Note 6 - Risk Management and Financial Instruments |
6 Months Ended |
|---|---|
Dec. 31, 2024 | |
| Notes to Financial Statements | |
| Fair Value Disclosures [Text Block] |
NOTE 6 -RISK MANAGEMENT AND FINANCIAL INSTRUMENTS
Fair value
The loans payable balance approximates fair value due its short-term nature.
Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company’s financial asset that is exposed to credit risk consists of cash, which is placed with US financial institutions, and trust account with the Company’s legal counsel.
Concentration of credit risk exists with respect to the Company’s cash, as certain amounts are held at US and financial institutions.
All U.S. institution amounts are covered by FDIC insurance as of December 31, 2024. Management deems any related risk to be minimal.
Interest rate risk
The Company is not exposed to significant interest rate risk due to the short-term maturity of its monetary current assets and current liabilities.
Currency risk
The Company translates the results of non-US transactions into US dollars using rates of exchange on the date of the transaction. The exchange rate varies from time to time. This risk is considered nominal as the Company does not incur significant transactions in currencies other than US dollars. |