Convertible Debentures

A continuity of the Company’s convertible debentures is as follows:


Balance as at August 1, 2023			$—
Issued			920,000
Fair value of embedded derivative			(73,550)
Transaction costs			(36,484)
Accretion			52,552
Interest			19,026
Balance as at July 31, 2024			$881,544
Issued			3,468,133
Fair value of embedded derivative			(65,750)
Accretion			168,945
Interest			76,601
Accrued interest transferred to accrued liabilities			(21,130)
Extinguishment			(3,982,650)
Assumed on RTO			3,345,000
Balance as at January 31, 2025			$3,870,693

Key Inputs Convertible Debentures

The key inputs used in the Monte Carlo model for the derivative liabilities were as follows:

At initial

measurement (for

the year ended

July 31, 2024)

As at

July 31, 2024

At initial

measurement (for

the period ended

January 31, 2025)

As at

January 31, 2025

Probability of De-SPAC Transaction closing

90%

90% − 99%

N/A

Risk-free interest rate

4.60% − 4.87%

4.27% − 4.38%

0.61% − 4.25%

N/A

Expected term (years)

0.35 – 0.82

0.26 − 0.54

0.01 – 0.21

N/A

Expected annual volatility for the Company

90% − 145%

85% − 112%

92.5% − 100%

N/A

Expected annual volatility for Focus Impact

2.5% − 5%

2.5%

2.5% − 100%

N/A

Common conversion ratio

0.083 − 0.155

0.083

0.063 – 0.1462

N/A

Foreign exchange rate

0.727 − 0.747

0.7242

0.718 – 0.734

N/A

Convertible Debenture [Abstract]

Embedded Derivative Liabilities

Below is a continuity of the embedded derivative liabilities:


Balance as at August 1, 2023			$—
Derivative liability component of certain issued convertible debentures			73,550
Unrealized loss on derivative liabilities			845,700
Balance as at July 31, 2024			$919,250