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Doseology Sciences Inc. Audit Report / Information 2025
48002_rns_2025-10-29_2db9697d-e1a8-498f-a986-f2b16fcf6ead.pdf
Audit Report / Information
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Doseology Sciences Inc.
Consolidated Financial Statements
For the year ended June 30, 2025 and 2024
(Audited - Expressed in Canadian dollars)
D M C L
dmcl.ca
DALE MATHESON CARR-HILTON LABONTE LLP
CHARTERED PROFESSIONAL ACCOUNTANTS
Independent Auditor's Report
To the Shareholders of Doseology Sciences Inc.
Opinion
We have audited the consolidated financial statements of Doseology Sciences Inc. (the "Company"), which comprise the consolidated statements of financial position as at June 30, 2025 and 2024, and the consolidated statements of loss and comprehensive loss, changes in shareholders' equity and cash flows for the years then ended, and notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the "financial statements").
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at June 30, 2025 and 2024, and its financial performance and its cash flows for the years then ended in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board.
Basis for Opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Material Uncertainty Related to Going Concern
We draw attention to Note 1 to the financial statements, which indicates that as at June 30, 2025 the Company had an accumulated deficit of $6,566,690 and its current assets exceeded current liabilities by $1,397,665. As stated in Note 1, these events or conditions, along with other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters, that in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
| Vancouver | Surrey | Tri-Cities | Victoria |
|---|---|---|---|
| 1500 - 1140 West Pender St. | |||
| Vancouver, BC V6E 4G1 | |||
| 604.687.4747 | 200 - 1688 152 St. | ||
| Surrey, BC V4A 4N2 | |||
| 604.531.1154 | 700 - 2755 Lougheed Hwy | ||
| Port Coquitlam, BC V3B 5Y9 | |||
| 604.941.8266 | 320 - 730 View St. | ||
| Victoria, BC V8W 3Y7 | |||
| 250.800.4694 |
Except for the matter described in the Material Uncertainty Related to Going Concern section, we have determined that there are no key audit matters to communicate in our report.
Other Information
Management is responsible for the other information. The other information comprises the information included in Management's Discussion and Analysis.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
We obtained Management's Discussion and Analysis prior to the date of this auditor's report. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partner on the audit resulting in this independent auditor's report is David Goertz.
Dmcl.
DALE MATHESON CARR-HILTON LABONTE LLP
CHARTERED PROFESSIONAL ACCOUNTANTS
Vancouver, BC
October 29, 2025
Doseology Sciences Inc.
Consolidated Statements of Financial Position
(Expressed in Canadian dollars)
| As at | Notes | June 30, 2025 $ | June 30, 2024 $ |
|---|---|---|---|
| Assets | |||
| Current Assets | |||
| Cash and cash equivalent | 1,429,660 | 1,060,222 | |
| Receivables | 3 | 41,188 | 2,304 |
| Prepaid expenses and deposits | 3,885 | - | |
| Inventories | 4 | 17,037 | 39,705 |
| Total assets | 1,491,770 | 1,102,231 | |
| Liabilities | |||
| Current liabilities | |||
| Accounts payable and accrued liabilities | 5 | 94,105 | 82,492 |
| Total liabilities | 94,105 | 82,492 | |
| Shareholder's Equity | |||
| Share capital | 7,8 | 7,501,753 | 6,753,576 |
| Reserves | 9 | 462,602 | 385,065 |
| Deficit | (6,566,690) | (6,118,902) | |
| Total shareholder's equity | 1,397,665 | 1,019,739 | |
| Total liabilities and shareholder's equity | 1,491,770 | 1,102,231 |
Approved by the Board of Directors on October 29, 2025:
"Zara Kanji"
Director
"Scott Reeves"
Director
The accompanying notes are an integral part of these consolidated financial statements.
Doseology Sciences Inc.
Consolidated Statements of Loss and Comprehensive Loss
For the years ended June 30, 2025 and 2024
(Expressed in Canadian dollars)
| Notes | For the year ended June 30, 2025 $ | For the year ended June 30, 2024 $ | |
|---|---|---|---|
| Income | |||
| Product sales | 12 | 42,556 | 98,522 |
| Cost of sales | 4 | (23,671) | (26,435) |
| 18,885 | 72,087 | ||
| Expenses | |||
| Marketing and product placement | 61,227 | 115,599 | |
| Investor relations | 3,000 | 263 | |
| Product development | 2,850 | - | |
| Consulting fees | 102,155 | 93,670 | |
| Management fees | 39,262 | - | |
| Professional fees | 79,935 | 52,861 | |
| Regulatory filings and listing fees | 8,355 | 42,244 | |
| Office | 9,740 | 36,912 | |
| Salaries and benefits | 86,430 | 70,120 | |
| Share-based compensation | 7,9 | 97,537 | 17,681 |
| Depreciation and amortization | - | 20,370 | |
| (490,491) | (449,720) | ||
| Other income (expenses) | |||
| Interest income | 23,818 | 29,290 | |
| Gain on lease termination | 6 | - | 12,635 |
| Loss on asset disposal | - | (4,140) | |
| Loss and comprehensive loss | (447,788) | (339,848) | |
| Loss per share – basic and diluted | (0.10) | (0.08) | |
| Weighted average number of shares | |||
| Outstanding – basic and diluted | 4,609,453 | 4,262,838 |
The accompanying notes are an integral part of these consolidated financial statements.
Doseology Sciences Inc.
Consolidated Statements of Changes in Shareholders' Equity
For the years ended June 30, 2025 and 2024
(Expressed in Canadian dollars)
| Number of shares | Share capital $ | Reserves $ | Deficit $ | Total Shareholders' Equity $ | |
|---|---|---|---|---|---|
| Balance – June 30, 2023 | 4,110,030 | 6,711,326 | 367,384 | (5,779,054) | 1,299,656 |
| Shares issued for debt | 290,495 | 42,250 | - | - | 42,250 |
| Share-based compensation | - | - | 17,681 | - | 17,681 |
| Loss for the year | - | - | - | (339,848) | (339,848) |
| Balance – June 30, 2024 | 4,400,525 | 6,753,576 | 385,065 | (6,118,902) | 1,019,739 |
| Shares issued | 3,336,106 | 750,624 | - | - | 750,624 |
| Share issuance cost | - | (18,947) | - | - | (18,947) |
| Shares issued for debt | 100,000 | 16,500 | - | - | 16,500 |
| Share-based compensation | - | - | 77,537 | - | 77,537 |
| Loss for the year | - | - | - | (447,788) | (447,788) |
| Balance – June 30, 2025 | 7,836,631 | 7,501,753 | 462,602 | (6,566,690) | 1,397,665 |
The accompanying notes are an integral part of these Consolidated Financial Statements.
Doseology Sciences Inc.
Consolidated Statements of Cash Flows
For the years ended June 30, 2025 and 2024
(Expressed in Canadian dollars)
| For the year ended June 30, 2025 $ | For the year ended June 30, 2024 $ | |
|---|---|---|
| Cash flows used in (provided by) operating activities | ||
| Loss for the year | (447,788) | (339,848) |
| Items not involving cash: | ||
| Share-based compensation | 97,537 | 17,681 |
| Shares issued for debt | 16,500 | 42,250 |
| Depreciation and amortization | - | 20,370 |
| Loss on asset disposal | - | 4,140 |
| Lease termination | - | (12,635) |
| (333,751) | (268,042) | |
| Changes in non-cash working capital items | ||
| Receivables | (38,884) | 14,796 |
| Prepaid expenses and deposits | (3,885) | 15,669 |
| Inventories | 22,668 | (31,114) |
| Accounts payable and accrued liabilities | 11,613 | 33,573 |
| Cash used in operating activities | (342,239) | (235,118) |
| Cash flows provided by (used in) financing activities | ||
| Proceeds from units issued | 730,624 | - |
| Share issuance costs | (18,947) | - |
| Repayment of lease liability | - | (6,138) |
| Cash provided by (used in) financing activities | 711,677 | (6,138) |
| Increase (decrease) in cash during the year | 369,438 | (241,256) |
| Cash – beginning of the year | 1,060,222 | 1,301,478 |
| Cash – end of the year | 1,429,660 | 1,060,222 |
| Cash interest received | 21,760 | 26,719 |
The accompanying notes are an integral part of these consolidated financial statements.
Doseology Sciences Inc.
Consolidated Financial Statements
For the year ended June 30, 2025 and 2024
(Expressed in Canadian dollars)
- Nature of operations and going concern
Doseology Sciences Inc. (the "Company"), formerly known as Pcybin Therapeutic Inc., was incorporated on July 25, 2019 under the Business Corporations Act (British Columbia). The Company's registered and records office is located at 9-3151 Lakeshore Road, Unit 305, Kelowna, BC, V1W 3S9. The Company's primary business is to improve overall health with a focus on mental health through research, development and sale of its branded functional mushroom products. The common shares of the Company trade on the Canadian Securities Exchange under the symbol "MOOD", on the Frankfurt Stock Exchange under the symbol "VU7", and on the OTCQB Venture Market under the symbol "DOSEF".
These Consolidated Financial Statements ("financial statements") have been prepared on a going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. As at June 30, 2025, the Company had an accumulated deficit of $6,566,690 and its current assets exceeded current liabilities by $1,397,665. In the course of developing its business, the Company will continue to incur losses. Management intends to finance its operations with equity financings. There is a risk that additional financing may not be available on a timely basis or on terms acceptable to the Company. These uncertainties may cast significant doubt regarding the Company's ability to continue as a going concern.
These financial statements do not give effect to any adjustments which would be necessary should the Company be unable to continue as a going concern and, therefore, be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts different from those reflected in the accompanying financial statements. These adjustments could be material.
On February 16, 2024, the Company consolidated its issued and outstanding common shares on the basis of one post-consolidated common share for every ten pre-consolidated common share. All shares and per share amounts in these Consolidated Financial Statements are presented on a post-consolidated basis.
- Material accounting policy information
Basis of presentation and measurement
These financial statements have been prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board ("IASB") and were authorized for issue by the Company's Board of Directors on October 29, 2025.
These financial statements have been prepared on a going concern basis, under the historical cost convention, except for certain financial instruments measured at fair value. In addition, these financial statements are prepared on an accrual basis, except for cash flow information. The financial statements are presented in Canadian dollars, which is also the Company's functional currency.
Principles of consolidation
These financial statements include the financial statements of the Company and entities controlled by the Company. Control exists when the Company has the power, directly or indirectly, to govern the financial operating policies of an entity so as to obtain benefits from its activities.
The financial statements include the accounts of Doseology Sciences Inc. and its wholly owned subsidiaries, Dose Labs Inc., 1514401 B.C. Ltd. and Doseology USA Inc, collectively referred to as the "Company". The functional currency of the Company and subsidiaries is the Canadian dollar. Intercompany balances and transactions, and unrealized gains arising from intercompany transactions are eliminated in preparing these financial statements.
Doseology Sciences Inc.
Consolidated Financial Statements
For the year ended June 30, 2025 and 2024
(Expressed in Canadian dollars)
2. Material accounting policy information (continued)
Use of estimates and judgements
The preparation of the financial statements in conformity with IFRS requires the Company’s management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, revenues, and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.
Information about critical judgements in applying accounting policies that have the most significant risk of causing material adjustment to the carrying amounts of assets and liabilities recognized in the financial statements are as follows:
Going concern
The Company’s ability to execute its strategy by funding future working capital requirements requires judgement. Estimates and assumptions are based on historical experience and other factors, such as expectations of future events that are believed to be reasonable under the circumstances. The factors considered by management are disclosed in Note 1.
Provision for expected credit losses (“ECLs”)
The Company performs impairment testing annually for accounts receivable in accordance with IFRS 9. The ECL model requires considerable judgment, including consideration of how changes in economic factors affect ECLs, which are determined on a probability-weighted basis. IFRS 9 outlines a three-stage approach to recognizing ECLs which is intended to reflect the increase in credit risks of a financial instrument based on 1) 12-month expected credit losses or 2) lifetime expected credit losses. The Company measures provision for ECLs on its trade receivables at an amount equal to lifetime ECLs.
Share-based payments
The Company measures the cost of equity-settled transactions with employees and non-employees by reference to the fair value of the equity instruments at the date at which they are granted. Estimating the fair value requires determining the most appropriate inputs to the valuation model including the expected life of the instrument, volatility, risk-free interest rate and dividend yield.
Income taxes
Provisions for income taxes are made using the best estimate of the amount expected to be paid based on a qualitative assessment of all relevant factors. The Company reviews the adequacy of these income tax provisions at the end of each reporting period. However, it is possible that at some future date an additional liability could result from audits by tax authorities. Where the outcome of these tax-related matters is different from the amounts that were initially recorded, such differences will affect the tax provisions in the period in which such determination is made. Deferred tax assets are recognized where it is determined that the Company is likely to recognize their recovery from the generation of taxable income.
Doseology Sciences Inc.
Consolidated Financial Statements
For the year ended June 30, 2025 and 2024
(Expressed in Canadian dollars)
2. Material accounting policy information (continued)
Cash and cash equivalents
The Company considers cash and cash equivalents to be cash and highly liquid investments with original maturities of six months or less. The Company had no cash equivalents at June 30, 2025.
Inventories
Inventories of finished goods are valued initially at cost and subsequently at the lower of cost and net realizable value. Net realizable value is determined as the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Cost is determined using the weighted average cost basis. The Company reviews inventory for obsolete and slow-moving goods and any such inventory is written down to net realizable value.
Revenue recognition
The Company's revenue consists of medicinal mushroom and tincture product sales. The Company sells products directly to customers and through certain ecommerce platforms and distributors. The Company recognizes revenue when performance obligations have been satisfied which includes that the products have been shipped to customers and/or distributors. Revenue is measured based on the price specified, net of trade discounts, if any, and estimated returns at the time of sale. Historical experience is used to estimate allowances for returns. Trade receivables include amounts due from distributors and ecommerce platforms and are recorded upon the sale of the products. Credit terms are extended in the normal course of business.
Share capital
Common shares:
Common shares issued are classified as share capital, a component of shareholders' equity. Transaction costs directly attributable to the issuance of common shares are recognized as a deduction from share capital.
Equity units:
Proceeds received on the issuance of units, comprised of common shares and warrants, are allocated using the residual value method. Under the residual value method, proceeds are allocated to the common shares up to their fair value, determined by reference to the quoted market price of the common shares on the issuance date, and the remaining balance, if any, to the reserve for warrants.
Share-based compensation
The fair value of stock options granted is measured at the grant date using the Black-Scholes option pricing model. Where options are granted to consultants for goods or services rendered, the options are measured at the fair value of the goods or services received by the Company. If the fair value of the goods and services received cannot be reliably measured, the fair value of the stock option granted is used instead. At each reporting date prior to vesting, the cumulative expense representing the extent to which the vesting period has expired and management's best estimate of the awards expected to ultimately vest is computed. The movement in cumulative expense is recognized in the consolidated statement of loss with a corresponding entry within equity, against share-based compensation reserve. No expense is recognized for awards that do not ultimately vest. When options are exercised, the proceeds received together with any related amount in share-based compensation reserve is credited to share capital.
Doseology Sciences Inc.
Consolidated Financial Statements
For the year ended June 30, 2025 and 2024
(Expressed in Canadian dollars)
2. Material accounting policy information (continued)
Where a grant of options is cancelled or settled during the vesting period, excluding forfeitures when vesting conditions are not satisfied, the Company immediately accounts for the cancellation as an acceleration of vesting and recognizes the amount that otherwise would have been recognized for services received over the remainder of the vesting period.
Warrants
The warrants are fair valued on the issuance date using the Black-Scholes option pricing model. If and when the warrants are exercised, the applicable fair value of the share-based payment reserve is transferred to share capital. Any consideration paid on the exercise of the warrants is credited to share capital.
Financial instruments
Recognition, classification and measurement
Financial assets are classified and measured based on the business model for managing the financial assets and the contractual cash flow characteristics of the financial assets. IFRS 9 Financial Instruments contains three primary measurement categories for financial instruments: amortized cost, fair value through other comprehensive income ("FVTOCI"), and fair value through profit and loss ("FVTPL"). Financial assets are recognized in the statements of financial position if the Company has a contractual right to receive cash or other financial assets from another entity. Financial assets are derecognized when the rights to receive cash flows from the asset have expired or were transferred and the Company has transferred substantially all risks and rewards of ownership.
All financial liabilities are recognized initially at fair value on the trade date at which the Company becomes a party to the contractual provisions of the instruments. The Company derecognizes a financial liability when its contractual obligations are discharged, cancelled or expired.
Financial instruments are not reclassified after their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.
The Company has classified its receivables as financial assets and accounts payable and accrued liabilities as financial liabilities measured at amortized cost. Such assets and liabilities are recognized initially at fair value inclusive of any directly attributable transaction costs and subsequently carried at amortized cost using the effective interest method, less any impairment losses. The effective interest method recognizes interest revenue or interest expense in profit and loss over the relevant period.
Financial instruments carried at FVTPL are recognized at their fair value at acquisition with any directly attributable transaction costs expensed as they are incurred. Subsequent measurement requires adjustment to fair value at the date of the statement of financial position, with any remeasurement gains or losses recognized in profit and loss as they arise. Instruments classified as FVTPL during the period ended June 30, 2025 and 2024 include cash.
Financial instruments carried at FVTOCI are recognized at their fair value at acquisition inclusive of any directly attributable transactions costs. Subsequent measurement requires adjustment to fair value at the date of the statement of financial position, with any remeasurement gains or losses recognized in other comprehensive income or loss. The Company has no instruments classified as FVTOCI during the period ended June 30, 2025 and 2024.
Doseology Sciences Inc.
Consolidated Financial Statements
For the year ended June 30, 2025 and 2024
(Expressed in Canadian dollars)
2. Material accounting policy information (continued)
Financial assets and financial liabilities are offset and the net amount presented in the statements of financial position when, and only when, the Company has a legal right to offset the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.
Basis of fair value
Financial instruments that are measured after initial recognition at fair value are grouped in levels 1 to 3 based on the degree to which the fair value is observable:
- Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;
- Level 2 fair value measurements are those derived from inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
- Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).
As at June 30, 2025, the carrying values of the Company's financial instruments approximate their fair values due to their short-term maturities.
The following table sets forth the Company's financial instruments measured at fair value on a recurring basis by level within the fair value hierarchy as at June 30, 2025 and June 30, 2024:
| Level 1 | Level 2 | Level 3 | ||
|---|---|---|---|---|
| Cash | June 30, 2025 | $1,429,660 | $ - | $ - |
| Cash | June 30, 2024 | $1,060,222 | $ - | $ - |
The Company recognizes expected credit losses on financial assets measured at amortized cost. Loss allowances for accounts receivables are measured at an amount equal to lifetime expected credit losses if the amount is not considered fully recoverable. A financial asset carried at amortized cost is considered credit-impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. Individually significant financial assets are tested for credit-impairment on an individual basis. The remaining financial assets are assessed collectively.
Impairment of financial assets
An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset's original effective interest rate. In assessing collective impairment, the Company uses historical trends of the probability of default, timing of recoveries and the amount of loss incurred, adjusted for management's judgement as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends.
Doseology Sciences Inc.
Consolidated Financial Statements
For the year ended June 30, 2025 and 2024
(Expressed in Canadian dollars)
2. Material accounting policy information (continued)
Losses are recognized in the statements of loss and comprehensive loss and reflected in an allowance account against receivables. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss.
Derecognition
The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire, or when it transfers the financial assets and substantially all the associated risks and rewards of ownership to another entity. Gains and losses on derecognition are generally recognized in the consolidated statements of loss and comprehensive loss.
The Company derecognizes financial liabilities only when its obligations under the financial liabilities are discharged, cancelled or expired. Generally, the difference between the carrying amount of the financial liability derecognized and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognized in the statements of loss and comprehensive loss.
Right of Use Assets and lease liabilities
At inception of a contract, the Company assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control an identified asset for a period of time in exchange for consideration.
Leases of right-of-use assets are recognized at the lease commencement date at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined, and otherwise at the Company's incremental borrowing rate. At the commencement date, a right-of-use asset is measured at cost, which is comprised of the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any decommissioning and restoration costs, less any lease incentives received.
Each lease payment is allocated between repayment of the lease principal and interest. Interest on the lease liability in each period during the lease term is allocated to produce a constant periodic rate of interest on the remaining balance of the lease liability. Except where the costs are included in the carrying amount of another asset, the Company recognizes in profit or loss (a) the interest on a lease liability and (b) variable lease payments not included in the measurement of a lease liability in the period in which the event or condition that triggers those payments occurs.
The Company subsequently measures a right-of-use asset at cost less any accumulated depreciation and any accumulated impairment losses; and adjusted for any remeasurement of the lease liability. Right-of-use assets are depreciated over the shorter of the asset's useful life and the lease term, except where the lease contains a bargain purchase option, in which case a right-of-use asset is depreciated over the asset's useful life.
Loss per share
Basic loss per share is computed using the weighted average number of common shares outstanding during the year. The treasury stock method is used for the calculation of diluted income per share, whereby all "in the money" stock options and share purchase warrants are assumed to have been exercised at the beginning of the period and the proceeds from their exercise are assumed to have been used to purchase common shares at the average market price during the period. When a loss is incurred during the period, basic and diluted loss per share is the same, as the inclusion of stock options and share purchase warrants is anti-dilutive.
Doseology Sciences Inc.
Consolidated Financial Statements
For the year ended June 30, 2025 and 2024
(Expressed in Canadian dollars)
2. Material accounting policy information (continued)
Income taxes
Current income tax
Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Current income tax relating to items recognized directly in other comprehensive income or equity is recognized in other comprehensive income or equity and not in profit or loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where there are uncertain tax positions.
Deferred income tax
Deferred income tax is provided on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred income tax assets and deferred income tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred income taxes relate to the same taxable entity and the same taxation authority.
The carrying amount of deferred income tax assets is reviewed at the end of each reporting period and recognized only to the extent that it is probable that sufficient taxable profit will be available to allow all or part of the deferred income tax assets to be utilized.
Recent Accounting Pronouncement and Accounting Pronouncements Not Yet Adopted
IFRS 18 – Presentation and Disclosure of Financial statements
The standard replaces IAS 1 Presentation of Financial Statements and includes requirements for the presentation and disclosure of information in financial statements, such as the presentation of subtotals within the statement of operations and the disclosure of management-defined performance measures within the financial statement. This standard is effective for periods beginning on or after January 1, 2027 with earlier application permitted.
A number of other new standards, amendments to standards and interpretations are effective for the year ended June 30, 2025 and application of those do not have material impact on the Company's financial statements.
Other accounting standards or amendments to existing accounting standards that have been issued but have future effective dates are not expected to have a significant impact on the Company's financial statements.
Doseology Sciences Inc.
Consolidated Financial Statements
For the year ended June 30, 2025 and 2024
(Expressed in Canadian dollars)
- Accounts receivable
| June 30, 2025 $ | June 30, 2024 $ | |
|---|---|---|
| Goods and services tax credits | 18,283 | - |
| Trade receivables | 22,905 | 2,304 |
| 41,188 | 2,304 |
Subsequent to year ended June 30, 2025, the Company collected $22,893 of the trade receivables.
- Inventories
| June 30, 2025 $ | June 30, 2024 $ | |
|---|---|---|
| Finished products – Medicinal mushroom and tinctures | $17,037 | $39,705 |
During the year ended June 30, 2025, the Company sold inventory with a value of $23,671 (June 30, 2024 - $26,435).
- Accounts payable and accrued liabilities
| June 30, 2025 $ | June 30, 2024 $ | |
|---|---|---|
| Accounts payable | 44,235 | 47,098 |
| Accrued liabilities | 49,870 | 35,394 |
| 94,105 | 82,492 |
- Lease Liabilities
The Company has previously entered into a lease agreement;
1.) Commercial Office: The Company entered into a 3-year lease term on September 1, 2021, with an option to renew for an additional 5 years. The lease liability has been calculated using an incremental borrowing rate of 10% per annum.
| June 30, 2025 | June 30, 2024 | |
|---|---|---|
| Lease liabilities | $ | $ |
| Balance, beginning | - | 50,272 |
| Less: lease payments | - | (8,539) |
| Termination of lease liability | - | (41,733) |
| Balance, ending | - | - |
During the year ended June 30, 2024, the Company terminated its commercial lease, and recorded a gain on lease termination of $12,635.
Doseology Sciences Inc.
Consolidated Financial Statements
For the year ended June 30, 2025 and 2024
(Expressed in Canadian dollars)
7. Transactions with related parties
Key management personnel include directors and officers who have the authority and responsibility for planning, directing, and controlling the activities of the Company. The compensation paid to these key management personnel for the period ended June 30, 2025 and 2024 is shown below:
| June 30, 2025 | June 30, 2024 | |
|---|---|---|
| $ | $ | |
| Management fees | 46,762 | 2,000 |
| Professional fees | 32,717 | 3,523 |
| Share-based compensation | 65,538 | 12,016 |
| 145,017 | 17,539 |
Management fees
During the year ended June 30, 2025, the Company incurred management fees of $21,762 (June 30, 2024 – $2,000) payable to Christopher Cherry, the Company's Chief Financial Officer.
In addition, the Company paid severance of $17,500 to Shawn Balaghi, the former Chief Executive Officer and Director.
During the year ended June 30, 2025, the Company engaged Tim Corkum as Chief Operating Officer. Tim Corkum earned management fees of $7,500. The amount remains payable as at June 30, 2025. Additionally, Company entered into a consulting agreement with a related party under which the related party is entitled to a signing bonus of $150,000, payable in Common Shares at the market price on the day prior to issuance. The Common Shares are to be issued and held in escrow, with releases of $50,000 of shares occurring on each of the first, second, and third anniversaries of the effective date of the agreement. Further, the Company granted a one-time, non-cash signing bonus of 88,888 units as part of the Company's non-brokered private placement that closed on June 12, 2025. The Company has recorded $20,000 as share-based compensation.
Professional fees and regulatory filings and listing expenses
During the period ended June 30, 2025, the Company incurred $32,717 (June 30, 2024: $3,523) in professional fees to a law firm where Scott Reeves, a director of the Company, is a partner.
8. Share capital
Authorized
Unlimited number of voting common shares without par value.
Shares issued for the year ended June 30, 2025
On January 21, 2025, the Company issued 100,000 shares for debt settlement for a fair value of $16,500.
On June 12, 2025, the Company issued 3,336,106 units as part of a non-brokered private placement for gross proceeds of $750,624. Each unit will be comprised of one share and one warrant, with each warrant entitling the holder to purchase one additional common share at an exercise price of $0.50 for a period of 24 months. The warrants were valued at $nil based on the residual method. The Company incurred share issuance costs of $18,974 related to the non-brokered private placement.
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Doseology Sciences Inc.
Consolidated Financial Statements
For the year ended June 30, 2025 and 2024
(Expressed in Canadian dollars)
8. Share capital
Shares issued for the year ended June 30, 2024
On December 21, 2023, the Company issued 2,904,950 shares for debt settlement.
On February 16, 2024, the Company consolidated its issued and outstanding common shares on the basis of one post-consolidated common share for every ten pre-consolidated common share.
9. Reserves
Reserves includes the accumulated fair values of stock options recognized as share-based compensation and the fair value of warrants. Reserves is increased by the fair values of these items on vesting. During the year June 30, 2025, share-based compensation in the amount of $12,000 relate to specific employment related agreements.
| Warrant reserve $ | Stock option reserve $ | Total $ | |
|---|---|---|---|
| Balance - June 30, 2023 | 178,224 | 189,160 | 367,384 |
| Fair value of stock options | - | 17,681 | 17,681 |
| Balance - June 30, 2024 | 178,224 | 206,841 | 385,065 |
| Share-based compensation | - | 12,000 | 12,000 |
| Fair value of stock options | - | 65,537 | 65,537 |
| Balance - June 30, 2025 | 178,224 | 284,378 | 462,602 |
Warrants
Warrant transactions are summarized as follows:
| Number of warrants | Weighted average exercise price ($) | ||
|---|---|---|---|
| Balance - June 30, 2023 | 1,094,250 | 6.00 | |
| Expired | - | 1,094,250 | 6.00 |
| Balance - June 30, 2024 | - | - | |
| Issued | 3,336,106 | 0.50 | |
| Balance - June 30, 2025 | 3,336,106 | 0.50 |
The Company has 3,336,106 warrants outstanding.
| Number of warrants | Exercise price ($ per share) | Expiry date | Weighted average remaining life (years) |
|---|---|---|---|
| 3,336,106 | 0.50 | June 12, 2027 | 1.95 |
| 3,336,106 | 1.95 |
Doseology Sciences Inc.
Consolidated Financial Statements
For the year ended June 30, 2025 and 2024
(Expressed in Canadian dollars)
9. Reserves (continued)
Stock options
The Company has adopted a stock option plan (the "Option Plan") to grant options to directors, officers, employees and consultants. Pursuant to the Option Plan, the Company may grant options that may not exceed 10% of the total number of issued common shares of the Company (calculated on a non-diluted basis) at the time an option is granted.
The Company provides stock-based compensation to its directors, officers, employees, and consultants through grants of stock options.
On September 12, 2024, a total of 80,000 stock options were granted to directors, officers, and employees with an exercise price of $0.40 per share and an expiry date of September 12, 2029. The stock options vested immediately. The fair value of the options of $13,564 was calculated using the Black-Scholes pricing model with the following assumptions: stock price of $0.185, expected life of 5 years, expected volatility of 167%, dividend yield of 0% and risk-free interest rate of 2.59%. The Company estimated the volatility based on its own historical share prices.
On May 1, 2025, the Company granted 155,000 stock options to directors and officers with an exercise price of $0.40 per share and an expiry date of May 1, 2029. The stock options vested immediately. The fair value of the options of $51,973 was calculated using the Black-Scholes pricing model with the following assumptions: stock price of $0.37, expected life of 4 years, expected volatility of 167%, dividend yield of 0% and risk-free interest rate of 2.59%. The Company estimated the volatility based on its own historical share prices.
During the year ended June 30, 2025, the Company recognized share-based compensation of $65,537 (June 30, 2024 - $17,680) related to stock options.
Stock option transactions are summarized as follows:
| Number of options | Weighted average exercise price ($) | |
|---|---|---|
| Balance - June 30, 2023 | 275,000 | 1.00 |
| Forfeited | (140,000) | 1.00 |
| Balance - June 30, 2024 | 135,000 | 1.00 |
| Issued | 235,000 | 0.40 |
| Forfeited | (60,000) | 1.00 |
| Balance - June 30, 2025 | 310,000 | 0.62 |
As at June 30, 2025, the Company's outstanding stock options were as follows:
| Number of options | Number of exercisable | Exercise price ($ per share) | Expiry date | Weighted average remaining life (years) |
|---|---|---|---|---|
| 115,000 | 115,000 | 1.00 | March 30, 2028 | 2.75 |
| 40,000 | 40,000 | 0.40 | September 12, 2029 | 4.21 |
| 155,000 | 155,000 | 0.40 | May 1, 2029 | 3.84 |
| 310,000 | 310,000 | 3.48 |
Doseology Sciences Inc.
Consolidated Financial Statements
For the year ended June 30, 2025 and 2024
(Expressed in Canadian dollars)
10. Financial instruments
Fair value
IFRS 13, Fair Value Measurement, establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. IFRS 13 prioritizes the inputs into three levels that may be used to measure fair value. The following table summarizes the carrying and fair value of the Company’s financial instruments. The fair values of these financial instruments approximate their carrying values mostly because of their current nature.
| | June 30, 2025
$ | June 30, 2024
$ |
| --- | --- | --- |
| Cash * | 1,429,660 | 1,060,222 |
| Accounts receivable | 41,188 | 2,304 |
| Accounts payable and accrued liabilities | 94,105 | 82,492 |
- Cash is classified as fair value through profit and loss, all other financial instruments are classified as amortized cost. Interest income, interest expense, and gains and losses from financial assets and financial liabilities classified at amortized cost are recognized in the consolidated statement of loss and comprehensive loss.
Risks arising from financial instruments and risk management
a) 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. Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash. The Company limits its exposure to credit loss by placing its cash with high credit quality financial institutions. The carrying amount of financial assets represents the maximum credit exposure.
b) Foreign exchange risk
Foreign exchange risk arises from fluctuations in the future cash flows of a financial instrument because of changes in foreign exchange rates. The Company is not subject to significant foreign exchange rate risk as predominately all its transactions occur in Canadian dollars.
c) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The observable impacts on the fair value and future cash flows of financial instruments that can be directly attributable to interest rate risk include changes in profit or loss from financial instruments whose cash flows are determined with reference to floating interest rates and potential changes in value of financial instruments whose cash flows are fixed in nature. The Company does not have any financial liabilities with floating interest rates.
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Doseology Sciences Inc.
Consolidated Financial Statements
For the year ended June 30, 2025 and 2024
(Expressed in Canadian dollars)
10. Financial instruments (continued)
d) Liquidity and funding risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company currently settles its financial obligations out of cash. The ability to do this relies on the Company raising debt or equity financing in a timely manner and by maintaining sufficient cash in excess of anticipated needs. As at June 30, 2025, the Company had a cash balance of $1,429,660 to settle current liabilities of $94,105 which are due on demand or within 1 year.
Funding risk is the risk that market conditions will impact the Company's ability to raise capital through equity markets under acceptable terms and conditions.
e) Concentration risk
Concentration risk occurs when the revenue has a significant exposure to a particular customer contributes that more than 10% of total revenues. During the year ended June 30, 2025 and 2024, the Company had two customers contributing 79% and 13% of the total revenue respectively (June 30, 2025 – 93% and Nil%).
11. Capital management
The Company manages its capital to maintain its ability to continue as a going concern and to provide returns to shareholders and benefits to other stakeholders (Note 1). The capital structure of the Company consists of equity comprising issued share capital, reserves, and deficit.
The Company manages its capital structure and adjusts it in light of economic conditions. The Company, upon approval from its Board of Directors, will balance its overall capital structure through new share issues or by undertaking other financing activities as deemed appropriate under specific circumstances.
The Company is not subject to externally imposed capital requirements and its overall strategy with respect to capital risk management remains unchanged as of June 30, 2025.
12. Revenue
Revenue
| June 30, 2025 | June 30, 2024 | |
|---|---|---|
| Canada | $ 42,556 | $ 96,216 |
| United States | - | 2,306 |
| $ 42,556 | $ 98,522 |
Doseology Sciences Inc.
Consolidated Financial Statements
For the year ended June 30, 2025 and 2024
(Expressed in Canadian dollars)
13. Income taxes
The tax effect (computed by applying the Canadian federal and provincial statutory rate) of the significant temporary differences, which comprise deferred income tax assets and liabilities at the Company's year end, are as follows:
| June 30, 2025 | June 30, 2024 | |
|---|---|---|
| $ | $ | |
| Loss for the year | 447,788 | 339,848 |
| Canadian statutory income tax rate | 27% | 27% |
| Expected income tax recovery at statutory rate | (120,900) | (92,000) |
| Adjusted by tax effect of: | ||
| Non-deductible items | 26,920 | 5,000 |
| True ups and other | (47,740) | - |
| Changes in unrecognized deferred tax assets | 141,720 | 87,000 |
| Income tax provision | - | - |
The significant components of deferred income taxes are as follows:
| June 30, 2025 | June 30, 2024 | |
|---|---|---|
| $ | $ | |
| Unrecognized deductible temporary differences: | ||
| Non-capital losses carried forward | 1,631,690 | 1,481,000 |
| Other liabilities | 4,000 | 4,000 |
| Capital and intangible assets | 2,590 | 3,000 |
| Share issuance costs | 51,440 | 60,000 |
| 1,689,720 | 1,548,000 | |
| Less: Unrecognized deferred income tax assets | (1,689,720) | (1,548,000) |
| Net deferred income tax assets | - | - |
As at June 30, 2025, the Company has cumulative non-capital losses carried forward of $6,041,000 which are available to offset future years' taxable income and will start to expire in 2040. No deferred tax asset has been recognized in relation to these losses.
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Doseology Sciences Inc.
Consolidated Financial Statements
For the year ended June 30, 2025 and 2024
(Expressed in Canadian dollars)
14. Subsequent Events
On August 26, 2025, the Company acquired certain assets of Joseph Mimran and Associates Inc. ("Feed That Brain" or "FTB"). The aggregate consideration for the transaction is $400,000, payable through the issuance of equity securities of the Company. The consideration will be satisfied in four instalments consisting of (i) common shares valued at $175,000 issued on the closing date and (ii) three subsequent issuances of $75,000 in pre-funded warrants every six months thereafter, with all issuances to be made at a deemed price per security equal to the greater of $1.00 or the lowest price permitted. The acquisition will be accounted for as a business combination under IFRS 3. On August 26, 2025, the Company issued 175,000 common shares as part of the consideration.
The acquired assets consist of the operating assets of the Feed That Brain business, including inventory, equipment, contracts and distribution agreements, accounts receivable (net of specified liabilities), books and records, intellectual property (including domain names, website, formulas and branding), marketing materials, know-how, goodwill and other related assets necessary to operate the FTB business.
At the time these financial statements were authorised for issue, the initial accounting for the business combination was incomplete and therefore could not be relied upon for disclosure purposes.
In accordance with IFRS 3.66, because the initial accounting for the business combination is not yet complete, the Company has not disclosed the information otherwise required by IFRS 3.B64. The Company will provide the required disclosures in the period in which the initial accounting is completed.
The FTB acquisition is strategically aligned with Doseology's shift into next-generation oral stimulant pouches and is expected to accelerate commercialization in Canada by leveraging established brand equity and existing retail relationships. The acquisition provides Doseology with an immediately accretive, synergistic expansion in both revenue and product pipeline, without the lengthy lead time or regulatory delay of developing new SKUs internally.
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