Edesa Biotech (EDSA) 10-Q 10 May 24 2024 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Mar. 31, 2024	May 10, 2024
Cover [Abstract]
Entity Registrant Name	EDESA BIOTECH, INC.
Entity Central Index Key	0001540159
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Mar. 31, 2024
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
Entity Common Stock Shares Outstanding		3,215,968
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-37619
Entity Incorporation State Country Code	Z4
Entity Address Address Line 1	100 Spy Court
Entity Address City Or Town	Markham
Entity Address State Or Province	ON
Entity Address Country	CA
Entity Address Postal Zip Code	L3R 5H6
City Area Code	289
Local Phone Number	800-9600
Security 12b Title	Common Shares, without par value
Trading Symbol	EDSA
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes

Condensed Interim Consolidated

Condensed Interim Consolidated Balance Sheets - USD ($)	Mar. 31, 2024	Sep. 30, 2023
Current assets:
Cash and cash equivalents	$ 2,799,631	$ 5,361,397
Accounts and other receivable	1,112,320	626,543
Prepaid expenses and other current assets	330,267	448,912
Total current assets	4,242,218	6,436,852
Non-current assets:
Property and equipment, net	7,365	8,702
Long-term deposits	41,067	173,490
Intangible asset, net	2,129,434	2,180,020
Right-of-use assets	54,972	91,373
Total assets	6,475,056	8,890,437
Current liabilities:
Accounts payable and accrued liabilities	2,092,580	1,747,150
Short-term right-of-use lease liabilities	58,143	74,714
Total current liabilities	2,150,723	1,821,864
Non-current liabilities:
Long-term right-of-use lease liabilities	0	19,773
Total liabilities	2,150,723	1,841,637
Shareholders' equity:
Capital shares Issued and outstanding: 3,215,968 common shares (September 30, 2023 - 3,075,473)	47,136,168	46,643,151
Additional paid-in capital	13,373,318	13,039,265
Accumulated other comprehensive loss	(226,403)	(214,648)
Accumulated deficit	(55,958,750)	(52,418,968)
Total shareholders' equity	4,324,333	7,048,800
Total liabilities and shareholders' equity	$ 6,475,056	$ 8,890,437

Condensed Interim Consolidate_2

Condensed Interim Consolidated Balance Sheets (Parenthetical) - shares	Mar. 31, 2024	Sep. 30, 2023
Condensed Interim Consolidated Balance Sheets
Capital Shares, Issued	3,215,968	3,075,473
Capital Shares, Outstanding	3,215,968	3,075,473

Condensed Interim Consolidate_3

Condensed Interim Consolidated Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Expenses:
Research and development	$ 1,176,337	$ 1,458,190	$ 1,880,795	$ 2,815,528
General and administrative	1,044,137	952,391	2,197,108	1,973,358
Loss from operations	(2,220,474)	(2,410,581)	(4,077,903)	(4,788,886)
Other income (loss):
Reimbursement grant income	304,002	0	424,836	0
Interest income	43,193	85,718	104,159	135,147
Miscellaneous other income	14,766	0	14,766	0
Foreign exchange (loss)	(2,018)	(8,686)	(4,840)	(14,627)
Total other income (loss)	359,943	77,032	538,921	120,520
Loss before income taxes	(1,860,531)	(2,333,549)	(3,538,982)	(4,668,366)
Income tax expense	800	800	800	800
Net loss	(1,861,331)	(2,334,349)	(3,539,782)	(4,669,166)
Exchange differences on translation	(11,183)	8,643	(11,755)	(16,424)
Net comprehensive loss	$ (1,872,514)	$ (2,325,706)	$ (3,551,537)	$ (4,685,590)
Weighted average number of common shares	3,192,688	2,853,331	3,160,179	2,738,848
Loss per common share - basic and diluted	$ (0.58)	$ (0.82)	$ (1.12)	$ (1.70)

Condensed Interim Consolidate_4

Condensed Interim Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net loss	$ (3,539,782)	$ (4,669,166)
Adjustments for:
Depreciation and amortization	90,428	54,502
Share-based compensation	334,053	621,221
Gain on loan forgiveness	(14,766)	0
Changes in working capital items:
Accounts and other receivable	(484,110)	1,137,833
Prepaid expenses and other current assets	237,967	140,852
Accounts payable and accrued liabilities	309,523	(648,482)
Net cash used in operating activities	(3,066,687)	(3,363,240)
Cash flows from financing activities:
Proceeds from issuance of common shares and warrants	590,996	3,027,496
Proceeds from exercise of warrants	0	770,531
Payments for issuance costs of common shares and warrants	(43,993)	(121,612)
Repayment of debt	(29,532)	0
Net cash provided by financing activities	517,441	3,676,415
Effect of exchange rate changes on cash and cash equivalents	(12,520)	67,158
Net change in cash and cash equivalents	(2,561,766)	380,333
Cash and cash equivalents, beginning of period	5,361,397	7,090,919
Cash and cash equivalents, end of period	$ 2,799,631	$ 7,471,252

Condensed Interim Consolidate_5

Condensed Interim Consolidated Statements of Changes in Shareholders' Equity - USD ($)	Total	Common Shares	Additional Paid-In Capital	Accumulated other comprehensive loss	Retained Earnings (Accumulated Deficit)
Balance, shares at Sep. 30, 2022		2,380,280
Balance, amount at Sep. 30, 2022	$ 9,391,289	$ 42,473,099	$ 11,176,345	$ (213,602)	$ (44,044,553)
Issuance of common shares and warrants in equity offering, shares		384,477
Issuance of common shares and warrants in equity offering, amount	3,027,496	$ 2,082,669	944,827	0	0
Issuance of common shares upon exercise of warrants, shares		100,760
Issuance of common shares upon exercise of warrants, amount	770,531	$ 994,618	(224,087)	0	0
Issuance costs	(125,010)	(96,653)	(28,357)	0	0
Share-based compensation	621,221	0	621,221	0	0
Net loss and comprehensive loss	(4,685,590)	$ 0	0	(16,424)	(4,669,166)
Balance, shares at Mar. 31, 2023		2,865,517
Balance, amount at Mar. 31, 2023	8,999,937	$ 45,453,733	12,489,949	(230,026)	(48,713,719)
Balance, shares at Dec. 31, 2022		2,764,757
Balance, amount at Dec. 31, 2022	10,273,456	$ 44,473,823	12,417,672	(238,669)	(46,379,370)
Issuance of common shares upon exercise of warrants, shares		100,760
Issuance of common shares upon exercise of warrants, amount	770,531	$ 994,618	(224,087)	0	0
Issuance costs	(5,891)	(14,708)	8,817	0	0
Share-based compensation	287,547	0	287,547	0	0
Net loss and comprehensive loss	(2,325,706)	$ 0	0	8,643	(2,334,349)
Balance, shares at Mar. 31, 2023		2,865,517
Balance, amount at Mar. 31, 2023	8,999,937	$ 45,453,733	12,489,949	(230,026)	(48,713,719)
Balance, shares at Sep. 30, 2023		3,075,473
Balance, amount at Sep. 30, 2023	7,048,800	$ 46,643,151	13,039,265	(214,648)	(52,418,968)
Issuance costs	(97,949)	(97,949)	0	0	0
Share-based compensation	334,053	0	334,053	0	0
Net loss and comprehensive loss	(3,551,537)	$ 0	0	(11,755)	(3,539,782)
Issuance of common shares, shares		140,495
Issuance of common shares, amount	$ 590,966	$ 590,966	0	0	0
Balance, shares at Mar. 31, 2024	0	3,215,968
Balance, amount at Mar. 31, 2024	$ 4,324,333	$ 47,136,168	13,373,318	(226,403)	(55,958,750)
Balance, shares at Dec. 31, 2023		3,164,722
Balance, amount at Dec. 31, 2023	5,844,878	$ 46,933,895	13,223,622	(215,220)	(54,097,419)
Issuance costs	(73,492)	(73,492)	0	0	0
Share-based compensation	149,696	0	149,696	0	0
Net loss and comprehensive loss	(1,872,514)	$ 0	0	(11,183)	(1,861,331)
Issuance of common shares, shares		51,246
Issuance of common shares, amount	$ 275,765	$ 275,765	0	0	0
Balance, shares at Mar. 31, 2024	0	3,215,968
Balance, amount at Mar. 31, 2024	$ 4,324,333	$ 47,136,168	$ 13,373,318	$ (226,403)	$ (55,958,750)

Nature of Operations

Nature of Operations	6 Months Ended
	Mar. 31, 2024
Nature of Operations
Nature of Operations	1. Nature of Operations Edesa Biotech, Inc. (the Company or Edesa) is a biopharmaceutical company focused on acquiring, developing and commercializing clinical stage drugs for inflammatory and immune-related diseases with clear unmet medical needs. The Company is organized under the laws of British Columbia, Canada and is headquartered in Markham, Ontario. It operates under its wholly owned subsidiaries, Edesa Biotech Research, Inc., an Ontario, Canada corporation, and Edesa Biotech USA, Inc., a California, USA corporation. The Company’s common shares trade on The Nasdaq Capital Market in the United States under the symbol “EDSA”.

Basis of presentation

Basis of presentation	6 Months Ended
	Mar. 31, 2024
Basis of presentation
Basis Of Presentation	2. Basis of Presentation The accompanying unaudited condensed interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q. They do not include all information and footnotes necessary for a fair presentation of financial position, results of operations and cash flows in conformity with U.S. GAAP for complete financial statements. These unaudited condensed interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended September 30, 2023, which was filed with the Securities and Exchange Commission (SEC) on December 15, 2023. The accompanying unaudited condensed interim consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated on consolidation. All adjustments (consisting of normal recurring adjustments and accruals) considered necessary for a fair presentation of the results of operations for the periods presented have been included in the interim periods. Operating results for the three and six months ended March 31, 2024 are not necessarily indicative of the results that may be expected for other interim periods or the fiscal year ending September 30, 2024. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period or year. Actual results could differ from those estimates. Areas where significant judgment is involved in making estimates are valuation of accounts and other receivable; valuation and useful lives of property and equipment; intangible assets; right-of-use assets; deferred income taxes; the determination of fair value of share-based compensation; the determination of fair value of warrants in order to allocate proceeds from equity issuances; and forecasting future cash flows for assessing the going concern assumption. Functional and reporting currencies The consolidated financial statements of the Company are presented in U.S. dollars, unless otherwise stated, which is the Company’s and its wholly owned subsidiary’s, Edesa Biotech USA, Inc., functional currency. The functional currency of the Company’s wholly owned subsidiary, Edesa Biotech Research, Inc., as determined by management, is Canadian dollars.

Intangible Assets

Intangible Assets	6 Months Ended
	Mar. 31, 2024
Intangible Assets
Intangible Assets	3. Intangible Assets Acquired license In April 2020, the Company entered into a license agreement with a pharmaceutical development company to obtain exclusive world-wide rights to know-how, patents and data relating to certain monoclonal antibodies (the Constructs), including sublicensing rights. Unless earlier terminated, the term of the license agreement will remain in effect for 25 years from the date of first commercial sale of licensed products containing the Constructs. Subsequently, the license agreement will automatically renew for five-year periods unless either party terminates the agreement in accordance with its terms. Under the license agreement, the Company is exclusively responsible, at its expense, for the research, development, manufacture, marketing, distribution and commercialization of the Constructs and licensed products and to obtain all necessary licenses and rights. The Company is required to use commercially reasonable efforts to develop and commercialize the Constructs in accordance with the terms of a development plan established by the parties. The Company has determined that the license has multiple alternative future uses in research and development projects and sublicensing in other countries or for other disease indications. The value of the acquired license is recorded as an intangible asset with amortization over the estimated useful life of 25 years and evaluation for impairment at the end of each reporting period. The required upfront license payment of $2.5 million was paid by issuance of Series A-1 Convertible Preferred Shares, which have been fully converted to common shares. The value of the license includes acquisition legal costs. See Note 5 for license commitments. Intangible assets, net consisted of the following: March 31, 2024 September 30, 2023 The Constructs $ 2,529,483 $ 2,529,483 Less: accumulated amortization (400,049 ) (349,463 ) Total intangible assets, net $ 2,129,434 $ 2,180,020 Amortization expense amounted to $0.03 million for each of the three months ended March 31, 2024 and 2023 and $0.05 million for each of the six months ended March 31, 2024 and 2023. Total estimated future amortization of intangible assets for each fiscal year is as follows: Year Ending September 30, 2024 $ 50,586 September 30, 2025 101,172 September 30, 2026 101,172 September 30, 2027 101,172 September 30, 2028 101,172 Thereafter 1,674,160 $ 2,129,434

Right of Use Lease with Related

Right of Use Lease with Related Party	6 Months Ended
	Mar. 31, 2024
Right of Use Lease with Related Party
Right-of-Use Lease with Related Party	4. Right-of-Use Lease with Related Party The Company leases a facility used for executive offices from a related company. The original lease expired in December 2022 and the Company executed a two-year extension through December 2024. The components of right-of-use lease cost were as follows: Three Months Ended Six Months Ended March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 Right-of-use lease cost, included in general and administrative on the Statements of Operations $ 19,793 $ 21,443 $ 39,909 $ 40,342 Lease terms and discount rates were as follows: March 31, 2024 September 30, 2023 Remaining lease term (months): 9 15 Estimated incremental borrowing rate: 9.2 % 9.2 % The future minimum lease payments under right-of-use leases at March 31, 2024 were as follows: Year Ending September 30, 2024 $ 39,957 September 30, 2025 19,978 Total lease payments 59,935 Less imputed interest 1,792 Present value of right-of-use lease liabilities 58,143 Present value included in current liabilities 58,143 Present value included in long-term liabilities $ - Cash flow information was as follows: Six Months Ended March 31, 2024 March 31, 2023 Cash paid for amounts included in the measurement of right-of-use lease liabilities, included in accounts payable and accrued liabilities on the Statements of Cash Flow. $ 39,957 $ 38,907

Commitments

Commitments	6 Months Ended
	Mar. 31, 2024
Commitments
Commitments	5. Commitments Research and other commitments The Company has commitments for contracted research organizations who perform clinical trials for the Company’s ongoing clinical studies and other service providers. Approximate aggregate future contractual payments at March 31, 2024 are as follows: Year Ending September 30, 2024 $ 433,000 September 30, 2025 49,000 September 30, 2026 36,000 September 30, 2027 42,000 September 30, 2028 - $ 560,000 License and royalty commitments In April 2020, through its Ontario subsidiary, the Company entered into a license agreement with a third party to obtain exclusive world-wide rights to the Constructs, including sublicensing rights. An intangible asset for the acquired license has been recognized. See Note 3 for intangible assets. Under the license agreement, the Company is committed to payments of up to an aggregate amount of $356 million contingent upon meeting certain milestones outlined in the license agreement, primarily relating to future potential commercial approval and sales milestones. The Company also has a commitment to pay royalties based on any net sales of products containing the Constructs in the countries where the Company directly commercializes the products containing the Constructs and a percentage of any sublicensing revenue received by the Company and its affiliates in the countries where it does not directly commercialize the products containing the Constructs. No milestone, royalty or sublicensing payments were made to the third party during the three and six months ended March 31, 2024 and 2023. In 2016, through its Ontario subsidiary, the Company entered into a license agreement with a third party to obtain exclusive rights to certain know-how, patents and data relating to a pharmaceutical product. The Company will use the exclusive rights to develop the product for therapeutic, prophylactic and diagnostic uses in topical dermal applications and anorectal applications. No intangible assets have been recognized under the license agreement with the third party. Under the license agreement, the Company is committed to payments of various amounts to the third party upon meeting certain milestones outlined in the license agreement, up to an aggregate amount of $18.4 million. Upon divestiture of substantially all of the assets of the Company, the Company shall pay the third party a percentage of the valuation of the licensed technology sold as determined by an external objective expert. The Company also has a commitment to pay the third party a royalty based on net sales of the product in countries where the Company, or an affiliate, directly commercializes the product and a percentage of sublicensing revenue received by the Company and its affiliates in the countries where it does not directly commercialize the product. A milestone payment of $0.06 million and $0.12 million were to the third party during the three and six months ended March 31, 2023 and no milestone payments were made during the three and six months ended March 31, 2024. In March 2021, through its Ontario subsidiary, the Company entered into a license agreement with the inventor of the same pharmaceutical product to acquire global rights for all fields of use beyond those named under the 2016 license agreement. The Company is committed to remaining payments of up to an aggregate amount of $68.9 million, primarily relating to future potential commercial approval and sales milestones. In addition, if the Company fails to file an investigational new drug application or foreign equivalent (IND) for the product within a certain period of time following the date of the agreement, the Company is required to remit to the inventor a fixed license fee quarterly as long as the requirement to file an IND remains unfulfilled. For the three and six months ended March 31, 2024, the Company recorded an expense of $25,000 and $50,000 as a result of meeting milestones outlined in the 2021 license agreement. There were no milestones achieved in the three and six months ended March 31, 2023 and no expenses were incurred.

Capital shares

Capital shares	6 Months Ended
	Mar. 31, 2024
Capital shares
Capital Shares	6. Capital Shares Equity offerings On November 2, 2022, the Company completed a private placement of units consisting of 384,475 common shares, Class A warrants to purchase up to an aggregate of 192,248 common shares and Class B warrants to purchase up to an aggregate of 192,248 common shares. Net proceeds from the offering were $2.9 million, which were allocated between the relative fair values of the common shares (using a fair value of $2.7 million) and the common share purchase warrants (using a total fair value of $1.2 million). The warrants became exercisable December 23, 2022. The Class A warrants have an exercise price of $10.50 per share and will expire on December 23, 2025. The Class B warrants have an exercise price of $7.00 per share and expired on December 23, 2023. The warrants are considered contracts on the Company’s own shares and are classified as equity. Equity distribution agreement On March 27, 2023, the Company entered into an equity distribution agreement with Canaccord, pursuant to which the Company may offer and sell, from time to time, common shares through an at-the-market equity offering program for up to $20 million in gross proceeds, subject to certain offering limitations that currently allow the Company to offer and sell common shares having an aggregate gross sales price of up to $8.4 million. The Company has no obligation to sell any of the common shares and may at any time suspend sales or terminate the equity distribution agreement in accordance with its terms. During the six months ended March 31, 2024, the Company sold a total of 140,495 common shares pursuant to the agreement for gross proceeds of approximately $0.5 million after deducting commissions and direct costs. Black-Scholes option valuation model The Company uses the Black-Scholes option valuation model to determine the fair value of share-based compensation for share options and compensation warrants granted and the fair value of warrants issued. Option valuation models require the input of highly subjective assumptions including the expected price volatility. The Company calculates expected volatility based on historical volatility of the Company’s share price. When there is insufficient data available, the Company uses a peer group that is publicly traded to calculate expected volatility. The Company adopted interest-free rates by reference to the U.S. treasury yield rates. The Company calculated the fair value of share options granted based on the expected life of 5 years considering expected forfeitures during the option term of 10 years. Expected life of warrants is based on warrant terms. The Company did not and is not expected to declare any dividends. Changes in the subjective input assumptions can materially affect the fair value estimates, and therefore the existing models do not necessarily provide a reliable single measure of the fair value of the Company’s warrants and share options. Warrants A summary of the Company’s warrants activity is as follows: Number of Warrant Shares (#) Weighted Average Exercise Price Six Months Ended March 31, 2024 Balance - September 30, 2023 720,909 $ 19.51 Expired (110,122 ) 7.00 Balance - March 31, 2024 610,787 $ 21.76 Six Months Ended March 31, 2023 Balance - September 30, 2022 521,718 $ 28.00 Issued 384,496 8.75 Exercised (100,760 ) 7.63 Balance - March 31, 2023 805,454 $ 21.35 The weighted average contractual life remaining on the outstanding warrants at March 31, 2024 is 35 months. The following table summarizes information about the warrants outstanding at March 31, 2024: Number of Warrants (#) Exercise Prices Expiry Dates 1,070 $ 33.67 June 2024 1,687 C$ 22.40 January 2025 173,614 $ 10.50 December 2025 15,627 $ 56.00 February 2026 27,399 $ 31.94 March 2027 391,390 $ 24.64 September 2027 610,787 The fair value of warrants granted during the six months ended March 31, 2023 was estimated using the Black-Scholes option valuation model using the following assumptions: Six Months Ended March 31, 2023 Class A Warrants Class B Warrants Risk free interest rate 4.54 % 4.76 % Expected life 3.14 years 1.14 years Expected share price volatility 90.73 % 89.70 % Expected dividend yield 0.00 % 0.00 % Share options The Company adopted an Equity Incentive Compensation Plan in 2019 (the 2019 Plan) administered by the independent members of the Board of Directors, which amended and restated prior plans. Options, restricted shares and restricted share units are eligible for grant under the 2019 Plan. The total number of shares available for issuance under the terms of the 2019 Plan is 575,737. The remaining number of shares available to grant at March 31, 2024 is 69,728. The Company’s 2019 Plan allows options to be granted to directors, officers, employees and certain external consultants and advisers. Under the 2019 Plan, the option term is not to exceed 10 years and the exercise price of each option is determined by the independent members of the Board of Directors. Options have been granted under the 2019 Plan allowing the holders to purchase common shares of the Company as follows: Number of Options (#) Weighted Average Exercise Price Weighted Average Grant Date Fair Value Six Months Ended March 31, 2024 Balance - September 30, 2023 420,615 $ 25.60 $ 18.84 Granted 500 4.10 3.10 Forfeited (1,333 ) 15.55 11.08 Expired (106 ) 596.82 596.82 Balance - March 31, 2024 419,676 $ 25.47 $ 18.70 Six Months Ended March 31, 2023 Balance - September 30, 2022 314,853 $ 32.62 $ 23.94 Granted 47,571 10.01 7.49 Expired (34 ) 2,129 2,129 Balance - March 31, 2023 362,390 $ 29.40 $ 21.63 During the three and six months ended March 31, 2024, the independent members of the Board of Directors granted 500 employee options and no director options. During the three and six months ended March 31, 2024 and 2023, there were no employee or director options granted. The options have a term of 10 years and an exercise price equal to the Nasdaq closing price on the grant date. The weighted average contractual life remaining on the outstanding options at March 31, 2024 is 79 months. The following table summarizes information about the options under the 2019 Plan outstanding and exercisable at March 31, 2024: Number of Options (#) Exercisable at March 31, 2024 (#) Range of Exercise Prices Expiry Dates 391 391 $ 246.96 - 596.82 June 2024 - Mar 2025 42,348 42,348 $ 15.12 May 2024 - Dec 2028 46,285 46,285 $ 22.12 May 2024 - Feb 2030 56,722 56,722 $ 52.08 - 56.49 May 2024 - Oct 2030 93,304 93,012 $ 36.75 - 40.18 Apr 2024 - Sep 2031 68,381 53,171 $ 20.58 - 25.97 Apr 2024 - Feb 2032 112,245 41,943 $ 4.10 - 10.01 Apr 2024 - Oct 2033 419,676 333,872 The options exercisable at March 31, 2024 had a weighted average exercise price of $29.27, $7.00 intrinsic value and a weighted average remaining life of 72 months. There were 85,804 options at March 31, 2024 that had not vested with a weighted average exercise price of $10.70, no intrinsic value and a weighted average remaining life of 107 months. The fair value of options granted during the six months ended March 31, 2024 and 2023 was estimated using the Black-Scholes option valuation model using the following assumptions: Six Months Ended March 31, 2024 Six Months Ended March 31, 2023 Risk free interest rate 4.92 % 3.62% - 4.18% Expected life 5 years 5 years Expected share price volatility 97.26 % 95.3% - 97.34 % Expected dividend yield 0.00 % 0.00 % The Company recorded $0.1 million and $0.3 million of share-based compensation expenses for the three months ended March 31, 2024 and 2023, respectively and $0.3 million and $0.6 million for the six months ended March 31, 2024 and 2023. As of March 31, 2024, the Company had approximately $0.2 million of unrecognized share-based compensation expense, which is expected to be recognized over a period of 30 months. Restricted Share Units (RSU) The Company’s 2019 Plan allows restricted share units (RSUs) to be granted to directors, officers, employees and certain external consultants and advisers. Under the 2019 Plan, the RSU term is not to exceed 10 years. The fair value is based on the 5-day VWAP of the Company’s common shares up to the date of grant. The initial grant of RSUs was in August 2023. There were no RSUs granted in the comparative period. The following is a summary of changes in the status of RSUs from October 1, 2023 through March 31, 2024: Number of RSU (#) Weighted Average Grant Date Fair Value Six Months Ended March 31, 2024 Balance - September 30, 2023 33,045 $ 5.60 Granted 8,651 4.77 Balance - March 31, 2024 41,696 $ 5.43 The following table summarizes information about the RSUs under the 2019 Plan outstanding and exercisable at March 31, 2024: Number of RSU (#) Expiry Date Fully-vested RSUs 33,045 August 2033 8,651 January 2034 - March 2034 All RSUs that were granted vested immediately upon the grant date. The outstanding RSUs can be converted to common shares by the holder at any time prior to the expiry date. There is no future unrecorded compensation expense for the RSUs.

Government Contributions

Government Contributions	6 Months Ended
	Mar. 31, 2024
Government Contributions
Government Contributions	7. Government Contributions Reimbursement grant income for the Company’s federal grant with the Canadian government’s SIF is recorded based on the claim period of eligible costs. In February 2021, the Company entered into a multi-year contribution agreement (the 2021 SIF Agreement) with the Canadian Government’s Strategic Innovation Fund. Under the 2021 SIF Agreement, the Government of Canada committed up to C$14.1 million in nonrepayable funding which was intended to support research and development related to our EB05 clinical program. No further funding will be received from the 2021 SIF Agreement. In October 2023, the Company entered into a multi-year contribution agreement (the 2023 SIF Agreement) with the Canadian Government’s Strategic Innovation Fund. Under the 2023 SIF Agreement, the Government of Canada committed up to C$23 million in partially repayable funding toward (i) conducting and completing the Company’s Phase 3 clinical study of its experimental drug EB05 in critical-care patients with Acute Respiratory Distress Syndrome (ARDS) caused by COVID-19 or other infectious agents, (ii) submitting EB05 for governmental approvals and manufacturing scale-up, following, and subject to, completing the Phase 3 study and (iii) conducting two non-clinical safety studies to assess the potential long-term impact of EB05 exposure (the Project). Of the C$23 million committed by SIF, up to C$5.8 million is not repayable by the Company. The remaining C$17.2 million is conditionally repayable starting in 2029 only if and when the Company earns gross revenue. The repayable portion would be payable over fifteen (15) years based on a percentage rate of the Company’s annual revenue growth. The maximum amount repayable under the Agreement is 1.4 times the original repayable amount. In addition, the Company is entitled to partial reimbursement of certain eligible expenses under the Agreement. Under the Agreement, the Company agreed to certain financial and non-financial covenants and other obligations in relation to the Project. Pursuant to the Agreement, certain customary events of default, such as the Company’s or Edesa Biotech Research’s breach of their covenants and obligations under the Agreement, their insolvency, winding up or dissolution, and other similar events, may permit the Government of Canada to declare an event of default under the Agreement. Upon an event of default, subject to applicable cure, the Government of Canada may exercise a number of remedies, including suspending or terminating funding under the Agreement, demanding repayment of funding previously received and/or terminating the Agreement. The funding and any associated conditional repayments are not secured by any assets of Edesa Biotech Research or the Company. The Agreement will expire on the later of December 31, 2042 or the date of the last repayment, unless earlier terminated, subject to certain provisions that extend three (3) years beyond the term or early termination of the Agreement. Under the 2023 SIF Agreement the Company recorded grant income of $0.3 million and $0.4 million for the three and six months ended March 31, 2024. No grant income was recorded under the 2023 SIF Agreement for the three and six months ended March 31, 2023.

Financial instruments

Financial instruments	6 Months Ended
	Mar. 31, 2024
Financial instruments
Financial Instruments	8. Financial Instruments (a) Fair values The Company uses the fair value measurement framework for valuing financial assets and liabilities measured on a recurring basis in situations where other accounting pronouncements either permit or require fair value measurements. The Company follows the fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs are inputs that reflect assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. There are three levels of inputs that may be used to measure fair value: · Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. · Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets and liabilities in markets that are not active. · Level 3 – Unobservable inputs for the asset or liability that are supported by little or no market activity. The carrying value of certain financial instruments such as cash and cash equivalents, accounts and other receivable, accounts payable and accrued liabilities approximates fair value due to the short-term nature of such instruments. (b) Interest rate and credit risk Interest rate risk is the risk that the value of a financial instrument might be adversely affected by a change in interest rates. The Company does not believe that the results of operations or cash flows would be affected to any significant degree by a significant change in market interest rates, relative to interest rates on cash and cash equivalents due to the short-term nature of these balances. The Company is also exposed to credit risk at period end from the carrying value of its cash and cash equivalents and accounts and other receivable. The Company manages this risk by maintaining bank accounts with a Canadian Chartered Bank and a U.S. bank believed to be credit worthy and money market mutual funds of U.S. government securities. The Company’s cash is not subject to any external restrictions. The Company assesses the collectability of accounts receivable through a review of the current aging and terms, as well as an analysis of historical collection rates, general economic conditions and credit status of government agencies. Credit risk for the reimbursement grant and HST refunds receivable are not considered significant since amounts are due from the Canadian government’s SIF and the Canada Revenue Agency. (c) Foreign exchange risk The Company and its subsidiary have balances in Canadian dollars that give rise to exposure to foreign exchange (FX) risk relating to the impact of translating certain non-U.S. dollar balance sheet accounts as these statements are presented in U.S. dollars. A strengthening U.S. dollar will lead to a FX loss while a weakening U.S. dollar will lead to a FX gain. The Company has not entered into any agreements or purchased any instruments to hedge possible currency risks. At March 31, 2024, the Company and its Canadian subsidiary had assets denominated in Canadian dollars of approximately C$1.9 million and the U.S. dollar exchange rate at this date was equal to 1.3545 Canadian dollars. Based on the exposure at March 31, 2024, a 10% annual change in the Canadian/U.S. exchange rate would impact the Company’s loss and other comprehensive loss by approximately $0.1 million. (d) Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty raising liquid funds to meet commitments as they fall due. In meeting its liquidity requirements, the Company closely monitors its forecasted cash requirements with expected cash drawdown.

Loss per share

Loss per share	6 Months Ended
	Mar. 31, 2024
Loss per share
Loss Per Share	9. Loss per Share The Company had securities outstanding which could potentially dilute basic earnings per share in the future but were excluded from the computation of diluted loss per share in the periods presented, as their effect would have been anti-dilutive.

Related party transactions

Related party transactions	6 Months Ended
	Mar. 31, 2024
Related party transactions
Related Party Transactions	10. Related Party Transactions During the three and six months ended March 31, 2024 and 2023, the Company paid cash of $20,000 and $40,000, respectively, for a ROU lease from a company controlled by the Company’s CEO. These transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by both parties. On December 31, 2022, the Company executed a two-year lease extension through December 31, 2024 in accordance with the terms of the original lease agreement. Rent of approximately $7,000 was payable at March 31, 2024. There was no rent payable at March 31, 2023. In October 2023, we entered into $10.0 million revolving credit agreement with Pardeep Nijhawan Medicine Professional Corporation, an entity controlled by Dr. Pardeep Nijhawan, MD, our Chief Executive Officer and Secretary and member of our board of directors (Credit Agreement), providing an unsecured revolving credit facility, with a credit limit of $3.5 million (Credit Limit) which was available immediately. The line of credit bears interest at the Canadian Imperial Bank of Commerce US Base-Interest Rate plus 3% per annum and has a maturity date of March 31, 2026, unless terminated earlier by either party with 90 days’ notice. Advances under the line of credit are tied to a borrowing base (Borrowing Base) consisting of eligible grant receivables from SIF, future potential license fee receivables and any other accounts receivable. At no time shall the aggregate principal amount of all advances outstanding exceed the lesser of (i) the Credit Limit and (ii) an amount equal to 85% of the Borrowing Base. The Company has not drawn any funds from the Credit Agreement. During the three and six months ended March 31, 2024 the Company incurred a standby charge of $13,000 and $25,000. There was no standby charge in the three and six months ended March 31, 2023.

Subsequent Events

Subsequent Events	6 Months Ended
	Mar. 31, 2024
Subsequent Events
Subsequent Events	11. Subsequent Events Subsequent to the quarter, we collected the receivable from 2023 SIF Agreement for $0.7 million from Canadian government.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Mar. 31, 2024
Basis of Presentation (Policies)
Use Of Estimates	The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period or year. Actual results could differ from those estimates. Areas where significant judgment is involved in making estimates are valuation of accounts and other receivable; valuation and useful lives of property and equipment; intangible assets; right-of-use assets; deferred income taxes; the determination of fair value of share-based compensation; the determination of fair value of warrants in order to allocate proceeds from equity issuances; and forecasting future cash flows for assessing the going concern assumption.
Functional And Reporting Currencies	The consolidated financial statements of the Company are presented in U.S. dollars, unless otherwise stated, which is the Company’s and its wholly owned subsidiary’s, Edesa Biotech USA, Inc., functional currency. The functional currency of the Company’s wholly owned subsidiary, Edesa Biotech Research, Inc., as determined by management, is Canadian dollars.

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Mar. 31, 2024
Intangible Assets
Schdule of intangible Assets	March 31, 2024 September 30, 2023 The Constructs $ 2,529,483 $ 2,529,483 Less: accumulated amortization (400,049 ) (349,463 ) Total intangible assets, net $ 2,129,434 $ 2,180,020
Estimated Future Amortization Of Intangible Assets	Year Ending September 30, 2024 $ 50,586 September 30, 2025 101,172 September 30, 2026 101,172 September 30, 2027 101,172 September 30, 2028 101,172 Thereafter 1,674,160 $ 2,129,434

Right of use Lease with Relat_2

Right of use Lease with Related Party (Tables)	6 Months Ended
	Mar. 31, 2024
Right of Use Lease with Related Party
Components of lease cost	Three Months Ended Six Months Ended March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 Right-of-use lease cost, included in general and administrative on the Statements of Operations $ 19,793 $ 21,443 $ 39,909 $ 40,342
Lease Terms And Discount Rates	March 31, 2024 September 30, 2023 Remaining lease term (months): 9 15 Estimated incremental borrowing rate: 9.2 % 9.2 %
Future Minimum Lease Payments	Year Ending September 30, 2024 $ 39,957 September 30, 2025 19,978 Total lease payments 59,935 Less imputed interest 1,792 Present value of right-of-use lease liabilities 58,143 Present value included in current liabilities 58,143 Present value included in long-term liabilities $ -
Cash Paid-lease Liabilities	Six Months Ended March 31, 2024 March 31, 2023 Cash paid for amounts included in the measurement of right-of-use lease liabilities, included in accounts payable and accrued liabilities on the Statements of Cash Flow. $ 39,957 $ 38,907

Commitments (Tables)

Commitments (Tables)	6 Months Ended
	Mar. 31, 2024
Commitments
Future Contractual Payments	Year Ending September 30, 2024 $ 433,000 September 30, 2025 49,000 September 30, 2026 36,000 September 30, 2027 42,000 September 30, 2028 - $ 560,000

Capital Shares (Tables)

Capital Shares (Tables)	6 Months Ended
	Mar. 31, 2024
Capital shares
Schdule of warrant activity	Number of Warrant Shares (#) Weighted Average Exercise Price Six Months Ended March 31, 2024 Balance - September 30, 2023 720,909 $ 19.51 Expired (110,122 ) 7.00 Balance - March 31, 2024 610,787 $ 21.76 Six Months Ended March 31, 2023 Balance - September 30, 2022 521,718 $ 28.00 Issued 384,496 8.75 Exercised (100,760 ) 7.63 Balance - March 31, 2023 805,454 $ 21.35
Summary of warrants outstanding	Number of Warrants (#) Exercise Prices Expiry Dates 1,070 $ 33.67 June 2024 1,687 C$ 22.40 January 2025 173,614 $ 10.50 December 2025 15,627 $ 56.00 February 2026 27,399 $ 31.94 March 2027 391,390 $ 24.64 September 2027 610,787
Schdule of granted fair value warrants outstanding	Six Months Ended March 31, 2023 Class A Warrants Class B Warrants Risk free interest rate 4.54 % 4.76 % Expected life 3.14 years 1.14 years Expected share price volatility 90.73 % 89.70 % Expected dividend yield 0.00 % 0.00 %
Schedule Of under 2019 Plan to purchase common shares	Number of Options (#) Weighted Average Exercise Price Weighted Average Grant Date Fair Value Six Months Ended March 31, 2024 Balance - September 30, 2023 420,615 $ 25.60 $ 18.84 Granted 500 4.10 3.10 Forfeited (1,333 ) 15.55 11.08 Expired (106 ) 596.82 596.82 Balance - March 31, 2024 419,676 $ 25.47 $ 18.70 Six Months Ended March 31, 2023 Balance - September 30, 2022 314,853 $ 32.62 $ 23.94 Granted 47,571 10.01 7.49 Expired (34 ) 2,129 2,129 Balance - March 31, 2023 362,390 $ 29.40 $ 21.63
Share Options under 2019 plan Share options Outstanding	Number of Options (#) Exercisable at March 31, 2024 (#) Range of Exercise Prices Expiry Dates 391 391 $ 246.96 - 596.82 June 2024 - Mar 2025 42,348 42,348 $ 15.12 May 2024 - Dec 2028 46,285 46,285 $ 22.12 May 2024 - Feb 2030 56,722 56,722 $ 52.08 - 56.49 May 2024 - Oct 2030 93,304 93,012 $ 36.75 - 40.18 Apr 2024 - Sep 2031 68,381 53,171 $ 20.58 - 25.97 Apr 2024 - Feb 2032 112,245 41,943 $ 4.10 - 10.01 Apr 2024 - Oct 2033 419,676 333,872
Summary of assumptions used for fair value of options granted	Six Months Ended March 31, 2024 Six Months Ended March 31, 2023 Risk free interest rate 4.92 % 3.62% - 4.18% Expected life 5 years 5 years Expected share price volatility 97.26 % 95.3% - 97.34 % Expected dividend yield 0.00 % 0.00 %
summary of changes in the status of RSUs	Number of RSU (#) Weighted Average Grant Date Fair Value Six Months Ended March 31, 2024 Balance - September 30, 2023 33,045 $ 5.60 Granted 8,651 4.77 Balance - March 31, 2024 41,696 $ 5.43
Summary of RSUs under the 2019 Plan outstanding and exercisable	Number of RSU (#) Expiry Date Fully-vested RSUs 33,045 August 2033 8,651 January 2034 - March 2034

Intangible Assets (Details)

Intangible Assets (Details) - USD ($)	Mar. 31, 2024	Sep. 30, 2023
Intangible Assets
The Constructs	$ 2,529,483	$ 2,529,483
Less: Accumulated Amortization	(400,049)	(349,463)
Total intangible assets, net	$ 2,129,434	$ 2,180,020

Intagible Assets (Details 1)

Intagible Assets (Details 1) - USD ($)	Mar. 31, 2024	Sep. 30, 2023
Intangible Assets
September 30, 2024	$ 50,586
September 30, 2025	101,172
September 30, 2026	101,172
September 30, 2027	101,172
September 30, 2028	101,172
Thereafter	1,674,160
Total	$ 2,129,434	$ 2,180,020

Intangible Assets (Details Narr

Intangible Assets (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Intangible Assets
Amortization Expense	$ 30	$ 50
Useful Life	25 years
Description Of Licence Agreement	The required upfront license payment of $2.5 million was paid by issuance of Series A-1 Convertible Preferred Shares, which have been fully converted to common shares

Right-of-Use Lease with Related

Right-of-Use Lease with Related Party (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
General and Administrative Expense
Right-of-use lease cost, included in general and administrative on the Statements of Operations	$ 19,793	$ 21,443	$ 39,909	$ 40,342

Right-of-Use Lease with Relat_2

Right-of-Use Lease with Related Party (Details 1)	6 Months Ended	12 Months Ended
	Mar. 31, 2024	Sep. 30, 2023
Right-of-Use Lease with Related Party (Details)
Remaining Lease Term (months)	9 months	15 months
Estimated Incremental Borrowing Rate	9.20%	9.20%

Right-of-Use Lease with Relat_3

Right-of-Use Lease with Related Party (Details 2) - USD ($)	Mar. 31, 2024	Sep. 30, 2023
Year Ending
September 30, 2024	$ 39,957
September 30, 2025	19,978
Total Lease Payment	59,935
Less Imputed Interest	1,792
Present value of right-of-use lease liabilities	58,143
Present value included in current liabilities	58,143	$ 74,714
Present value included in long-term liabilities	$ 0	$ 19,773

Right-of-Use Lease with Relat_4

Right-of-Use Lease with Related Party (Details 3) - USD ($)	6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Right-of-Use Lease with Related Party (Details)
Cash paid for amounts included in the measurement of right-of-use lease liabilities, included in accounts payable and accrued liabilities on the Statements of Cash Flow.	$ 39,957	$ 38,907

Commitments (Details)

Commitments (Details) $ in Millions	Mar. 31, 2024 USD ($)
Year Ending September 30,
September 30, 2024	$ 433,000
September 30, 2025	49,000
September 30, 2026	36,000
September 30, 2027	42,000
September 30, 2028	0
Total	$ 560,000

Commitments (Details Narrative)

Commitments (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Remaining payments of contingent	$ 356,000,000
2016 [Member] | License Commitments [Member]
Payments to investors			$ 18,400,000
Remaining payments of contingent	68,900,000
Payments to third party	0	$ 60,000	0	$ 120,000
2021 [Member] | License Commitments Agreement [Member]
Payments to investors	$ 250,000,000	$ 0	$ 500,000,000	$ 0

Capital Shares (Details)

Capital Shares (Details) - $ / shares	6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Capital shares
Number of warrants, beginning balance	720,909	521,718
Issued		384,496
Expired	(110,122)
Exercised		(100,760)
Number of warrants, ending balance	610,787	805,454
Weighted average exercise price, beginning balance	$ 19.51	$ 28
Issued		8.75
Expired	7
Exercised		7.63
Weighted average exercise price, ending balance	$ 21.76	$ 21.35

Capital Shares (Details 1)

Capital Shares (Details 1)	6 Months Ended
	Mar. 31, 2024 $ / shares shares	Mar. 31, 2024 $ / shares shares	Sep. 30, 2023 $ / shares shares	Mar. 31, 2023 $ / shares shares	Sep. 30, 2022 $ / shares shares
Number of warrants | shares	610,787	610,787	720,909	805,454	521,718
Weighted average exercise price | $ / shares	$ 21.76		$ 19.51	$ 21.35	$ 28
Warrant 1 [Member]
Number of warrants | shares	1,070	1,070
Weighted average exercise price | $ / shares	$ 33.67
Expiry date	June 2024
Warrant 2 [Member]
Number of warrants | shares	1,687	1,687
Weighted average exercise price | $ / shares		$ 22.40
Expiry date	January 2025
Warrant 4 [Member]
Number of warrants | shares	15,627	15,627
Weighted average exercise price | $ / shares	$ 56
Expiry date	February 2026
Warrant 5 [Member]
Number of warrants | shares	27,399	27,399
Weighted average exercise price | $ / shares	$ 31.94
Expiry date	March 2027
Warrant 6 [Member]
Number of warrants | shares	391,390	391,390
Weighted average exercise price | $ / shares	$ 24.64
Expiry date	September 2027
Warrant 3 [Member]
Number of warrants | shares	173,614	173,614
Weighted average exercise price | $ / shares	$ 10.50
Expiry date	December 2025

Capital Shares (Details 2)

Capital Shares (Details 2)	6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Expected life (years)	5 years	5 years
Expected share price volatility	97.26%
Expected dividend yield	0%	0%
Class A Warrants Member
Risk free interest rate	4.54%
Expected life (years)	3 years 1 month 20 days
Expected share price volatility	90.73%
Expected dividend yield	0%
Class B Warrants [Member]
Risk free interest rate	4.76%
Expected life (years)	1 year 1 month 20 days
Expected share price volatility	89.70%
Expected dividend yield	0%

Capital Shares (Details 3)

Capital Shares (Details 3) - $ / shares	6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Capital shares
Number of options, beginning balance	420,615	314,853
Number of options granted	500	47,571
Number of options Forfeited	1,333
Number of options expired	(106)	(34)
Number of options, ending balance	419,676	362,390
Weighted Average Exercise Price, beginning balance	$ 25.60	$ 32.62
Weighted average exercise price granted	4.10	10.01
Weighted average exercise price Forfeited	15.55
Weighted average exercise price expired	596.82	2,129
Weighted Average Exercise Price, ending balance	25.47	29.40
Weighted Average Grant Date Fair Value, beginning balance	18.84	23.94
Weighted Average Grant Date Fair Value, Granted	3.10	7.49
Weighted Average Grant Date Fair Value, Forfeited	11.08
Weighted Average Grant Date Fair Value, expired	596.82	2,129
Weighted Average Grant Date Fair Value, ending balance	$ 18.70	$ 21.63

Capital Shares (Details 4)

Capital Shares (Details 4) - $ / shares	6 Months Ended
	Mar. 31, 2024	Sep. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Sep. 30, 2019
Number of options	419,676	420,615	362,390	2,206,961	314,853	2,261,334	1,776,005	1,776,219	319,645
Options exercisable	333,872
Weighted average exercise price	$ 25.47	$ 25.60	$ 29.40		$ 32.62			$ 5.06
Stock Option 1
Number of options	391
Options exercisable	391
Stock Option 1 | Minumum
Weighted average exercise price	$ 246.96
Expiry dates	June 2024
Stock Option 1 | Maximum
Weighted average exercise price	$ 596.82
Expiry dates	Mar 2025
Stock Option 2
Number of options	42,348
Options exercisable	42,348
Weighted average exercise price	$ 15.12
Stock Option 2 | Minumum
Expiry dates	May 2024
Stock Option 2 | Maximum
Expiry dates	Dec 2028
Stock Option 3
Number of options	46,285
Options exercisable	46,285
Weighted average exercise price	$ 22.12
Stock Option 3 | Minumum
Expiry dates	May 2024
Stock Option 3 | Maximum
Expiry dates	Feb 2030
Stock Option 4
Number of options	56,722
Options exercisable	56,722
Stock Option 4 | Minumum
Weighted average exercise price	$ 52.08
Expiry dates	May 2024
Stock Option 4 | Maximum
Weighted average exercise price	$ 56.49
Expiry dates	Oct 2030
Stock Option 5
Number of options	93,304
Options exercisable	93,012
Stock Option 5 | Minumum
Weighted average exercise price	$ 36.75
Expiry dates	Apr 2024
Stock Option 5 | Maximum
Weighted average exercise price	$ 40.18
Expiry dates	Sep 2031
Stock Option 6
Number of options	68,381
Options exercisable	53,171
Stock Option 6 | Minumum
Weighted average exercise price	$ 20.58
Expiry dates	Apr 2024
Stock Option 6 | Maximum
Weighted average exercise price	$ 25.97
Expiry dates	Feb 2032
Stock Option 7 Member
Number of options	112,245
Options exercisable	41,943
Stock Option 7 Member | Minumum
Weighted average exercise price	$ 4.10
Expiry dates	Apr 2024
Stock Option 7 Member | Maximum
Weighted average exercise price	$ 10.01
Expiry dates	Oct 2033

Capital Shares (Details 5)

Capital Shares (Details 5)	6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Risk Free Interest Rate	4.92%
Expected Life (years)	5 years	5 years
Expected Share Price Volatility	97.26%
Expected Dividend Yield	0%	0%
Maximum
Risk Free Interest Rate		4.18%
Expected Share Price Volatility		97.34%
Minumum
Risk Free Interest Rate		3.62%
Expected Share Price Volatility		95.30%

Capital Shares (Details 6)

Capital Shares (Details 6) - $ / shares	6 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Weighted Average Grant Date Fair Value, Beginning balance	$ 18.84	$ 23.94
Weighted Average Grant Date Fair Value, Ending balance	$ 18.70	$ 21.63
Restricted Stock Member
Number of restricted stock option, Beginning balance	33,045
Number of restricted stock option, Granted	8,651
Number of restricted stock option, Ending balance	41,696
Weighted Average Grant Date Fair Value, Beginning balance	$ 5.60
Weighted Average Grant Date Fair Value, Granted	4.77
Weighted Average Grant Date Fair Value, Ending balance	$ 5.43

Capital Shares (Details 7)

Capital Shares (Details 7) - Restricted Stock Member	6 Months Ended
	Mar. 31, 2024 shares
Number of vested restricted stock option, Outstanding and exercisable	33,045
Number of vested restricted stock option, expiry date	August 2033
Number of vested restricted stock option, Outstanding and exercisable Granted	8,651
Maximum
Number of vested restricted stock option, Granted expiry date	March 2034
Minumum
Number of vested restricted stock option, Granted expiry date	January 2034

Capital Shares (Details Narrati

Capital Shares (Details Narrative) - USD ($)		1 Months Ended	3 Months Ended		6 Months Ended
	Nov. 02, 2022	Mar. 27, 2023	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Sep. 30, 2023	Sep. 30, 2022
Weighted average contractual life remaining on outstanding options					35 months
Share-based compensation			$ 100,000	$ 300,000	$ 300,000	$ 600,000
Unrecognized share-based compensation			$ 200,000		$ 200,000
Gross Proceeds		$ 20,000,000
Class of Warrant or Right, Exercise Price of Warrants or Rights			$ 21.76	$ 21.35	$ 21.76	$ 21.35	$ 19.51	$ 28
Aggregate gross sales price		$ 8,400,000
Common share sold during period					140,495
Proceeds from share sold during period					$ 500,000
Warrants Additional Paid In Capital [Member]
Gross Proceeds	$ 1,200,000
NovemberTwoTwoThousandTwentyTwo[Member]
Gross Proceeds	$ 2,900,000
Warrant expiry date	Dec. 23, 2022
Units of Common Shares	384,475
Black Scholes Option [Member]
Expected term					10 years
Grant date					5 years
Board of directors [Member]
Granted option shares					500
Expected Option Forfeitures Term					10 years
Employees [Member]
Granted option shares					85,804
Class of Warrant or Right, Exercise Price of Warrants or Rights			10.70		$ 10.70
Expected Option Forfeitures Term					107 months
Employees One [Member]
Intrinsic value					$ 7
Class of Warrant or Right, Exercise Price of Warrants or Rights			$ 29.27		$ 29.27
Expected Option Forfeitures Term					72 months
2019 Plan [Member]
Weighted average contractual life remaining on outstanding options					79 months
Number Of Shares Available For Issuance					575,737
Option Term					10 years
Remaining Number Of Options Available For Grant					69,728
Class A Warrants Member
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 10.50
Warrant expiry date	Dec. 23, 2025
Warrants to purchase common shares	192,248
Class B Warrants [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 7
Warrant expiry date	Dec. 23, 2023
Warrants to purchase common shares	192,248

Government Contributions (Detai

Government Contributions (Details Narrative) - USD ($) $ in Millions	1 Months Ended		3 Months Ended	6 Months Ended
	Oct. 31, 2023	Feb. 28, 2021	Mar. 31, 2024	Mar. 31, 2024
Description of expiry of agreement				The Agreement will expire on the later of December 31, 2042 or the date of the last repayment, unless earlier terminated, subject to certain provisions that extend three (3) years beyond the term or early termination of the Agreement
February 2021 | SIF Agreement Member
Grant income			$ 0.3	$ 0.4
Non repayable funding amount support R&D		$ 14.1
October 2023 | SIF Agreement Member
Description of SIF Agreement	(i) conducting and completing the Company’s Phase 3 clinical study of its experimental drug EB05 in critical-care patients with Acute Respiratory Distress Syndrome (ARDS) caused by COVID-19 or other infectious agents, (ii) submitting EB05 for governmental approvals and manufacturing scale-up, following, and subject to, completing the Phase 3 study and (iii) conducting two non-clinical safety studies to assess the potential long-term impact of EB05 exposure (the Project). Of the C$23 million committed by SIF, up to C$5.8 million is not repayable by the Company. The remaining C$17.2 million is conditionally repayable starting in 2029 only if and when the Company earns gross revenue. The repayable portion would be payable over fifteen (15) years based on a percentage rate of the Company’s annual revenue growth. The maximum amount repayable under the Agreement is 1.4 times the original repayable amount. In addition, the Company is entitled to partial reimbursement of certain eligible expenses under the Agreement
Repayable payment duration	15 years

Financial Instruments (Details

Financial Instruments (Details Narrative) $ in Millions	6 Months Ended
	Mar. 31, 2024 CAD ($) $ / shares
USD to CAD [Member]
Currency exchange rate | $ / shares	$ 1.3545
Ontario Subsidary [Member]
Assets | $	$ 1.9
Currency exchange rate description	Based on the exposure at March 31, 2024, a 10% annual change in the Canadian/U.S. exchange rate would impact the Company’s loss and other comprehensive loss by approximately $0.1 million

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
	Mar. 31, 2024	Mar. 31, 2024	Mar. 31, 2023	Oct. 31, 2023
Rent expense		$ 7,000
CEO [Member]
Rent expense		$ 20,000	$ 40,000
October 2023 | Revolving Credit Facility [Member]
Revolving credit				$ 10,000,000
Interest Rate		3%
Maturity date		Mar. 31, 2026
Incurred charge payment	$ 13,000	$ 25,000
Credit limit				$ 3,500,000

Subsequent events (Details Narr

Subsequent events (Details Narrative)	6 Months Ended
	Mar. 31, 2024 USD ($) shares
Subsequent Events
Common shares issued | shares	0
Account receivable	$ 700,000
Gross proceeds	$ 0