12. CORRECTION OF IMMATERIAL ERRORS

As disclosed in our Form 1-SA filed on September 29, 2025, Form 10-K filed on April 15, 2026, and Form 10-K/A filed on July 21, 2026, certain revisions, noted below, were necessary to the previously filed financial statements for the three months ended March 31, 2025.

The Company determined $40,000 of grant income should have been recorded in the unaudited condensed consolidated interim statements of operations for the three months ended March 31, 2025, with a corresponding grant receivable in the condensed consolidated interim balance sheet. As of March 31, 2025, the Company was already entitled to receive the amount as reimbursement on its rent expenses pursuant to the Economic Development Agreement (Note 11).

The Company also determined research and development expenses of $255,479 was understated in the unaudited condensed consolidated interim statement of operations for the three months ended March 31, 2025.

Unaudited condensed consolidated interim statement of operations for the three months ended March 31, 2025

Line item		As previously reported			Adjustment			As corrected
Research and development expenses		-			255,479			255,479
Total operating expenses		1,624,074			255,479			1,879,553
Grant income		-			40,000			40,000
Net loss		2,437,628			215,479			2,653,107
Loss per share		0.12			0.01			0.13

Line item		As previously reported			Adjustment			As corrected
Grant receivable		-			40,000			40,000
Total current assets		5,679,923			40,000			5,719,923
Total assets		12,601,612			40,000			12,641,612
Accounts payable and accrued liabilities		465,889			255,479			721,368
Total current liabilities		16,797,701			255,479			17,053,180
Total liabilities		16,934,303			255,479			17,189,782
Accumulated deficit		(19,324,443	)		(215,479	)		(19,539,922	)
Total stockholders' equity (deficit)		(4,332,691	)		(215,479	)		(4,548,170	)

Line item		As previously reported			Adjustment			As corrected
Net loss for the year		(2,437,628	)		(215,479	)		(2,653,107	)
Changes in non-cash working capital: Accounts payable and accrued liabilities		(265,867	)		255,479			(10,388	)
Grant receivable		-			(40,000	)		(40,000	)
Net cash used in operating activities		(1,669,732	)		-			(1,669,732	)

Unaudited condensed consolidated interim statements of changes in stockholders' equity (deficit) as of March 31, 2025

Line item		As previously reported			Adjustment			As corrected
Accumulated deficit		(19,324,443	)		(215,479	)		(19,539,922	)
Total stockholders' equity (deficit)		(4,332,691	)		(215,479	)		(4,548,170	)

 

For the three months ended March 31, 2025, the corrected net loss is $2,653,107, or $0.13 per share.

The Company evaluated the corrections and has determined their impacts were immaterial, individually and in aggregate, to the previously issued unaudited condensed consolidated interim financial statements for the three months ended March 31, 2025.

12. CORRECTION OF IMMATERIAL ERRORS

During the preparation of the Company's consolidated financial statements for the year ended December 31, 2025, the Company identified certain immaterial errors in the previously issued unaudited condensed consolidated interim financial statements for the three and six months ended June 30, 2025; and for the three and nine months ended September 30, 2025.

The Company identified three errors affecting the previously issued unaudited condensed consolidated interim financial statements:

(i) an under-accrual of business development expenses, related to hourly billings for services between May and September 2025, where insufficient accruals for those services were provided based on information available at the time of reporting for those periods;

(ii) an over-recognition of consulting fees of $100,000 in the three and nine months ended September 30, 2025, for services related to October 2025 and later; and,

(iii) an under-recognition of research and development expenses of $255,479 during the three months ended March 31, 2025, that was instead recorded in the three and six months ended June 30, 2026.

The Company determined business development expenses of $376,125 and $376,125, respectively, should have been recorded in the unaudited condensed consolidated interim statements of operations for the three and six months ended June 30, 2025; and business development expenses of $472,500 and $848,625, respectively, should have been recorded in the unaudited condensed consolidated interim statements of operations for the three and nine months ended September 30, 2025.

A corresponding accounts payable and accrued liabilities of $376,125 and $848,625, should have been recorded in the condensed consolidated interim balance sheet as of June 30, 2025, and September 30, 2025, respectively.

As of the three and six months ended June 30, 2025, and three and nine months ended September 30, 2025, the Company received services from a consultant for business development services, however provided insufficient accruals for those services based on information available at the time of reporting for those periods.

The Company also determined consulting fees of $100,000, and $100,000 respectively, were overstated in the unaudited condensed consolidated interim statement of operations for the three and nine months ended September 30, 2025.

A corresponding prepaid expenses of $100,000, should have been recorded in the condensed consolidated interim balance sheet as of September 30, 2025.

The Company also determined research and development expenses of $255,479 was understated in the unaudited condensed consolidated interim statement of operations for the three months ended March 31, 2025. Correspondingly, the research and development expenses in the unaudited condensed consolidated interim statement of operations for the three months ended June 30, 2025 was overstated by $255,479.

A tabular presentation of each affected prior interim period, for each line item impacted, showing the amount as previously reported, the amount of correction, and the amount as corrected, is as follows:

 

 

 

 

 

 

 

 

 

For the three months ended March 31, 2025, the corrected net loss is $2,653,107, or $0.13 per share.

For the three and six months ended June 30, 2025, the corrected net loss is $1,934,427 and $4,587,534, respectively, or $0.09 per share, and $0.23 per share, respectively.

For the three and nine months ended September 30, 2025, the corrected net loss is $2,422,410 and $7,009,944, respectively, or $0.12 per share, and $0.34 per share, respectively.

The Company evaluated the corrections and has determined their impacts were immaterial, individually and in aggregate, to the previously issued unaudited condensed consolidated interim financial statements for the three and six months ended June 30, 2025; and the previously issued unaudited condensed consolidated interim financial statements for the three and nine months ended September 30, 2025.