Full Press Release Details
CARDIOL THERAPEUTICS
CONSOLIDATED FINANCIAL STATEMENTS
MONTHS ENDED SEPTEMBER 30, 2025
IN CANADIAN DOLLARS) (UNAUDITED)
| As at September 30, 2025 | As at December 31, 2024 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents (note 3) | $ | 11,622,408 | $ | 30,580,029 | ||||
| Accounts receivable | 37,494 | 100,366 | ||||||
| Other receivables | 158,386 | 261,255 | ||||||
| Prepaid expenses | 988,532 | 726,509 | ||||||
| Total current assets | 12,806,820 | 31,668,159 | ||||||
| Non-current assets | ||||||||
| Property and equipment (note 4) | 140,981 | 195,592 | ||||||
| Total assets | $ | 12,947,801 | $ | 31,863,751 | ||||
| EQUITY AND LIABILITIES | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities | $ | 3,252,727 | $ | 6,976,736 | ||||
| Current portion of lease liability (note 5) | 36,925 | 33,009 | ||||||
| Total current liabilities | 3,289,652 | 7,009,745 | ||||||
| Non-current liabilities | ||||||||
| Lease liability (note 5) | 97,274 | 125,523 | ||||||
| Total liabilities | 3,386,926 | 7,135,268 | ||||||
| Equity | ||||||||
| Share capital (note 7) | 187,362,629 | 179,335,421 | ||||||
| Contributed surplus | 28,102,576 | 24,647,163 | ||||||
| Deficit | (205,904,330 | ) | (179,254,101 | ) | ||||
| Total equity | 9,560,875 | 24,728,483 | ||||||
| Total equity and liabilities | $ | 12,947,801 | $ | 31,863,751 |
The accompanying notes are an integral
part of these unaudited condensed interim consolidated financial statements.
Commitments (note 11)
Subsequent events (notes 8 and 14)
Approved on behalf of the Board:
| Three Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Operating expenses (notes 8, 12, 13) | ||||||||||||||||
| General and administration (note 12) | $ | 5,393,522 | $ | 10,389,712 | $ | 15,009,650 | $ | 20,503,966 | ||||||||
| Research and development (note 12) | 4,786,578 | 3,750,688 | 11,275,671 | 9,783,261 | ||||||||||||
| Loss before other income | (10,180,100 | ) | (14,140,400 | ) | (26,285,321 | ) | (30,287,227 | ) | ||||||||
| Interest income (note 3) | 122,256 | 201,864 | 551,192 | 886,567 | ||||||||||||
| Gain (loss) on foreign exchange | 93,563 | (142,033 | ) | (872,176 | ) | 638,919 | ||||||||||
| Change in derivative liability (note 6) | - | 1,352,085 | - | 234,529 | ||||||||||||
| Other income | - | - | - | 28,223 | ||||||||||||
| Net loss and comprehensive loss for the period | $ | (9,964,281 | ) | $ | (12,728,484 | ) | $ | (26,606,305 | ) | $ | (28,498,989 | ) | ||||
| Basic and diluted net loss per share (note 10) | $ | (0.12 | ) | $ | (0.18 | ) | $ | (0.32 | ) | $ | (0.42 | ) | ||||
| Weighted average number of common shares outstanding | 84,727,401 | 69,841,202 | 83,337,682 | 68,621,684 |
The accompanying notes are an integral
part of these unaudited condensed interim consolidated financial statements.
| Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||
| 2025 | 2024 | |||||||
| Operating activities | ||||||||
| Net loss and comprehensive loss for the period | $ | (26,606,305 | ) | $ | (28,498,989 | ) | ||
| Adjustments for: | ||||||||
| Depreciation of property and equipment | 76,007 | 114,263 | ||||||
| Amortization of intangible assets | - | 210,358 | ||||||
| Share-based compensation (note 8) | 7,686,761 | 11,130,090 | ||||||
| Change in derivative liability | - | (234,529 | ) | |||||
| Unrealized foreign exchange (gain)/loss on cash | 299,601 | (286,123 | ) | |||||
| Accretion on lease liability | 17,199 | 19,332 | ||||||
| Changes in non-cash working capital items: | ||||||||
| Accounts receivable | 62,872 | 85,666 | ||||||
| Other receivables | 102,869 | (72,500 | ) | |||||
| Prepaid expenses | (262,023 | ) | (188,553 | ) | ||||
| Accounts payable and accrued liabilities | (6,333 | ) | (1,746,589 | ) | ||||
| Net cash used in operating activities | (18,629,352 | ) | (19,467,574 | ) | ||||
| Investing activities | ||||||||
| Purchase of property and equipment | (21,396 | ) | (15,131 | ) | ||||
| Net cash used in investing activities | (21,396 | ) | (15,131 | ) | ||||
| Financing activities | ||||||||
| Proceeds from stock options exercised | 34,260 | 177,510 | ||||||
| Payment of lease liability | (41,532 | ) | (27,688 | ) | ||||
| Net cash provided by (used in) financing activities | (7,272 | ) | 149,822 | |||||
| Net change in cash and cash equivalents | (18,658,020 | ) | (19,332,883 | ) | ||||
| Cash and cash equivalents, beginning of period | 30,580,029 | 34,931,778 | ||||||
| Impact of foreign exchange on cash and cash equivalents | (299,601 | ) | 286,123 | |||||
| Cash and cash equivalents, end of period | $ | 11,622,408 | $ | 15,885,018 | ||||
| Supplemental information | ||||||||
| Deferred share issuance costs included in accounts payable and accrued liabilities | $ | (43,924 | ) | $ | - | |||
| Accounts payable and accrued liabilities settled through equity | $ | 3,761,600 | $ | - |
The accompanying notes are an integral
part of these unaudited condensed interim consolidated financial statements.
| Share capital | ||||||||||||||||||||
| Number | Amount | Warrants | Contributed surplus | Deficit | Total | |||||||||||||||
| Balance, December 31, 2023 | 65,352,279 | $ | 148,519,136 | $ | 3,517,867 | $ | 18,786,306 | $ | (142,576,802 | ) | $ | 28,246,507 | ||||||||
| Deferred share issuance costs | - | - | - | - | (623,743 | ) | (623,743 | ) | ||||||||||||
| Fair value of expired warrants | - | - | (3,517,867 | ) | 3,517,867 | - | - | |||||||||||||
| Restricted share units exercised | 2,019,685 | 2,896,211 | - | (2,896,211 | ) | - | - | |||||||||||||
| Stock options exercised | 175,000 | 177,510 | - | - | - | 177,510 | ||||||||||||||
| Fair value of stock options exercised | - | 99,263 | - | (99,263 | ) | - | - | |||||||||||||
| Share-based compensation (note 8) | - | - | - | 11,130,090 | - | 11,130,090 | ||||||||||||||
| Performance share units exercised | 2,650,000 | 2,939,038 | - | (2,939,038 | ) | - | - | |||||||||||||
| Net loss and comprehensive loss for the period | - | - | - | - | (28,498,989 | ) | (28,498,989 | ) | ||||||||||||
| Balance, September 30, 2024 | 70,196,964 | $ | 154,631,158 | $ | - | $ | 27,499,751 | $ | (171,699,534 | ) | $ | 10,431,375 | ||||||||
| Balance, December 31, 2024 | 82,608,992 | $ | 179,335,421 | $ | - | $ | 24,647,163 | $ | (179,254,101 | ) | $ | 24,728,483 | ||||||||
| Deferred share issuance costs | - | - | - | - | (43,924 | ) | (43,924 | ) | ||||||||||||
| Restricted share units exercised | 271,485 | 568,836 | - | (568,836 | ) | - | - | |||||||||||||
| Stock options exercised | 25,000 | 34,260 | - | - | - | 34,260 | ||||||||||||||
| Fair value of stock options exercised | - | 22,033 | - | (22,033 | ) | - | - | |||||||||||||
| Performance share units exercised | 4,550,245 | 7,402,079 | - | (7,402,079 | ) | - | - | |||||||||||||
| Share-based compensation (note 8) | - | - | - | 11,448,361 | - | 11,448,361 | ||||||||||||||
| Net loss and comprehensive loss for the period | - | - | - | - | (26,606,305 | ) | (26,606,305 | ) | ||||||||||||
| Balance, September 30, 2025 | 87,455,722 | $ | 187,362,629 | $ | - | $ | 28,102,576 | $ | (205,904,330 | ) | $ | 9,560,875 |
The accompanying notes are an integral
part of these unaudited condensed interim consolidated financial statements.
Cardiol Therapeutics Inc.
Notes to Condensed Interim Consolidated
Financial Statements
Three and Nine Months Ended September 30, 2025
(Expressed in Canadian Dollars)
Cardiol Therapeutics
Inc. was incorporated under the laws of the Province of Ontario on January 19, 2017. The Corporation's registered and legal office
is located at 2265 Upper Middle Rd. E., Suite 602, Oakville, Ontario, L6H 0G5, Canada.
Cardiol Therapeutics
Inc. and its subsidiary (the "Corporation" or "Cardiol") is a clinical-stage life sciences company advancing late-stage,
anti-inflammatory and anti-fibrotic therapies for heart disease. The Corporation's lead small molecule drug candidate, CardiolRx ,
modulates inflammasome pathway activation, an intracellular process known to play an important role in the development and progression
of inflammation and fibrosis associated with pericarditis, myocarditis, and heart failure.
2018, the Corporation completed its initial public offering on the Toronto Stock Exchange (the "TSX") and its common shares
commenced trading on the TSX under the symbol "CRDL". On August 10, 2021, the Corporation's common shares commenced trading
on The Nasdaq Capital Market under the symbol "CRDL".
condensed interim consolidated financial statements have been prepared in accordance with International Accounting Standard 34, Interim
Financial Reporting. Accordingly, they do not include all of the information required for full annual financial statements required by
International Financial Reporting Standards and International Accounting Standards as issued by the International Accounting Standards
Board (IASB) and Interpretations (collectively "IFRS Accounting Standards").
condensed interim consolidated financial statements have been prepared on a historical cost basis. In addition, these unaudited condensed
interim consolidated financial statements have been prepared using the accrual basis of accounting except for cash flow information.
The policies applied
in these unaudited condensed interim consolidated financial statements are based on IFRS Accounting Standards issued and outstanding
as of November 7, 2025, the date the Board of Directors approved the statements. The same accounting policies and methods of computation
are followed in these unaudited condensed interim consolidated financial statements as compared with the most recent annual consolidated
financial statements as at and for the year ended December 31, 2024.
changes to IFRS Accounting Standards that are given effect in the Corporation's annual consolidated financial statements for the
year ending December 31, 2025, could result in restatement of these unaudited condensed interim consolidated financial statements.
earned on cash and cash equivalents for the three and nine months ended September 30, 2025, amounted to $122,256 and $551,192
(three and nine months ended September 30, 2024 - $201,864 and $886,567).
Cardiol Therapeutics Inc.
Notes to Condensed Interim Consolidated
Financial Statements
Three and Nine Months Ended September 30,
(Expressed in Canadian Dollars)
| Right-of- | Leasehold | Office | Computer | |||||||||||||||||||||
| Cost | use asset | Equipment | improvements | equipment | equipment | Total | ||||||||||||||||||
| Balance, December 31, 2023 | $ | 341,238 | $ | 219,809 | $ | 237,248 | $ | 66,864 | $ | 128,657 | $ | 993,816 | ||||||||||||
| Additions | - | - | - | - | 21,290 | 21,290 | ||||||||||||||||||
| Disposals | - | (46,855 | ) | - | - | - | (46,855 | ) | ||||||||||||||||
| Balance, December 31, 2024 | 341,238 | 172,954 | 237,248 | $ | 66,864 | $ | 149,947 | $ | 968,251 | |||||||||||||||
| Additions | - | - | - | 1,937 | 19,459 | 21,396 | ||||||||||||||||||
| Balance, September 30, 2025 | $ | 341,238 | $ | 172,954 | $ | 237,248 | $ | 68,801 | $ | 169,406 | $ | 989,647 |
| Right-of- | Leasehold | Office | Computer | |||||||||||||||||||||
| Accumulated Depreciation | use asset | Equipment | improvements | equipment | equipment | Total | ||||||||||||||||||
| Balance, December 31, 2023 | $ | 196,668 | $ | 131,722 | $ | 207,552 | $ | 40,355 | $ | 80,461 | $ | 656,758 | ||||||||||||
| Depreciation for the year | 63,984 | 26,426 | 29,696 | 5,302 | 17,994 | 143,402 | ||||||||||||||||||
| Disposals | - | (27,501 | ) | - | - | - | (27,501 | ) | ||||||||||||||||
| Balance, December 31, 2024 | $ | 260,652 | $ | 130,647 | $ | 237,248 | $ | 45,657 | $ | 98,455 | $ | 772,659 | ||||||||||||
| Depreciation for the period | 47,988 | 9,519 | - | 3,181 | 15,319 | 76,007 | ||||||||||||||||||
| Balance, September 30, 2025 | $ | 308,640 | $ | 140,166 | $ | 237,248 | $ | 48,838 | $ | 113,774 | $ | 848,666 |
| Right-of- | Leasehold | Office | Computer | |||||||||||||||||||||
| Carrying value | use asset | Equipment | improvements | equipment | equipment | Total | ||||||||||||||||||
| Balance, December 31, 2024 | $ | 80,586 | $ | 42,307 | $ | - | $ | 21,207 | $ | 51,492 | $ | 195,592 | ||||||||||||
| Balance, September 30, 2025 | $ | 32,598 | $ | 32,788 | $ | - | $ | 19,963 | $ | 55,632 | $ | 140,981 |
| Carrying | ||||
| Value | ||||
| Balance, December 31, 2023 | $ | 174,340 | ||
| Repayments | (41,532 | ) | ||
| Accretion | 25,724 | |||
| Balance, December 31, 2024 | $ | 158,532 | ||
| Repayments | (41,532 | ) | ||
| Accretion | 17,199 | |||
| Balance, September 30, 2025 | $ | 134,199 | ||
| Current portion | 36,925 | |||
| Long-term portion | $ | 97,274 |
the lease liability for the property lease that was classified as an operating lease, the Corporation discounted the lease payments using
its incremental borrowing rate. The original property lease had an expiration date of May 31, 2024, and the lease payments were
discounted with a 9% interest rate. During the year ended December 31, 2023, the property lease was extended to October 30,
2028. The lease liability was revalued as of the extension date with lease payments discounted with a 15% interest rate.
Cardiol Therapeutics Inc.
Notes to Condensed Interim Consolidated
Financial Statements
Three and Nine Months Ended September 30, 2025
(Expressed in Canadian Dollars)
2021, the Corporation issued 8,175,000 warrants as part of a unit financing. Each warrant was exercisable into one common share at the
price of USD$3.75 per share for a period of three years from closing. The warrants were classified as a derivative liability on the statement
of financial position and re-valued at each reporting date, as the warrants were issued in a currency other than the Corporation's functional
currency. During the three and nine months ended September 30, 2024, the value of the derivative liability decreased by $1,352,085
and $234,529. During 2024, all 8,175,000 warrants expired unexercised.
a) Authorized share capital
share capital consists of an unlimited number of common shares. The common shares do not have a par value. All issued shares are fully
| b) Common shares issued | Number of | |||||||
| common shares | Amount | |||||||
| Balance, December 31, 2023 | 65,352,279 | $ | 148,519,136 | |||||
| Restricted share units exercised (note 8) | 2,019,685 | 2,896,211 | ||||||
| Fair value of stock options exercised (note 8) | - | 99,263 | ||||||
| Stock options exercised (note 8) | 175,000 | 177,510 | ||||||
| Performance share units exercised (note 8) | 2,650,000 | 2,939,038 | ||||||
| Balance, September 30, 2024 | 70,196,964 | $ | 154,631,158 | |||||
| Balance, December 31, 2024 | 82,608,992 | $ | 179,335,421 | |||||
| Restricted share units exercised (note 8) | 271,485 | 568,836 | ||||||
| Stock options exercised (note 8) | 25,000 | 34,260 | ||||||
| Fair value of stock options exercised (note 8) | - | 22,033 | ||||||
| Performance share units exercised (note 8) | 4,550,245 | 7,402,079 | ||||||
| Balance, September 30, 2025 | 87,455,722 | $ | 187,362,629 |
has adopted an Omnibus Equity Incentive Plan in accordance with the policies of the TSX, which permits the grant or issuance of options,
Restricted Share Units ("RSUs"), Performance Share Units ("PSUs"), and Deferred Share Units ("DSUs"), as
well as other share-based payment arrangements. The maximum number of shares that may be issued upon the exercise or settlement of awards
granted under the plan may not exceed 15% of the Corporation's issued and outstanding shares from time to time. The Board of Directors
determines the price per common share and the number of common shares which may be allotted to directors, officers, employees, and consultants,
and all other terms and conditions of the option, subject to the rules of the TSX.
and nine months ended September 30, 2025, the total expenses related to share-based compensation amounted to $3,999,605 and $7,686,761
(three and nine months ended September 30, 2024 - $8,422,404 and $11,130,090).
Cardiol Therapeutics Inc.
Notes to Condensed Interim Consolidated
Financial Statements
Three and Nine Months Ended September 30, 2025
(Expressed in Canadian Dollars)
| (a) Stock Options | Number of | Weighted average | ||||||
| stock options | exercise price ($) | |||||||
| Balance, December 31, 2023 | 1,732,500 | $ | 2.44 | |||||
| Issued | 455,000 | 2.56 | ||||||
| Expired | (555,000 | ) | 2.15 | |||||
| Exercised (i) | (175,000 | ) | 1.01 | |||||
| Balance, September 30, 2024 | 1,457,500 | $ | 2.77 | |||||
| Balance, December 31, 2024 | 1,487,500 | $ | 2.76 | |||||
| Issued | 1,560,000 | 1.65 | ||||||
| Expired | (350,000 | ) | 3.05 | |||||
| Exercised (ii) | (25,000 | ) | 1.37 | |||||
| Cancelled (iii) | (1,000,000 | ) | 1.63 | |||||
| Balance, September 30, 2025 | 1,672,500 | $ | 2.35 |
| (i) The weighted average share price on date of exercise was $2.62. | ||
| (ii) The weighted average share price on date of exercise was $1.70. |
(iii) During the period ended
September 30, 2025, the Corporation cancelled 1,000,000 stock options held by a consultant, and issued 400,000 PSUs of
the Corporation to replace the cancelled stock options. The cancelled stock options were revalued as of the grant date of the PSUs
using the Black-Scholes option pricing model with weighted average assumptions that correspond to their time to maturity. The
following weighted average assumptions were used for the calculation:
| Fair value of stock options at cancellation date | $ | 0.95 | ||
| Share price | $ | 1.97 | ||
| Exercise price | $ | 1.54 | ||
| Risk-free interest rate | 2.69 | % | ||
| Expected volatility | 80 | % | ||
| Expected life in years | 1.67 | |||
| Expected dividend yield | Nil |
The remaining unvested fair value of
the cancelled options converted into PSUs will be recorded as share-based compensation expenses.
Cardiol Therapeutics Inc.