Full Press Release Details
Ltd. (formerly, FSD Pharma Inc.)
consolidated interim financial statements
For the three and nine months ended September
[expressed in United
QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA
CONDENSED CONSOLIDATED
INTERIM STATEMENTS OF FINANCIAL POSITION
[unaudited] [expressed in
United States dollars]
| As at | September 30, | December 31, | ||||||||
| 2025 | 2024 | |||||||||
| Notes | $ | $ | ||||||||
| ASSETS | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | 445,944 | 5,995,872 | ||||||||
| Other receivables | 4 | 78,300 | 374,678 | |||||||
| Prepaid expenses and deposits | 5 | 39,294 | 69,036 | |||||||
| Finance receivables, net | 6 | 2,858,066 | 3,432,340 | |||||||
| Investments | 7 | 636,761 | 1,202,349 | |||||||
| Inventory | 8 | 77,622 | 117,242 | |||||||
| Digital assets | 9,13 | 5,207,249 | 861,230 | |||||||
| 9,343,236 | 12,052,747 | |||||||||
| Non-current assets | ||||||||||
| Equipment, net | 69,485 | 76,894 | ||||||||
| Long-term investments | 7 | - | 2,224 | |||||||
| Right-of-use asset, net | 121,270 | 53,488 | ||||||||
| Intangible assets, net | 10 | 4,619,237 | 4,933,871 | |||||||
| Total assets | 14,153,228 | 17,119,224 | ||||||||
| LIABILITIES | ||||||||||
| Current liabilities | ||||||||||
| Trade and other payables | 11,22 | 4,087,547 | 4,362,068 | |||||||
| Lease obligations | 151,798 | 53,780 | ||||||||
| Warrants liability | 12 | - | 212,002 | |||||||
| Derivative liabilities | 14 | 1,835 | 280,000 | |||||||
| Deferred income | 21 | - | 1,000,000 | |||||||
| Notes payable | 13 | 1,975,305 | 619,029 | |||||||
| Convertible debentures | 14 | 429,995 | 152,113 | |||||||
| 6,646,480 | 6,678,992 | |||||||||
| Total liabilities | 6,646,480 | 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 | 168,876,091 | 150,318,624 | |||||||
| Warrants | 15 | 1,028,780 | 1,997,759 | |||||||
| Contributed surplus | 33,578,589 | 31,072,543 | ||||||||
| Foreign exchange translation reserve | 276,146 | 50,795 | ||||||||
| Accumulated deficit | ( 195,259,703 | ) | ( 172,110,884 | ) | ||||||
| Equity attributable to shareholders of the Company | 8,652,043 | 11,480,538 | ||||||||
| Non-controlling interests | 17 | ( 1,145,295 | ) | ( 1,040,306 | ) | |||||
| 7,506,748 | 10,440,232 | |||||||||
| Total liabilities and shareholders' equity | 14,153,228 | 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 |
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 September 30, | Nine months ended September 30, | |||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||
| Notes | $ | $ | $ | $ | ||||||||||||||
| Expenses | ||||||||||||||||||
| General and administrative | 19 | 3,041,374 | 3,250,030 | 7,682,760 | 7,479,525 | |||||||||||||
| External research and development fees | 495,223 | 744,802 | 2,692,770 | 1,803,048 | ||||||||||||||
| Share-based payments | 16,17 | 996,194 | 65,424 | 2,137,050 | 234,691 | |||||||||||||
| Depreciation and amortization | 10 | 145,336 | 120,814 | 416,409 | 377,768 | |||||||||||||
| Total operating expenses | 4,678,127 | 4,181,070 | 12,928,989 | 9,895,032 | ||||||||||||||
| Loss from operations | ( 4,678,127 | ) | ( 4,181,070 | ) | ( 12,928,989 | ) | ( 9,895,032 | ) | ||||||||||
| Interest income | 20,6 | ( 100,420 | ) | ( 163,868 | ) | ( 258,369 | ) | ( 440,816 | ) | |||||||||
| Other income | 21 | ( 6,202 | ) | - | ( 1,949,218 | ) | - | |||||||||||
| Finance expense, net | 91,570 | 10,371 | 230,700 | 31,142 | ||||||||||||||
| Accretion and interest expense | 14 | 13,505 | - | 460,564 | - | |||||||||||||
| (Gain) loss on settlement of debt | 15 | ( 11,250 | ) | ( 12,320 | ) | ( 86,113 | ) | 5,156 | ||||||||||
| Change in fair value of derivative liabilities and warrant liability | 12,14 | 1,251,276 | 74 | 11,911,366 | ( 31,263 | ) | ||||||||||||
| Unrealized gain on change in fair value of digital assets | 9 | ( 636,574 | ) | - | ( 831,372 | ) | - | |||||||||||
| Realized gain on sale of digital assets | 9 | ( 386,124 | ) | - | ( 490,137 | ) | - | |||||||||||
| Change in fair value of investments | 7 | ( 146,308 | ) | - | ( 152,880 | ) | - | |||||||||||
| Loss on issuance of convertible debt | 14 | - | - | 1,490,278 | - | |||||||||||||
| Net loss | ( 4,747,600 | ) | ( 4,015,327 | ) | ( 23,253,808 | ) | ( 9,459,251 | ) | ||||||||||
| Other comprehensive loss | ||||||||||||||||||
| Items that may be subsequently reclassified to loss: | ||||||||||||||||||
| Exchange gain on translation of foreign operations | 145,299 | 749,564 | 225,351 | 415,720 | ||||||||||||||
| Comprehensive loss | ( 4,602,301 | ) | ( 3,265,763 | ) | ( 23,028,457 | ) | ( 9,043,531 | ) | ||||||||||
| Net loss attributable to: | ||||||||||||||||||
| Equity owners of the Company | ( 5,319,029 | ) | ( 3,827,170 | ) | ( 23,148,819 | ) | ( 8,842,461 | ) | ||||||||||
| Non-controlling interests | 17 | 571,429 | ( 188,157 | ) | ( 104,989 | ) | ( 616,790 | ) | ||||||||||
| ( 4,747,600 | ) | ( 4,015,327 | ) | ( 23,253,808 | ) | ( 9,459,251 | ) | |||||||||||
| Net (loss) per share | ||||||||||||||||||
| Basic and diluted - continuing operations | 18 | $ | ( 1.25 | ) | $ | ( 4.37 | ) | $ | ( 7.49 | ) | $ | ( 11.06 | ) | |||||
| Weighted average number of shares outstanding - basic and diluted | 18 | 3,801,151 | 917,848 | 3,103,901 | 855,294 |
The 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 CHANGES IN SHAREHOLDERS' EQUITY
For the nine months ended
September 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] | 10 | 79 | - | - | 956,935 | 9,185,073 | - | - | - | - | - | - | 9,185,152 | |||||||||||||||||||||||||||||||||||||||
| Shares for debt [note 15] | - | - | - | - | 292,477 | 1,983,728 | - | - | - | - | - | - | 1,983,728 | |||||||||||||||||||||||||||||||||||||||
| Share-based payments [note 16] | - | - | - | - | - | - | - | - | 234,691 | - | - | - | 234,691 | |||||||||||||||||||||||||||||||||||||||
| Warrants expired [note 15] | - | - | - | - | - | - | ( 20,769 | ) | ( 286,189 | ) | 286,189 | - | - | - | - | |||||||||||||||||||||||||||||||||||||
| Warrants cancelled [note 15] | - | - | - | - | - | - | ( 7,692 | ) | ( 439,408 | ) | 439,408 | - | - | - | - | |||||||||||||||||||||||||||||||||||||
| Exercise of options [note 15,16] | - | - | - | - | 1,446 | 102,563 | - | - | ( 26,098 | ) | - | - | - | 76,465 | ||||||||||||||||||||||||||||||||||||||
| RSU converted to shares [15,16] | - | - | - | - | 7,500 | 31,009 | - | - | ( 31,009 | ) | - | - | - | - | ||||||||||||||||||||||||||||||||||||||
| Comprehensive loss for the period | - | - | - | - | - | - | - | - | - | ( 616,790 | ) | 415,720 | ( 8,842,461 | ) | ( 9,043,531 | ) | ||||||||||||||||||||||||||||||||||||
| Balance, September 30, 2024 | 12 | 151,701 | - | - | 1,864,154 | 148,929,236 | 130,371 | 1,997,759 | 31,128,922 | ( 944,291 | ) | 833,061 | ( 166,750,621 | ) | 15,345,767 | |||||||||||||||||||||||||||||||||||||
| 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] | - | - | - | - | 47,785 | 490,971 | - | - | - | - | - | - | 490,971 | |||||||||||||||||||||||||||||||||||||||
| Warrants issued [note 14] | - | - | - | - | - | - | 346,806 | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
| Warrants expired [note 15] | - | - | - | - | - | - | ( 77,191 | ) | ( 968,979 | ) | 968,979 | - | - | - | - | |||||||||||||||||||||||||||||||||||||
| Exercise of warrants [note 14, 15] | - | - | - | - | 354,730 | 9,126,182 | ( 426,806 | ) | - | - | - | - | - | 9,126,182 | ||||||||||||||||||||||||||||||||||||||
| Share-based payments [note 16] | - | - | - | - | - | - | - | - | 2,137,050 | - | - | - | 2,137,050 | |||||||||||||||||||||||||||||||||||||||
| 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 | - | - | - | - | - | - | - | - | - | ( 104,989 | ) | 225,351 | ( 23,148,819 | ) | ( 23,028,457 | ) | ||||||||||||||||||||||||||||||||||||
| Balance, September 30, 2025 | 12 | 151,701 | 12 | 439 | 3,816,691 | 168,876,091 | 53,179 | 1,028,780 | 33,578,589 | ( 1,145,295 | ) | 276,146 | ( 195,259,703 | ) | 7,506,748 |
The 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 CHANGES IN CASH FLOWS
For the nine months ended September 30, 2025, and 2024
[unaudited] [expressed in United States dollar]
| 2025 | 2024 | |||||||
| $ | $ | |||||||
| Operating activities | ||||||||
| Net loss | ( 23,253,808 | ) | ( 9,459,251 | ) | ||||
| Add (deduct) items not affecting cash | ||||||||
| Depreciation and amortization | 416,409 | 377,768 | ||||||
| Interest expense | - | 31,142 | ||||||
| Accretion expense | 460,564 | - | ||||||
| Share-based payments | 2,137,050 | 234,691 | ||||||
| Change in fair value of investments | ( 152,880 | ) | - | |||||
| Change in fair value of derivative liabilities | 11,911,366 | ( 31,263 | ) | |||||
| Loss on issuance of convertible debt | 1,490,278 | - | ||||||
| Unrealized foreign exchange (gain) loss | ( 865,625 | ) | 414,491 | |||||
| Unrealized gain on change in fair value of digital assets | ( 831,372 | ) | - | |||||
| Realized gain on sale of digital assets | ( 490,137 | ) | - | |||||
| (Gain) loss on settlement of debt | ( 86,113 | ) | 5,156 | |||||
| Changes in non-cash working capital balances | ||||||||
| Finance receivables | 574,274 | 1,111,841 | ||||||
| Other receivables | 296,378 | 124,560 | ||||||
| Prepaid expenses and deposits | 29,742 | 5,088 | ||||||
| Inventory | 39,620 | - | ||||||
| Deferred income | ( 1,000,000 | ) | - | |||||
| Trade and other payables | 1,392,840 | 1,145,060 | ||||||
| Cash (used) in operating activities | ( 7,931,414 | ) | ( 6,040,717 | ) | ||||
| Investing activities | ||||||||
| Redemption of investments | 1,183,716 | 738,000 | ||||||
| Purchase of investments | ( 462,325 | ) | ( 3,485,424 | ) | ||||
| Purchases of digital assets | ( 5,131,931 | ) | - | |||||
| Proceeds from sale of digital assets | 2,107,421 | - | ||||||
| Cash (used in) investing activities | ( 2,303,119 | ) | ( 2,747,424 | ) | ||||
| Financing activities | ||||||||
| Proceeds from issuance of shares, net | - | 9,185,152 | ||||||
| Proceeds from shares to be issued | 439 | - | ||||||
| Proceeds from convertible debentures | 3,200,677 | - | ||||||
| Proceeds from exercise of warrants | 43,257 | - | ||||||
| Payment of lease obligation | ( 64,130 | ) | ( 33,825 | ) | ||||
| Proceeds from share options exercised | 148,086 | - | ||||||
| Repayment of loans from tax rebate refund | ( 788,482 | ) | - | |||||
| Proceeds from loans (RH and Bitgo) | 2,144,758 | - | ||||||
| Cash provided by financing activities | 4,684,605 | 9,151,327 | ||||||
| Net (decrease) increase | ( 5,549,928 | ) | 363,186 | |||||
| Cash and cash equivalents, beginning of the period | 5,995,872 | 2,757,040 | ||||||
| Cash and cash equivalents, end of the period | 445,944 | 3,120,226 | ||||||
| Non-cash transactions | ||||||||
| Shares issued for debt | 490,971 | 1,983,728 | ||||||
| Exercise of options - shares issued for services | - | 102,563 | ||||||
| Recognition of right of use asset | - | 78,949 | ||||||
| Exercise of warrants | 9,026,594 | - |
The accompanying notes
are an integral part of these condensed consolidated interim financial statements.
QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA
Notes to the condensed consolidated interim
financial statements
[unaudited] [expressed in United States dollars]
For the three and nine months ended September
Quantum 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.
The Company's registered
office is located at 1 Adelaide Street East, Suite 801. 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.
On 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 September 30, 2025, and the results of operations and cash flows for the three and nine months ended September 30, 2025.
As of September 30, 2025, the Company had a 19.86% (December 31, 2024 - 22.95%) ownership interest in Unbuzzd through Unbuzzd Common
QUANTUM BIOPHARMA LTD. (FORMERLY, FSD PHARMA
Notes to the condensed consolidated interim
financial statements
[unaudited] [expressed in United States dollars]
For the three and nine months ended September
These 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 | |||||||||
| September 30, 2025 | December 31, 2024 | |||||||||
| Entity Name | Country | % | % | |||||||
| 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 | 19.86 | 22.95 | |||||||
| Huge Biopharma Australia Pty Ltd ("Huge Biopharma") | Australia | 100.00 | 100.00 |
Non-controlling 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.
[a] Statement of compliance
These 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