Stock option liabilities (Q2) |
6 Months Ended | ||||||||||||||||||||||||||
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Jan. 31, 2025 | |||||||||||||||||||||||||||
| Stock option liabilities [Abstract] | |||||||||||||||||||||||||||
| Stock option liabilities |
Impact of listing on the NASDAQ on November 6, 2024
As at November 6, 2024, the Company had 627,786 stock options outstanding. The exercise price of these stock options is denominated in CAD. Due to the listing of the Company on the
NASDAQ (Note 4) and commencement of trading of shares in the United States dollars, exemptions available under ASC 718-10-25-14 to classify stock options with strike prices in foreign currencies as equity were no longer met and all stock
options outstanding were reassessed to be derivative liabilities. The fair value of the stock options upon the change in classification on November 6, 2024 of $330,090, was remeasured using the Black-Scholes option pricing model, with the following assumptions (weighted average): expected dividend yield - 0%, expected volatility - 97%, risk-free interest rate – 3.12% and an expected remaining life – 5.96
years. The fair value of these options is classified as Level 2 in the fair value hierarchy. The difference between the previous carrying value which was initially recorded as equity and the fair value of the option liabilities on August 1,
2024 was $1,381,715. Pursuant to ASC 815-40-35-9, the difference is recognized within equity.
Changes to stock option liability during the six months ended January 31,
2025
As at January 31, 2025, the fair value of the liability classified stock
options were remeasured at $152,631 using Black-Scholes option pricing model, with the following assumptions (weighted average):
expected dividend yield - 0%, expected volatility - 98%, risk-free interest rate – 2.86% and an expected
remaining life of 5.59 years. The Company recognized ($177,459) as a change in fair value for the period ended January 31, 2025.
The following is a continuity of the Company’s derivative stock option
liabilities:
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