Full Press Release Details
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
MONTHS ENDED MARCH 31, 2026
(EXPRESSED IN CANADIAN
| As at March 31, 2026 | As at December 31, 2025 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents (note 3) | $ | 27,673,191 | $ | 21,416,684 | ||||
| Accounts receivable | 70,076 | 55,727 | ||||||
| Other receivables | 269,630 | 170,468 | ||||||
| Prepaid expenses | 3,254,741 | 1,858,961 | ||||||
| Total current assets | 31,267,638 | 23,501,840 | ||||||
| Non-current assets | ||||||||
| Property and equipment (note 4) | 138,969 | 118,093 | ||||||
| Total assets | $ | 31,406,607 | $ | 23,619,933 | ||||
| EQUITY AND LIABILITIES | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities | $ | 3,419,508 | $ | 3,478,825 | ||||
| Current portion of lease liability (note 5) | 39,792 | 38,347 | ||||||
| Derivative liability (note 6) | 3,667,386 | 2,137,867 | ||||||
| Total current liabilities | 7,126,686 | 5,655,039 | ||||||
| Non-current liabilities | ||||||||
| Lease liability (note 5) | 76,616 | 87,176 | ||||||
| Total liabilities | 7,203,302 | 5,742,215 | ||||||
| Equity | ||||||||
| Share capital (note 7) | 212,802,439 | 201,866,449 | ||||||
| Warrants (note 9) | 2,820,121 | - | ||||||
| Contributed surplus | 32,472,309 | 29,084,244 | ||||||
| Deficit | (223,891,564 | ) | (213,072,975 | ) | ||||
| Total equity | 24,203,305 | 17,877,718 | ||||||
| Total equity and liabilities | $ | 31,406,607 | $ | 23,619,933 |
The accompanying notes are an integral
part of these unaudited condensed interim consolidated financial statements.
Commitments (note 11)
Subsequent events (notes 8
| Approved on behalf of the Board: | ||
| " David Elsley ", Director | " Guillermo Torre-Amione ", Director |
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | |||||||
| Operating expenses (notes 8, 12, 13) | ||||||||
| General and administration (note 12) | $ | 4,757,383 | $ | 4,671,651 | ||||
| Research and development (note 12) | 4,949,411 | 3,757,412 | ||||||
| Loss before other income (expenses) | (9,706,794 | ) | (8,429,063 | ) | ||||
| Interest income (note 3) | 200,724 | 248,269 | ||||||
| Gain (loss) on foreign exchange | 217,000 | (106,859 | ) | |||||
| Change in derivative liability (note 6) | (1,529,519 | ) | - | |||||
| Net loss and comprehensive loss for the period | $ | (10,818,589 | ) | $ | (8,287,653 | ) | ||
| Basic and diluted net loss per share (note 10) | $ | (0.10 | ) | $ | (0.10 | ) | ||
| Weighted average number of common shares outstanding | 108,987,584 | 82,608,992 |
The accompanying notes are an integral
part of these unaudited condensed interim consolidated financial statements.
| Three Months | Three Months | ||||||||
| Ended | Ended | ||||||||
| March 31, | March 31, | ||||||||
| 2026 | 2025 | ||||||||
| Operating activities | |||||||||
| Net loss and comprehensive loss for the period | $ | (10,818,589 | ) | $ | (8,287,653 | ) | |||
| Adjustments for: | |||||||||
| Depreciation of property and equipment | 26,709 | 24,986 | |||||||
| Share-based compensation (note 8) | 1,842,835 | 1,146,974 | |||||||
| Change in derivative liability | 1,529,519 | - | |||||||
| Unrealized foreign exchange (gain)/loss on cash | (221,941 | ) | 107,778 | ||||||
| Accretion on lease liability | 4,729 | 5,972 | |||||||
| Changes in non-cash working capital items: | |||||||||
| Accounts receivable | (14,349 | ) | 24,406 | ||||||
| Other receivables | (99,162 | ) | (9,475 | ) | |||||
| Prepaid expenses | (1,395,780 | ) | (906,450 | ) | |||||
| Accounts payable and accrued liabilities | 1,628,398 | 739,695 | |||||||
| Net cash used in operating activities | (7,517,631 | ) | (7,153,767 | ) | |||||
| Investing activities | |||||||||
| Purchase of property and equipment | (47,585 | ) | (11,939 | ) | |||||
| Net cash used in investing activities | (47,585 | ) | (11,939 | ) | |||||
| Financing activities | |||||||||
| Issuance of units | 14,850,001 | - | |||||||
| Share issuance costs | (1,236,375 | ) | - | ||||||
| Payment of lease liability | (13,844 | ) | (13,844 | ) | |||||
| Net cash provided by (used in) financing activities | 13,599,782 | (13,844 | ) | ||||||
| Net change in cash and cash equivalents | 6,034,566 | (7,179,550 | ) | ||||||
| Cash and cash equivalents, beginning of period | 21,416,684 | 30,580,029 | |||||||
| Impact of foreign exchange on cash and cash equivalents | 221,941 | (107,778 | ) | ||||||
| Cash and cash equivalents, end of period | $ | 27,673,191 | $ | 23,292,701 | |||||
| Supplemental information | |||||||||
| Accounts payable and accrued liabilities settled through equity | $ | 1,687,715 | $ | - |
The accompanying notes are an integral
part of these unaudited condensed interim consolidated financial statements.
| Share capital | Contributed | |||||||||||||||||||||||
| Number | Amount | Warrants | surplus | Deficit | Total | |||||||||||||||||||
| Balance, December 31, 2024 | 82,608,992 | $ | 179,335,421 | $ | - | $ | 24,647,163 | $ | (179,254,101 | ) | $ | 24,728,483 | ||||||||||||
| Share-based compensation (note 8) | - | - | - | 1,146,974 | - | 1,146,974 | ||||||||||||||||||
| Net loss and comprehensive loss for the period | - | - | - | - | (8,287,653 | ) | (8,287,653 | ) | ||||||||||||||||
| Balance, March 31, 2025 | 82,608,992 | $ | 179,335,421 | $ | - | $ | 25,794,137 | $ | (187,541,754 | ) | $ | 17,587,804 | ||||||||||||
| Balance, December 31, 2025 | 100,257,009 | $ | 201,866,449 | $ | - | $ | 29,084,244 | $ | (213,072,975 | ) | $ | 17,877,718 | ||||||||||||
| Issuance of units | 11,423,078 | 14,850,001 | - | - | - | 14,850,001 | ||||||||||||||||||
| Share issuance costs | - | (980,255 | ) | (256,120 | ) | - | - | (1,236,375 | ) | |||||||||||||||
| Fair value of warrants | - | (3,076,241 | ) | 3,076,241 | - | - | - | |||||||||||||||||
| Performance share units exercised | 191,997 | 142,485 | - | (142,485 | ) | - | - | |||||||||||||||||
| Share-based compensation (note 8) | - | - | - | 3,530,550 | - | 3,530,550 | ||||||||||||||||||
| Net loss and comprehensive loss for the period | - | - | - | - | (10,818,589 | ) | (10,818,589 | ) | ||||||||||||||||
| Balance, March 31, 2026 | 111,872,084 | $ | 212,802,439 | $ | 2,820,121 | $ | 32,472,309 | $ | (223,891,564 | ) | $ | 24,203,305 |
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 Months Ended March 31,
(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 late-stage life sciences company focused on advancing
the development of anti-inflammatory and anti-fibrotic therapies for heart disease. The Company'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 as issued by the International Accounting Standards Board (IASB) ("IFRS Accounting
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 May 11, 2026, 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, 2025.
changes to IFRS Accounting Standards that are given effect in the Corporation's annual consolidated financial statements for the
year ending December 31, 2026, could result in restatement of these unaudited condensed interim consolidated financial statements.
on cash and cash equivalents for the three months ended March 31, 2026, amounted to $200,724 (three months ended March 31,
Cardiol Therapeutics Inc.
Notes to Condensed Interim Consolidated Financial Statements
Three Months Ended March 31, 2026
(Expressed in Canadian Dollars)
| Cost | Right-of- use asset | Equipment | Leasehold improvements | Office equipment | Computer equipment | Total | ||||||||||||||||||
| Balance, December 31, 2024 | $ | 341,238 | $ | 172,954 | $ | 237,248 | $ | 66,864 | $ | 149,947 | $ | 968,251 | ||||||||||||
| Additions | - | - | - | 1,937 | 22,547 | 24,484 | ||||||||||||||||||
| Balance, December 31, 2025 | 341,238 | 172,954 | 237,248 | $ | 68,801 | $ | 172,494 | $ | 992,735 | |||||||||||||||
| Additions | - | 43,331 | - | - | 4,254 | 47,585 | ||||||||||||||||||
| Balance, March 31, 2026 | $ | 341,238 | $ | 216,285 | $ | 237,248 | $ | 68,801 | $ | 176,748 | $ | 1,040,320 |
| Accumulated Depreciation | Right-of- use asset | Equipment | Leasehold improvements | Office equipment | Computer equipment | Total | ||||||||||||||||||
| Balance, December 31, 2024 | $ | 260,652 | $ | 130,647 | $ | 237,248 | $ | 45,657 | $ | 98,455 | $ | 772,659 | ||||||||||||
| Depreciation for the year | 63,984 | 12,692 | - | 4,435 | 20,872 | 101,983 | ||||||||||||||||||
| Balance, December 31, 2025 | $ | 324,636 | $ | 143,339 | $ | 237,248 | $ | 50,092 | $ | 119,327 | $ | 874,642 | ||||||||||||
| Depreciation for the period | 15,996 | 5,471 | - | 935 | 4,307 | 26,709 | ||||||||||||||||||
| Balance, March 31, 2026 | $ | 340,632 | $ | 148,810 | $ | 237,248 | $ | 51,027 | $ | 123,634 | $ | 901,351 |
| Carrying value | Right-of- use asset | Equipment | Leasehold improvements | Office equipment | Computer equipment | Total | ||||||||||||||||||
| Balance, December 31, 2025 | $ | 16,602 | $ | 29,615 | $ | - | $ | 18,709 | $ | 53,167 | $ | 118,093 | ||||||||||||
| Balance, March 31, 2026 | $ | 606 | $ | 67,475 | $ | - | $ | 17,774 | $ | 53,114 | $ | 138,969 |
| Carrying Value | ||||
| Balance, December 31, 2024 | $ | 158,532 | ||
| Repayments | (55,376 | ) | ||
| Accretion | 22,367 | |||
| Balance, December 31, 2025 | $ | 125,523 | ||
| Repayments | (13,844 | ) | ||
| Accretion | 4,729 | |||
| Balance, March 31, 2026 | $ | 116,408 | ||
| Current portion | 39,792 | |||
| Long-term portion | $ | 76,616 |
Cardiol Therapeutics Inc.
Notes to Condensed Interim Consolidated Financial Statements
Three Months Ended March 31, 2026
(Expressed in Canadian Dollars)
the Corporation issued 5,712,500 warrants as part of a unit financing. Each warrant is exercisable into one common share at the price
of US$1.35 per share for a period of two years from closing. The original estimated fair value of $3,089,610 was assigned to the 5,712,500
warrants issued by using a fair value market technique incorporating the Black-Scholes option pricing model, with the following assumptions:
a share price of $1.46, a risk-free interest rate of 2.37%; an expected volatility factor of 81%; and an expected life of 2 years. The
only significant unobservable input is the volatility, which could cause an increase or decrease in fair value. The warrants have been
classified as a derivative liability on the statement of financial position and are re-valued at each reporting date, as the warrants
were issued in a currency other than the Corporation's functional currency. As at March 31, 2026, the fair value of the derivative
liability was $3,667,386 (December 31, 2025 - $2,137,867), resulting in an increase in the value of the derivative liability for
the three months ended March 31, 2026, of $1,529,519. As at March 31, 2026, all 5,712,500 warrants remain outstanding.
Significant assumptions
used in determining the fair value of the derivative warrant liabilities are as follows:
| Three Months Ended | ||||
| March 31, | ||||
| 2026 | ||||
| Share price | $ | 1.89 | ||
| Exercise price | $ | 1.88 | ||
| Risk-free interest rate | 2.82 | % | ||
| Expected volatility | 67 | % | ||
| Expected life in years | 1.55 | |||
| Expected dividend yield | Nil |
a) Authorized share capital
The authorized share capital consists
of an unlimited number of common shares. The common shares do not have a par value. All issued shares are fully paid.
b) Common shares issued
| Number of | |||||||
| common shares | Amount | ||||||
| Balance, December 31, 2024 and March 31, 2025 | 82,608,992 | $ | 179,335,421 | ||||
| Balance, December 31, 2025 | 100,257,009 | $ | 201,866,449 | ||||
| Issuance of units (i) | 11,423,078 | 14,850,001 | |||||
| Share issuance costs (i) | - | (980,255 | ) | ||||
| Fair value of warrants (i) | - | (3,076,241 | ) | ||||
| Performance share units exercised (note 8) | 191,997 | 142,485 | |||||
| Balance, March 31, 2026 | 111,872,084 | $ | 212,802,439 |
Cardiol Therapeutics Inc.
Notes to Condensed Interim Consolidated
Financial Statements
Three Months Ended March 31,
(Expressed in Canadian Dollars) Unaudited
b) Common shares issued (continued)
(i) In January 2026,
the Corporation completed a unit financing by issuing 11,423,078 common share units at $1.30 per unit for gross proceeds of $14,850,001.
Each unit consisted of one common share and one-half of one common share purchase warrant. Each whole warrant is exercisable into one
common share at the price of $1.75 per share for a period of 2 years from closing. Share issuance costs of $1,236,375 were incurred,
of which $256,120 was allocated to warrants.
The fair value of $3,076,241 was assigned
to the 5,711,539 warrants issued as part of the units as estimated by using a fair market value technique incorporating the Black-Scholes
option pricing model based on the assumptions below:
| Share price | $ | 1.41 | ||
| Exercise price | $ | 1.75 | ||
| Risk-free interest rate | 2.60 | % | ||
| Expected volatility | 80 | % | ||
| Expected life in years | 2.00 | |||
| Expected dividend yield | Nil |
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.
three months ended March 31, 2026, the total expenses related to share-based compensation amounted to $1,842,835 (three months
ended March 31, 2025 - $1,146,974). All outstanding awards are settleable with common shares and not cash.
| Number of | Weighted average | ||||||
| stock options | exercise price ($) | ||||||
| Balance, December 31, 2024 | 1,487,500 | $ | 2.76 | ||||
| Issued | 1,200,000 | 1.63 | |||||
| Expired | (170,000 | ) | 2.68 | ||||
| Balance, March 31, 2025 | 2,517,500 | $ | 2.22 | ||||
| Balance, December 31, 2025 and March 31, 2026 | 4,782,500 | $ | 1.73 |