EXHIBIT 99.1

MANAGEMENT'S DISCUSSION AND ANALYSIS

Three and Six Months Ended July 31, 2026

This following Management's Discussion and Analysis (“MD&A”) is prepared as of September 29, 2026 and provides a review of the financial condition and results of operations for BetterLife Pharma Inc. (the "Company" or “BetterLife”) for the three and six months ended July 31, 2026. This MD&A should be read in conjunction with the Company's unaudited condensed consolidated interim financial statements and notes thereto for the three and six months ended July 31, 2026, which have been prepared in accordance with IFRS® Accounting Standards (“IFRS”) issued by the International Accounting Standards Board and interpretations of the International Financial Reporting Interpretations Committee. The financial information presented in this MD&A is derived from the unaudited condensed consolidated interim financial statements.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This MD&A contains forward-looking information including the Company’s future plans. The use of any of the words “target”, “plans”, “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “should”, “believe” and similar expressions are intended to identify forward-looking statements. Such forward looking information, including but not limited to statements pertaining to Company’s future plans and management’s belief as to the Company’s potential involve known and unknown risks, uncertainties and other factors which may cause the actual results of the Company and its operations to be materially different from estimated costs or results expressed or implied by such forward-looking statements. Forward looking information is based on management’s expectations regarding future growth, results of operations, future capital and other expenditures (including the amount, nature and sources of funding for such expenditures), business prospects and opportunities. Forward looking information involves significant known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: the risks associated with the commercial viability of any products the Company is in the process of developing, delays or changes in plans with respect to any products, costs and expenses, the risk of foreign exchange rate fluctuations, risks associated with securing the necessary regulatory approvals and financing to proceed with any planned business venture, product development, and risks and uncertainties regarding the potential to economically scale and bring to profitability any of the Company’s current or planned endeavors. Although the Company has attempted to take into account important factors that could cause actual costs or results to differ materially, there may be other factors that cause the results of the Company’s business to not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. See the “Risks and Uncertainties” section of this MD&A for a further description of these risks. The forward-looking information included in this MD&A is expressly qualified in its entirety by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking information.

BUSINESS OVERVIEW

BetterLife is a publicly traded corporation incorporated on June 10, 2002 in the Province of British Columbia, Canada under the name “649186 B.C. Ltd.”. On September 9, 2003, the Company changed its name to “Xerxes Health Corp.”. On June 26, 2007, it changed its name to “Neurokine Pharmaceuticals Inc.”. On April 7, 2015, the Company changed its name to “Pivot Pharmaceuticals Inc.” and on December 5, 2019, it changed its name to “BetterLife Pharma Inc.”. The Company’s principal executive office is located at 1275 West 6^th Avenue, #300, Vancouver, B.C. Canada V6H 1A6. BetterLife’s common shares are traded on the Canadian Securities Exchange under the symbol “BETR” and on the OTCQB under the symbol “BETRF”.

BetterLife is an emerging biotechnology company primarily focused on developing compounds for the treatment of neurological pain indications. BetterLife is also refining and developing drug candidates from a broad set of complementary interferon-based technologies which have the potential to engage the immune system to fight viral infections.

The Company’s management team has implemented a business-minded and cost-conscious approach to product research and development and will use contract development and manufacturing organizations on a fee for service basis to perform any research, development or production that is required.

Business Developments

On December 18, 2020, the Company acquired 100% of the assets in Nutraneeds LLC (“Nutraneeds”) in an all-stock transaction. The assets acquired address unmet mental health needs through the development of patented next generation psychedelic therapeutics, including the lysergic acid diethylamide (“LSD”) derivative 2-Bromo-LSD.

Product Description and Target Disease

BETR-001’s active chemical is 2-bromo-lysergic acid diethylamide (“2-bromo-LSD”). BETR-001 is a non-hallucinogenic neuroplastogen that is believed to mimic the projected therapeutic potential of LSD without the burden of its hallucinogenic effects. Human clinical trials were conducted several decades ago with 2-bromo-LSD synthesized from LSD. These trials showed that 2-bromo-LSD did not cause hallucinations. There has been accumulating evidence that LSD may be effective in treating neuropsychiatric disorders. LSD’s hallucinogenic properties are believed to arise from its pharmacological effects on the serotonin 5HT2A receptor. The 2-bromo modification on the LSD structure is proposed to alter the pharmacological effect of the compound on the 5HT2A receptor, and lead to 2-bromo-LSD’s non-hallucinogenic properties compared to LSD, while maintaining its therapeutic potential. Previously, 2-bromo-LSD has been tested in studies in humans, mainly in healthy subjects. Most of these studies were conducted in the 1950s. In 2010, a case series study in cluster headaches was reported showing that treatment with 2-bromo-LSD was effective against cluster headaches. The Company plans to develop BETR-001 to treat neurological pain indications, with an initial emphasis on cluster headache and migraine. BETR-001 is orally administered. The Company’s intended goal is to develop BETR-001 as a patient self-administered medication prescribed by a psychiatrist. In terms of regulations, 2-bromo-LSD per se is not usually classified as a controlled substance, but if its synthesis uses LSD as starting material, the synthesis falls under Schedule 1 controlled substance regulations. The Company has developed and uses a manufacturing process pathway that does not use LSD as starting material to make 2-bromo-LSD, a manufacturing process that is protected by the Company’s issued and provisional patents. This manufacturing is therefore not subject to Schedule 1 controlled substance restrictions, and the Company can move ahead with BETR-001 large scale synthesis without these restrictions.

BetterLife also owns the following drug candidates for the treatment of viral infections and is in the process of seeking strategic alternatives for further development.

MM-001 is a topical formulation of recombinant human interferon alpha-2b (“IFNa2b”) based on the patented Biphasix™ drug formulation technology. The Biphasix formulation allows stable cream formulation of IFNa2b and its delivery across the dermis/mucosa, with minimal systemic exposure.

MM-003 is a patent pending proprietary recombinant human IFNa2b inhalation formulation. IFNa2b is a known broad acting anti-viral protein that is normally naturally synthesized by the body’s cells as the first line of defense against viral infections.

Product Current Stage of Development

2-bromo-LSD, the active ingredient in BETR-001, as synthesized by others, has been tested in human studies previously, mainly in healthy subjects. Most of these human studies were conducted at the end of the 1950’s and early 1960’s. The CMC (chemistry, manufacturing, controls) specifications of the 2-bromo-LSD in these studies is not known. Therefore, for purposes of US Food and Drug Administration (“FDA”) or other health regulatory authority purposes to start human clinical trials, BETR-001 is classified as a new molecular entity and is currently at the preclinical stage of development.

Product Current Regulatory Status, Development Strategy and Projected Timelines

BetterLife is currently completing GMP manufacturing of BETR-001 oral capsules. Simultaneously, BetterLife has started and plans to complete all the necessary preclinical and investigational new drug (“IND”) enabling toxicology studies. Upon clearance of the IND, BetterLife currently plans to (i) conduct Phase 1A studies in healthy humans; (ii) conduct Phase 1B clinical trials for cluster headache and migraine in parallel, rather than sequentially; and (iii) conduct Phase 2 clinical trials for cluster headache and migraine.

OVERALL PERFORMANCE

Our performance over the three and six months ended July 31, 2026 reflects execution of our pre-clinical plans as the Company initiated its remaining preclinical and IND-enabling toxicology studies. The Company remains on track to meet its projected timeline for BETR-001 IND filing in the first quarter of 2027.

DISCUSSION OF OPERATIONS

Following is a discussion of the Company’s financial results for the three and six months ended July 31, 2026, compared to the comparative period in the prior fiscal year.

During the three and six months ended July 31, 2026, net loss increased by approximately $1.6 million and $2 million, respectively. These increases were due primarily to increases in operating expenses (discussed below), a result of additions to the Company’s team and initiation of its remaining IND-enabling studies.

Changes in fair values of warrant liabilities also contributed to the increases in net loss. Changes in fair values of warrant liabilities increased over the comparative interim periods. At July 31, 2026, the Company has 4,271,429 warrants with exercise prices in US dollars ranging from US$0.075 to US$0.11. Due to an overall increase in the Company’s share price, with a July 31, 2026 closing price of US$0.208 per share, fair values of these warrant liabilities increased and the Company recorded losses related to changes in fair values of warrant liabilities of $751,633 and $771,902, respectively, for the three and six months ended July 31, 2026.

In addition, the Company recorded approximately $6,500 and $13,000, respectively, during the three and six months ended July 31, 2026 in change in financial guarantee expense, representing interest accrued on the Olymbec judgment (see Commitments and Contingencies below).

Expenses

In June 2026, the Company received $2,000,000 in proceeds from a convertible debenture. Shortly thereafter, the Company initiated its remaining IND-enabling studies for the BETR-001 program and engaged a CRO for drug substance manufacturing. In addition, the Company began adding strength to its team, appointing an executive chairman to its board in May 2026 and a new director in July 2026. These resulted in an increase in overall activity and expenditures in the current period.

Operating expenses increased by approximately $745,000 and $1,020,000 during the three and six months ended July 31, 2026, respectively, as a result of the following:

The table below presents material components of general and administrative expense:

General and administrative expenses for the three months ended July 31, 2026 were relatively consistent with the prior comparative period. A decrease in investor relations expense, due to termination of its investor relations position in October 2025, was offset by an increase in travel, meals and entertainment expense. In July 2026, senior management attended meetings and presentations pursuant to the Company’s financing efforts.

For the six months ended July 31, 2026, general and administrative expenses decreased due to the following:

SUMMARY OF QUARTERLY RESULTS AND FOURTH QUARTER

The following table presents a summary of unaudited quarterly financial information for the last eight consecutive quarters:

The Company recorded a net income during the quarter ended October 31, 2024. During this quarter, approximately $759,000 was recorded as a financial guarantee recovery to reflect financial guarantee liability at the amount issued as judgement against the Company by the Superior Court of Quebec (discussed below under “Commitments and Contingencies”). The amount issued as judgement was lower than what the Company had previously estimated. In addition, the Company recorded a gain from legal claim of approximately $557,000 pursuant to the successful conclusion of claims against the Company and MedMelior Inc. in the State and Federal Courts.

Net loss during the quarters ended April 30, 2025 through January 31, 2026 decreased from the quarter ended January 31, 2025 as the Company did not record any significant share-based payment expenses and continued its efforts at minimizing expenditures. Other factors, such as gains from extinguishment of debts, fair values of warrant liabilities and foreign exchange effects, also contributed to the decreases in net loss.

Net loss for the quarter ended April 30, 2026 increased from prior four quarters due mainly to increased share-based payment expense recorded within wages, salaries and employment expenses for the quarter. The Company granted 6.05 million stock options to directors, officers and employees during this quarter.

For the quarter ended July 31, 2026, net loss of $2.1 million was significantly higher than previous quarters, due primarily to increased share-based payment expenses from 7.25 million stock options granted to management, directors and consultants. As noted above, initiation of its IND-enabling studies and appointing new directors to its Board during this quarter resulted in increased overall expenditures, as well as an increase net loss.

LIQUIDITY AND CAPITAL RESOURCES

The Company manages its liquidity risk by reviewing, on an ongoing basis, its capital requirements and capital structure. The Company makes adjustments to its capital structure in light of changes in economic conditions and the risk characteristics of its assets. To maintain or adjust its capital structure, BetterLife may issue new common shares or debentures, acquire or dispose of assets or adjust the amount of cash. While the Company has incurred losses to date, with an accumulated deficit of $122,785,512 at July 31, 2026, management expects to continue to fund its development efforts through its access to public capital markets. As at July 31, 2026, the Company required additional funds from equity/debt financings or strategic business alliances to support its future clinical efforts and there were no assurance that the Company will gain adequate market acceptance for its projects or be able to generate sufficient positive cash flow to achieve its business plans. Therefore, the Company was, at July 31, 2026, subject to risks including, but not limited to, raising additional funds through equity and/or debt financing to support ongoing operations. See “Risks and Uncertainties”.

On September 17, 2026, the Company closed on a public offering of common shares and pre-funded warrants for gross proceeds of $138,748,920 (the “Offering”). This Offering funds the Company’s Phase 1A studies in healthy humans, Phase 1B clinical trials for cluster headache and migraine in parallel and Phase 2 clinical trials for cluster headache and migraine, with a total budget of approximately $105 million and which are expected to begin upon completion of the Company’s IND-enabling studies.

Working Capital

The following table presents the Company’s working capital at July 31 and January 31, 2026:

Working capital deficiency increased by $1.17 million at July 31, 2026 as compared to January 31, 2026. Although the Company secured a private placement for proceeds of $499,600 in April 2026 and closed on a convertible debenture of $2,000,000 in June 2026, working capital deficiency increased as key management personnel, including the executive chairman appointed in May 2026, continued to defer payment of their compensation. A strategic decision was made during the six months ended July 31, 2026 to allocate resources to contract research organizations, research vendors and pre-clinical consultants for the BETR-001 program, as well as to legal counsel for preparation of the Company’s short-form prospectus for the Offering that closed in September 2026.

The Company’s current assets increased by approximately $1.8 million, which consisted mainly of an increase in cash of $961,000 and prepaid expense of $819,000. Net deposit payments of approximately $777,000 were paid to CRO’s, research consultants and an active pharmaceutical ingredient supplier. The Company expects to incur a further amount of approximately $2.2 million to complete the IND-enabling studies and drug substance manufacturing.

Statements of Cash Flows

The following table presents the Company’s cash flows for the six months ended July 31, 2026 and 2025:

On April 15, 2026, the Company closed on a private placement for proceeds of $499,600, of which $258,000 in subscription proceeds were received during the six months ended July 31, 2026. The Company also secured a convertible debenture in June 2026 for gross proceeds of $2,000,000. Proceeds from these financing activities allowed the Company to fund its working capital and operating activities, resulting in an increase in net cash used in operating activities from January 31 to July 31, 2026.

Commitments and Contingencies

In March 2021, Olymbec Development Inc. (“Olymbec”) filed a judicial demand before the Superior Court (Civil Division) of Quebec and a judgement for a safeguard order was obtained by Olymbec against Pivot Pharmaceuticals Manufacturing Corp. (“Pivot”), a former subsidiary, and the Company, as guarantor of the lease at 285-295 Kesmark Street, Quebec (the “Lease”), ordering Pivot and the Company to jointly pay the full amount of the Lease on the first day of each month. In May 2021, a judgement for a safeguard order was issued ordering Pivot and the Company to provide post-dated cheques for monthly lease payments for the months of June through November 2021. In June 2021, a judgement granted Pivot and the Company until June 30, 2021 to pay the outstanding lease totaling $124,223 and to deliver post-dated cheques each in the amount of $49,410.51 for monthly lease payments for the months of July through November 2021, which were completed. On October 25, 2023, due to non-payment of rent by Pivot, Olymbec terminated the Lease. An order for Pivot’s bankruptcy was granted on December 11, 2023 by the Superior Court (Commercial Division) of Quebec. On December 16, 2024, the Superior Court (Civil Division) of Quebec issued a judgment ordering the Company to pay Olymbec $367,428, representing lease unpaid by Pivot and administrative charges, plus $15,000 as punitive damages. On March 17, 2025, this judgment was registered with the Supreme Court of British Columbia.

The Company is a guarantor on the Lease, which was assigned together with the sale of Pivot in October 2020 pursuant to which the Company has recorded a financial guarantee liability as at July 31, 2026 of $425,828 (January 31, 2026 - $412,854).

At July 31, 2026, certain of the Company’s research and development programs, with a total contracted amount of approximately $1,076,700, were in progress of which the Company has paid approximately $589,600 and a further $487,100 remains to be paid in future periods.

At July 31, 2026, there may be a contingent liability related to potential interest or penalties that vendors may charge on the Company’s aged accounts payables. Due to the absence of reliable estimates for this amount, no provisions have been recorded by the Company.

Events After the Reporting Date

The following are events that have occurred subsequent to July 31, 2026:

RISKS AND UNCERTAINTIES

Financial Risks

Credit Risk

Credit risk is the risk of loss if a customer or third party to a financial instrument fails to meet its contractual obligations. The Company’s cash is held through reputable financial institutions in Canada and Australia. The carrying amounts of cash represent the maximum exposure to credit risk. As at July 31, 2026, this amounted to $973,593.

Interest Rate Risk

Interest rate risk is the risk that fair values of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to significant interest rate risk.

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they come due. The Company manages liquidity risk through the management of its capital structure. Accounts payable and accrued liabilities, due to related parties, financial guarantee liability, convertible debentures, current portion of loans payable and promissory notes are due within the current operating period.

Currency Risk

Currency risk is the risk of loss due to fluctuation of foreign exchange rates and the effects of these fluctuations on foreign currency denominated monetary assets and liabilities. A 5% change in exchange rates will increase or decrease the Company’s loss by approximately $172,000. The Company does not invest in derivatives to mitigate these risks.

Business Risks

The Company is exposed to a number of “Risk Factors”, which are summarized below:

Risks Related to the Company’s Intellectual Property

Risks Associated with BetterLife’s Securities

The Company has sought to identify what it believes to be the most significant risks to its business, but it cannot predict whether, or to what extent, any of such risks may be realized nor can it guarantee that it has identified all possible risks that might arise. Investors should carefully consider all of such risk factors before making an investment decision with respect to BetterLife’s common shares.

OFF BALANCE SHEET ARRANGEMENTS

The Company has no off-balance sheet arrangements that have, or are reasonably likely to have, a material current or future effect on the Company’s financial condition, results of operations or cash flows.

TRANSACTIONS BETWEEN RELATED PARTIES

During the three and six months ended July 31, 2026, BetterLife entered into transactions and had outstanding balances with various related parties. The transactions with related parties are in the normal course of business.

Key Management Compensation

Key management includes those persons having authority and responsibility for planning, directing and controlling the activities, directly or indirectly, of the Company and includes the chief executive officer, chief operating officer and chief financial officer. During the three and six months ended July 31, 2026, compensation of key management, directors and former directors of the Company, consisting of salaries, director fees and share-based payments, totaled $799,237 and $1,188,925, respectively (three and six months ended July 31, 2025 - $289,953 and $603,045, respectively), of which $146,169 and $427,994, respectively, were share-based payments related to long-term incentive plans (three and six months ended July 31, 2025 - $54,133 and $92,831, respectively). During the six months ended July 31, 2026:

Other Related Party Transactions

At July 31, 2026, the Company owed $2,100,826 to key management and directors (January 31, 2026 - $1,415,082), of which $384,476 bear interest at 8% per annum (January 31, 2026 - $258,484).

During the six months ended July 31, 2026:

During the six months ended July 31, 2025, the Company issued 10,308,039 common shares pursuant to the settlement of amounts due to directors and officers totaling $1,030,804.

The table below provides details on key management compensation for the six months ended July 31, 2026 and other related party transactions as at July 31, 2026:

PROPOSED TRANSACTIONS

There are none.

CRITICAL ACCOUNTING ESTIMATES

Critical accounting estimates are estimates and assumptions made by management that may result in material adjustments to the carrying amount of assets and liabilities within the next financial year. Critical accounting judgments are accounting policies that have been identified as being complex or involving subjective judgments or assessments.

The following are the critical judgments and estimates that management have made in the process of applying the Company’s accounting policies and that have the most significant effect on the amounts recognized in the condensed consolidated interim financial statements:

CHANGES IN ACCOUNTING POLICIES

New Accounting Standards and Interpretations

The following new accounting standard and interpretation will be adopted by the Company subsequent to July 31, 2026.

IFRS 18 – Presentation and Disclosure in Financial Statements

In April 2024, the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements, which will replace IAS 1 Presentation of Financial Statements. IFRS 18 will establish a revised structure for the consolidated statements of comprehensive income and improve comparability across entities and reporting periods. IFRS 18 is effective for annual periods beginning on or after January 1, 2027, with early adoption permitted. The new standard is required to be adopted retroactively, with certain transition provisions. The Company is evaluating the impact of adopting IFRS 18 on the condensed consolidated interim financial statements.

The following new accounting standard and interpretation has been adopted by the Company effective February 1, 2026.

IFRS 9 – Financial Instruments and IFRS 7 – Financial Instruments: Disclosures

In May 2024, the IASB issued amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures, to provide further guidance on the timing of recognition and derecognition of financial instruments at settlement date, except for regular way purchases or sales of financial assets, and certain financial liabilities meeting conditions for a new exception which permits companies to elect to derecognize certain financial liabilities settled via electronic payment systems earlier than the settlement date. Additional guidance was also provided on assessing whether a financial asset meets the solely payments of principal and interest criterion, and issued new disclosure requirements. This amendment is effective for annual periods beginning on or after January 1, 2026. The Company has determined that there is no material impact to its condensed consolidated interim financial statements on adoption.

FINANCIAL INSTRUMENTS AND OTHER INSTRUMENTS

In accordance with IFRS, financial assets are classified into one of the following categories: amortized cost, fair value through other comprehensive income or fair value through profit or loss. Accounts receivable, excluding tax receivables, are classified as amortized cost. Their carrying values approximate fair value due to their limited time to maturity and ability to convert them to cash in the normal course. Financial liabilities are measured at amortized cost, unless they are required to be measured at fair value through profit or loss. The Company’s accounts payable and accrued liabilities, due to related parties, financial guarantee liability, convertible debentures, loans payable and promissory notes are measured at amortized cost. The Company’s warrant liabilities are measured at FVTPL. The carrying values of accounts receivable excluding tax receivables, due to related parties, amounts payable and accrued liabilities, financial guarantee liability and promissory notes approximate the fair values due to the short-term nature of these items. The fair values of convertible debentures and loans payable are partially derived from market interest rates. The risk of material change in fair value is not considered to be significant due to a relatively short-term nature.

BetterLife recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost. At the end of each reporting period, the Company reviews the carrying amounts of long-lived assets to determine whether there is an indication that those assets are impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment charge (if any). The recoverable amount is the higher of the fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an asset is determined to be less than its recorded amount, the recorded amount of the asset is reduced to its recoverable amount. An impairment charge is recognized immediately in the condensed consolidated interim statement of loss and comprehensive loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to a maximum amount equal to the carrying amount that would have been determined had no impairment loss been recognized for the asset in prior years.

The Company classifies and discloses fair value measurements based on a three-level hierarchy:

The Company has determined the estimated fair values of its financial instruments based upon appropriate valuation methodologies. At July 31, 2026 and January 31, 2026, cash was measured and recognized in the condensed consolidated interim statements of financial position using Level 1 inputs in the fair value hierarchy and warrant liabilities were measured and recognized in the condensed consolidated interim statements of financial position at fair values that are categorized as Level 3 in the fair value hierarchy.

SHARE DATA

The following table sets forth the outstanding common share, warrants, special warrants, compensation options, stock options and performance share units data for the Company as at September 29, 2026:

ADDITIONAL INFORMATION

Additional information relating to the Company, including the Company's audited year-end financial results and unaudited quarterly financial results, can be accessed on SEDAR+ (www.sedarplus.ca) and in the United States on EDGAR (www.sec.gov/edgar).