0001654954-21-008915 | 10-Q | XBRL Viewer

Temporary Equity

9 Months Ended

Jun. 30, 2021

7. Temporary Equity

Series A-1 Convertible Preferred Shares

As described in Notes 4 and 6, in April 2020, the Company issued 250 convertible preferred shares valued at $2.5 million designated as Series A-1 Convertible Preferred Shares (the “Series A-1 Shares). The Series A-1 Shares had no par value, a stated value of $10,000 per share and ranked, with respect to redemption payments, rights upon liquidation, dissolution or winding-up of the Company, or otherwise, senior in preference and priority to the Company’s common shares.

Subject to certain exceptions and adjustments for share splits, each Series A-1 Share was convertible six months after its date of issuance into a number of the Company’s common shares calculated by dividing (i) the sum of the stated value of such Series A-1 Share plus a return equal to 3% of the stated value of such Series A-1 Share per annum (collectively, the “Preferred Amount”) by (ii) a fixed conversion price of $2.26.

Because the convertible preferred shares were redeemable outside the control of the Company, they were presented as temporary equity rather than permanent shareholders’ equity until they were converted or redeemed. At June 30, 2021 all 250 Series A-1 Shares have been converted to common shares.

Issued and outstanding Series A-1 Convertible Preferred Shares:

	Series A-1 Convertible Preferred Shares (#)			Series A-1 Convertible Preferred Shares
Balance September 30, 2019		-		$	-

Issuance of convertible preferred shares		250			2,500,000
Convertible preferred share issuance costs		-			(57,154	)
Preferred return on convertible preferred shares		-			34,109

Balance September 30, 2020		250		$	2,476,955

Preferred return on convertible preferred shares		-			19,525
Conversion to common shares		(250	)		(2,496,480	)

Balance June 30, 2021		-		$	-

Intagible Assets (Tables)

9 Months Ended

Jun. 30, 2021

Intangible Assets

Intangible assets

	June 30, 2021			September 30, 2020

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

Less: accumulated amortization		(121,826	)		(45,947	)

Total intangible assets, net	$	2,407,657		$	2,483,536

Estimated future amortization of intagible assets

Year Ending
September 30, 2021	$	25,293
September 30, 2022		101,172
September 30, 2023		101,172
September 30, 2024		101,172
September 30, 2025		101,172
Thereafter		1,977,676

	$	2,407,657

Leases (Tables)

9 Months Ended

Jun. 30, 2021

Leases

Lease assets and liabilities

	June 30, 2021		September 30, 2020
Assets:
Operating lease right-of-use assets	$	117,846	$	160,006

Liabilities:
Current:
Short-term operating lease liabilities	$	79,503	$	69,730
Long-term:
Long-term operating lease liabilities		41,725		94,460

Total lease liabilities	$	121,228	$	164,190

Lease cost components

Three Months Ended

Nine Months Ended

June 30,

2021

June 30,

2020

June 30,

2021

June 30,

2020

Operating lease cost, included in general and administrative on the Statements of Operations

20,887

18,508

60,828

57,079

Lease terms and discount rates

June 30,

2021

September 30,

2020

Remaining lease term (months):

Estimated incremental borrowing rate:

6.5

Future minimum lease payments

Year Ending
September 30, 2021	$	21,260
September 30, 2022		85,041
September 30, 2023		21,260

Total lease payment		127,561
Less imputed interest		6,333

Present value of lease liabilities		121,228
Less current installments		79,503

Long-term lease liabilities excluding current installments	$	41,725

Cash paid-lease liabilities

Nine Months

Ended
June 30, 2021

Nine Months

Ended
June 30, 2020

Cash paid for amounts included in the measurement of lease liabilities, included in accounts payable and accrued liabilities on the Statements of Cash Flows

60,830

57,081

Condensed Interim Consolidated Statements of Changes in Shareholders' Equity - USD ($)	Total	Common Stock	Additional Paid-In Capital	Accumulated other comprehensive loss	Retained Earnings (Accumulated Deficit)
Balance, shares at Sep. 30, 2019		7,504,468
Balance, amount at Sep. 30, 2019	$ 5,256,130	$ 12,005,051	$ 327,768	$ (342,074)	$ (6,734,615)
Issuance of common shares and warrants in equity offering, shares		1,354,691
Issuance of common shares and warrants in equity offering, amount	4,360,500	$ 3,070,358	1,290,142	0	0
Issuance of common shares upon exercise of warrants, shares		2,736
Issuance of common shares upon exercise of warrants, amount	0	$ 52,229	(52,229)	0	0
Preferred return on convertible preferred shares	(15,205)	0	0	0	(15,205)
Issuance costs	(468,699)	(342,735)	(125,964)	0	0
Share-based compensation	511,966	0	511,966	0	0
Net loss and comprehensive loss	(4,302,554)	$ 0	0	47,178	(4,349,732)
Balance, shares at Jun. 30, 2020		8,861,895
Balance, amount at Jun. 30, 2020	5,342,138	$ 14,784,903	1,951,683	(294,896)	(11,099,552)
Balance, shares at Sep. 30, 2019		7,504,468
Balance, amount at Sep. 30, 2019	5,256,130	$ 12,005,051	327,768	(342,074)	(6,734,615)
Balance, shares at Sep. 30, 2020		9,615,119
Balance, amount at Sep. 30, 2020	6,631,175	$ 18,500,853	1,550,480	(287,204)	(13,132,954)
Balance, shares at Mar. 31, 2020		8,859,159
Balance, amount at Mar. 31, 2020	6,930,943	$ 14,732,674	1,880,721	(363,868)	(9,318,584)
Issuance of common shares upon exercise of warrants, shares		2,736
Issuance of common shares upon exercise of warrants, amount	0	$ 52,229	(52,229)	0	0
Share-based compensation	123,191	0	123,191	0	0
Net loss and comprehensive loss	(1,696,791)	0	0	68,972	(1,765,763)
Preferred return on convertible preferred shares	(15,205)	$ 0	0	0	(15,205)
Balance, shares at Jun. 30, 2020		8,861,895
Balance, amount at Jun. 30, 2020	5,342,138	$ 14,784,903	1,951,683	(294,896)	(11,099,552)
Balance, shares at Sep. 30, 2020		9,615,119
Balance, amount at Sep. 30, 2020	6,631,175	$ 18,500,853	1,550,480	(287,204)	(13,132,954)
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 of common shares upon exercise of warrants, shares		341,806
Issuance of common shares upon exercise of warrants, amount	1,467,536	$ 1,681,936	(214,400)	0	0
Preferred return on convertible preferred shares	(19,525)	0	0	0	(19,525)
Issuance costs	(1,464,197)	(1,871,220)	407,023	0	0
Share-based compensation	2,290,794	0	2,290,794	0	0
Net loss and comprehensive loss	(9,390,034)	$ 0	0	267,075	(9,657,109)
Issuance of common shares upon exercise of share options, shares		19,746
Issuance of common shares upon exercise of share options, amount	41,985	$ 69,535	(27,550)	0	0
Conversion of convertible preferred shares, shares		1,129,925
Conversion of convertible preferred shares, amount	2,496,480	$ 2,496,480	0	0	0
Balance, shares at Jun. 30, 2021		13,255,559
Balance, amount at Jun. 30, 2021	15,803,755	$ 34,627,125	4,006,347	(20,129)	(22,809,588)
Balance, shares at Mar. 31, 2021		13,246,559
Balance, amount at Mar. 31, 2021	19,272,784	$ 34,602,637	2,914,482	(194,257)	(18,050,078)
Share-based compensation	1,100,450	0	1,100,450	0	0
Net loss and comprehensive loss	(4,585,382)	$ 0	0	174,128	(4,759,510)
Issuance of common shares upon exercise of share options, shares		9,000
Issuance of common shares upon exercise of share options, amount	15,903	$ 24,488	(8,585)	0	0
Balance, shares at Jun. 30, 2021		13,255,559
Balance, amount at Jun. 30, 2021	$ 15,803,755	$ 34,627,125	$ 4,006,347	$ (20,129)	$ (22,809,588)

Property and Equipment

9 Months Ended

Jun. 30, 2021

Property and Equipment

NOTE 3 - Property and Equipment

3. Property and Equipment

Property and equipment, net consisted of the following:

	June 30, 2021			September 30, 2020

Computer equipment	$	43,339		$	34,651
Furniture and equipment		6,138			5,694

		49,477			40,345
Less: accumulated depreciation		(31,944	)		(25,530	)

Total property and equipment, net	$	17,533		$	14,815

Depreciation expense amounted to $2,481 and $1,992 for the three months ended June 30, 2021 and 2020, respectively, and $6,414 and $7,046 for the nine months ended June 30, 2021 and 2020, respectively.

Capital Shares (Details) - $ / shares	9 Months Ended	12 Months Ended
Capital Shares (Details) - $ / shares	Jun. 30, 2021	Sep. 30, 2020
Capital Shares
Number of warrants, beginning balance	992,721	48,914
Issued	109,375	1,705,758
Exercised	(341,806)	(761,951)
Number of warrants, ending balance	760,290	992,721
Weighted average exercise price, beginning balance	$ 4.92	$ 11.19
Issued	8.00	4.47
Exercised	4.29	4.31
Weighted average exercise price, ending balance	$ 5.65	$ 4.92

Condensed Interim Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2021	Sep. 30, 2020
Condensed Interim Consolidated Balance Sheets
Capital shares, par value	$ 0	$ 0
Capital shares, issued	13,255,559	9,615,119
Capital shares, outstanding	13,255,559	9,615,119

Property and Equipment (Details Narrative) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Property and Equipment
Depreciation expense	$ 2,481	$ 1,992	$ 6,414	$ 7,046

Financial Instruments (Details Narrative) $ / shares in Units, $ in Millions	9 Months Ended
	Jun. 30, 2021 USD ($) $ / shares	Jun. 30, 2021 CAD ($)	Sep. 30, 2020 USD ($)
Assets	$ 16,877,343		$ 10,762,375
Ontario Subsidary [Member]
Assets		$ 11.1
Currency exchange rate description	Based on the exposure at June 30, 2021, a 10% annual change in the Canadian/U.S. exchange rate would impact the Company’s loss and other comprehensive loss by approximately $0.89 million.
USD to CAD [Member]
Currency exchange rate \| $ / shares	$ 1.2398

- 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.

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+ Details

Leases (Details 1) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Leases (Details 1) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Operating lease cost	$ 20,887	$ 18,508		$ 57,079
General and Administrative Expense
Operating lease cost			$ 60,828

Basis of Presentation (Policies)	9 Months Ended
Basis of Presentation (Policies)	Jun. 30, 2021
Basis of Presentation (Policies)
Use of estimates	The preparation of the unaudited condensed interim 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 unaudited condensed interim consolidated financial statements and the reported amounts of revenue and expenses during the period. 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; classification of convertible preferred shares as liability or equity; 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 assign value to underwriter warrants; and forecasting future cash flows for assessing the going concern assumption.
Functional and reporting currencies	The condensed interim 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.
Future accounting pronouncements	In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which includes provisions that require the measurement of an estimate of all current expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. Financial assets measured at amortized cost basis are to be presented at the net amount expected to be collected and credit losses relating to available-for-sale debt securities are to be recorded through an allowance for credit losses. The guidance is effective for public entities for fiscal years beginning after December 15, 2019, including interim periods within those years, with early adoption permitted for fiscal years beginning after December 15, 2018, however the effective date is delayed by one year for smaller reporting companies as defined by the SEC. These standards are effective for the Company during the fiscal year ending September 30, 2022. Management expects that ASU 2016-13, as updated, will not have a significant impact on the Company’s consolidated financial statements.

Loss Per Share

9 Months Ended

Jun. 30, 2021

Loss Per Share

NOTE 12 - Loss Per Share

12. Loss per Share

The Company had securities outstanding which could potentially dilute basic EPS in the future but were excluded from the computation of diluted loss per share in the periods presented, as their effect would have been anti-dilutive.

Leases

9 Months Ended

Jun. 30, 2021

Leases

NOTE 5 - Leases

5. Leases

Related party operating lease The Company leases facilities used for executive offices from a company controlled by the Company's CEO for a six-year term through December 2022, with an option to renew for an additional two-year term. The option period is not included in the operating lease right-of-use assets and liabilities.

The gross amounts of assets and liabilities related to operating leases on the Balance Sheets were as follows:

	June 30, 2021		September 30, 2020
Assets:
Operating lease right-of-use assets	$	117,846	$	160,006

Liabilities:
Current:
Short-term operating lease liabilities	$	79,503	$	69,730
Long-term:
Long-term operating lease liabilities		41,725		94,460

Total lease liabilities	$	121,228	$	164,190

The components of lease cost were as follows:

Three Months Ended

Nine Months Ended

June 30,

2021

June 30,

2020

June 30,

2021

June 30,

2020

Operating lease cost, included in general and administrative on the Statements of Operations

20,887

18,508

60,828

57,079

Lease terms and discount rates were as follows:

June 30,

2021

September 30,

2020

Remaining lease term (months):

Estimated incremental borrowing rate:

6.5

The approximate future minimum lease payments under operating leases at June 30, 2021 were as follows:

Year Ending
September 30, 2021	$	21,260
September 30, 2022		85,041
September 30, 2023		21,260

Total lease payment		127,561
Less imputed interest		6,333

Present value of lease liabilities		121,228
Less current installments		79,503

Long-term lease liabilities excluding current installments	$	41,725

Cash flow information was as follows:

Nine Months

Ended
June 30, 2021

Nine Months

Ended
June 30, 2020

Cash paid for amounts included in the measurement of lease liabilities, included in accounts payable and accrued liabilities on the Statements of Cash Flows

60,830

57,081

The Company leased facilities through its California subsidiary under two operating leases that expired in September 2020. Total rent under these leases included in general and administrative expenses was $55,068 and $164,915 for the three and nine months ended June 30, 2020, respectively. There was no rent under these leases during the three and nine months ended June 30, 2021.

Cover - shares	9 Months Ended
Cover - shares	Jun. 30, 2021	Aug. 12, 2021
Cover [Abstract]
Entity Registrant Name	EDESA BIOTECH, INC.
Entity Central Index Key	0001540159
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	true
Entity Current Reporting Status	Yes
Document Period End Date	Jun. 30, 2021
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2021
Entity Ex Transition Period	true
Entity Common Stock Shares Outstanding		13,255,559
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-37619
Entity Incorporation State Country Code	Z4
Entity Address Address Line 1	100 Spy Court, Markham
Entity Address City Or Town	Ontario
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

Nature of Operations

9 Months Ended

Jun. 30, 2021

Nature of Operations

NOTE - 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, Canada.

The Company’s common shares trade on The Nasdaq Capital Market in the United States under the symbol “EDSA”.

Impact of COVID-19

The ongoing COVID-19 pandemic has severely impacted global economic activity and has caused material disruptions to almost every industry directly or indirectly. The full impact of the pandemic remains uncertain and ongoing developments related to the pandemic may cause material impacts to the Company’s future operations, clinical study timelines and financial results. While the full impact of the COVID-19 pandemic to business and operating results presents additional uncertainty, the Company’s management continues to use reasonably available information to assess impacts of COVID-19 on the Company’s business plans and financial condition.

Segmented Information

9 Months Ended

Jun. 30, 2021

Segmented Information

NOTE 11 - Segmented Information

11. 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 financial statements for loss for the period, depreciation and total assets also represent segmented amounts.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Reimbursement Grant Income and Receivable (Details Narrative)	Jun. 30, 2021 USD ($)
Reimbursement Grant Income and Receivable (Details Narrative)
Grant reimbursements receivable	$ 3,991,683

Property and Equipment (Tables)

9 Months Ended

Jun. 30, 2021

Property and Equipment

Property and equipment

	June 30, 2021			September 30, 2020

Computer equipment	$	43,339		$	34,651
Furniture and equipment		6,138			5,694

		49,477			40,345
Less: accumulated depreciation		(31,944	)		(25,530	)

Total property and equipment, net	$	17,533		$	14,815

Capital Shares (Details 6) - USD ($)	3 Months Ended	9 Months Ended		12 Months Ended
Capital Shares (Details 6) - USD ($)	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2020
Balance, amount	$ 6,930,943	$ 6,631,175	$ 5,256,130	$ 5,256,130
Issuance of common shares in equity offering, amount		13,749,541	4,360,500
Issuance of common shares upon exercise of warrants, amount	0	1,467,536	0
Balance, amount	$ 5,342,138	$ 15,803,755	$ 5,342,138	$ 6,631,175
Common Shares [Member]
Balance, shares		9,615,119	7,504,468	7,504,468
Balance, amount		$ 18,500,853	$ 12,005,051	$ 12,005,051
Issuance of common shares in equity offering, shares		2,148,963		1,354,691
Issuance of common shares in equity offering, amount		$ 13,749,541		$ 3,070,358
Issuance of common shares upon exercise of warrants, shares		341,806		751,510
Issuance of common shares upon exercise of warrants, amount		$ 1,681,936		$ 3,754,265
Number of options, exercised		19,746		4,450
Common shares issued upon exercise of share options, shares		$ 69,535		$ 20,935
Issuance of common shares upon conversion of preferred shares, shares		1,129,925		0
Issuance of common shares upon conversion of preferred shares, amount		$ 2,496,480		$ 0
Issuance costs		$ (1,871,220)		$ (349,756)
Balance, shares		13,255,559		9,615,119
Balance, amount		$ 34,627,125		$ 18,500,853

Financial Instruments

9 Months Ended

Jun. 30, 2021

Financial Instruments

NOTE 10 - Financial Instruments

10. 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, U.S. Treasury Bills 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, as well as an analysis of historical collection rates, general economic conditions and credit status of customers. Credit risk for HST refunds receivable and reimbursement grant receivable is not considered significant since amounts are due from the Canada Revenue Agency and Canadian Strategic Innovation Fund.

(c) Foreign exchange risk

The Company’s subsidiary has 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 June 30, 2021, the Company’s Ontario subsidiary had assets of C$11.1 million and the U.S. dollar was equal to 1.2398 Canadian dollars. Based on the exposure at June 30, 2021, a 10% annual change in the Canadian/U.S. exchange rate would impact the Company’s loss and other comprehensive loss by approximately $0.89 million.

(d) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty raising liquid funds to meet commitments as they fall due. In meeting its liquidity requirements, the Company closely monitors its forecasted cash requirements with expected cash drawdown.

Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Related Party Transactions
Rent expense	$ 20,887	$ 18,508	$ 60,828	$ 57,079
Royalty payable		$ 23,457		$ 23,457

Commitments (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
Commitments (Details Narrative) - USD ($)	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Employer contributions to 401K plan	$ 4,552,000,000	$ 3,461,000,000	$ 19,181,000,000	$ 7,996,000,000
Description of related party patent royalty commitments			The royalty is 5% of gross receipts in excess of $500,000 annually from legacy products using this invention. There were no royalty expenses during the three and nine months ended June 30, 2021 and 2020.
Eligible compensarion,percentage			3.00%
License Commitments [Member] \| April 2020 [Member]
Remaining payments of contingent			$ 352,500,000
Expenses			$ 3,500,000
Description of acquired drugs			the Company acquired drug substance of one of the Constructs for an aggregate purchase price of $5.0 million, payable in two future installments, the first when the Company is ready to initiate a Phase 2 trial and the second when the Company is ready to initiate a Phase 3 trial. A payment of $2.5 million was made for the drug substance during the nine months ended June 30, 2021
License Commitments [Member] \| 2016 [Member]
Payments to third party			$ 18,600,000
License Commitments Agreement [Member] \| 2021 [Member]
Payments to investors			69,100,000
License expenses			$ 106,000

Capital Shares (Details 5)	9 Months Ended
Capital Shares (Details 5)	Jun. 30, 2021	Jun. 30, 2020
Risk free interest rate		1.45%
Expected life (years)	5 years	5 years
Expected share price volatility		104.14%
Expected dividend yield	0.00%	0.00%
Minumum
Risk free interest rate	0.31%
Expected share price volatility	94.00%
Maximum
Risk free interest rate	0.90%
Expected share price volatility	97.28%

Leases (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
Leases (Details Narrative) - USD ($)	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
General and administrative expenses	$ 1,608,232	$ 733,079	$ 4,377,507	$ 2,528,702
California [Member] \| Operating Lease [Member]
General and administrative expenses	$ 55,068		$ 164,915

Intangible Assets (Details) - USD ($)	Jun. 30, 2021	Sep. 30, 2020
Intangible Assets
The Constructs	$ 2,529,483,000,000	$ 2,529,483,000,000
Less: accumulated amortization	121,826,000,000	45,947,000,000
Intangible assets, net	$ 2,407,657	$ 2,483,536

Intagible Assets (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
Intagible Assets (Details Narrative) - USD ($)	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Intangible Assets
Amortization expense	$ 25,293	$ 20,654	$ 75,879	$ 20,654
Description of licence agreement			The required upfront license payment of $2.5 million was paid by the issuance of Series A-1 Convertible Preferred Shares

Capital Shares (Tables)

9 Months Ended

Jun. 30, 2021

Capital Shares

Warrant activity

	Number of Warrant Shares (#)			Weighted Average Exercise Price
Balance September 30, 2019		48,914		$	11.19

Issued		1,705,758			4.47
Exercised		(761,951	)		4.31

Balance September 30, 2020		992,721		$	4.92

Issued		109,375			8.00
Exercised		(341,806	)		4.29

Balance June 30, 2021		760,290		$	5.65

Warrants outstanding

Number of Warrants (#)		Exercise Prices		Expiry Dates
	28,124	$	15.90	May 2023
	603,529	$	4.80	July 2023
	7,484	$	4.81	June 2024
	11,778	$	3.20	January 2025
	109,375	$	8.00	February 2025
	760,290

Warrant valuation model

	Nine Months Ended June 30, 2021			Nine Months Ended June 30, 2020
	Underwriter Warrants			Class A Warrants			Class B Warrants			Placement Agent Warrants
Risk free interest rate		0.67	%		1.61	%		1.55	%		1.61	%
Expected life		5 years			3.5 years			0.83 years			5 years
Expected share price volatility		94.20	%		103.81	%		134.15	%		101.89	%
Expected dividend yield		0.00	%		0.00	%		0.00	%		0.00	%

Stock option activity

	Number of Options (#)			Weighted Average Exercise Price
Balance – September 30, 2019		319,645		$	3.39

Granted		366,365			3.35
Exercised		(4,450	)		2.60
Forfeited		(5,790	)		2.73
Expired		(333	)		145.20

Balance – September 30, 2020		675,437		$	3.30

Granted		1,138,000			6.21
Exercised		(19,746	)		2.12
Forfeited		(19,066	)		6.07
Expired		(1,906	)		102.49

Balance – June 30, 2021		1,772,719		$	5.07

Stock options outstanding

Number of Options (#)		Exercisable at June 30, 2021 (#)		Range of Exercise Prices		Expiry Dates
	214		214	$	638.40	Nov 2021
	238		238	$	304.08	Dec 2022
	3,499		3,499	$	35.28- 93.24	Sep 2023-Mar 2025
	296,403		293,163	$	2.16	Aug 2027-Dec 2028
	335,365		210,525	$	3.16	Feb 2030
	429,000		106,892	$	7.44- 8.07	Sep 2030-Oct 2030
	708,000		72,203	$	5.25- 5.65	Jan 2031-April 2031
	1,772,719		686,734

Fair value of options granted assumptions

	Nine Months Ended June 30, 2021			Nine Months Ended June 30, 2020

Risk free interest rate		0.31%-0.90%			1.45	%
Expected life		5 years			5 years
Expected share price volatility		94.00%-97.28%			104.14	%
Expected dividend yield		0.00	%		0.00	%

Issued and outstanding common and preferred shares

	Number of Common Shares (#)		Common Shares
Balance September 30, 2019		7,504,468	$	12,005,051

Common shares issued in equity offering		1,354,691		3,070,358
Common shares issued upon exercise of warrants		751,510		3,754,265
Common shares issued upon exercise of share options		4,450		20,935
Share issuance costs		-		(349,756	)

Balance September 30, 2020		9,615,119	$	18,500,853

Common shares issued in equity offerings		2,148,963		13,749,541
Common shares issued upon exercise of warrants		341,806		1,681,936
Common shares issued upon exercise of share options		19,746		69,535
Common shares issued upon conversion of preferred shares		1,129,925		2,496,480
Share issuance costs		-		(1,871,220	)

Balance June 30, 2021		13,255,559	$	34,627,125

Temporary Equity (Tables)

9 Months Ended

Jun. 30, 2021

Temporary equity:

Temporary equity

	Series A-1 Convertible Preferred Shares (#)			Series A-1 Convertible Preferred Shares
Balance September 30, 2019		-		$	-

Issuance of convertible preferred shares		250			2,500,000
Convertible preferred share issuance costs		-			(57,154	)
Preferred return on convertible preferred shares		-			34,109

Balance September 30, 2020		250		$	2,476,955

Preferred return on convertible preferred shares		-			19,525
Conversion to common shares		(250	)		(2,496,480	)

Balance June 30, 2021		-		$	-

Capital Shares (Details 2)	9 Months Ended
Capital Shares (Details 2)	Jun. 30, 2021
Class A Warrants
Risk free interest rate	1.61%
Expected life (years)	3 years 6 months
Expected share price volatility	103.81%
Expected dividend yield	0.00%
Class B Warrants
Risk free interest rate	1.55%
Expected life (years)	9 months 29 days
Expected share price volatility	134.15%
Expected dividend yield	0.00%
Placement Agent Warrants
Risk free interest rate	1.61%
Expected life (years)	5 years
Expected share price volatility	101.89%
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%

Intangible Assets

9 Months Ended

Jun. 30, 2021

Intangible Assets

NOTE 4 - Intangible Assets

4. 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 quarterly.

The required upfront license payment of $2.5 million was paid by the issuance of Series A-1 Convertible Preferred Shares. The value of the license includes acquisition legal costs. The license agreement requires certain development, approval and commercialization milestone payments contingent on certain future events. The Company also has a commitment to pay royalties based on any net sales of licensed products and a percentage of any sublicensing revenue. See Note 6 for license commitments and Note 7 for convertible preferred shares in temporary equity.

Intangible assets, net consisted of the following:

	June 30, 2021			September 30, 2020

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

Less: accumulated amortization		(121,826	)		(45,947	)

Total intangible assets, net	$	2,407,657		$	2,483,536

Amortization expense amounted to $25,293 and $20,654 for the three months ended June 30, 2021 and 2020, respectively, and $75,879 and $20,654 for the nine months ended June 30, 2021 and 2020, respectively.

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

Year Ending
September 30, 2021	$	25,293
September 30, 2022		101,172
September 30, 2023		101,172
September 30, 2024		101,172
September 30, 2025		101,172
Thereafter		1,977,676

	$	2,407,657

Leases (Details 4) - USD ($) $ in Millions	9 Months Ended
Leases (Details 4) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020
Leases
Cash paid for amounts included in the measurement of lease liabilities	$ 60,830	$ 57,081

Intagible Assets (Details 1) - USD ($)	Jun. 30, 2021	Sep. 30, 2020
Intangible Assets
September 30, 2021	$ 25,293
September 30, 2022	101,172
September 30, 2023	101,172
September 30, 2024	101,172
September 30, 2025	101,172
Thereafter	1,977,676
Intangible assets, net	$ 2,407,657	$ 2,483,536

Basis of Presentation

9 Months Ended

Jun. 30, 2021

Nature of Operations

NOTE 2 - Basis of Presentation

2. Basis of Presentation

The accompanying unaudited condensed interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q. They do not include all information and footnotes necessary for a fair presentation of financial position, results of operations and cash flows in conformity with U.S. GAAP for complete financial statements. These condensed interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended September 30, 2020, which were filed with the Securities and Exchange Commission (SEC) on December 7, 2020.

The accompanying condensed interim consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Edesa Biotech Research, Inc., an Ontario corporation, and Edesa Biotech USA, Inc., a California corporation in the U.S. All intercompany balances and transactions have been eliminated in consolidation. All adjustments (consisting of normal recurring adjustments and accruals) considered necessary for a fair presentation of the results of operations for the periods presented have been included in the interim periods. Operating results for the nine months ended June 30, 2021 are not necessarily indicative of the results that may be expected for other interim periods or the fiscal year ending September 30, 2021.

Use of estimates

The preparation of the unaudited condensed interim 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 unaudited condensed interim consolidated financial statements and the reported amounts of revenue and expenses during the period. 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; classification of convertible preferred shares as liability or equity; 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 assign value to underwriter warrants; and forecasting future cash flows for assessing the going concern assumption.

Functional and reporting currencies

The condensed interim 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.

Future accounting pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which includes provisions that require the measurement of an estimate of all current expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. Financial assets measured at amortized cost basis are to be presented at the net amount expected to be collected and credit losses relating to available-for-sale debt securities are to be recorded through an allowance for credit losses. The guidance is effective for public entities for fiscal years beginning after December 15, 2019, including interim periods within those years, with early adoption permitted for fiscal years beginning after December 15, 2018, however the effective date is delayed by one year for smaller reporting companies as defined by the SEC. These standards are effective for the Company during the fiscal year ending September 30, 2022. Management expects that ASU 2016-13, as updated, will not have a significant impact on the Company’s consolidated financial statements.

Capital Shares (Details Narrative) - USD ($)		1 Months Ended		3 Months Ended		9 Months Ended		12 Months Ended
Capital Shares (Details Narrative) - USD ($)	Jan. 08, 2020	Apr. 30, 2021	Oct. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2019
Shares remaining under 2019 Plan									2,625,951
Weighted average contractual life remaining on outstanding options						101 months
Share-based compensation				$ 1,100,450	$ 123,191	$ 2,290,794	$ 511,966
Unrecognized share-based compensation				$ 2,740,000		$ 2,740,000
Unrecognized share-based compensation recognition period						36 years
Granted option shares		603,000	430,000			105,000
Expected term						10 years
Grant date						36 years
Warrants exercise price				$ 5.65		$ 5.65		$ 4.92		$ 11.19
Share-based compensation						$ 2,290,794	$ 511,966
Equity Distribution Agreement [Member]
Gross proceeds						13,749,541,000,000		$ 9,200,000
Direct costs						$ 319,188
Common shares						586,463
March 2 2021 [Member] \| Underwritten [Member]
Maturity date						Feb. 26, 2026
Gross proceeds						$ 10,000,000
Warrants to purchase common shares						109,375
Warrants exercise price									$ 8.00
Direct costs						$ 1,145,010
Common shares						1,562,500
Price per shares									6.40
Option to purchase additional common shares						234,375
Fair value of underwriter warrants amount						$ 407,023
Private Placement [Member] \| January 8 2020 [Member]
Common shares						1,354,691
Maturity date	Jan. 06, 2025
Class A Purchase Warrants to purchase common shares						1,016,036
Gross proceeds	$ 3,070,358					$ 4,360,500
Class A Purchase Warrants were exercisable price									4.80
Class B Purchase Warrants were exercisable price									4.00
Warrants to purchase common shares						12,364
Warrants exercise price									$ 3.20
Class A Purchase Warrants to purchase common shares, amount						$ 1,008,743
Class B Purchase Warrants to purchase common shares, amount						281,399
Direct costs						468,699
Offset gross proceeds	12,710					330,025
Additional paid-in capital	$ 5,341								$ 138,674
Share-based compensation						$ 18,051
Class B Purchase Warrants to purchase common shares						677,358

Capital Shares

9 Months Ended

Jun. 30, 2021

Capital Shares

NOTE 8 - Capital Shares

8. Capital Shares

Equity Offerings

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. Gross proceeds from the offering amounted to $10,000,000. The Company granted to the underwriters a 30-day option to purchase up to an additional 234,375 common shares. The underwriters option expired subsequent to March 31, 2021 with no further shares issued. On the closing date 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.

The direct costs related to the issuance of the common shares were $1,145,010. These direct costs were recorded as an offset against gross proceeds. The Company also recorded the fair value of underwriter warrants in the amount of $407,023 as share-based compensation to nonemployees under additional paid-in capital and an offset against gross proceeds.

On January 8, 2020, the Company closed a registered direct offering of 1,354,691 common shares, no par value and a concurrent private placement of Class A Purchase Warrants to purchase an aggregate of up to 1,016,036 common shares and Class B Purchase Warrants to purchase an aggregate of up to 677,358 common shares. Gross proceeds from the offering amounted to $4,360,500.

The Class A Purchase Warrants were exercisable on or after July 8, 2020, at an exercise price of $4.80 per share and will expire on July 8, 2023. The Class B Purchase Warrants were exercisable on or after July 8, 2020, at an exercise price of $4.00 per share and expired on November 8, 2020. In connection with the offering, the Company also issued warrants to purchase an aggregate of 12,364 common shares to certain affiliated designees of the placement agent as part of the placement agent’s compensation. The placement agent warrants were exercisable on or after July 6, 2020, at an exercise price of $3.20 per share, and will expire on January 6, 2025.

The warrants are considered contracts on the Company’s own shares and are classified as equity. The Company allocated gross proceeds with $3,070,358 as the value of common shares and $1,008,743 as the value of Class A Purchase Warrants and $281,399 as the value of Class B Purchase Warrants under additional paid-in capital in the condensed interim consolidated statements of changes in shareholders’ equity on a relative fair value basis.

The direct costs related to the issuance of the common shares and warrants were $468,699. These direct costs were recorded as an offset against gross proceeds with $330,025 being recorded under common shares and $138,674 being recorded under additional paid-in capital on a relative fair value basis. The Company also recorded the fair value of placement agent warrants in the amount of $18,051 as share-based compensation to nonemployees under additional paid-in capital and an offset against gross proceeds with $12,710 being recorded under common shares and $5,341 being recorded under additional paid-in capital on a relative fair value basis.

Equity Distribution Agreement

In September 2020, the Company entered into an Equity Distribution Agreement with RBC Capital Markets, LLC (“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 agreement was terminated on February 25, 2021. During the nine months ended June 30, 2021, 586,463 shares were sold under the distribution agreement, resulting in $13,749,541 in gross proceeds. The commissions and direct costs of the offering program totaled $319,188 and were recorded as an offset against gross proceeds.

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, 2019		48,914		$	11.19

Issued		1,705,758			4.47
Exercised		(761,951	)		4.31

Balance September 30, 2020		992,721		$	4.92

Issued		109,375			8.00
Exercised		(341,806	)		4.29

Balance June 30, 2021		760,290		$	5.65

The following table summarizes information about the warrants outstanding at June 30, 2021:

Number of Warrants (#)		Exercise Prices		Expiry Dates
	28,124	$	15.90	May 2023
	603,529	$	4.80	July 2023
	7,484	$	4.81	June 2024
	11,778	$	3.20	January 2025
	109,375	$	8.00	February 2025
	760,290

The weighted average contractual life remaining on the outstanding warrants at June 30, 2021 is 27 months.

The fair value of warrants issued during the nine months ended June 30, 2021 and 2020 was estimated using the Black-Scholes option valuation model using the following assumptions:

	Nine Months Ended June 30, 2021			Nine Months Ended June 30, 2020
	Underwriter Warrants			Class A Warrants			Class B Warrants			Placement Agent Warrants
Risk free interest rate		0.67	%		1.61	%		1.55	%		1.61	%
Expected life		5 years			3.5 years			0.83 years			5 years
Expected share price volatility		94.20	%		103.81	%		134.15	%		101.89	%
Expected dividend yield		0.00	%		0.00	%		0.00	%		0.00	%

Share Options

The Company adopted an Equity Incentive Compensation Plan in 2019 (the 2019 Plan) administered by the Board of Directors. Options, restricted shares and restricted share units are eligible for grant under the 2019 Plan. The number of shares available for issuance under the 2019 Plan at June 30, 2021 was 2,625,951, including shares available for the exercise of outstanding options.

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 and vesting 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
Balance – September 30, 2019		319,645		$	3.39

Granted		366,365			3.35
Exercised		(4,450	)		2.60
Forfeited		(5,790	)		2.73
Expired		(333	)		145.20

Balance – September 30, 2020		675,437		$	3.30

Granted		1,138,000			6.21
Exercised		(19,746	)		2.12
Forfeited		(19,066	)		6.07
Expired		(1,906	)		102.49

Balance – June 30, 2021		1,772,719		$	5.07

The following table summarizes information about the options under the 2019 Plan outstanding and exercisable at June 30, 2021:

Number of Options (#)		Exercisable at June 30, 2021 (#)		Range of Exercise Prices		Expiry Dates
	214		214	$	638.40	Nov 2021
	238		238	$	304.08	Dec 2022
	3,499		3,499	$	35.28- 93.24	Sep 2023-Mar 2025
	296,403		293,163	$	2.16	Aug 2027-Dec 2028
	335,365		210,525	$	3.16	Feb 2030
	429,000		106,892	$	7.44- 8.07	Sep 2030-Oct 2030
	708,000		72,203	$	5.25- 5.65	Jan 2031-April 2031
	1,772,719		686,734

The weighted average contractual life remaining on the outstanding options at June 30, 2021 is 101 months.

During the nine months ended June 30, 2021, the independent directors of the Board of Directors granted a total of 105,000 options to new employees of the Company pursuant to the 2019 Plan. The options have a term of 10 years with monthly 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.

In October 2020 and April 2021, the independent directors 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 for directors have monthly vesting in equal proportions over 12 months beginning on the grant date and options for officers and current employees have monthly vesting in equal proportions over 36 months beginning on the grant date.

The fair value of options granted during the nine months ended June 30, 2021 and 2020 was estimated using the Black-Scholes option valuation model using the following assumptions:

	Nine Months Ended June 30, 2021			Nine Months Ended June 30, 2020

Risk free interest rate		0.31%-0.90%			1.45	%
Expected life		5 years			5 years
Expected share price volatility		94.00%-97.28%			104.14	%
Expected dividend yield		0.00	%		0.00	%

The Company recorded $1,100,450 and $123,191 of share-based compensation expenses for the three months ended June 30, 2021 and 2020, respectively and $2,290,794 and $511,966 of share-based compensation expenses for the nine months ended June 30, 2021 and 2020, respectively.

As of June 30, 2021, the Company had approximately $2.74 million of unrecognized share-based compensation expense, which is expected to be recognized over a period of 36 months.

Issued and outstanding common shares

	Number of Common Shares (#)		Common Shares
Balance September 30, 2019		7,504,468	$	12,005,051

Common shares issued in equity offering		1,354,691		3,070,358
Common shares issued upon exercise of warrants		751,510		3,754,265
Common shares issued upon exercise of share options		4,450		20,935
Share issuance costs		-		(349,756	)

Balance September 30, 2020		9,615,119	$	18,500,853

Common shares issued in equity offerings		2,148,963		13,749,541
Common shares issued upon exercise of warrants		341,806		1,681,936
Common shares issued upon exercise of share options		19,746		69,535
Common shares issued upon conversion of preferred shares		1,129,925		2,496,480
Share issuance costs		-		(1,871,220	)

Balance June 30, 2021		13,255,559	$	34,627,125

Capital Shares (Details 3) - $ / shares	9 Months Ended	12 Months Ended
Capital Shares (Details 3) - $ / shares	Jun. 30, 2021	Sep. 30, 2020
Capital Shares
Number of options, beginning balance	675,437	319,645
Number of options granted	1,138,000	366,365
Number of options, exercised	(19,746)	(4,450)
Number of options, forfeited	(19,066)	(5,790)
Number of options expired	(1,906)	(333)
Number of options, ending balance	1,772,719	675,437
Weighted average exercise price, beginning balance	$ 3.30	$ 3.39
Weighted average exercise price granted	6.21	3.35
Weighted average exercise price exercised	2.12	2.60
Weighted average exercise price forfeited	6.07	2.73
Weighted average exercise price expired	102.49	145.20
Weighted average exercise price, ending balance	$ 5.07	$ 3.30

Related Party Transactions

9 Months Ended

Jun. 30, 2021

Related Party Transactions

NOTE 13 - Related Party Transactions

13. Related Party Transactions

During the periods presented, the Company was party to the following related party transactions:

·	During the three months ended June 30, 2021 and 2020, the Company incurred rent expense of $20,887 and $18,508, respectively, from a company controlled by the Company's CEO and $60,828 and $57,079 for the nine months ended June 30, 2021 and 2020, respectively. 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.

·	During the nine months ended June 30, 2020, accounts payable and accrued liabilities of $23,457 at September 30, 2019 was paid to a director for royalties on product sales by the California subsidiary during 2019. No royalty expenses were incurred since 2019.

Leases (Details 3) - USD ($)	Jun. 30, 2021	Sep. 30, 2020
Year Ending September 30,
September 30, 2021	$ 21,260
September 30, 2022	85,041
September 30, 2023	21,260
Total	127,561
Less imputed interest	6,333
Present value of lease liabilities	121,228	$ 164,190
Less current installments	79,503	69,730
Long-term lease liabilities excluding current installments	$ 41,725	$ 94,460

Commitments (Tables)

9 Months Ended

Jun. 30, 2021

Commitments

Future contractual payments

Year Ending
September 30, 2021	$	1,026,000
September 30, 2022		3,039,000
September 30, 2023		157,000
September 30, 2024		63,000
	$	4,285,000

Leases (Details) - USD ($)	Jun. 30, 2021	Sep. 30, 2020
Assets:
Operating lease right-of-use assets	$ 117,846	$ 160,006
Current:
Short-term operating lease liabilities	79,503	69,730
Long-term:
Long-term operating lease liabilities	41,725	94,460
Total lease liabilities	$ 121,228	$ 164,190

Property and Equipment (Details) - USD ($)	Jun. 30, 2021	Sep. 30, 2020
Property and equipment, gross	$ 49,477	$ 40,345
Less: accumulated depreciation	(31,944)	(25,530)
Total property and equipment, net	17,533	14,815
Computer Equipment
Property and equipment, gross	43,339	34,651
Furniture and Equipment
Property and equipment, gross	$ 6,138	$ 5,694

Subsequent Events

9 Months Ended

Jun. 30, 2021

Subsequent Events

NOTE 14 - Subsequent Events

14. Subsequent Events

In July and August 2021, through its Ontario subsidiary, the Company entered into license agreements with a third party to obtain world-wide rights to intellectual property and manufacturing systems related to two of the Company’s product candidates. The license agreements require future milestone payments, sublicensing fees and royalties contingent upon certain future events.

Condensed Interim Consolidated Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenues:
Product sales	$ 0	$ 109,985	$ 0	$ 328,301
Expenses:
Cost of sales	0	1,472	0	15,287
Research and development	4,464,347	1,143,868	13,819,305	2,174,680
General and administrative	1,608,232	733,079	4,377,507	2,528,702
Expenses net	6,072,579	1,878,419	18,196,812	4,718,669
Loss from Operations	(6,072,579)	(1,768,434)	(18,196,812)	(4,390,368)
Other Income (Loss):
Reimbursement grant income	1,306,796	0	8,477,261	0
Interest income	2,610	3,799	4,279	36,762
Foreign exchange gain (loss)	3,663	(692)	58,963	5,110
Loss on disposition of property and equipment	0	(436)	0	(436)
Total Other Income (Loss):	1,313,069	2,671	8,540,503	41,436
Loss before income taxes	(4,759,510)	(1,765,763)	(9,656,309)	(4,348,932)
Income tax expense	0	0	800	800
Net Loss	(4,759,510)	(1,765,763)	(9,657,109)	(4,349,732)
Exchange differences on translation	174,128	68,972	267,075	47,178
Net Comprehensive Loss	$ (4,585,382)	$ (1,696,791)	$ (9,390,034)	$ (4,302,554)
Weighted average number of common shares	13,251,999	8,859,520	11,680,294	8,364,866
Loss per common share - basic and diluted	$ (0.36)	$ (0.20)	$ (0.83)	$ (0.52)

Capital Shares (Details 1) - $ / shares	9 Months Ended
Capital Shares (Details 1) - $ / shares	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Sep. 30, 2019
Number of warrants, beginning balance	760,290	760,290	992,721	48,914
Weighted average exercise price, beginning balance	$ 5.65		$ 4.92	$ 11.19
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	603,529
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

Temporary Equity (Details) - Series A-1 Convertible Preferred Shares - USD ($)	1 Months Ended	9 Months Ended	12 Months Ended
	Apr. 30, 2020	Jun. 30, 2021	Sep. 30, 2020
Beginning balance, shares		250	0
Beginning balance, amount		$ 2,476,955	$ 0
Issuance of convertible preferred shares, shares			250
Issuance of convertible preferred shares, amount			$ 2,500,000
Convertible preferred shares issuance costs, shares			0
Convertible preferred shares issuance costs, amount			(57,154)
Preferred return on convertible preferred shares, shares		0	0
Preferred return on convertible preferred shares, amount		$ 19,525	$ 34,109
Conversion to common shares, shares	250,000,000	(250)
Conversion to common shares, amount		$ (2,496,480)
Preferred shares converted, shares		0	0
Preferred shares converted, amount		$ 0	$ 0

Condensed Interim Consolidated Balance Sheets - USD ($)	Jun. 30, 2021	Sep. 30, 2020
Current assets:
Cash and cash equivalents	$ 8,052,574	$ 7,213,695
Accounts and other receivable	4,185,161	87,446
Prepaid expenses and other current assets	2,096,572	802,877
Total current assets	14,334,307	8,104,018
Non-current assets:
Property and equipment, net	17,533	14,815
Intangible asset, net	2,407,657	2,483,536
Operating lease right-of-use assets	117,846	160,006
Total assets	16,877,343	10,762,375
Current liabilities:
Accounts payable and accrued liabilities	903,964	1,460,127
Short-term operating lease liabilities	79,503	69,730
Total current liabilities	983,467	1,529,857
Non-current liabilities:
Long-term payables	48,396	29,928
Long-term operating lease liabilities	41,725	94,460
Total liabilities	1,073,588	1,654,245
Temporary equity:
Convertible preferred shares	0	2,476,955
Shareholders' equity:
Capital shares Authorized unlimited common and preferred shares without par value Issued and outstanding: 13,255,559 common shares (September 30, 2020 - 9,615,119)	34,627,125	18,500,853
Additional paid-in capital	4,006,347	1,550,480
Accumulated other comprehensive loss	(20,129)	(287,204)
Accumulated deficit	(22,809,588)	(13,132,954)
Total shareholders' equity	15,803,755	6,631,175
Total liabilities, shareholders' equity and temporary equity	$ 16,877,343	$ 10,762,375

Commitments (Details) $ in Millions	Jun. 30, 2021 USD ($)
Year Ending September 30,
September 30, 2021	$ 1,026,000
September 30, 2022	3,039,000
September 30, 2023	157,000
September 30, 2024	63,000
Total	$ 4,285,000

Condensed Interim Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash Flows from Operating Activities:
Net loss	$ (9,657,109)	$ (4,349,732)
Adjustments for:
Depreciation and amortization	89,853	28,543
Loss on disposition of property and equipment	0	436
Share-based compensation	2,290,794	511,966
Changes in working capital items:
Accounts and other receivable	(4,008,512)	156,361
Prepaid expenses and other current assets	(1,389,083)	(134,665)
Accounts payable and accrued liabilities	(635,554)	473,688
Net cash used in operating activities	(13,309,611)	(3,313,403)
Cash Flows from Investing Activities:
Proceeds on sales of property and equipment	0	45,840
Purchase of property and equipment	(7,610)	(825)
Purchase of intangible assets	0	(29,483)
Purchase of short-term investments	0	(500,000)
Proceeds from maturities of short-term investments	0	500,000
Net cash provided by (used in) investing activities	(7,610)	15,532
Cash Flows from Financing Activities:
Proceeds from issuance of common shares and warrants	12,793,591	4,360,500
Proceeds from exercise of warrants	1,467,536	0
Proceeds from exercise of share options	41,985	0
Payments for issuance costs of common shares	(349,408)	(468,699)
Payments for issuance costs of convertible preferred shares	0	(57,154)
Proceeds from borrowings	0	29,660
Net cash provided by financing activities	13,953,704	3,864,307
Effect of exchange rate changes on cash and cash equivalents	202,396	43,676
Net change in cash and cash equivalents	838,879	610,112
Cash and cash equivalents, beginning of period	7,213,695	5,030,583
Cash and cash equivalents, end of period	8,052,574	5,640,695
Supplemental Disclosure of Noncash Financing Activities:
Preferred shares converted from temporary equity to common shares	2,496,480	0
Issuance costs withheld from gross proceeds from issuance of common shares	955,950	0
Fair value of compensation warrants to underwriter	407,023	0
Issuance of convertible preferred shares to acquire license	0	2,500,000
Fair value of placement agent warrants	$ 0	$ 18,051

Capital Shares (Details 4) - $ / shares	6 Months Ended
Capital Shares (Details 4) - $ / shares	Mar. 31, 2021	Jun. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Number of options, beginning balance	1,772,719	1,772,719	675,437	319,645
Options exercisable	686,734
Weighted average exercise price, beginning balance		$ 5.07	$ 3.30	$ 3.39
Stock Option 1
Number of options, beginning balance	214
Options exercisable	214
Weighted average exercise price, beginning balance	$ 638.40
Expiry dates	Nov 2021
Stock Option 2
Number of options, beginning balance	238
Options exercisable	238
Weighted average exercise price, beginning balance	$ 304.08
Expiry dates	Dec 2022
Stock Option 3
Number of options, beginning balance	3,499
Options exercisable	3,499
Stock Option 3 \| Minumum
Weighted average exercise price, beginning balance	$ 35.28
Expiry dates	Sep 2023
Stock Option 3 \| Maximum
Weighted average exercise price, beginning balance	$ 93.24
Expiry dates	Mar 2025
Stock Option 4
Number of options, beginning balance	296,403
Options exercisable	293,163
Weighted average exercise price, beginning balance	$ 2.16
Stock Option 4 \| Minumum
Expiry dates	Aug 2027
Stock Option 4 \| Maximum
Expiry dates	Dec 2028
Stock Option 5
Number of options, beginning balance	335,365
Options exercisable	210,525
Weighted average exercise price, beginning balance	$ 3.16
Expiry dates	Feb 2030
Stock Option 6
Number of options, beginning balance	429,000
Options exercisable	106,892
Stock Option 6 \| Minumum
Weighted average exercise price, beginning balance	$ 7.44
Expiry dates	Sep 2030
Stock Option 6 \| Maximum
Weighted average exercise price, beginning balance	$ 8.07
Expiry dates	Oct 2030
Stock Option 7
Number of options, beginning balance	708,000
Options exercisable	72,203
Stock Option 7 \| Minumum
Weighted average exercise price, beginning balance	$ 5.25
Expiry dates	Jan 2031
Stock Option 7 \| Maximum
Weighted average exercise price, beginning balance	$ 5.65
Expiry dates	April 2031

Reimbursement Grant Income and Receivable

9 Months Ended

Jun. 30, 2021

Reimbursement Grant Income and Receivable

NOTE 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. Claims during the nine months ended June 30, 2021 included reimbursement of eligible costs from the eligibility date in the SIF contribution agreement to June 30, 2021. At June 30, 2021, grant reimbursements receivable of $3,991,683 were included in accounts and other receivable.

Temporary Equity (Details Narrative) - Series A-1 Convertible Preferred Shares - USD ($)	1 Months Ended	9 Months Ended
	Apr. 30, 2020	Jun. 30, 2021
Conversion of preferred shares,amount	$ 2.5
Description of shares splits	the Company’s common shares calculated by dividing (i) the sum of the stated value of such Series A-1 Share plus a return equal to 3% of the stated value of such Series A-1 Share per annum (collectively, the “Preferred Amount”) by (ii) a fixed conversion price of $2.26
Description of conversion of common shares	At June 30, 2021 all 250 Series A-1 Shares have been converted to common shares.
Conversion of preferred shares, shares	250,000,000	(250)
Stated price of shares, amount	$ 10,000

Leases (Details 2)	9 Months Ended	12 Months Ended
Leases (Details 2)	Jun. 30, 2020	Sep. 30, 2020	Jun. 30, 2021
Leases
Remaining lease term (months)	18 years	27 years
Estimated incremental borrowing rate		6.50%	6.50%

Commitments

9 Months Ended

Jun. 30, 2021

Commitments

6. Commitments

6. Commitments

Research and other commitments

The Company has commitments for contracted research organizations who perform clinical trials for the Company’s ongoing clinical studies, other service providers and the drug substance acquired in connection with a license agreement. Aggregate future contractual payments at June 30, 2021 are as follows:

Year Ending
September 30, 2021	$	1,026,000
September 30, 2022		3,039,000
September 30, 2023		157,000
September 30, 2024		63,000
	$	4,285,000

License 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 4 for intangible asset. Under the license agreement, the Company recorded an expense of $3.5 million as a result of meeting a milestone during the nine months ended June 30, 2021 and is committed to remaining payments of up to an aggregate amount of $352.5 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 the products 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 nine months ended June 30, 2021 and 2020.

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, payable in two future installments, the first when the Company is ready to initiate a Phase 2 trial and the second when the Company is ready to initiate a Phase 3 trial. A payment of $2.5 million was made for the drug substance during the nine months ended June 30, 2021. The remaining purchase commitment is included in the table above for the year ending September 30, 2022.

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 $18.6 million. Upon divestiture of substantially all of the assets of the Company, the Company shall pay the third party a percentage of the valuation of the licensed technology sold as determined by an external objective expert. The Company also has a commitment to pay the third party a royalty based on net sales of the product in countries where the Company, or an affiliate, directly commercializes the product and a percentage of sublicensing revenue received by the Company and its affiliates in the countries where it does not directly commercialize the product. No license or royalty payments were made to the third party during the nine months ended June 30, 2021 and 2020.

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 nine months ended June 30, 2021, the Company recorded an expense of $106,000 as a result of meeting a milestone 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.

Related party patent royalty commitments

In August 2002, through its California subsidiary, the Company entered into a patent royalty agreement with a director of the Company, whereby he would receive royalty payments in exchange for assignment of his patent rights to the Company. The royalty is 5% of gross receipts in excess of $500,000 annually from legacy products using this invention. There were no royalty expenses during the three and nine months ended June 30, 2021 and 2020.

Retirement savings plan 401(k) contributions

Executive officers and employees of the 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 $4,552 and $3,461 during the three months ended June 30, 2021 and 2020, respectively and $19,181 and $7,996 during the nine months ended June 30, 2021 and 2020, respectively.