Edesa Biotech, Inc. Leases Disclosure
5. Right-of-Use Asset and Liabilities
Related party ROU asset and liability
The Company leases a facility used for executive offices from a related company. The original lease expired in December 2022 and the Company executed a -year term extension through December 31, 2024.
The components of lease cost were as follows:
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Fiscal Year End |
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September 30, 2025 |
September 30, 2024 |
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Right-of-use lease cost, included in general and administrative on the Statements of Operations |
$ | 17,893 | $ | 78,073 | ||||
Lease terms and discount rates were as follows:
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September 30, 2025 |
September 30, 2024 |
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Remaining lease term (months): |
0 | 3 | ||||||
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Estimated incremental borrowing rate: |
9.2 | % | 9.2 | % | ||||
Cash flow information was as follows:
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Fiscal Year End |
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September 30, 2025 |
September 30, 2024 |
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Cash paid for amounts included in the measurement of right-of-use lease liabilities, included in accounts payable and accrued liabilities on the Statements of Cash Flow. |
$ | 17,893 | $ | 77,954 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Dec 12, 2025 | Showing above |
| 2022 | Dec 16, 2022 | |
| 2021 | Dec 28, 2021 | |
| 2020 | Dec 7, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.