Exhibit 99.1

CARDIOL THERAPEUTICS INC.

CONDENSED INTERIM CONSOLIDATED

FINANCIAL STATEMENTS

THREE AND SIX MONTHS ENDED

JUNE 30, 2026

(EXPRESSED IN CANADIAN DOLLARS)

(UNAUDITED)

Cardiol Therapeutics Inc.

Condensed Interim Consolidated Statements of Financial Position

(Expressed in Canadian Dollars)

Unaudited

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

Commitments (note 11)

Subsequent events (note 8)

Approved on behalf of the Board:

Cardiol Therapeutics Inc.

Condensed Interim Consolidated Statements of Loss and Comprehensive Loss

(Expressed in Canadian Dollars)

Unaudited

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

Cardiol Therapeutics Inc.

Condensed Interim Consolidated Statements of Cash Flows

(Expressed in Canadian Dollars)

Unaudited

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

Cardiol Therapeutics Inc.

Condensed Interim Consolidated Statements of Changes in Equity

(Expressed in Canadian Dollars)

Unaudited

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 Six Months Ended June 30, 2026

(Expressed in Canadian Dollars)

Unaudited

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 innate immune system response known to play an important role in the development and progression of inflammation and fibrosis associated with pericarditis, myocarditis, and heart failure.

On December 20, 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".

Statement of compliance

These unaudited 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 Standards”).

These unaudited 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 August 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.

Any subsequent 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.

Interest earned on cash and cash equivalents for the three and six months ended June 30, 2026, amounted to $201,332 and $402,056 (three and six months ended June 30, 2025 - $180,667 and $428,936).

Cardiol Therapeutics Inc.

Notes to Condensed Interim Consolidated Financial Statements

Three and Six Months Ended June 30, 2026

(Expressed in Canadian Dollars)

Unaudited

Cardiol Therapeutics Inc.

Notes to Condensed Interim Consolidated Financial Statements

Three and Six Months Ended June 30, 2026

(Expressed in Canadian Dollars)

Unaudited

In October 2025, 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.

During the six months ended June 30, 2026, 1,350,000 warrants were exercised, and fair value of $1,040,677 was moved to share capital. As at June 30, 2026, 4,362,500 warrants remain outstanding. As at June 30, 2026, the fair value of the derivative liability was $1,473,621 (December 31, 2025 - $2,137,867), resulting in a (decrease)/increase in the value of the derivative liability for the three and six months ended June 30, 2026, of $(1,153,088) and $376,431.

Significant assumptions used in determining the fair value of the derivative warrant liabilities are as follows:

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.

Cardiol Therapeutics Inc.

Notes to Condensed Interim Consolidated Financial Statements

Three and Six Months Ended June 30, 2026

(Expressed in Canadian Dollars)

Unaudited

b) Common shares issued

(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:

Cardiol Therapeutics Inc.

Notes to Condensed Interim Consolidated Financial Statements

Three and Six Months Ended June 30, 2026

(Expressed in Canadian Dollars)

Unaudited

The Corporation 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.

During the three and six months ended June 30, 2026, the total expenses related to share-based compensation amounted to $2,375,947 and $4,218,782 (three and six months ended June 30, 2025 - $2,540,182 and $3,687,156). All outstanding awards are settleable with common shares and not cash.

(a) Stock Options

(i) The weighted average share price on date of exercise was $1.70.

Cardiol Therapeutics Inc.

Notes to Condensed Interim Consolidated Financial Statements

Three and Six Months Ended June 30, 2026

(Expressed in Canadian Dollars)

Unaudited

(a) Stock Options (continued)

The following table reflects the actual stock options issued and outstanding as of June 30, 2026:

(i) Denotes exercise price in USD; these amounts were translated to CAD for presentation purposes at the June 30, 2026 rate of 1.42.

(b) Performance Share Units

(i) Grants of PSUs require completion of certain performance criteria specific to each grant. As the fair value of the services for certain PSUs issued cannot be reliably measured, the fair value was determined on the basis of the equity issued. The fair value of PSUs granted was determined based on the Corporation's share price, adjusted by the estimated likelihood of the performance conditions being met.

Cardiol Therapeutics Inc.

Notes to Condensed Interim Consolidated Financial Statements

Three and Six Months Ended June 30, 2026

(Expressed in Canadian Dollars)

Unaudited

(b) Performance Share Units (continued)

(ii) During the period ended June 30, 2026, the Corporation settled $1,687,715 of accounts payable and accrued liabilities through PSUs valued at $2,201,034. Loss on settlement of debt of $513,318 is recorded in research and development.

(iii) The weighted average share price on date of redemption was $1.79.

The following table reflects the actual PSUs issued and outstanding as of June 30, 2026:

(i) Subsequent to June 30, 2026, 837,314 PSUs were issued.

(ii) Subsequent to June 30, 2026, 911,193 PSUs were redeemed.

(c) Restricted Share Units

(i) The fair value of RSUs granted was determined based on the Corporation's share price.

(ii) The weighted average share price on date of redemption was $1.27.

(iii) The weighted average share price on date of redemption was $1.90.

(iv) Subsequent to June 30, 2026, 26,750 RSUs were redeemed.

Cardiol Therapeutics Inc.

Notes to Condensed Interim Consolidated Financial Statements

Three and Six Months Ended June 30, 2026

(Expressed in Canadian Dollars)

Unaudited

(c) Restricted Share Units (continued)

The following table reflects the actual RSUs issued and outstanding as of June 30, 2026:

(i) During the period ended June 30, 2026, 1,350,000 warrants were exercised for gross proceeds of $2,490,819.

The following table reflects the actual warrants issued and outstanding as of June 30, 2026:

(i) Warrants carry an exercise price of US$1.35. This amount was translated to CAD for presentation purposes at the June 30, 2026 rate of 1.42. These warrants are classified as a derivative liability on the statement of financial position (see note 6).

Cardiol Therapeutics Inc.

Notes to Condensed Interim Consolidated Financial Statements

Three and Six Months Ended June 30, 2026

(Expressed in Canadian Dollars)

Unaudited

For the three and six months ended June 30, 2026, basic and diluted loss per share has been calculated based on the loss attributable to common shareholders of $6,081,827 and $16,900,416 (three and six months ended June 30, 2025 - $8,354,371 and $16,642,024) and the weighted average number of common shares outstanding of 114,935,371 and 111,977,908 (three and six months ended June 30, 2025 - 82,653,373 and 82,631,305). Diluted loss per share did not include the effect of stock options, PSUs, RSUs, and warrants as they are anti-dilutive.

(i) The Corporation has leased premises with third parties. The minimum committed lease payments, which include the lease liability payments shown as base rent, are approximately as follows:

(ii) The Corporation has signed various agreements with consultants to provide services. Under the agreements, the Corporation has the following remaining commitments.

(iii) Pursuant to the terms of agreements with various other contract research organizations, the Corporation is committed for the following contract research services:

Cardiol Therapeutics Inc.

Notes to Condensed Interim Consolidated Financial Statements

Three and Six Months Ended June 30, 2026

(Expressed in Canadian Dollars)

Unaudited

The following details highlight certain non-cash components of the research and development and general and administration expenses. Remaining research and development and operating expenses include personnel costs and expenses paid to third parties:

(a) The Corporation entered into the following transactions with related parties:

(i) Included in research and development expense is $25,000 for the three and six months ended June 30, 2026 (three and six months ended June 30, 2025 - $nil) paid to a company related to a director. As at June 30, 2026, $28,250 (December 31, 2025 - $nil) was owed to this company and this amount was included in accounts payable and accrued liabilities.

(b) Key management personnel are those persons having authority and responsibility for planning, directing, and controlling the activities of the Corporation directly or indirectly, and include any directors (executive and non-executive) of the Corporation. Remuneration of directors and key management personnel of the Corporation was as follows:

As at June 30, 2026, $nil (December 31, 2025 - $nil) was owed to directors and key management personnel.