Financial instruments (Q2) |
6 Months Ended | ||||||||
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Jan. 31, 2025 | |||||||||
| Financial instruments [Abstract] | |||||||||
| Financial instruments |
As at January 31, 2025, the Company’s financial instruments consist of cash,
GST receivable, corporate taxes receivable, subscription receivable, deposit on carbon credits purchase, accounts payable and accrued liabilities, convertible debentures, mandatory convertible debentures, warrant liabilities, stock option
liabilities, stop loss provision liabilities and derivative liabilities. The Company classifies cash, GST receivable, corporate taxes receivable, subscription receivable and deposit on carbon credits purchase as
financial assets held at amortized cost. The Company classifies accounts
payable and accrued liabilities as financial liabilities which are held at amortized cost. The Company’s mandatory convertible debentures, warrant liabilities, stock option liabilities, and stop loss provision liabilities are carried at
FVTPL. The Company’s convertible debentures are hybrid instruments where the debt host component is held at amortized cost and the embedded derivative was measured at FVTPL, until upon their amendments (Note 9), or the completion of the
De-SPAC transaction (Note 4) of the Company, when they met the criteria for equity classification and were transferred to equity.
The Company’s derivative liabilities and mandatory convertible debentures are
level 3 financial instruments and its warrant liabilities and stock option liabilities are Level 2 instruments. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the
use of unobservable inputs to the extent possible. Observable or market inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions based on the best information available. The
unobservable inputs used for valuation of the mandatory convertible debentures and derivative liabilities included volatility and probability of De-SPAC transaction. Any significant changes in unobservable inputs could result in significantly
lower or higher fair value measurements.
The risk exposure arising from these financial instruments is summarized as
follows:
The Company’s financial assets are cash, GST receivable, corporate taxes
receivable, subscription receivable, and deposit on carbon credits purchase. The Company’s maximum exposure to credit risk, as at period end, is the carrying value of its financial assets, being $992,488. The Company holds its cash with a major financial institution and with a publicly traded payment processing company therefore minimizing the Company’s credit
risk.
Liquidity risk is the risk that the Company will not be able to meet its
financial obligations as they fall due. The Company manages liquidity by maintaining adequate cash balances and by raising equity financings. The Company has no assurance that such financings will be available on favorable terms. In general,
the Company attempts to avoid exposure to liquidity risk by obtaining corporate financing through the issuance of shares.
As at January 31, 2025, the Company had cash of $16,665 to settle the contractual obligation of current liabilities of $9,975,493 which fall due for payment within twelve months of the statement of financial position. All of the Company’s contractual obligations are current and due within
one year.
Market risk is the risk that changes in market prices, such as foreign
exchange rates, interest rates and equity prices will affect the Company’s income or value of its holdings or financial instruments. At January 31, 2025, the Company has minimal exposure to these risks.
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