Full Press Release Details
Biopharma Ltd. (formerly, FSD Pharma Inc.)
consolidated interim financial statements
the three and six months ended June 30, 2025, and 2024
in United States dollars]
BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
[expressed in United States dollars]
| As at | June 30, | December 31, | |||||||||
| 2025 | 2024 | ||||||||||
| Notes | $ | $ | |||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | 1,497,576 | 5,995,872 | |||||||||
| Other receivables | 4 | 193,198 | 374,678 | ||||||||
| Prepaid expenses and deposits | 5 | 453,224 | 69,036 | ||||||||
| Finance receivables, net | 6 | 3,038,860 | 3,432,340 | ||||||||
| Investments | 7 | 30,786 | 1,202,349 | ||||||||
| Inventory | 8 | 76,869 | 117,242 | ||||||||
| Digital assets | 9,13 | 5,053,078 | 861,230 | ||||||||
| 10,343,591 | 12,052,747 | ||||||||||
| Non-current assets | |||||||||||
| Equipment, net | 72,034 | 76,894 | |||||||||
| Long-term investments | 7 | - | 2,224 | ||||||||
| Right-of-use asset, net | 156,136 | 53,488 | |||||||||
| Intangible assets, net | 10 | 4,725,270 | 4,933,871 | ||||||||
| Total assets | 15,297,031 | 17,119,224 | |||||||||
| LIABILITIES | |||||||||||
| Current liabilities | |||||||||||
| Trade and other payables | 11,22 | 3,192,564 | 4,362,068 | ||||||||
| Lease obligations | 156,572 | 53,780 | |||||||||
| Warrants liability | 12 | 7,760,684 | 212,002 | ||||||||
| Derivative liabilities | 14,17 | 31,610 | 280,000 | ||||||||
| Deferred income | 21 | - | 1,000,000 | ||||||||
| Notes payable | 13 | 1,944,493 | 619,029 | ||||||||
| Convertible debentures | 14,17 | 164,075 | 152,113 | ||||||||
| 13,249,998 | 6,678,992 | ||||||||||
| Total liabilities | 13,249,998 | 6,678,992 | |||||||||
| SHAREHOLDERS' EQUITY | |||||||||||
| Class A Multiple Voting Share capital | 15 | 151,701 | 151,701 | ||||||||
| Class A Multiple Voting Shares to be issued | 15 | 439 | - | ||||||||
| Class B Subordinate Voting Share capital | 15 | 159,810,269 | 150,318,624 | ||||||||
| Warrants | 15 | 1,028,780 | 1,997,759 | ||||||||
| Contributed surplus | 32,582,395 | 31,072,543 | |||||||||
| Foreign exchange translation reserve | 130,847 | 50,795 | |||||||||
| Accumulated deficit | ( 189,940,674 | ) | ( 172,110,884 | ) | |||||||
| Equity attributable to shareholders of the Company | 3,763,757 | 11,480,538 | |||||||||
| Non-controlling interests | 17 | ( 1,716,724 | ) | ( 1,040,306 | ) | ||||||
| 2,047,033 | 10,440,232 | ||||||||||
| Total liabilities and shareholders' equity | 15,297,031 | 17,119,224 | |||||||||
| Commitments and contingencies | 21 | ||||||||||
| Subsequent events | 25 |
| On behalf of the Board: | ||
| /s/ Zeeshan Saeed | /s/ Eric Hoskins | |
| Zeeshan Saeed | Eric Hoskins | |
| Director | Director |
accompanying notes are an integral part of these condensed consolidated interim financial statements.
QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
[unaudited] [expressed in United States dollar, except number of shares]
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||
| Notes | $ | $ | $ | $ | |||||||||||||||
| Expenses | |||||||||||||||||||
| General and administrative | 19 | 3,313,275 | 2,310,283 | 4,641,386 | 4,229,495 | ||||||||||||||
| External research and development fees | 549,197 | 897,986 | 2,197,547 | 1,058,246 | |||||||||||||||
| Share-based payments | 16,17 | 849,584 | 111,524 | 1,140,856 | 169,267 | ||||||||||||||
| Depreciation and amortization | 10 | 141,383 | 136,813 | 271,073 | 256,954 | ||||||||||||||
| Total operating expenses | 4,853,439 | 3,456,606 | 8,250,862 | 5,713,962 | |||||||||||||||
| Loss from operations | ( 4,853,439 | ) | ( 3,456,606 | ) | ( 8,250,862 | ) | ( 5,713,962 | ) | |||||||||||
| Interest income | 20,6 | ( 90,733 | ) | ( 104,424 | ) | ( 157,949 | ) | ( 276,948 | ) | ||||||||||
| Other income | 21 | ( 1,935,956 | ) | - | ( 1,943,016 | ) | - | ||||||||||||
| Finance expense, net | 116,962 | 8,357 | 139,130 | 20,771 | |||||||||||||||
| Accretion and interest expense | 14 | 118,611 | - | 447,059 | - | ||||||||||||||
| (Gain) loss on settlement of debt | 15 | 110,267 | - | ( 74,863 | ) | 17,476 | |||||||||||||
| Unrealized gain (loss) on change in fair value of derivative liabilities and warrant liability | 12,14 | 7,549,654 | ( 8,040 | ) | 10,660,090 | ( 31,337 | ) | ||||||||||||
| Unrealized gain on change in fair value of digital assets | 9 | ( 913,625 | ) | - | ( 194,798 | ) | - | ||||||||||||
| Realized gain on sale of digital assets | 9 | ( 35,720 | ) | - | ( 104,013 | ) | - | ||||||||||||
| Change in fair value of investments | 7 | ( 6,572 | ) | - | ( 6,572 | ) | - | ||||||||||||
| Loss on issuance of convertible debt | 14 | - | - | 1,490,278 | - | ||||||||||||||
| Net loss | ( 9,766,327 | ) | ( 3,352,499 | ) | ( 18,506,208 | ) | ( 5,443,924 | ) | |||||||||||
| Other comprehensive loss | |||||||||||||||||||
| Items that may be subsequently reclassified to loss: | |||||||||||||||||||
| Exchange gain (loss) on translation of foreign operations | 83,544 | ( 101,089 | ) | 80,052 | ( 333,844 | ) | |||||||||||||
| Comprehensive loss | ( 9,682,783 | ) | ( 3,453,588 | ) | ( 18,426,156 | ) | ( 5,777,768 | ) | |||||||||||
| Net loss attributable to: | |||||||||||||||||||
| Equity owners of the Company | ( 9,253,067 | ) | ( 3,111,916 | ) | ( 17,829,790 | ) | ( 5,015,291 | ) | |||||||||||
| Non-controlling interests | 17 | ( 513,260 | ) | ( 240,583 | ) | ( 676,418 | ) | ( 428,633 | ) | ||||||||||
| ( 9,766,327 | ) | ( 3,352,499 | ) | ( 18,506,208 | ) | ( 5,443,924 | ) | ||||||||||||
| Net (loss) per share | |||||||||||||||||||
| Basic and diluted - continuing operations | 18 | $ | ( 3.23 | ) | $ | ( 0.08 | ) | $ | ( 6.73 | ) | $ | ( 0.13 | ) | ||||||
| Weighted average number of shares outstanding - basic and diluted | 18 | 3,021,005 | 41,675,769 | 2,749,498 | 41,287,102 |
accompanying notes are an integral part of these condensed consolidated interim financial statements.
BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)
CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
ended June 30, 2025, and 2024
[unaudited] [expressed in United States dollars, except number of shares]
| Class A shares | Class A shares to be issued | Class B shares | Warrants | Contributed surplus | Non- controlling interests | Foreign exchange translation reserve | Accumulated deficit | Total | ||||||||||||||||||||||||||||||||||||||||||||
| # | $ | # | $ | # | $ | # | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2023 | 2 | 151,622 | - | - | 605,796 | 137,626,863 | 158,832 | 2,723,356 | 30,225,741 | ( 327,501 | ) | 417,341 | ( 157,908,160 | ) | 12,909,262 | |||||||||||||||||||||||||||||||||||||
| Shares issued [note 15] | - | - | - | - | 104,590 | 2,139,808 | - | - | - | - | - | - | 2,139,808 | |||||||||||||||||||||||||||||||||||||||
| Shares for debt [note 15] | - | - | - | - | 17,528 | 685,051 | - | - | - | - | - | - | 685,051 | |||||||||||||||||||||||||||||||||||||||
| Share-based payments [note 16] | - | - | - | - | - | - | - | - | 169,267 | - | - | - | 169,267 | |||||||||||||||||||||||||||||||||||||||
| Warrants expired [note 15] | - | - | - | - | - | - | ( 20,769 | ) | ( 286,189 | ) | 286,189 | - | - | - | - | |||||||||||||||||||||||||||||||||||||
| Exercise of options [note 15,16] | - | - | - | - | 1,446 | 102,563 | - | - | ( 26,098 | ) | 76,465 | |||||||||||||||||||||||||||||||||||||||||
| Comprehensive loss for the period | - | - | - | - | - | - | - | - | - | ( 428,633 | ) | ( 333,844 | ) | ( 5,015,291 | ) | ( 5,777,768 | ) | |||||||||||||||||||||||||||||||||||
| Balance, June 30, 2024 | 2 | 151,622 | - | - | 729,360 | 140,554,285 | 138,063 | 2,437,167 | 30,655,099 | ( 756,134 | ) | 83,497 | ( 162,923,451 | ) | 10,202,085 | |||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2024 | 12 | 151,701 | - | 2,299,502 | 150,318,624 | 210,370 | 1,997,759 | 31,072,543 | ( 1,040,306 | ) | 50,795 | ( 172,110,884 | ) | 10,440,232 | ||||||||||||||||||||||||||||||||||||||
| Shares issued - convertible debt [note 14,15] | - | - | - | - | 984,792 | 8,192,245 | - | - | - | - | - | - | 8,192,245 | |||||||||||||||||||||||||||||||||||||||
| Shares to be issued [note 15] | - | - | 12 | 439 | - | - | - | - | - | - | - | - | 439 | |||||||||||||||||||||||||||||||||||||||
| Shares for debt [note 15] | - | - | - | - | 46,003 | 451,743 | - | - | - | - | - | - | 451,743 | |||||||||||||||||||||||||||||||||||||||
| Warrants issued [note 14] | - | - | - | - | - | - | 346,806 | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
| Warrants expired [note 15] | - | - | - | - | - | - | ( 55,942 | ) | ( 968,979 | ) | 968,979 | - | - | - | - | |||||||||||||||||||||||||||||||||||||
| Exercise of warrants [note 14,15] | - | - | - | - | 8,500 | 99,588 | ( 8,500 | ) | - | - | - | - | - | 99,588 | ||||||||||||||||||||||||||||||||||||||
| Share-based payments [note 16] | - | - | - | - | - | - | - | - | 1,140,856 | - | - | - | 1,140,856 | |||||||||||||||||||||||||||||||||||||||
| Exercise of RSUs [note 15,16] | - | - | - | - | 92,690 | 515,625 | - | - | ( 515,625 | ) | - | - | - | - | ||||||||||||||||||||||||||||||||||||||
| Exercise of options [note 15,16] | - | - | - | - | 37,192 | 232,444 | - | - | ( 84,358 | ) | - | - | - | 148,086 | ||||||||||||||||||||||||||||||||||||||
| Comprehensive loss for the period | - | - | - | - | - | - | - | - | - | ( 676,418 | ) | 80,052 | ( 17,829,790 | ) | ( 18,426,156 | ) | ||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2025 | 12 | 151,701 | 12 | 439 | 3,468,679 | 159,810,269 | 492,734 | 1,028,780 | 32,582,395 | ( 1,716,724 | ) | 130,847 | ( 189,940,674 | ) | 2,047,033 |
accompanying notes are an integral part of these condensed consolidated interim financial statements.
BIOPHARMA LTD. (FORMERLY, FSD PHARMA INC.)
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN CASH FLOWS
the six months ended June 30, 2025, and 2024
[expressed in United States dollar]
| 2025 | 2024 | |||||||
| $ | $ | |||||||
| Operating activities | ||||||||
| Net loss | ( 18,506,208 | ) | ( 5,443,924 | ) | ||||
| Add (deduct) items not affecting cash | ||||||||
| Depreciation and amortization | 271,073 | 256,954 | ||||||
| Interest expense | - | 20,771 | ||||||
| Accretion expense | 447,059 | - | ||||||
| Share-based payments | 1,140,856 | 169,267 | ||||||
| Change in fair value of investments | ( 6,572 | ) | - | |||||
| Change in fair value of derivative liabilities | 10,660,090 | ( 31,337 | ) | |||||
| Loss on issuance of convertible debt | 1,490,278 | |||||||
| Unrealized foreign exchange (gain) loss | ( 534,430 | ) | 662,582 | |||||
| Unrealized loss on change in fair value of digital assets | ( 194,798 | ) | - | |||||
| Realized loss on sale of digital assets | ( 104,013 | ) | - | |||||
| (Gain) loss on settlement of debt | ( 74,863 | ) | 17,476 | |||||
| Changes in non-cash working capital balances | ||||||||
| Finance receivables | 393,480 | 1,619,150 | ||||||
| Other receivables | 181,480 | 141,896 | ||||||
| Prepaid expenses and deposits | ( 384,188 | ) | 24,989 | |||||
| Inventory | 40,373 | - | ||||||
| Deferred income | ( 1,000,000 | ) | - | |||||
| Trade and other payables | ( 29,555 | ) | ( 17,700 | ) | ||||
| Cash used in operating activities | ( 6,209,938 | ) | ( 2,579,876 | ) | ||||
| Investing activities | ||||||||
| Redemption of investments | 1,181,499 | 738,000 | ||||||
| Purchase of investments | - | ( 21,918 | ) | |||||
| Purchases of digital assets | ( 4,247,050 | ) | - | |||||
| Proceeds from sale of digital assets | 354,013 | - | ||||||
| Cash (used in) provided by investing activities | ( 2,711,538 | ) | 716,082 | |||||
| Financing activities | ||||||||
| Proceeds from issuance of shares, net | - | 2,139,808 | ||||||
| Proceeds from shares to be issued | 439 | - | ||||||
| Proceeds from convertible debentures | 2,963,402 | - | ||||||
| Proceeds from exercise of warrants | 43,257 | - | ||||||
| Payment of lease obligation | ( 57,468 | ) | ( 29,214 | ) | ||||
| Share options exercised | 148,086 | - | ||||||
| Repayment of loans from tax rebate refund | ( 784,986 | ) | - | |||||
| Proceeds from loans | 2,110,450 | 302,801 | ||||||
| Cash provided by financing activities | 4,423,180 | 2,413,395 | ||||||
| Net increase (decrease) | ( 4,498,296 | ) | 549,601 | |||||
| Cash and cash equivalents, beginning of the period | 5,995,872 | 2,757,040 | ||||||
| Cash and cash equivalents, end of the period | 1,497,576 | 3,306,641 | ||||||
| Non-cash transactions | ||||||||
| Shares issued for debt | 451,743 | 685,051 | ||||||
| Exercise of options - shares issued for services | - | 102,563 |
accompanying notes are an integral part of these condensed consolidated interim financial statements.
QUANTUM BIOPHARMA LTD.
(FORMERLY, FSD PHARMA INC.)
Notes to the condensed
consolidated interim financial statements
[unaudited] [expressed
in United States dollars]
For the three and six months
ended June 30, 2025, and 2024
1. Nature of business
BioPharma Ltd. (formerly, FSD Pharma Inc.) ("Quantum" or the "Company") is a biopharmaceutical company dedicated
to building a portfolio of innovative assets and biotech solutions for the treatment of challenging neurodegenerative, inflammatory and
metabolic disorders and alcohol misuse disorders with drug candidates in different stages of development. Through its wholly owned subsidiary,
Lucid Psycheceuticals Inc. ("Lucid"), Quantum is focused on the research and development of its lead compound, Lucid-MS (formerly
Lucid-21-302) ("Lucid-MS"). Lucid-MS is a patented new chemical entity shown to prevent and reverse myelin degradation, the
underlying mechanism of multiple sclerosis, in preclinical models. The Company also maintains selective R&D programs for inflammatory
diseases (FSD-PEA) and depression (Lucid-PSYCH), though these initiatives remain secondary priorities. Quantum is also
focused on the research and development of a treatment for alcohol misuse for application in hospitals and other medical practices. Quantum
maintains a portfolio of strategic investments through its wholly owned subsidiary, FSD Strategic Investments Inc. ("FSD Strategic
Investments"), which represent loans secured by residential property.
Company's registered office is located at 55 University Avenue, Suite 1003, Toronto, Ontario, M5J 2H7. On August 15, 2024, the
Company consolidated its Class A Multiple Voting Shares and Class B Subordinate Voting Shares (each as defined hereinafter) on a 65:1
basis and changed its name to "Quantum BioPharma Ltd." with a new trading symbol "QNTM" on both NASDAQ and CSE.
July 31, 2023, the Company entered into an exclusive intellectual property license agreement (the "License Agreement") with
Celly Nutrition Corp. ("Celly"). Celly changed its name to "Unbuzzd Wellness Inc." ("Unbuzzd"), effective
May 23, 2025. The License Agreement provides Unbuzzd access to proprietary information for the purposes of consumer product development
and marketing. The License Agreement grants Unbuzzd the rights to a proprietary formulation of natural ingredients, vitamins, and minerals
to help with liver and brain function for the purposes of potentially quickly relieving from the effects of alcohol consumption, such
as inebriation, and restoring normal lifestyle. The License Agreement also grants Unbuzzd rights to certain trademarks. In exchange,
Quantum received 200,000,000 Unbuzzd Common Shares (as defined below) following a 2:1 share-split. The Company also received an anti-dilution
Warrant Certificate that entitles Quantum to purchase up to 25% of the Unbuzzd Common Shares deemed outstanding less the 200,000,000
Unbuzzd Common Shares issued under the License Agreement and from time to time as a result of any partial exercise under the anti-dilution
Warrant Certificate. Quantum is also entitled to certain license fees and royalties under the License Agreement. Through the License
Agreement, Quantum acquired 34.66% of Unbuzzd. On July 31, 2023, the Company and Unbuzzd entered into a loan agreement for gross proceeds
of C$1,000,000. The loan was funded on August 1, 2023, and accrues interest at a rate of 10% per annum. Interest is payable annually
and the loan matures on July 31, 2026. On April 3, 2024, an amendment to the loan agreement was approved for additional gross proceeds
of C$300,000. In November 2023, through the Plan of Arrangement the Company distributed 45,712,529 of its 200,000,000 shares of Unbuzzd
to its shareholders. The License Agreement was amended and restated on August 14, 2024. The condensed consolidated interim financial
statements incorporate the assets and liabilities of Unbuzzd as of June 30, 2025, and the results of operations and cash flows for the
three and six months ended June 30, 2025. As of June 30, 2025, the Company had a 20.10% (December 31, 2024 - 22.95%) ownership
interest in Unbuzzd through Unbuzzd Common Shares.
QUANTUM BIOPHARMA LTD.
(FORMERLY, FSD PHARMA INC.)
Notes to the condensed
consolidated interim financial statements
[unaudited] [expressed
in United States dollars]
For the three and six months
ended June 30, 2025, and 2024
condensed consolidated interim financial statements are comprised of the financial results of the Company and its subsidiaries, which
are the entities over which the Company has control. An investor controls an investee when it is exposed, or has rights, to variable
returns from its involvement with the investee and can affect those returns through its power over the investee. The Company has the
following subsidiaries:
| Ownership percentage as at | Ownership percentage as at | ||||||||||
| Entity Name | Country | June 30, 2025 | December 31, 2024 | ||||||||
| % | % | ||||||||||
| FSD Biosciences Inc. | USA | 100.00 | 100.00 | ||||||||
| Prismic Pharmaceuticals Inc. ("Prismic") | USA | 100.00 | 100.00 | ||||||||
| FV Pharma Inc. | Canada | 100.00 | 100.00 | ||||||||
| Lucid Psycheceuticals Inc. | Canada | 100.00 | 100.00 | ||||||||
| FSD Strategic Investments Inc. | Canada | 100.00 | 100.00 | ||||||||
| FSD Pharma Australia Pty Ltd ("FSD Australia") | Australia | 100.00 | 100.00 | ||||||||
| Unbuzzd Wellness Inc. | Canada | 20.10 | 22.95 | ||||||||
| Huge Biopharma Australia Pty Ltd ("Huge Biopharma") | Australia | 100.00 | 100.00 |
interests ("NCI") represent ownership interests in consolidated subsidiaries by parties that are not shareholders of the
Company. They are shown as a component of total equity in the condensed consolidated interim statements of financial position, and the
share of income (loss) attributable to non-controlling interests is shown as a component of net income (loss) in the condensed consolidated
interim statements of loss and comprehensive loss. Changes in the parent company's ownership that do not result in a loss of control
are accounted for as equity transactions.
Basis of presentation
Statement of compliance
condensed consolidated interim financial statements ("financial statements') were prepared using the same accounting policies
and methods as those used in the Company's audited consolidated financial statements for the year ended December 31, 2024. These
financial statements have been prepared in compliance with IAS 34 - Interim Financial Reporting. Accordingly, certain disclosures
normally included in annual financial statements prepared in accordance with IFRS Accounting Standards ("IFRS") as issued
by the International Accounting Standards Board ("IASB"), have been omitted or condensed. These financial statements should
be read in conjunction with the Company's audited consolidated financial statements for the year ended December 31, 2024.
financial statements were approved and authorized for issuance by the Board of Directors (the "Board") of the Company on
Functional currency and presentation currency
financial statements of each company within the consolidated group are measured using their functional currency, which is the currency
of the primary economic environment in which an entity operates. These condensed consolidated interim financial statements are presented
in United States dollars ("USD"), which is the Company's functional and presentation currency for all periods presented.
The Company's functional currency is the United States dollar, and the functional currencies of its subsidiaries are as follows:
| FSD Biosciences Inc. | United States Dollar | |
| Prismic Pharmaceuticals Inc. | United States Dollar | |
| FV Pharma Inc. | Canadian Dollar | |
| Lucid Psycheceuticals Inc. | Canadian Dollar | |
| FSD Strategic Investments Inc. | Canadian Dollar | |
| FSD Pharma Australia Pty Ltd | Australian Dollar | |
| Unbuzzd Wellness Inc. | Canadian Dollar | |
| Huge Biopharma Australia Pty Ltd | Australian Dollar |