| Restatement of Prior Period Financial Statements |
4.Restatement of Prior Period Financial Statements The audit committee of the Board of Directors of the Company (the “Audit Committee”), based on the recommendation of, and after consultation with, the Company’s management, determined that there were valuation errors in the Company’s accounting for stock options and certain outstanding warrant derivative liabilities. Specifically, the error related to the miscalculation of annualized volatility which is an input in the Black-Scholes-Merton valuation model used to value options and warrant derivatives. The error resulted in an overstatement of Research and development expense and General and administrative expense associated with stock-based compensation. Additionally, the error resulted in an overstatement of the warrant derivative liabilities, included within the Consolidated Statements of Financial Position, as well as corresponding errors in unrealized gain and loss on warrant derivative included within the Consolidated Statements of Loss and Comprehensive Loss. These errors do not affect cash flows or cash runway and impacted the period beginning in fiscal year 2020 and continued through December 31, 2025. 4.Restatement of Prior Period Financial Statements cont’d The Audit Committee, based on the recommendation of, and after consultation with, the Company’s management, concluded that the impact of the error was material to previously issued financial statements. As a result, the Company has restated its Consolidated Statements of Financial Position as at December 31, 2025, 2024 and opening balances as of January 1, 2024, and its Consolidated Statements of Loss and Comprehensive Loss, Statements of Cash Flows, and Statements of Changes in Shareholders’ Equity for the years ended 2025 and 2024. The restatement includes adjustments to Stock-based compensation expense, Unrealized loss on warrant derivative, Warrant derivative liability, Common shares, Reserves, and Deficit. The impact of the correction of the misstatements is summarized below: Consolidated Statements of Financial Position | | | | | | | as at | | December 31, 2025 | | | As Previously | | Restatement | | | | | Stated | | Adjustments | | As Restated | Liabilities | | | | | | | Current liabilities | | | | | | | Accounts payable and accrued liabilities (Note 14, 15) | | 4,657,448 | | — | | 4,657,448 | Warrant derivative (Note 16) | | 15,066,898 | | (2,419,384) | | 12,647,514 | Current portion of lease liability (Note 12) | | 8,369 | | — | | 8,369 | | | 19,732,715 | | (2,419,384) | | 17,313,331 | Non-current liabilities | | | | | | | Lease liability (Note 12) | | — | | — | | — | | | — | | — | | — | | | 19,732,715 | | (2,419,384) | | 17,313,331 | | | | | | | | Shareholders’ Equity | | | | | | | Common shares (Note 17) | | 102,998,992 | | 3,906,854 | | 106,905,846 | Reserves (Note 18) | | 47,241,452 | | (6,085,681) | | 41,155,771 | Deficit | | (146,763,518) | | 4,598,211 | | (142,165,307) | | | 3,476,926 | | 2,419,384 | | 5,896,310 | | | 23,209,641 | | — | | 23,209,641 |
| | | | | | | as at | | December 31, 2024 | | | As Previously | | Restatement | | | | | Stated | | Adjustments | | As Restated | Liabilities | | | | | | | Current liabilities | | | | | | | Accounts payable and accrued liabilities (Note 14, 15) | | 4,941,326 | | — | | 4,941,326 | Warrant derivative (Note 16) | | 11,862,687 | | (3,692,790) | | 8,169,897 | Current portion of lease liability (Note 12) | | 97,234 | | — | | 97,234 | | | 16,901,247 | | (3,692,790) | | 13,208,457 | Non-current liabilities | | | | | | | Lease liability (Note 12) | | 8,369 | | — | | 8,369 | | | 8,369 | | — | | 8,369 | | | 16,909,616 | | (3,692,790) | | 13,216,826 | | | | | | | | Shareholders’ Equity | | | | | | | Common shares (Note 17) | | 81,194,288 | | 2,721,823 | | 83,916,111 | Reserves (Note 18) | | 24,028,532 | | (3,724,272) | | 20,304,260 | Deficit | | (102,646,213) | | 4,695,239 | | (97,950,974) | | | 2,576,607 | | 3,692,790 | | 6,269,397 | | | 19,486,223 | | — | | 19,486,223 |
4.Restatement of Prior Period Financial Statements cont’d | | | | | | | as at | | January 1, 2024 | | | As Previously | | Restatement | | | | | Stated | | Adjustments | | As Restated | Liabilities | | | | | | | Current liabilities | | | | | | | Accounts payable and accrued liabilities (Note 14, 15) | | 3,321,208 | | — | | 3,321,208 | Warrant derivative (Note 16) | | 11,726,728 | | (4,617,185) | | 7,109,543 | Current portion of lease liability (Note 12) | | 91,586 | | — | | 91,586 | | | 15,139,522 | | (4,617,185) | | 10,522,337 | Non-current liabilities | | | | | | | Lease liability (Note 12) | | 105,604 | | — | | 105,604 | | | 105,604 | | — | | 105,604 | | | 15,245,126 | | (4,617,185) | | 10,627,941 | | | | | | | | Shareholders’ Equity | | | | | | | Common shares (Note 17) | | 59,026,143 | | 2,826,582 | | 61,852,725 | Reserves (Note 18) | | 17,360,916 | | (2,319,298) | | 15,041,618 | Deficit | | (78,396,164) | | 4,109,901 | | (74,286,263) | | | (2,009,105) | | 4,617,185 | | 2,608,080 | | | 13,236,021 | | — | | 13,236,021 |
Consolidated Statements of Loss and Comprehensive Loss | | | | | | | for the year ended | | December 31, 2025 | | | As Previously | | Restatement | | | | | Stated | | Adjustments | | As Restated | Operating expenses | | | | | | | Research and development (Note 20) | | 13,907,206 | | (440,972) | | 13,466,234 | General and administrative (Note 20) | | 11,172,046 | | (1,350,322) | | 9,821,724 | Total operating expenses | | 25,079,252 | | (1,791,294) | | 23,287,958 | Interest income | | (333,415) | | — | | (333,415) | Unrealized loss on warrant derivative (Note 16) | | 18,962,059 | | 1,888,322 | | 20,850,381 | Foreign exchange loss (gain) | | 409,409 | | — | | 409,409 | Net loss and comprehensive loss | | (44,117,305) | | (97,028) | | (44,214,333) | Basic and diluted net loss per share | | (0.61) | | — | | (0.61) | Weighted average Common Shares outstanding (Note 17) | | 72,330,908 | | — | | 72,330,908 |
| | | | | | | for the year ended | | December 31, 2024 | | | As Previously | | Restatement | | | | | Stated | | Adjustments | | As Restated | Operating expenses | | | | | | | Research and development (Note 20) | | 15,811,020 | | (305,674) | | 15,505,346 | General and administrative (Note 20) | | 9,365,129 | | (1,204,059) | | 8,161,070 | Total operating expenses | | 25,176,149 | | (1,509,733) | | 23,666,416 | Interest income | | (812,617) | | — | | (812,617) | Unrealized loss on warrant derivative (Note 16) | | 135,958 | | 924,395 | | 1,060,353 | Foreign exchange loss (gain) | | (249,441) | | — | | (249,441) | Net loss and comprehensive loss | | (24,250,049) | | 585,338 | | (23,664,711) | Basic and diluted net loss per share | | (0.36) | | 0.01 | | (0.35) | Weighted average Common Shares outstanding (Note 17) | | 67,321,698 | | — | | 67,321,698 |
4.Restatement of Prior Period Financial Statements cont’d Consolidated Statements of Cash Flows | | | | | | | for the year ended | | December 31, 2025 | | | As Previously | | Restatement | | | | | Stated | | Adjustments | | As Restated | Operating Activities | | | | | | | Net loss for the period | | (44,117,305) | | (97,028) | | (44,214,333) | Stock-based compensation (Note 15, 18) | | 5,394,914 | | (1,791,294) | | 3,603,619 | Change in fair value of warrant derivative (Note 16) | | 18,962,059 | | 1,888,322 | | 20,850,381 | Other items not involving cash and changes in non-cash working capital | | 261,121 | | — | | 261,122 | Net cash used in operating activities | | (19,499,211) | | — | | (19,499,211) |
| | | | | | | for the year ended | | December 31, 2024 | | | As Previously | | Restatement | | | | | Stated | | Adjustments | | As Restated | Operating Activities | | | | | | | Net loss for the period | | (24,250,049) | | 585,338 | | (23,664,711) | Stock-based compensation (Note 15, 18) | | 6,039,724 | | (1,509,733) | | 4,529,991 | Change in fair value of warrant derivative (Note 16) | | 135,959 | | 924,395 | | 1,060,353 | Other items not involving cash and changes in non-cash working capital | | 1,233,332 | | — | | 1,233,333 | Net cash used in operating activities | | (16,841,034) | | — | | (16,841,034) |
Consolidated Statements of Changes in Shareholders’ Equity | | | | | | | for the year ended | | December 31, 2025 | | | As Previously | | Restatement | | | | | Stated | | Adjustments | | As Restated | Total Shareholders’ Equity | | | | | | | Balance December 31, 2024 | | 2,576,607 | | 3,692,790 | | 6,269,397 | Common share financings, net (Note 17) | | 9,681,548 | | 1,972,110 | | 11,653,658 | Warrant exercises (Note 18) | | 3,392,617 | | — | | 3,392,617 | Warrant amendment (Note 16) | | 22,068,176 | | (1,357,194) | | 20,710,982 | Option exercises (Note 18) | | 4,480,370 | | — | | 4,480,370 | Stock-based compensation (Note 18) | | 5,394,914 | | (1,791,295) | | 3,603,619 | Loss and comprehensive loss | | (44,117,305) | | (97,028) | | (44,214,333) | Balance December 31, 2025 | | 3,476,926 | | 2,419,384 | | 5,896,310 |
| | | | | | | for the year ended | | December 31, 2024 | | | As Previously | | Restatement | | | | | Stated | | Adjustments | | As Restated | Total Shareholders’ Equity | | | | | | | Balance December 31, 2023 | | (2,009,105) | | 4,617,185 | | 2,608,080 | Common share financings, net (Note 17) | | 21,381,446 | | — | | 21,381,446 | Warrant exercise (Note 18) | | 139,250 | | — | | 139,250 | Option exercises (Note 18) | | 1,275,341 | | — | | 1,275,341 | Stock-based compensation (Note 18) | | 6,039,724 | | (1,509,733) | | 4,529,991 | Loss and comprehensive loss | | (24,250,049) | | 585,338 | | (23,664,711) | Balance December 31, 2024 | | 2,576,607 | | 3,692,790 | | 6,269,397 |
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