| Segment information |
20. Segment information The Company operates in two reportable business segments. The two reportable business segments offer different products and services, require different processes and are based on how the financial information is produced internally for the purposes of monitoring operating results and making decisions about resource allocation and performance assessment by the Company’s Chief Operating Decision Maker. The following summary describes the operations of each of the Company’s reportable business segments: ●Sale of electric boats – manufacture of customized electric boats for consumer market and sale of boat parts maintenance, and ●Rental of electric boats – short-term rental operation and boat club membership. Sales between segments are accounted for at prices that approximate fair value. No business segments have been aggregated to form the above reportable business segments. | | | | | | | | | | | Three-month period ended May 31, 2025 | | | Sale of | | | | Inter- | | | | | electric | | Rental of | | segment | | | | | boats | | electric boats | | eliminations | | Total | | | $ | | $ | | $ | | $ | Revenue from external customers | | 160,372 | | 45,156 | | — | | 205,528 | Revenue from other segments | | 81,891 | | — | | (81,891) | | — | Segment revenues | | 242,263 | | 45,156 | | (81,891) | | 205,528 | Segment gross profit (loss) | | 55,509 | | (16,263) | | (6,310) | | 32,936 | | | | | | | | | | Segment profit (loss) before tax | | (7,075,475) | 1 | (67,806) | | (3,789) | | (7,147,000) | Research and development | | 725,299 | | 13,223 | | — | | 738,522 | Office salaries and benefits | | 715,751 | | 1,037 | | — | | 716,788 |
| | | | | | | | | | | Three-month period ended May 31, 2024 | | | Sale of | | | | Inter- | | | | | electric | | Rental of | | segment | | | | | boats | | electric boats | | eliminations | | Total | | | $ | | $ | | $ | | $ | Revenue from external customers | | 599,380 | | 460,773 | | — | | 1,060,153 | Revenue from other segments | | (18,753) | | 4,959 | | 13,794 | | — | Segment revenues | | 580,627 | | 465,732 | | 13,794 | | 1,060,153 | Segment gross profit (loss) | | 111,615 | | 326,455 | | 11,967 | | 450,037 | | | | | | | | | | Segment profit (loss) before tax | | (2,307,334) | 2 | 5,883 | | (903,212) | | (3,205,103) | Research and development | | 628,578 | | — | | — | | 628,578 | Office salaries and benefits | | 681,995 | | 109,414 | | — | | 791,409 |
1For the three-month period ended May 31, 2025, the segment profit for this segment includes a loss on derivative liabilities of $34,815 and litigation settlement costs of $2,813,511 [see note9 and 13]. 2For the three-month period ended May 31, 2024, the segment profit for this segment includes a gain on derivative liabilities of $404,044 [see note 13]. | | | | | | | | | | | Nine-month period ended May 31, 2025 | | | Sale of | | | | Inter- | | | | | electric | | Rental of | | segment | | | | | boats | | electric boats | | eliminations | | Total | | | $ | | $ | | $ | | $ | Revenue from external customers | | 359,096 | | 94,125 | | — | | 453,221 | Revenue from other segments | | 116,479 | | — | | (116,479) | | — | Segment revenues | | 475,575 | | 94,125 | | (116,479) | | 453,221 | Segment gross profit (loss) | | 33,958 | | (32,642) | | (24,522) | | (23,206) | | | | | | | | | | Segment profit (loss) before tax | | (12,225,389) | 1 | (83,199) | | (25,819) | | (12,334,407) | Research and development | | 1,763,484 | | 19,023 | | — | | 1,782,507 | Office salaries and benefits | | 2,262,379 | | (110,720) | | — | | 2,151,659 |
| | | | | | | | | | | Nine-month period ended May 31, 2024 | | | Sale of | | | | Inter- | | | | | electric | | Rental of | | segment | | | | | boats | | electric boats | | eliminations | | Total | | | $ | | $ | | $ | | $ | Revenue from external customers | | 893,998 | | 1,881,158 | | — | | 2,775,156 | Revenue from other segments | | 207,000 | | 16,926 | | (223,926) | | — | Segment revenues | | 1,100,998 | | 1,898,064 | | (223,926) | | 2,775,156 | Segment gross profit (loss) | | 42,746 | | 1,065,055 | | (2,153) | | 1,105,648 | | | | | | | | | | Segment profit (loss) before tax | | (5,049,355) | 2 | (4,732,851) | 3 | (901,945) | | (10,648,151) | Research and development | | 1,947,815 | | — | | — | | 1,947,815 | Office salaries and benefits | | 2,280,098 | | 416,537 | | — | | 2,696,635 |
| | | | | | | | | | | As at May 31, 2025 | | | Sale of | | | | Inter- | | | | | electric | | Rental of | | segment | | | | | boats | | electric boats | | eliminations | | Total | | | $ | | $ | | $ | | $ | Segment assets | | 26,218,536 | | 1,272,635 | | (2,990,849) | | 24,500,322 | Cash | | 10,858,474 | | 32,428 | | — | | 10,891,002 | Additions to property and equipment and intangibles | | 442,225 | | 10,000 | | (3,200) | | 449,025 | Segment liabilities | | 797,910 | | 640,103 | | 6,175,621 | | 7,613,634 |
1For the nine-month period ended May 31, 2025, the segment profit for this segment includes a gain on derivative liabilities $3,094,833, transaction costs of $1,040,742, and litigation settlement costs of $2,813,511 [see note 9 and 13]. 2For the nine-month period ended May 31, 2024, the segment profit for this segment includes a gain on derivative liabilities $5,913,484 and transaction costs of $1,860,335 [see note 13]. 3For the nine-month period ended May 31, 2024, the segment profit for this segment includes a goodwill impairment loss of $4,274,000 [see note 8]. | | | | | | | | | | | As at August 31, 2024 | | | Sale of | | | | Inter- | | | | | electric | | Rental of | | segment | | | | | boats | | electric boats | | eliminations | | Total | | | $ | | $ | | $ | | $ | Segment assets | | 19,737,669 | | 2,960,124 | | (11,277,388) | | 11,420,241 | Cash | | 28,108 | | 35,018 | | — | | 63,126 | Additions to property and equipment | | 280,587 | | 487,000 | | (185,744) | | 599,578 | Segment liabilities | | 8,306,618 | | 1,151,501 | | (1,013,824) | | 8,400,254 |
The Company has disclosed the above amounts for each reportable segment because they are regularly reviewed by the Chief Operating Decision Maker.
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