0001654954-22-016633 | 10-K | XBRL Viewer

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Cover - USD ($)	12 Months Ended
Cover - USD ($)	Sep. 30, 2022	Dec. 14, 2022	Mar. 31, 2022
Cover [Abstract]
Entity Registrant Name	EDESA BIOTECH, INC
Entity Central Index Key	0001540159
Document Type	10-K
Amendment Flag	false
Entity Voluntary Filers	No
Current Fiscal Year End Date	--09-30
Entity Well Known Seasoned Issuer	No
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Sep. 30, 2022
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2022
Entity Common Stock Shares Outstanding		19,353,351
Entity Public Float			$ 35,987,404
Document Annual 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
Auditor Name	MNP LLP
Auditor Location	Toronto, Canada
Auditor Firm Id	1930

Consolidated Balance Sheets - USD ($)	Sep. 30, 2022	Sep. 30, 2021
Current assets:
Cash and cash equivalents	$ 7,090,919	$ 7,839,259
Accounts and other receivable	1,255,451	3,302,827
Prepaid expenses and other current assets	745,543	948,645
Total current assets	9,091,913	12,090,731
Non-current assets:
Property and equipment, net	12,694	14,989
Long term deposits	171,464	0
Intangible asset, net	2,281,192	2,382,364
Right-of-use assets	18,465	96,571
Total assets	11,575,728	14,584,655
Current liabilities:
Accounts payable and accrued liabilities	2,121,802	1,379,842
Short-term right-of-use lease liabilities	18,975	78,808
Total current liabilities	2,140,777	1,458,650
Non-current liabilities:
Long-term payables	43,662	47,202
Long-term right-of-use lease liabilities	0	20,512
Total liabilities	2,184,439	1,526,364
Shareholders' equity:
Capital shares Authorized unlimited common and preferred shares without par value Issued and outstanding 16,662,014 common shares (September 30, 2021 - 13,295,403):	42,473,099	34,887,721
Additional paid-in capital	11,176,345	4,871,461
Accumulated other comprehensive loss	(213,602)	(205,262)
Accumulated deficit	(44,044,553)	(26,495,629)
Total shareholders' equity	9,391,289	13,058,291
Total liabilities and shareholders' equity	$ 11,575,728	$ 14,584,655

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2022	Sep. 30, 2021
Consolidated Balance Sheets
Capital Shares, Par Value	$ 0	$ 0
Capital Shares, Issued	16,662,014	13,295,403
Capital Shares, Outstanding	16,662,014	13,295,403

Consolidated Statements of Operations and Comprehensive Loss - USD ($)	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Expenses:
Research and development	$ 13,335,334	$ 17,947,072
General and administrative	5,035,456	5,734,260
Loss from Operations	(18,370,790)	(23,681,332)
Other Income (Loss):
Reimbursement grant income	780,257	10,340,839
Interest income	63,523	11,165
Foreign exchange loss	(21,114)	(13,022)
Other income expense	822,666	10,338,982
Loss before income taxes	(17,548,124)	(13,342,350)
Income tax expense	800	800
Net Loss	(17,548,924)	(13,343,150)
Exchange differences on translation	(8,340)	81,942
Net Comprehensive Loss	$ (17,557,264)	$ (13,261,208)
Weighted average number of common shares	16,662,014	12,077,822
Loss per common share - basic and diluted	$ (1.05)	$ (1.10)

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Sep. 30, 2022	Sep. 30, 2021
Cash Flows from Operating Activities:
Net loss	$ (17,548,924)	$ (13,343,150)
Adjustments for:
Depreciation and amortization	118,188	118,788
Share-based compensation	2,260,634	3,195,469
Changes in working capital items:
Accounts and other receivable	(2,027,454)	(3,229,954)
Prepaid expenses and other current assets	(19,497)	(281,361)
Accounts payable and accrued liabilities	882,843	(124,724)
Net cash used in operating activities	(12,279,302)	(13,664,932)
Cash Flows from Investing Activities:
Purchase of property and equipment	(5,656)	(6,146)
Net cash used in investing activities	(5,656)	(6,146)
Cash Flows from Financing Activities:
Proceeds from issuance of common shares and warrants	11,957,687	12,662,357
Proceeds from exercise of warrants	0	1,658,769
Proceeds from exercise of share options	0	41,981
Payments for issuance costs of common shares	(328,059)	(188,366)
Net cash provided by financing activities	11,629,628	14,174,741
Effect of exchange rate changes on cash and cash equivalents	(93,010)	121,901
Net change in cash and cash equivalents	(748,340)	625,564
Cash and cash equivalents, beginning of year	7,839,259	7,213,695
Cash and cash equivalents, end of year	7,090,919	7,839,259
Supplemental Disclosure of Noncash Financing Activities:
Preferred shares converted from temporary equity to common shares	0	2,496,480
Issuance costs withheld from gross proceeds from issuance of common shares and warrants	393,461	1,087,184
Fair value of placement agent/underwriter warrants	$ 408,059	$ 407,022

Consolidated Statements of Changes in Shareholders Equity - USD ($)	Total	Common Shares	Additional Paid-In Capital	Accumulated other comprehensive loss	Accumulated Deficit
Balance, amount at Sep. 30, 2020	$ 6,631,175	$ 18,500,853	$ 1,550,480	$ (287,204)	$ (13,132,954)
Balance, shares at Sep. 30, 2020		9,615,119
Issuance of common shares and warrants in equity offering, shares		2,148,963
Issuance of common shares and warrants in equity offering, amount	13,749,541	$ 13,749,541	0	0	0
Issuance costs including fair value of underwriter warrants	(1,434,391)	$ (1,841,413)	407,022	0	0
Issuance of common shares upon exercise of warrants, shares		381,650
Issuance of common shares upon exercise of warrants, amount	1,658,769	$ 1,912,725	(253,956)	0	0
Issuance of common shares upon exercise of share options, shares		19,746
Issuance of common shares upon exercise of share options, amount	41,981	$ 69,535	(27,554)	0	0
Conversion of convertible preferred shares, amount	2,496,480	$ 0	2,496,480	0	0
Conversion of convertible preferred shares, shares		1,129,925
Preferred return on convertible preferred shares, amount	(19,525)	$ 0	0	0	(19,525)
Share-based compensation	3,195,469	0	3,195,469	0	0
Net loss and comprehensive loss	(13,261,208)	$ 0	0	81,942	(13,343,150)
Balance, shares at Sep. 30, 2021		13,295,403
Balance, amount at Sep. 30, 2021	13,058,291	$ 34,887,721	4,871,461	(205,262)	(26,495,629)
Issuance of common shares and warrants in equity offering, shares		2,166,884
Issuance of common shares and warrants in equity offering, amount	12,941,474	$ 6,239,181	6,702,293	0	0
Share-based compensation	2,260,634	0	2,260,634	0	0
Net loss and comprehensive loss	(17,557,264)	0	0	(8,340)	(17,548,924)
Issuance costs including fair value of placement agent warrants	(1,311,965)	$ (863,227)	(448,738)	0	0
Issuance of common shares upon exercise of pre-funded warrants, net of costs, shares		1,199,727
Issuance of common shares upon exercise of pre-funded warrants, net of costs, amount	120	$ 2,209,424	(2,209,304)	0	0
Balance, shares at Sep. 30, 2022		16,662,014
Balance, amount at Sep. 30, 2022	$ 9,391,289	$ 42,473,099	$ 11,176,345	$ (213,602)	$ (44,044,553)

Nature of operations

12 Months Ended

Sep. 30, 2022

Nature of operations

1. 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”.

Liquidity

The Company’s operations have historically been funded through issuances of common shares, exercises of common share purchase warrants, convertible preferred shares, convertible loans, government grants and tax incentives. For the years ended September 30, 2022 and 2021, the Company reported net losses of $17.55 million and $13.34 million, respectively.

Under the Company’s contribution agreement with the Canadian government’s Strategic Innovation Fund (SIF), the Company is eligible to receive cash reimbursements up to C$14.05 million ($11 million USD) in the aggregate for certain research and development expenses related to the Company’s EB05 clinical development program. For the years ended September 30, 2022 and 2021, the Company recorded $0.78 million and $10.34 million in grant income, respectively.

In March 2022, the Company completed a registered direct offering of 1,540,000 common shares, no par value, and pre-funded warrants to purchase up to an aggregate of 1,199,727 common shares. In a concurrent private placement, the Company issued common share purchase warrants to purchase an aggregate of up to 2,739,727 common shares. Net proceeds to the Company were approximately $9.01 million.

In March 2021, the Company completed a registered public offering of an aggregate of 1,562,500 common shares, no par value, for net proceeds of $8.89 million, after deducting underwriter fees and related offering expenses.

During the years ended September 30, 2022 and 2021, the Company sold a total of 626,884 common shares for net proceeds of $2.62 million and 586,463 common shares for net proceeds of $3.42 million, respectively, under an at-the-market equity offering program.

For year ended September 30, 2021, the exercise of warrants and options resulted in the issuance of 401,396 common shares and net cash proceeds to the Company of $1.7 million.

At September 30, 2022, the Company had cash and cash equivalents of $7.09 million, working capital of $6.95 million, shareholders’ equity of $9.39 million and an accumulated deficit of $44.04 million.

Subsequent to September 30, 2022, in November 2022, the Company completed a private placement of units consisting of 2,691,337 common shares, twelve-month warrants to purchase up to an aggregate of 1,345,665 common shares and three-year warrants to purchase up to an aggregate of 1,345,665 common shares. The gross proceeds from this offering were approximately $3.0 million, before offering expenses.

The Company plans to finance operations for at least the next twelve months with cash and cash equivalents on hand, including net proceeds of the November 2022 equity offering, and reimbursements of eligible research and development expenses under the Company’s agreement with the Canadian government’s SIF.

Basis of presentation

12 Months Ended

Sep. 30, 2022

Basis of presentation

2. Basis Of Presentation

2. Basis of preparation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) and include the accounts of the Company and its wholly owned subsidiaries, Edesa Biotech Research, Inc. and Edesa Biotech USA, Inc. All intercompany balances and transactions have been eliminated upon consolidation.

The accompanying consolidated financial statements include the years ended September 30, 2022 and 2021.

Significant accounting policies

12 Months Ended

Sep. 30, 2022

Significant accounting policies

3.Significant accounting policies

3. Significant accounting 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; operating lease 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.

Cash and cash equivalents

Cash and cash equivalents consist of demand deposits with financial institutions held in checking, savings and money market mutual funds and highly liquid investments which are readily convertible into cash with maturities of three months or less when purchased. The carrying amount of cash and cash equivalents approximates its fair value due to its short-term nature.

Accounts and other receivable

The Company assesses the collectability of its accounts receivable through a review of its current aging and payment terms, as well as an analysis of its historical collection rate, general economic conditions and credit status of the government agencies. Accounts and other receivable include reimbursement grant income for the Company’s federal grant with the Canadian government’s Strategic Innovation Fund (SIF) and Harmonized Sales Tax (HST) refunds receivable. As of September 30, 2022, all outstanding accounts, grants and HST refunds receivable were deemed to be fully collectible, and therefore, no allowance for doubtful accounts was recorded.

Property and equipment

Property and equipment are recorded at historical cost less accumulated depreciation and any accumulated impairment losses. Depreciation is recorded to write off the cost of assets less their residual values over their useful lives, using the declining balance and straight-line methods. Maintenance and repair expenditures that do not improve or extend the life are expensed in the period incurred. Any gain or loss arising on the disposal or retirement of an item of property and equipment is recognized as the difference between the sales proceeds and the carrying amount of the asset. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each year, with the effect of any changes in estimate accounted for on a prospective basis.

The depreciation policy for the principal asset categories are calculated as follows:

Computer equipment 30% declining balance method or straight line 3 years

Furniture and equipment 20% declining balance method

Intangible assets

Intangible assets represent the exclusive world-wide rights to know-how, patents and data relating to certain monoclonal antibodies (the Constructs), including sublicensing rights, acquired by entering into a license agreement with a pharmaceutical development company. 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. Intangible assets are stated at their historical cost, amortized on a straight-line basis over their expected useful lives, which is 25 years, and subject to impairment review at the end of each reporting period.

Impairment of long-lived assets

Long-lived assets are tested for impairment when indicators of impairment exist. When a significant change in the expected timing or amount of the future cash flows of the financial asset is identified, the carrying amount of the financial asset is reduced and the amount of the write-down is recognized as a loss. A previously recognized impairment loss may be reversed to the extent of the improvement, provided it is not greater than the amount that would have been reported at the date of the reversal had the impairment not been recognized previously, and the amount of the reversal is recognized in net income (loss).

Right-of-Use assets

The Company recognizes lease right-of-use (ROU) assets and lease liabilities on the balance sheet for leases with terms longer than 12 months. The Company follows the ongoing practical expedient not to recognize lease right-of-use assets and lease liabilities for short-term leases. The ROU assets are initially measured at cost and amortized using the straight-line method through the end of the lease term. The lease liabilities are initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using our incremental borrowing rate.

Fair value measurement

The Company uses the fair value measurement framework for valuing financial assets and liabilities. See Note 11.

Revenue recognition

Reimbursement grant income is recognized based on the reimbursement rate included in the government contribution agreement when allowable expenses have been incurred.

Research and development

Research and development expenses principally consist of (i) contract research organizations for clinical trial management services, (ii) contract manufacturing organizations for manufacturing the drug compound(s) for use in clinical trials and (iii) salaries of employees directly involved in research and development efforts. Research and development costs are expensed as incurred.

Share-based compensation

The Company measures the cost of equity-settled transactions by reference to the fair value of the equity instruments at the date at which they are granted since the fair value of the goods or services received by the Company cannot be reliably estimated.

The Company grants options to buy common shares of the Company to its directors, officers, employees and consultants, and grants other equity- based instruments such as warrants to non-employees. The fair value of share-based compensation is measured on the date of grant, using the Black-Scholes option valuation model and is recognized over the vesting period for employees or the service period for non-employees, net of forfeitures as they occur. The provisions of the Company’s share-based compensation plans do not require the Company to settle any options by transferring cash or other assets, and therefore the Company classifies the awards as equity. The Black-Scholes option valuation model requires the input of subjective assumptions, including price volatility of the underlying common shares, risk-free interest rate, dividend yield, and expected life of the option.

Translation of foreign currency transactions

The Company’s reporting currency is the U.S. dollar. The financial statements of the wholly owned Canadian subsidiary is measured using the Canadian dollar as the functional currency. Assets and liabilities of the Canadian operation have been translated at year-end exchange rates and related revenue and expenses have been translated at average exchange rates for the year. Accumulated gains and losses resulting from the translation of the financial statements of the Canadian operation are included as part of accumulated other comprehensive loss, a separate component of shareholders’ equity.

For other transactions denominated in currencies other than the Company’s functional currency, the monetary assets and liabilities are translated at the year-end rates. Revenue and expenses are translated at rates of exchange prevailing on the transaction dates. Non-monetary balance sheet and related income statement accounts are remeasured into U.S. dollar using historical exchange rates. All of the exchange gains or losses resulting from these other transactions are recognized in the statements of operations and comprehensive loss.

Income taxes

Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the tax bases of assets and liabilities and their financial statement reported amounts using enacted tax rates and laws in effect in the year in which the differences are expected to reverse. A valuation allowance is provided against deferred tax assets when it is determined to be more likely than not that the deferred tax asset will not be realized.

The Company assesses the likelihood of the financial statement effect of a tax position that should be recognized when it is more likely than not that the position will be sustained upon examination by a taxing authority based on the technical merits of the tax position, circumstances, and information available as of the reporting date. The Company is subject to examination by taxing authorities in Canada and the U.S. Management does not believe that there are any uncertain tax positions that would result in an asset or liability for taxes being recognized in the accompanying financial statements. The Company recognizes tax-related interest and penalties, if any, as a component of income tax expense.

The Company accounts for income taxes on a tax jurisdictional basis. The Company files income tax returns in Canada, the provinces of British Columbia and Ontario, the U.S. and the state of California.

Earnings (loss) per share

Basic earnings (loss) per share is calculated by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the period.

The computation of diluted earnings (loss) per share assumes the conversion, exercise or contingent issuance of securities only when such conversion, exercise or issuance would have a dilutive effect on earnings (loss) per share. The dilutive effect of convertible securities would be reflected in diluted earnings per share by application of the “if converted” method. The dilutive effect of outstanding options and warrants and their equivalents would be reflected in diluted earnings per share by application of the treasury stock method. However, conversion of outstanding convertible preferred shares, options and warrants would have an antidilutive effect on loss per share for the years ended September 30, 2022 and 2021 and are therefore excluded from the computation of diluted loss per share. See Note 8 for options and warrants at September 30, 2022 and 2021. See Note 13 for subsequent issuance of common shares and warrants.

Segmented Information

The Company’s operations comprise a single reportable segment engaged in the research and development, manufacturing and commercialization of innovative pharmaceutical products. As the operations comprise a single reportable segment, amounts disclosed in the consolidated financial statements for net loss, comprehensive loss, depreciation and total assets also represent segmented amounts.

Adoption of Recent Accounting Pronouncements

On October 1, 2021, the Company adopted Accounting Standards Update ("ASU") 2019-12, Simplifying the Accounting for Income Taxes, which modified ASC Topic 740, Income Taxes to among other things, remove certain exceptions to the general principles in ASC 740 and seek more consistent application by clarifying and amending the existing guidance. The Company did not adjust deferred income taxes as a result of adoption and there was no impact to opening accumulated deficit.

Future accounting pronouncements

In December 2021, the FASB issued ASU 2021-10, Disclosure by Business Entities About Government Assistance, modifying ASC Topic 832, Government Assistance. The amendments in ASU 2021-10 require disclosure of information about certain types of government assistance received. The guidance is effective for public entities for fiscal years beginning after December 15, 2021, including interim periods within those years, with early adoption permitted. These standards are effective for the Company during the fiscal year ending September 30, 2023. Management expects that ASU 2021-10 will result in expanded disclosures about the Company’s government assistance received.

Property and equipment

12 Months Ended

Sep. 30, 2022

Property and equipment

4.Property and equipment

4. Property and equipment

Property and equipment, net consisted of the following:

	September 30, 2022			September 30, 2021

Computer equipment	$	46,674		$	42,855
Furniture and equipment		5,538			5,987

		52,212			48,842
Less: accumulated depreciation		(39,518	)		(33,853	)

Total property and equipment, net	$	12,694		$	14,989

Depreciation expense amounted to $6,991 and $8,323 for the years ended September 30, 2022 and 2021, respectively.

Intangible assets

12 Months Ended

Sep. 30, 2022

Intangible assets

5.Intangible assets

5. 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 7 for license commitments.

Intangible assets, net consisted of the following:

	September 30, 2022			September 30, 2021

The Constructs	$	2,529,483		$	2,529,483

Less: accumulated amortization		(248,291	)		(147,119	)

Total intangible assets, net	$	2,281,192		$	2,382,364

Amortization expense amounted to $101,172 for each of the years ended September 30, 2022, and 2021, respectively.

Total estimated future amortization of intangible assets for each fiscal year is as follows:

Year Ending
September 30, 2023	$	101,172
September 30, 2024		101,172
September 30, 2025		101,172
September 30, 2026		101,172
September 30, 2027		101,172
Thereafter		1,775,332

	$	2,281,192

Leases

12 Months Ended

Sep. 30, 2022

Leases

6.Leases

6. Leases

Related party right-of-use lease

The Company leases facilities used for executive offices from a related company for a six-year term through December 2022, with options to renew for another two-year term. The option period is not included in the right-of-use assets and lease liabilities.

The gross amounts of assets and liabilities related to the right-of-use lease were as follows:

	September 30, 2022		September 30, 2021
Assets:
Right-of-use assets	$	18,465	$	96,571

Liabilities:
Current:
Short-term right-of-use lease liabilities	$	18,975	$	78,808
Long-term:
Long-term right-of-use lease liabilities		-		20,512

Total right-of-use lease liabilities	$	18,975	$	99,320

The components of right-of-use lease cost were as follows:

	Years Ended
	September 30, 2022		September 30, 2021
Right-of-use lease cost, included in general and administrative on the Statements of Operations	$	80,375	$	81,207

Lease terms and discount rates were as follows:

	September 30, 2022			September 30, 2021
Remaining lease term (months):		3			15
Estimated incremental borrowing rate:		6.5	%		6.5	%

The approximate future minimum lease payments under right-of-use leases at September 30, 2022 were as follows:

Year Ending
September 30, 2023	$	19,181

Total lease payment		19,181
Less imputed interest		206

Present value of right-of-use lease liabilities included in current liabilities	$	18,975

Cash flow information was as follows:

	Years Ended
	September 30, 2022		September 30, 2021
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 Flows	$	80,377	$	81,209

Commitments

12 Months Ended

Sep. 30, 2022

Commitments

7. Commitments

7. 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. Aggregate future contractual payments at September 30, 2022 are as follows:

Year Ending
September 30, 2023	$	2,612,000
September 30, 2024		386,000
September 30, 2025		50,000
September 30, 2026		37,000
September 30, 2027		49,000

	$	3,134,000

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 certain know-how, patents and data relating to certain monoclonal antibodies (the Constructs), including sublicensing rights. An intangible asset for the acquired license has been recognized. See Note 5 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 royalty or sublicensing payments were made to the third party during the years ended September 30, 2022 and 2021. In connection with this license agreement and pursuant to a purchase agreement entered into in April 2020, the Company acquired drug substance of one of the Constructs for an aggregate purchase price of $5.0 million. Payments of $2.5 million were made for the drug substance during each of the years ended September 30, 2022 and 2021 and included in research and development expenses.

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 after deducting $0.2 million that is included in the commitments table above for the year ending September 30, 2023. 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. No license or royalty payments were made to the third party during the years ended September 30, 2022 and 2021, respectively.

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. For the years ended September 30, 2022 and 2021, the Company recorded expenses of $25,693 and $212,000, respectively, as a result of meeting milestones outlined in the 2021 license agreement. The Company is committed to remaining payments of up to an aggregate amount of $69.1 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 annually as long as the requirement to file an IND remains unfulfilled.

Retirement savings plan 401(k) contributions

Executive officers and employees of our California subsidiary are eligible to receive the Company’s non-elective safe harbor employer contribution of 3% of eligible compensation under a 401(k) plan to provide retirement benefits. Employees are 100% vested in employer contributions and in any voluntary employee contributions. Contributions to the 401(k) plan were $19,740 and $23,786 during the years ended September 30, 2022 and 2021, respectively.

Capital shares

12 Months Ended

Sep. 30, 2022

Capital shares

8. Capital Shares

8. Capital shares

Equity offerings

On March 24, 2022, the Company completed a registered direct offering of 1,540,000 common shares, no par value, and pre-funded warrants to purchase up to an aggregate of 1,199,727 common shares. In a concurrent private placement, the Company issued common share purchase warrants to purchase an aggregate of up to 2,739,727 common shares. Net proceeds from the offering were $9.01 million, which were allocated between the relative fair values of the common shares and pre-funded warrants issued (using a total fair value of $5.87 million) and the common share purchase warrants issued (using a total fair value of 4.13 million).

The common share purchase warrants were immediately exercisable at an exercise price of $3.52 per share and will expire on September 24, 2027. The pre-funded warrants were immediately exercisable at an exercise price of $0.0001 per share and do not expire. The warrants are considered contracts on the Company’s own shares and are classified as equity.

In connection with the offering, the Company issued warrants to purchase an aggregate of 191,780 common shares to certain affiliated designees of the placement agent as part of the placement agent’s compensation. The placement agent warrants are exercisable on or after March 24, 2022, at an exercise price of $4.5625 per share, and will expire on March 21, 2027 with a fair value of $0.41 million.

On March 2, 2021, the Company closed an underwritten offering of 1,562,500 common shares, no par value, at a price to the public of $6.40 per share less underwriting discounts and commissions. Net proceeds from the offering were $8.89 million. In connection with the offering, the Company issued underwriter warrants to purchase an aggregate of up to 109,375 common shares at an exercise price of $8.00 per share, expiring on February 26, 2026 with a fair value of $0.41 million.

Equity distribution agreements

On November 22, 2021, the Company entered into an equity distribution agreement with RBC Capital Markets, LLC (RBCCM), as sales agent. Pursuant to the terms of the agreement, as amended March 4, 2022, the Company could offer and sell common shares through an at-the-market equity offering program having an aggregate offering price of up to $15.4 million. During the year ended September 30, 2022, the Company sold a total of 626,884 common shares pursuant to the agreement for net proceeds of $2.62 million. The distribution agreement was terminated effective March 21, 2022.

On September 28, 2020, the Company entered into an equity distribution agreement with RBCCM, as sales agent, pursuant to which the Company could offer and sell, from time to time, common shares through an at-the-market equity offering program for up to $9.2 million in gross cash proceeds. The distribution agreement was terminated on February 25, 2021. During the year ended September 30, 2021, 586,463 shares were sold under the distribution agreement, resulting in net proceeds of $3.42 million.

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
Balance – September 30, 2020		992,721		$	4.92

Issued		109,375			8.00
Exercised		(381,650	)		4.35

Balance – September 30, 2021		720,446		$	5.69

Issued		2,931,507			3.59

Balance – September 30, 2022		3,651,953		$	4.00

The weighted average contractual life remaining on the outstanding warrants at September 30, 2022 is 50 months.

The following table summarizes information about the warrants outstanding at September 30, 2022:

Number of Warrants (#)		Exercise Prices	Expiry Dates
28,124	$	15.90	May 2023
563,685	$	4.80	July 2023
7,484	$	4.81	June 2024
11,778	$	3.20	January 2025
109,375	$	8.00	February 2025
191,780	$	4.56	March 2027
2,739,727	$	3.52	September 2027
3,651,953

The fair value of warrants issued during the years ended September 30, 2022 and 2021 was estimated using the Black-Scholes option valuation model using the following assumptions:

	Year Ended September 30, 2022						Year Ended September 30, 2021
	Common Warrants			Placement Agent Warrants			Underwriter Warrants

Risk free interest rate		2.37	%		2.37	%		0.67	%
Expected life	5.5 years			5 years			5 years
Expected share price volatility		87.09	%		87.09	%		94.20	%
Expected dividend yield		0.00	%		0.00	%		0.00	%

Pre-funded Warrants

A summary of the Company’s pre-funded warrant activity is as follows:

	Number of Pre-funded Warrant Shares (#)
Balance - September 30, 2021		-

Issued		1,199,727
Exercised		(1,199,727	)

Balance - September 30,2022		-

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 is 2,625,951 including shares available for the exercise of outstanding options under the 2019 Plan. The remaining number of options available for grant at September 30, 2022 is 422,252.

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
Balance – September 30, 2020		675,437		$	3.30	$	2.56

Granted		1,145,000			6.21		4.65
Exercised		(19,746	)		2.10		1.35
Forfeited		(22,566	)		6.02		4.02
Expired		(1,906	)		102.49		101.12

Balance – September 30, 2021		1,776,219		$	5.06	$	3.79

Granted		500,083			3.66		2.48
Forfeited		(26,954	)		6.56		4.97
Expired		(45,649	)		8.05		6.48

Balance – September 30, 2022		2,203,699		$	4.66	$	3.42

On February 28, 2022, the independent members of the Board of Directors granted a total of 415,083 options to employees of the Company pursuant to the 2019 Plan. The options have a term of 10 years with vesting in equal proportions over 36 months beginning on the grant date, and an exercise price equal to the Nasdaq closing price on the grant dates.

On February 28,2022 and March 28, 2022, the independent directors of the Board of Directors granted a total of 55,000 and 30,000 options, respectively, to existing and new directors of the Company pursuant to the 2019 Plan. The options have a term of 10 years and an exercise price equal to the Nasdaq closing price on the grant dates. Options for directors have monthly vesting in equal proportions over 12 months beginning on the grant date.

In October 2020 and April 2021, the independent members of the Board of Directors granted a total of 430,000 and 603,000 options, respectively, to directors, officers and employees of the Company pursuant to the 2019 Plan. The options have a term of 10 years and an exercise price equal to the Nasdaq closing price on the grant dates. Options granted for directors in April 2021 have monthly vesting in equal proportions over 12 months beginning on the grant date. Options granted for directors in October 2020 and all options for officers and current employees have monthly vesting in equal proportions over 36 months beginning on the grant date.

During the year ended September 30, 2021, the independent members of the Board of Directors granted a total of 112,000 options to new employees of the Company pursuant to the 2019 Plan. The options have a term of 10 years with vesting in equal proportions over 36 months beginning on the monthly anniversary of the grant date following 90 days of employment, and an exercise price equal to the Nasdaq closing price on the grant dates.

The aggregate intrinsic value of options outstanding at September 30, 2021 was $4.46 million. The aggregate intrinsic value of options exercised during the year ended September 30, 2021 was $0.09 million. There were no options exercised during the year ended September 30, 2022 and no intrinsic value of options outstanding at September 30, 2022.

The weighted average contractual life remaining on the outstanding options at September 30, 2022 is 96 months.

The following table summarizes information about the options under the 2019 Plan outstanding and exercisable at September 30, 2022:

Number of Options (#)		Exercisable at September 30, 2022 (#)		Range of Exercise Prices		Expiry Dates
	238		238	$	304.08	Dec 2022
	3,499		3,499	$	35.28-93.24	Sep 2023-Mar 2025
	296,403		296,403	C$	2.16	Aug 2027-Dec 2028
	323,976		293,810	$	3.16	Feb 2030
	397,000		264,550	$	7.44-8.07	Sep 2030-Oct 2030
	682,500		383,538	$	5.25-5.74	Jan 2031-Sep 2031
	500,083		146,396	$	2.94-3.71	Feb 2032-Mar 2032
	2,203,699		1,388,434

The options exercisable at September 30, 2022 had a weighted average exercise price of $4.51, no intrinsic value and a weighted average remaining life of 90 months. There were 815,265 options at September 30, 2022 that had not vested with a weighted average exercise price of $4.93 no intrinsic value and a weighted average remaining life of 105 months.

The fair value of options granted during the years ended September 30, 2022 and 2021 was estimated using the Black-Scholes option valuation model using the following assumptions:

	Years Ended
	September 30, 2022			September 30, 2021

Risk free interest rate	1.71% - 2.54		%	0.31%-0.90		%
Expected life	5 years			5 years
Expected share price volatility	85.91% - 86.59		%	85.33%-97.28		%
Expected dividend yield		0.00	%		0.00	%

The Company recorded $2,260,634 and $3,195,469 of share-based compensation expenses for the years ended September 30, 2022 and 2021, respectively.

As of September 30, 2022, the Company had approximately $1.04 million of unrecognized share-based compensation expense, which is expected to be recognized over a period of 28 months.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

Reimbursement Grant Income and Receivable

12 Months Ended

Sep. 30, 2022

Reimbursement Grant Income and Receivable

9. Reimbursement Grant Income And Receivable

9. Reimbursement Grant Income and Receivable

Reimbursement grant income for the Company’s federal grant with the Canadian government’s Strategic Innovation Fund (SIF) is recorded based on the claim period of eligible costs. At September 30,2022, grant reimbursements receivable of $1.1 million were included in accounts and other receivable.

Income Tax

12 Months Ended

Sep. 30, 2022

Income Tax

10.Income Tax

10. Income Tax

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

	Years Ended
	September 30, 2022			September 30, 2021

Net loss before recovery of income taxes	$	(17,548,000	)	$	(13,342,350	)
Canadian federal and provincial statutory income tax rate		26.5	%		26.5	%

Expected income tax recovery	$	(4,650,000	)	$	(3,536,000	)
Permanent differences and other adjustments		650,000			847,000
Effect of foreign currency and foreign tax rate differences		976,800			(309,200	)
Share issuance cost booked through equity or capitalization		(449,000	)		(447,000	)
Change in valuation allowance		3,473,000			3,446,000

Income tax expense	$	800		$	800

Components of the net deferred tax asset or liability

Deferred taxes are provided as a result of temporary differences that arise due to the difference between the income tax values and the carrying amount of assets and liabilities. Approximate deferred tax assets and liabilities are as follows:

	September 30, 2022			September 30, 2021

Non-capital losses carried forward - Canada	$	11,740,000		$	8,073,000
Non-capital losses carried forward - U.S.		1,631,000			1,628,000
Research and development tax credits		1,052,000			1,294,000
Share issuance and financing costs		686,000			628,000
Right-of-use lease liabilities		5,000			26,000
Other temporary differences		15,000			15,000

Subtotal	$	15,129,000		$	11,664,000
Less: valuation allowance		(15,093,000	)		(11,620,000	)

Total net deferred tax assets	$	36,000		$	44,000

Property and equipment	$	(15,000	)	$	(18,000	)
Right-of-use assets		(5,000	)		(26,000	)
Deferred share issuance costs		(16,000	)		-

Total deferred tax liabilities	$	(36,000	)	$	(44,000	)

Net deferred taxes	$	-		$	-

Realization of the deferred tax assets is dependent upon the generation of future taxable income, the amount and timing of which are uncertain. It is more likely than not that a tax benefit will not be realized. Accordingly, net deferred tax assets have been fully offset by a valuation allowance.

Non-capital losses, capital losses, and research and development credits generated by Edesa Biotech USA, Inc. prior to changes in share ownership that occurred as a result of the reverse acquisition are substantially limited. It is unlikely that tax losses totaling $25.6 million and credits totaling $0.6 million will be utilized to offset potential future taxable income before expiration and they are excluded from deferred tax assets above.

The approximate Canadian non-capital losses carried forward at September 30, 2022 expire as follows:

2025	C$	21,000
2026		56,000
2027		114,000
2028		233,000
2029		688,000
2030		860,000
2031		685,000
2032		673,000
2033		107,000
2034		1,941,000
2035		2,207,000
2036		2,216,000
2037		2,123,000
2038		3,500,000
2039		1,732,000
2040		7,992,000
2041		13,919,000
2042		21,408,000

Total	C$	60,475,000

Share issuance and financing costs will be fully amortized in 2026.

The U.S. non-capital losses carried forward at September 30, 2022 totaled approximately $7,666,000, which do not expire for federal taxes. The U.S. state research and development tax credits carried forward at September 30, 2022 totaled approximately $619,000, which do not expire for state taxes. The approximate U.S. state non-capital losses carried forward at September 30, 2022 expire as follows:

2039	$	70,000
2040		150,000
2041		68,000
2042		9,000

Total	$	297,000

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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+ Details

Financial instruments

12 Months Ended

Sep. 30, 2022

Financial instruments

11. Financial Instruments

11. 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.

Fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

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 Canadian Chartered Banks, U.S. banks 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 reimbursement grant and HST refunds receivable are not considered significant since amounts are due from the Canadian government’s Strategic Innovation Fund (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 September 30, 2022, the Company and its Canadian subsidiary had assets denominated in Canadian dollars of approximately C$6.9 million and the U.S. dollar exchange rate at this date was equal to 1.3742 Canadian dollars. Based on the exposure at September 30, 2022, a 10% annual change in the Canadian/U.S. exchange rate would impact the Company’s loss and other comprehensive loss by approximately $501,000.

(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.

Related party transactions

12 Months Ended

Sep. 30, 2022

Related party transactions

12. Related Party Transactions

12. Related party transactions

During each of the years ended September 30, 2022 and 2021, the Company paid cash for right-of-use lease of $81,000 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. Rents of approximately $22,000 were payable at September 30, 2022. No rent was payable at September 30, 2021.

Subsequent events

12 Months Ended

Sep. 30, 2022

Reimbursement Grant Income and Receivable

13.Subsequent events

13. Subsequent events

On November 2, 2022, the Company completed a private placement of units consisting of 2,691,337 common shares, twelve-month warrants to purchase up to an aggregate of 1,345,665 common shares and three-year warrants to purchase up to an aggregate of 1,345,665 common shares. The gross proceeds from this offering were approximately $3.0 million, before offering expenses.

Significant accounting policies (Policies)	12 Months Ended
Significant accounting policies (Policies)	Sep. 30, 2022
Significant accounting 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; operating lease 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.
Cash and cash equivalents	Cash and cash equivalents consist of demand deposits with financial institutions held in checking, savings and money market mutual funds and highly liquid investments which are readily convertible into cash with maturities of three months or less when purchased. The carrying amount of cash and cash equivalents approximates its fair value due to its short-term nature.
Accounts and other receivable	The Company assesses the collectability of its accounts receivable through a review of its current aging and payment terms, as well as an analysis of its historical collection rate, general economic conditions and credit status of the government agencies. Accounts and other receivable include reimbursement grant income for the Company’s federal grant with the Canadian government’s Strategic Innovation Fund (SIF) and Harmonized Sales Tax (HST) refunds receivable. As of September 30, 2022, all outstanding accounts, grants and HST refunds receivable were deemed to be fully collectible, and therefore, no allowance for doubtful accounts was recorded.
Property and equipment	Property and equipment are recorded at historical cost less accumulated depreciation and any accumulated impairment losses. Depreciation is recorded to write off the cost of assets less their residual values over their useful lives, using the declining balance and straight-line methods. Maintenance and repair expenditures that do not improve or extend the life are expensed in the period incurred. Any gain or loss arising on the disposal or retirement of an item of property and equipment is recognized as the difference between the sales proceeds and the carrying amount of the asset. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each year, with the effect of any changes in estimate accounted for on a prospective basis. The depreciation policy for the principal asset categories are calculated as follows: Computer equipment 30% declining balance method or straight line 3 years Furniture and equipment 20% declining balance method
Intangible assets	Intangible assets represent the exclusive world-wide rights to know-how, patents and data relating to certain monoclonal antibodies (the Constructs), including sublicensing rights, acquired by entering into a license agreement with a pharmaceutical development company. 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. Intangible assets are stated at their historical cost, amortized on a straight-line basis over their expected useful lives, which is 25 years, and subject to impairment review at the end of each reporting period.
Impairment of long-lived assets	Long-lived assets are tested for impairment when indicators of impairment exist. When a significant change in the expected timing or amount of the future cash flows of the financial asset is identified, the carrying amount of the financial asset is reduced and the amount of the write-down is recognized as a loss. A previously recognized impairment loss may be reversed to the extent of the improvement, provided it is not greater than the amount that would have been reported at the date of the reversal had the impairment not been recognized previously, and the amount of the reversal is recognized in net income (loss).
Right-of-Use assets	The Company recognizes lease right-of-use (ROU) assets and lease liabilities on the balance sheet for leases with terms longer than 12 months. The Company follows the ongoing practical expedient not to recognize lease right-of-use assets and lease liabilities for short-term leases. The ROU assets are initially measured at cost and amortized using the straight-line method through the end of the lease term. The lease liabilities are initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using our incremental borrowing rate.
Fair value measurement	The Company uses the fair value measurement framework for valuing financial assets and liabilities. See Note 11.
Revenue recognition	Reimbursement grant income is recognized based on the reimbursement rate included in the government contribution agreement when allowable expenses have been incurred.
Research and development	Research and development expenses principally consist of (i) contract research organizations for clinical trial management services, (ii) contract manufacturing organizations for manufacturing the drug compound(s) for use in clinical trials and (iii) salaries of employees directly involved in research and development efforts. Research and development costs are expensed as incurred.
Share-based compensation	The Company measures the cost of equity-settled transactions by reference to the fair value of the equity instruments at the date at which they are granted since the fair value of the goods or services received by the Company cannot be reliably estimated. The Company grants options to buy common shares of the Company to its directors, officers, employees and consultants, and grants other equity- based instruments such as warrants to non-employees. The fair value of share-based compensation is measured on the date of grant, using the Black-Scholes option valuation model and is recognized over the vesting period for employees or the service period for non-employees, net of forfeitures as they occur. The provisions of the Company’s share-based compensation plans do not require the Company to settle any options by transferring cash or other assets, and therefore the Company classifies the awards as equity. The Black-Scholes option valuation model requires the input of subjective assumptions, including price volatility of the underlying common shares, risk-free interest rate, dividend yield, and expected life of the option.
Translation of foreign currency transactions	The Company’s reporting currency is the U.S. dollar. The financial statements of the wholly owned Canadian subsidiary is measured using the Canadian dollar as the functional currency. Assets and liabilities of the Canadian operation have been translated at year-end exchange rates and related revenue and expenses have been translated at average exchange rates for the year. Accumulated gains and losses resulting from the translation of the financial statements of the Canadian operation are included as part of accumulated other comprehensive loss, a separate component of shareholders’ equity. For other transactions denominated in currencies other than the Company’s functional currency, the monetary assets and liabilities are translated at the year-end rates. Revenue and expenses are translated at rates of exchange prevailing on the transaction dates. Non-monetary balance sheet and related income statement accounts are remeasured into U.S. dollar using historical exchange rates. All of the exchange gains or losses resulting from these other transactions are recognized in the statements of operations and comprehensive loss.
Income taxes	Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the tax bases of assets and liabilities and their financial statement reported amounts using enacted tax rates and laws in effect in the year in which the differences are expected to reverse. A valuation allowance is provided against deferred tax assets when it is determined to be more likely than not that the deferred tax asset will not be realized. The Company assesses the likelihood of the financial statement effect of a tax position that should be recognized when it is more likely than not that the position will be sustained upon examination by a taxing authority based on the technical merits of the tax position, circumstances, and information available as of the reporting date. The Company is subject to examination by taxing authorities in Canada and the U.S. Management does not believe that there are any uncertain tax positions that would result in an asset or liability for taxes being recognized in the accompanying financial statements. The Company recognizes tax-related interest and penalties, if any, as a component of income tax expense. The Company accounts for income taxes on a tax jurisdictional basis. The Company files income tax returns in Canada, the provinces of British Columbia and Ontario, the U.S. and the state of California.
Earnings (loss) per share	Basic earnings (loss) per share is calculated by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the period. The computation of diluted earnings (loss) per share assumes the conversion, exercise or contingent issuance of securities only when such conversion, exercise or issuance would have a dilutive effect on earnings (loss) per share. The dilutive effect of convertible securities would be reflected in diluted earnings per share by application of the “if converted” method. The dilutive effect of outstanding options and warrants and their equivalents would be reflected in diluted earnings per share by application of the treasury stock method. However, conversion of outstanding convertible preferred shares, options and warrants would have an antidilutive effect on loss per share for the years ended September 30, 2022 and 2021 and are therefore excluded from the computation of diluted loss per share. See Note 8 for options and warrants at September 30, 2022 and 2021. See Note 13 for subsequent issuance of common shares and warrants.
Segmented Information	The Company’s operations comprise a single reportable segment engaged in the research and development, manufacturing and commercialization of innovative pharmaceutical products. As the operations comprise a single reportable segment, amounts disclosed in the consolidated financial statements for net loss, comprehensive loss, depreciation and total assets also represent segmented amounts.
Adoption of Recent Accounting Pronouncements	On October 1, 2021, the Company adopted Accounting Standards Update ("ASU") 2019-12, Simplifying the Accounting for Income Taxes, which modified ASC Topic 740, Income Taxes to among other things, remove certain exceptions to the general principles in ASC 740 and seek more consistent application by clarifying and amending the existing guidance. The Company did not adjust deferred income taxes as a result of adoption and there was no impact to opening accumulated deficit.
Future accounting pronouncements	In December 2021, the FASB issued ASU 2021-10, Disclosure by Business Entities About Government Assistance, modifying ASC Topic 832, Government Assistance. The amendments in ASU 2021-10 require disclosure of information about certain types of government assistance received. The guidance is effective for public entities for fiscal years beginning after December 15, 2021, including interim periods within those years, with early adoption permitted. These standards are effective for the Company during the fiscal year ending September 30, 2023. Management expects that ASU 2021-10 will result in expanded disclosures about the Company’s government assistance received.

Property and equipment (Tables)

12 Months Ended

Sep. 30, 2022

Property and equipment

Schedule of Property and equipment

	September 30, 2022			September 30, 2021

Computer equipment	$	46,674		$	42,855
Furniture and equipment		5,538			5,987

		52,212			48,842
Less: accumulated depreciation		(39,518	)		(33,853	)

Total property and equipment, net	$	12,694		$	14,989

Intangible Assets (Tables)

12 Months Ended

Sep. 30, 2022

Intangible assets

Intangible Assets

	September 30, 2022			September 30, 2021

The Constructs	$	2,529,483		$	2,529,483

Less: accumulated amortization		(248,291	)		(147,119	)

Total intangible assets, net	$	2,281,192		$	2,382,364

Estimated Future Amortization Of Intagible Assets

Year Ending
September 30, 2023	$	101,172
September 30, 2024		101,172
September 30, 2025		101,172
September 30, 2026		101,172
September 30, 2027		101,172
Thereafter		1,775,332

	$	2,281,192

Leases (Tables)

12 Months Ended

Sep. 30, 2022

Leases

Gross amount of asstes and liabilities in lease

	September 30, 2022		September 30, 2021
Assets:
Right-of-use assets	$	18,465	$	96,571

Liabilities:
Current:
Short-term right-of-use lease liabilities	$	18,975	$	78,808
Long-term:
Long-term right-of-use lease liabilities		-		20,512

Total right-of-use lease liabilities	$	18,975	$	99,320

Lease Cost Components

	Years Ended
	September 30, 2022		September 30, 2021
Right-of-use lease cost, included in general and administrative on the Statements of Operations	$	80,375	$	81,207

Lease Terms And Discount Rates

	September 30, 2022			September 30, 2021
Remaining lease term (months):		3			15
Estimated incremental borrowing rate:		6.5	%		6.5	%

Future Minimum Lease Payments

Year Ending
September 30, 2023	$	19,181

Total lease payment		19,181
Less imputed interest		206

Present value of right-of-use lease liabilities included in current liabilities	$	18,975

Cash Paid-lease Liabilities

	Years Ended
	September 30, 2022		September 30, 2021
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 Flows	$	80,377	$	81,209

Commitments (Tables)

12 Months Ended

Sep. 30, 2022

Commitments

Future Contractual Payments

Year Ending
September 30, 2023	$	2,612,000
September 30, 2024		386,000
September 30, 2025		50,000
September 30, 2026		37,000
September 30, 2027		49,000

	$	3,134,000

Capital Shares (Tables)

12 Months Ended

Sep. 30, 2022

Capital Shares (Tables)

Warrant Activity

	Number of Warrant Shares (#)			Weighted Average Exercise Price
Balance – September 30, 2020		992,721		$	4.92

Issued		109,375			8.00
Exercised		(381,650	)		4.35

Balance – September 30, 2021		720,446		$	5.69

Issued		2,931,507			3.59

Balance – September 30, 2022		3,651,953		$	4.00

Warrants Outstanding

Number of Warrants (#)		Exercise Prices	Expiry Dates
28,124	$	15.90	May 2023
563,685	$	4.80	July 2023
7,484	$	4.81	June 2024
11,778	$	3.20	January 2025
109,375	$	8.00	February 2025
191,780	$	4.56	March 2027
2,739,727	$	3.52	September 2027
3,651,953

fair value of warrants issued

	Year Ended September 30, 2022						Year Ended September 30, 2021
	Common Warrants			Placement Agent Warrants			Underwriter Warrants

Risk free interest rate		2.37	%		2.37	%		0.67	%
Expected life	5.5 years			5 years			5 years
Expected share price volatility		87.09	%		87.09	%		94.20	%
Expected dividend yield		0.00	%		0.00	%		0.00	%

Share Options

	Number of Options (#)			Weighted Average Exercise Price		Weighted Average Grant Date Fair Value
Balance – September 30, 2020		675,437		$	3.30	$	2.56

Granted		1,145,000			6.21		4.65
Exercised		(19,746	)		2.10		1.35
Forfeited		(22,566	)		6.02		4.02
Expired		(1,906	)		102.49		101.12

Balance – September 30, 2021		1,776,219		$	5.06	$	3.79

Granted		500,083			3.66		2.48
Forfeited		(26,954	)		6.56		4.97
Expired		(45,649	)		8.05		6.48

Balance – September 30, 2022		2,203,699		$	4.66	$	3.42

Pre-Funded Warrant Activity

	Number of Pre-funded Warrant Shares (#)
Balance - September 30, 2021		-

Issued		1,199,727
Exercised		(1,199,727	)

Balance - September 30,2022		-

Stock Options Outstanding

Number of Options (#)		Exercisable at September 30, 2022 (#)		Range of Exercise Prices		Expiry Dates
	238		238	$	304.08	Dec 2022
	3,499		3,499	$	35.28-93.24	Sep 2023-Mar 2025
	296,403		296,403	C$	2.16	Aug 2027-Dec 2028
	323,976		293,810	$	3.16	Feb 2030
	397,000		264,550	$	7.44-8.07	Sep 2030-Oct 2030
	682,500		383,538	$	5.25-5.74	Jan 2031-Sep 2031
	500,083		146,396	$	2.94-3.71	Feb 2032-Mar 2032
	2,203,699		1,388,434

Fair Value Of warrant Granted Assumptions

	Years Ended
	September 30, 2022			September 30, 2021

Risk free interest rate	1.71% - 2.54		%	0.31%-0.90		%
Expected life	5 years			5 years
Expected share price volatility	85.91% - 86.59		%	85.33%-97.28		%
Expected dividend yield		0.00	%		0.00	%

Income Tax (Tables)

12 Months Ended

Sep. 30, 2022

Income Tax

reconciliation of the combined Canadian federal to the approximate effective tax rate

	Years Ended
	September 30, 2022			September 30, 2021

Net loss before recovery of income taxes	$	(17,548,000	)	$	(13,342,350	)
Canadian federal and provincial statutory income tax rate		26.5	%		26.5	%

Expected income tax recovery	$	(4,650,000	)	$	(3,536,000	)
Permanent differences and other adjustments		650,000			847,000
Effect of foreign currency and foreign tax rate differences		976,800			(309,200	)
Share issuance cost booked through equity or capitalization		(449,000	)		(447,000	)
Change in valuation allowance		3,473,000			3,446,000

Income tax expense	$	800		$	800

Deferred taxes

	September 30, 2022			September 30, 2021

Non-capital losses carried forward - Canada	$	11,740,000		$	8,073,000
Non-capital losses carried forward - U.S.		1,631,000			1,628,000
Research and development tax credits		1,052,000			1,294,000
Share issuance and financing costs		686,000			628,000
Right-of-use lease liabilities		5,000			26,000
Other temporary differences		15,000			15,000

Subtotal	$	15,129,000		$	11,664,000
Less: valuation allowance		(15,093,000	)		(11,620,000	)

Total net deferred tax assets	$	36,000		$	44,000

Property and equipment	$	(15,000	)	$	(18,000	)
Right-of-use assets		(5,000	)		(26,000	)
Deferred share issuance costs		(16,000	)		-

Total deferred tax liabilities	$	(36,000	)	$	(44,000	)

Net deferred taxes	$	-		$	-

Canadian non-capital losses

2025	C$	21,000
2026		56,000
2027		114,000
2028		233,000
2029		688,000
2030		860,000
2031		685,000
2032		673,000
2033		107,000
2034		1,941,000
2035		2,207,000
2036		2,216,000
2037		2,123,000
2038		3,500,000
2039		1,732,000
2040		7,992,000
2041		13,919,000
2042		21,408,000

Total	C$	60,475,000

U.S. state non-capital losses

2039	$	70,000
2040		150,000
2041		68,000
2042		9,000

Total	$	297,000

Nature of operations (Details Narrative) - USD ($)		1 Months Ended		4 Months Ended	12 Months Ended
Nature of operations (Details Narrative) - USD ($)	Mar. 02, 2022	Nov. 30, 2022	Mar. 24, 2022	Mar. 31, 2022	Sep. 30, 2022	Sep. 30, 2021	Nov. 02, 2022
Reimbursement grant income					$ 780,000	$ 10,340,000
Net Loss					17,550,000	13,340,000
Common shares purchase		1,345,665					1,345,665
Research and development expenses					14,050,000.00	$ 11,000,000
Cash and cash equivalents					7,090,000.00
Working capital					6,950,000
Shareholders' equity					9,390,000
Accumulated deficit					$ 44,040,000.00
Issued					2,931,507	109,375
Net proceeds from the offering			$ 9,010,000.00
Private Placement [Member]
Common shares purchase		1,345,665
Placement of units consisting of common shares		2,691,337,000,000
Gross proceeds		$ 3,000,000.0
Warrants To Purchase Common Stock			2,739,727
March 2021 [Member]
Common shares in public offerings, shares	$ 1,562,500
Common shares in public offerings, value	$ 88,900
March 2022 [Member]
Common shares in public offerings, shares					$ 1,540,000
Issued					1,199,727
Warrants To Purchase Common Stock					2,739,727
Net proceeds from the offering					$ 9,010,000.00
Equity Distribution Agreement [Member] \| RBC Capital Markets, LLC [Member]
Issuance of common shares upon exercise of warrants						$ 401,396
Net cash proceeds					$ 26,200	34,200
Common Share Sold Aggregate Price				$ 15,400,000		$ 1,700,000
Common Shares Sold				626,884	626,884	586,463

Significant accounting policies (Details Narrative)	12 Months Ended
Significant accounting policies (Details Narrative)	Sep. 30, 2022
Operating leases with terms	12 years
Computer Equipment
Depreciation	30.00%
Useful life	3 years
Furniture and equipment
Depreciation	20.00%

Property and Equipment (Details) - USD ($)	Sep. 30, 2022	Sep. 30, 2021
Property and equipment, gross	$ 52,212	$ 48,842
Less: accumulated depreciation	(39,518)	(33,853)
Total property and equipment, net	12,694	14,989
Computer Equipment
Property and equipment, gross	46,674	42,855
Furniture and Equipment
Property and equipment, gross	$ 5,538	$ 5,987

Property and Equipment (Details Narrative) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Property and equipment
Depreciation expense	$ 6,991	$ 8,323

Intangible Assets (Details) - USD ($)	Sep. 30, 2022	Sep. 30, 2021
Intangible assets
The Constructs	$ 2,529,483	$ 2,529,483
Less: Accumulated Amortization	(248,291)	(147,119)
Intangible Assets, Net	$ 2,281,192	$ 2,382,364

Intagible Assets (Details 1)	Sep. 30, 2022 USD ($)
Intangible assets
September 30, 2023	$ 101,172
September 30, 2024	101,172
September 30, 2025	101,172
September30, 2026	101,172
September 30, 2027	101,172
Thereafter	1,775,332
Total	$ 2,281,192

Intangible Assets (Details Narrative) $ in Thousands	12 Months Ended
Intangible Assets (Details Narrative) $ in Thousands	Sep. 30, 2022 USD ($)
Intangible assets
Amortization Expense	$ 1,011,720
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

Leases (Details) - USD ($)	Sep. 30, 2022	Sep. 30, 2021
Assets:
Right-of-use assets	$ 18,465	$ 96,571
Current:
Short-term right-of-use lease liabilities	18,975	78,808
Long-term:
Long-term right-of-use lease liabilities	0	20,512
Total right of use lease liabilities	$ 18,975	$ 99,320

Leases (Details 1) - USD ($)	12 Months Ended
Leases (Details 1) - USD ($)	Sep. 30, 2022	Sep. 30, 2021
General and Administrative Expense
Right-of-use lease cost, included in general and administrative on the statements of operations	$ 80,375	$ 81,207

Leases (Details 2)	12 Months Ended
Leases (Details 2)	Sep. 30, 2022	Sep. 30, 2021
Leases
Remaining Lease Term (months)	3 years	15 years
Estimated Incremental Borrowing Rate	6.50%	6.50%

Leases (Details 3)	Sep. 30, 2022 USD ($)
Year Ending
September 30, 2023	$ 19,181
Total Lease Payment	19,181
Less Imputed Interest	206
Present value of right-of-use lease liabilities included in current liabilities	$ 18,975

Leases (Details 4) - USD ($)	12 Months Ended
Leases (Details 4) - USD ($)	Sep. 30, 2022	Sep. 30, 2021
Leases
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 flows	$ 80,377	$ 81,209

Leases (Details Narrative)	12 Months Ended
Leases (Details Narrative)	Sep. 30, 2022
Leases
Related Party Operating Lease Description	six-year term through December 2022, with options to renew for another two-year term.

Commitments (Details) $ in Millions	Sep. 30, 2022 USD ($)
Year Ending September 30,
September 30, 2023	$ 2,612,000
September 30, 2024	386,000
September 30, 2025	50,000
September 30, 2026	37,000
September 30, 2027	49,000
Total	$ 3,134,000

Commitments (Details Narrative) - USD ($)	12 Months Ended
Commitments (Details Narrative) - USD ($)	Sep. 30, 2022	Sep. 30, 2021
Employer contributions to 401K plan	$ 19,740,000,000	$ 23,786,000,000
Eligible compensarion,percentage	3.00%
April 2020 [Member] \| License Commitments [Member]
Remaining payments of contingent	$ 356,000,000
Expenses	$ 2,500,000.0
Description of acquired drugs	the Company acquired drug substance of one of the Constructs for an aggregate purchase price of $5.0 million. Payments of $2.5 million were made for the drug substance during each of the years ended September 30, 2022 and 2021 and included in research and development expenses
2021 [Member] \| License Commitments Agreement [Member]
Payments to investors	$ 69,100,000
License expenses	25,693	$ 212,000
2016 [Member] \| License Commitments [Member]
Payments to third party	$ 18,400,000

Capital Shares (Details) - $ / shares	12 Months Ended
Capital Shares (Details) - $ / shares	Sep. 30, 2022	Sep. 30, 2021
Number of warrants, beginning balance	720,446	992,721
Issued	2,931,507	109,375
Exercised		(381,650)
Weighted average exercise price, beginning balance	$ 5.69	$ 4.92
Issued	$ 3.59	8.00
Exercised		$ 4.35
Number of warrants, ending balance	3,651,953	720,446
Weighted average exercise price, ending balance	$ 4.00
Pre-Funded Warrant [Member]
Number of warrants, beginning balance	0
Issued	1,199,727
Exercised	(1,199,727)
Number of warrants, ending balance	0	0

Capital Shares (Details 1) - $ / shares	12 Months Ended
Capital Shares (Details 1) - $ / shares	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Number of warrants, beginning balance	3,651,953	720,446	992,721
Weighted average exercise price, beginning balance	$ 4.51	$ 5.69	$ 4.92
Warrant 1
Number of warrants, beginning balance	28,124
Weighted average exercise price, beginning balance	$ 15.90
Expiry date	May 2023
Warrant 2
Number of warrants, beginning balance	563,685
Weighted average exercise price, beginning balance	$ 4.80
Expiry date	July 2023
Warrant 3
Number of warrants, beginning balance	7,484
Weighted average exercise price, beginning balance	$ 4.81
Expiry date	June 2024
Warrant 4
Number of warrants, beginning balance	11,778
Weighted average exercise price, beginning balance	$ 3.20
Expiry date	January 2025
Warrant 5
Number of warrants, beginning balance	109,375
Weighted average exercise price, beginning balance	$ 8.00
Expiry date	February 2025
Warrant 6
Number of warrants, beginning balance	191,780
Weighted average exercise price, beginning balance	$ 4.56
Expiry date	March 2027
Waraant 7
Number of warrants, beginning balance	2,739,727
Weighted average exercise price, beginning balance	$ 3.52
Expiry date	September 2027

Capital Shares (Details 2)	12 Months Ended
Capital Shares (Details 2)	Sep. 30, 2022	Sep. 30, 2021
Common Warrants
Risk free interest rate	2.37%
Expected life (years)	5 years 6 months
Expected share price volatility	87.09%
Expected dividend yield	0.00%
Placement Agent Warrants
Risk free interest rate	2.37%
Expected life (years)	5 years
Expected share price volatility	87.09%
Expected dividend yield	0.00%
Underwriter Warrants
Risk free interest rate		0.67%
Expected life (years)		5 years
Expected share price volatility		94.20%
Expected dividend yield		0.00%

Capital Shares (Details 3) - USD ($)	12 Months Ended
Capital Shares (Details 3) - USD ($)	Sep. 30, 2022	Sep. 30, 2021
Capital shares
Number of options, beginning balance	1,776,219	675,437
Number of options granted	500,083	1,145,000
Number of options, exercised		(19,746)
Number of options, forfeited	(26,954)	(22,566)
Number of options expired	(45,649)	(1,906)
Weighted average exercise price, beginning balance	$ 5.06	$ 3.30
Weighted average exercise price granted	3.66	6.21
Weighted average exercise price exercised		2.10
Weighted average exercise price forfeited	6.56	6.02
Weighted average exercise price expired	$ 8.05	$ 102.49
Weighted average grant date fair value, beginning balance	$ 37,900	$ 25,600
Weighted average grant date fair value, granted	24,800	46,500
Weighted average grant date fair value, exercised		13,500
Weighted average grant date fair value, forfeited	49,700	40,200.00
Weighted average grant date fair value, expired	$ 64,800	$ 1,011,200
Number of options, ending balance	2,203,699	1,776,219
Weighted average exercise price, ending balance	$ 4.66	$ 5.06
Weighted average grant date fair value, ending balance	$ 34,200

Capital Shares (Details 4) - $ / shares	12 Months Ended
Capital Shares (Details 4) - $ / shares	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Number of options, beginning balance	2,203,699	1,776,219	675,437
Options exercisable	1,388,434
Weighted average exercise price, beginning balance	$ 4.66	$ 5.06	$ 3.30
Stock Option 7
Number of options, beginning balance	500,083
Options exercisable	146,396
Stock Option 7 \| Minumum
Weighted average exercise price, beginning balance	$ 2.94
Expiry dates	Feb 2032
Stock Option 7 \| Maximum
Weighted average exercise price, beginning balance	$ 3.71
Expiry dates	Mar 2032
Stock Option 1
Number of options, beginning balance	238
Options exercisable	238
Weighted average exercise price, beginning balance	$ 304.08
Expiry dates	Dec 2022
Stock Option 2
Number of options, beginning balance	3,499
Options exercisable	3,499
Stock Option 2 \| Minumum
Weighted average exercise price, beginning balance	$ 35.28
Expiry dates	Sep 2023
Stock Option 2 \| Maximum
Weighted average exercise price, beginning balance	$ 93.24
Expiry dates	Mar 2025
Stock Option 3
Number of options, beginning balance	296,403
Options exercisable	296,403
Weighted average exercise price, beginning balance	$ 2.16
Stock Option 3 \| Minumum
Expiry dates	Aug 2027
Stock Option 3 \| Maximum
Expiry dates	Dec 2028
Stock Option 4
Number of options, beginning balance	323,976
Options exercisable	293,810
Weighted average exercise price, beginning balance	$ 3.16
Expiry dates	Feb 2030
Stock Option 5
Number of options, beginning balance	397,000
Options exercisable	264,550
Stock Option 5 \| Minumum
Weighted average exercise price, beginning balance	$ 7.44
Expiry dates	Sep 2030
Stock Option 5 \| Maximum
Weighted average exercise price, beginning balance	$ 8.07
Expiry dates	Oct 2030
Stock Option 6
Number of options, beginning balance	682,500
Options exercisable	383,538
Stock Option 6 \| Minumum
Weighted average exercise price, beginning balance	$ 5.25
Expiry dates	Jan 2031
Stock Option 6 \| Maximum
Weighted average exercise price, beginning balance	$ 5.74
Expiry dates	Sep 2031

Capital Shares (Details 5)	12 Months Ended
Capital Shares (Details 5)	Sep. 30, 2022	Sep. 30, 2021
Capital shares
Risk Free Interest Rate, Minimum	1.71%	0.31%
Risk Free Interest Rate, Maximum	2.54%	0.90%
Expected Life (years)	5 years	5 years
Expected Share Price Volatility, Minimum	85.91%	85.33%
Expected Share Price Volatility, Maximum	86.59%	97.28%
Expected Dividend Yield	0.00%	0.00%

Capital Shares (Details Narrative) - USD ($)	1 Months Ended			4 Months Ended	12 Months Ended
Capital Shares (Details Narrative) - USD ($)	Mar. 24, 2022	Apr. 30, 2021	Oct. 31, 2020	Mar. 31, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Weighted Average Contractual Life Remaining On Outstanding Options					50 years
Unrecognized Share-based Compensation					$ 1,040,000.00
Weighted average contractual life remaining on outstanding options					90 years
Warrant Exercise Price Per Share					$ 4.51	$ 5.69	$ 4.92
Aggregate intrinsic values						$ 4,460,000
Aggregate intrinsic values,options exercised					$ 0	$ 90,000.00
Unrecognized share-based compensation recognition period					96 years	36 years
Granted option shares		603,000	430,000			112,000
Exercise price					$ 4.93
Expected term					10 years	10 years
Net proceeds from the offering	$ 9,010,000.00
Options					815,265
Share-based Compensation					$ 2,260,634	$ 3,195,469
Number of warrants, beginning balance					3,651,953	720,446	992,721
2019 Plan [Member]
Number Of Shares Available For Issuance					2,625,951
Option Term					10 years
Remaining Number Of Options Available For Grant					422,252
March 2, 2021 [Member]
Warrant Exercise Price Per Share					$ 8.00
Warrant Expiry Date					Feb. 26, 2026
Gross Proceeds					$ 8,890,000
Fair value					$ 410,000
Number of warrants, beginning balance					109,375
Common shares in public offerings, shares					$ 1,562,500
Common shares in public offerings price per share					$ 6.40
March 24, 2022 [Member]
Warrant Exercise Price Per Share	$ 3.52
Offering Common Shares	1,540,000
Warrant Expiry Date	Sep. 24, 2027
Black Scholes Option [Member]
Expected Option Forfeitures Term					10 years
Options Granted Expected Life					5 years
Affiliated Designees [Member]
Warrant Exercise Price Per Share	$ 4.5625
Warrant Expiry Date	Mar. 21, 2027
Warrants To Purchase Common Stock	191,780
Fair value	$ 410,000
Pre-Funded Warrant [Member]
Warrant Exercise Price Per Share	$ 0.0001
Gross Proceeds	$ 5,870,000
Warrants To Purchase Common Stock	1,199,727
Number of warrants, beginning balance					0	0
Warrants Additional Paid In Capital [Member]
Gross Proceeds	$ 4,130,000
Private Placement [Member]
Warrants To Purchase Common Stock	2,739,727
Employees [Member]
Granted option shares					415,083
Expected Option Forfeitures Term					10 years
Director [Member]
Granted option shares					55,000	30,000
Equity Distribution Agreement [Member]
Gross Proceeds						$ 3,420,000
Proceeds from public offering						$ 9,200,000
Common shares						586,463
Equity Distribution Agreement [Member] \| RBC Capital Markets, LLC [Member]
Gross Proceeds				$ 26,200
Common Share Sold Aggregate Price				$ 15,400,000		$ 1,700,000
Common Shares Sold				626,884	626,884	586,463

Reimbursement Grant Income and Receivable (Details Narrative) $ in Millions	Sep. 30, 2022 USD ($)
Reimbursement Grant Income and Receivable (Details Narrative)
Grant reimbursements receivable	$ 1.1

Income Tax (Details) - USD ($)	12 Months Ended
Income Tax (Details) - USD ($)	Sep. 30, 2022	Sep. 30, 2021
Income Tax
Net loss before recovery of income taxes	$ (17,548,000)	$ (13,342,350)
Canadian federal and provincial statutory income tax rate	26.50%	26.50%
Expected income tax recovery	$ (4,650,000)	$ (3,536,000)
Permanent differences	650,000	847,000
Effect of foreign currency and foreign tax rate differences	976,800	(309,200)
Share issuance cost booked through equity or capitalization	(449,000)	(447,000)
Change in valuation allowance	3,473,000	3,446,000
Income tax (recovery) expense	$ 800	$ 800

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Tax (Details 1) - USD ($)	Sep. 30, 2022	Sep. 30, 2021
Income Tax
Non-capital losses carried forward - Canada	$ 11,740,000	$ 8,073,000
Non-capital losses carried forward - US	1,631,000	1,628,000
Research and development tax credits	1,052,000	1,294,000
Share issuance and financing costs	686,000	628,000
Right-of-use lease liabilities	5,000	26,000
Other temporary differences	15,000	15,000
Subtotal	15,129,000	11,664,000
Less: valuation allowance	(15,093,000)	(11,620,000)
Total net deferred tax assets	36,000	44,000
Property and equipment	(15,000)	(18,000)
Right-of-use assets	(5,000)	(26,000)
Deferred share issuance costs	(16,000)	0
Total deferred tax liabilities	36,000	44,000
Net deferred taxes	$ 0	$ 0

Income Tax (Details 2) - Sep. 30, 2022	USD ($)	CAD ($)
Canada
Non-capital income tax losses		$ 60,475,000
United States
Non-capital income tax losses	$ 297,000
2042 \| Canada
Non-capital income tax losses		21,408,000
2042 \| United States
Non-capital income tax losses		9,000
2028 \| Canada
Non-capital income tax losses		233,000
2029 \| Canada
Non-capital income tax losses		688,000
2030 \| Canada
Non-capital income tax losses		860,000
2031 \| Canada
Non-capital income tax losses		685,000
2032 \| Canada
Non-capital income tax losses		673,000
2033 \| Canada
Non-capital income tax losses		107,000
2034 \| Canada
Non-capital income tax losses		1,941,000
2035 \| Canada
Non-capital income tax losses		2,207,000
2036 \| Canada
Non-capital income tax losses		2,216,000
2037 \| Canada
Non-capital income tax losses		2,123,000
2038 \| Canada
Non-capital income tax losses		3,500,000
2039 \| Canada
Non-capital income tax losses		1,732,000
2039 \| United States
Non-capital income tax losses	70,000
2040 \| Canada
Non-capital income tax losses		7,992,000
2040 \| United States
Non-capital income tax losses	150,000
2041 \| Canada
Non-capital income tax losses		13,919,000
2041 \| United States
Non-capital income tax losses	$ 68,000
2025 \| Canada
Non-capital income tax losses		114,000
2026 \| Canada
Non-capital income tax losses		56,000
2027 \| Canada
Non-capital income tax losses		$ 21,000

Income Tax (Details Narrative)	12 Months Ended
Income Tax (Details Narrative)	Sep. 30, 2022 USD ($)
Income Tax
U.S. non-capital losses carried forward	$ 7,666,000
The U.S. state research and development tax credits carried forward	619,000
Credits totaling	600,000
Tax losses totaling future income	$ 25,600,000

Financial Instruments (Details Narrative) $ / shares in Units, $ in Millions	12 Months Ended
	Sep. 30, 2022 USD ($) $ / shares	Sep. 30, 2022 CAD ($)	Sep. 30, 2021 USD ($)
Assets	$ 11,575,728		$ 14,584,655
USD to CAD [Member]
Currency exchange rate \| $ / shares	$ 1.3742
Ontario Subsidary [Member]
Assets		$ 6.9
Currency exchange rate description	Based on the exposure at September 30, 2022, a 10% annual change in the Canadian/U.S. exchange rate would impact the Company’s loss and other comprehensive loss by approximately $501,000

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/exampleRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Related Party Transactions (Details Narrative)	12 Months Ended
Related Party Transactions (Details Narrative)	Sep. 30, 2022 USD ($)
Related party transactions
Rent expense	$ 81,000
Royalty payable	$ 22,000

Subsequent events (Details Narrative) - USD ($) $ in Millions	Nov. 02, 2022	Nov. 30, 2022
Common shares purchase	1,345,665	1,345,665
Subsequent Event [Member]
Common shares purchase	1,345,665
Placement of units consisting of common shares	2,691,337
Gross proceeds	$ 3.0