30, 2025 

(Expressed in Canadian Dollars)
Unaudited

 

8.Share-based payments (continued)

 

(a)Stock Options (continued)

 

At the grant date, the fair value of stock options issued was estimated using the Black-Scholes option pricing model based on the following weighted average assumptions:

  

    Nine Months
Ended
September 30,
2025		    NIne Months
Ended
September 30,
2024		 
Fair value of stock options at grant date  $0.79   $1.79 
Share price  $1.66   $2.83 
Exercise price  $1.65   $2.56 
Risk-free interest rate   2.61%   3.83%
Expected volatility   84%   93%
Expected life in years   2.61    3.13 
Expected dividend yield   Nil    Nil 

 

The following table reflects the actual stock options issued and outstanding as of September 30, 2025:

 

Expiry date   Exercise
price ($)		  

Weighted average
remaining
contractual

life (years)

   Number of
options
outstanding		  

Number of
options
vested

(exercisable)

 
April 1, 2026    5.77    0.50    60,000    60,000 
December 8, 2026    3.59    1.19    325,000    325,000 
January 11, 2027    2.18    1.28    220,000    220,000 
March 1, 2027    2.56    1.42    200,000    200,000 
March 9, 2027    1.57(i)   1.44    200,000    100,000 
May 12, 2027    1.46    1.61    70,000    70,000 
September 13, 2027    1.61    1.95    207,500    207,500 
July 21, 2028    1.67    2.81    50,000    - 
July 7, 2029    2.07    3.77    30,000    10,000 
August 19, 2029    1.50    3.89    30,000    - 
May 25, 2030    1.52(i)   4.65    120,000    - 
May 25, 2030    2.12    4.65    100,000    - 
May 29, 2030    1.61(i)   4.66    60,000    - 
    2.35    2.07    1,672,500    1,192,500 

 

(i)    Denotes exercise price in USD; these amounts were translated to CAD for presentation purposes at the September 30, 2025 rate of 1.39.

 

- 9 -

 

 

Cardiol Therapeutics Inc.

Notes to Condensed Interim Consolidated Financial Statements

Three and Nine Months Ended September 30, 2025

(Expressed in Canadian Dollars) Unaudited

 

8.Share-based payments (continued)

  

(b)Performance Share Units

 

    Number of
PSUs		 
Balance, December 31, 2023   2,000,000 
Issued (i)   1,200,000 
Redeemed (iii)   (2,650,000)
Balance, September 30, 2024   550,000 
      
Balance, December 31, 2024   - 
Issued (i), (ii)   5,266,000 
Redeemed (iv)   (4,586,245)
Balance, September 30, 2025   679,755 

 

(i)     Grants of PSUs require completion of certain performance criteria specific to each grant. As the fair value of the services for certain PSUs issued cannot be reliably measured, the fair value was determined on the basis of the equity issued. The fair value of PSUs granted was determined based on the Corporation's share price, adjusted by the estimated likelihood of the performance conditions being met.

 

(ii)    During the three and nine months ended September 30, 2025, the Corporation settled $3,761,600 of accounts payable and accrued liabilities through PSUs valued at $4,289,960. 

 

(iii)The weighted average share price on date of exercise was $2.23.

 

(iv)The weighted average share price on date of exercise was $1.65.

 

The following table reflects the actual PSUs issued and outstanding as of September 30, 2025:

 

  

Weighted average

remaining

   Number of  

Number of

PSUs

 
Expiry date  contractual
life (years)		  

PSUs

outstanding

   vested
(exercisable)		 
December 31, 2025   0.25    679,755    98,731 

 

(i)Subsequent to September 30, 2025, 2,621,000 PSUs were issued.

 

(ii)Subsequent to September 30, 2025, 983,592 PSUs were redeemed.

 

- 10 -

 

 

Cardiol Therapeutics Inc.

Notes to Condensed Interim Consolidated Financial Statements

Three and Nine Months Ended September 30, 2025

(Expressed in Canadian Dollars)

Unaudited

 

8.Share-based payments (continued)

 

(c) Restricted Share Units

  Number of 
   RSUs 
Balance, December 31, 2023   3,544,887 
Issued (i)   3,686,000 
Redeemed (ii)   (2,019,685)
Balance, September 30, 2024   5,211,202 
      
Balance, December 31, 2024   4,852,299 
Issued (i)   147,242 
Redeemed (iii)   (271,485)
Balance, September 30, 2025   4,728,056 

 

(i) The fair value of RSUs granted was determined based on the Corporation's share price.
(ii) The weighted average share price on date of redemption was $1.78.
(iii) The weighted average share price on date of redemption was $1.49.
The following table reflects the actual RSUs issued and outstanding as of September 30, 2025:

 

   Weighted average
remaining		     Number of   Number of
RSUs		 
Expiry date  contractual
life (years)		   RSUs
outstanding		   vested
(exercisable)		 
July 10, 2027   1.78    3,122,248    1,457,252 
July 31, 2027   1.83    1,425,692    1,425,692 
October 31, 2027   2.08    32,874    32,874 
September 30, 2030   5.00    147,242    - 
    1.41    4,728,056    2,915,818 

 

9.Warrants

 

   Number of
warrants		   Amount 
Balance, December 31, 2023   11,628,178   $3,517,867 
Expired   (3,453,178)   (3,517,867)
Balance, September 30, 2024   8,175,000   $- 
           
Balance, December 31, 2024 and September 30, 2025   -   $- 

 

- 11 -

 

 

Cardiol Therapeutics Inc.

Notes to Condensed Interim Consolidated Financial Statements

Three and Nine Months Ended September 30, 2025

(Expressed in Canadian Dollars)

Unaudited

 

10.Loss per share

 

For the three and nine months ended September 30, 2025, basic and diluted loss per share has been calculated based on the loss attributable to common shareholders of $9,964,281 and $26,606,305 (three and nine months ended September 30, 2024 - $12,728,484 and $28,498,989) and the weighted average number of common shares outstanding of 84,727,401 and 83,337,682 (three and nine months ended September 30, 2024 - 69,841,202 and 68,621,684). Diluted loss per share did not include the effect of stock options, PSUs, RSUs, and warrants as they are anti-dilutive.

 

11.Commitments

 

(i)       The Corporation has leased premises with third parties. The minimum committed lease payments, which include the lease liability payments shown as base rent, are approximately as follows:

 

   Base rent   Variable rent   Total 
2025  $13,844   $12,961   $26,805 
2026   55,376    51,846    107,222 
2027   55,376    51,846    107,222 
2028   46,146    43,205    89,351 
   $170,742   $159,858   $330,600 

 

(ii)      The Corporation has signed various agreements with consultants to provide services. Under the agreements, the Corporation has the following remaining commitments.

 

2025  $186,128 
2026   84,679 
2027   34,802 
Total  $305,609 

 

(iii)     Pursuant to the terms of agreements with various other contract research organizations, the Corporation is committed for the following contract research services:

 

2025  $320,967 
2026   912,984 
2027   55,675 
2028   44,470 
2029   27,005 
Total  $1,361,101 

 

- 12 -

 

 

Cardiol Therapeutics Inc.

Notes to Condensed Interim Consolidated Financial Statements

Three and Nine Months Ended September 30, 2025 

(Expressed in Canadian Dollars)

Unaudited

 

12.Operating expenses

 

The following details highlight certain non-cash components of the research and development and general and administration expenses. Remaining research and development and operating expenses include personnel costs and expenses paid to third parties:

 

   Three Months
Ended		   Three Months
Ended		   Nine Months
Ended		   Nine Months
Ended		 
   September 30,   September 30,   September 30,   September 30, 
   2025   2024   2025   2024 

General and administration expenses

Depreciation of property and equipment

  $25,551   $32,954   $76,007   $114,263 
Amortization of intangible assets   -    168,136    -    210,358 
Non-cash share-based compensation   3,306,682    7,449,978    6,373,154    10,078,091 

Research and development expenses

Non-cash share-based compensation

  $692,923   $972,426   $1,313,607   $1,051,999 

 

13.Related party transactions

 

Key management personnel are those persons having authority and responsibility for planning, directing, and controlling the activities of the Corporation directly or indirectly, and include any directors (executive and non-executive) of the Corporation. Remuneration of directors and key management personnel of the Corporation was as follows:

 

   Three Months
Ended
September 30,		  

Three Months

Ended
September 30,

  

Nine Months

Ended
September 30,

  

Nine Months

Ended
September 30,

 
  2025  2024   2025   2024 
Salaries and benefits  $570,978   $567,797   $2,446,705   $2,372,536 
Share-based payments   248,951    2,175,162    1,187,740    2,450,893 
   $819,929   $2,742,959   $3,634,445   $4,823,429 

 

As at September 30, 2025, $nil (December 31, 2024 - $nil) was owed to key management personnel.

 

14.Subsequent event

 

Subsequent to September 30, 2025, the Corporation announced the completion of an US$11.4 million financing through the issuance of 11,425,000 common share units at USD$1.00 per unit. Each unit consisted of one common share and one-half of one common share purchase warrant. Each whole warrant is exercisable into one common share at the price of USD$1.35 per share for a period of two years from closing. The warrants include an acceleration provision, allowing the Corporation to advance their expiry to the 30th day following the issuance of a news release if the daily volume-weighted average trading price of the common shares exceeds US$2.00 for five consecutive trading days.

 

- 13 -