NOTE 15. Grants and Subsidies

Green Fund

In August 2024, the Company entered into a funding agreement with the Downsview Aerospace Innovation and Research Centre (“DAIR”). DAIR selected the Company with a project on the Engineering of an eVTOL wing. The funding approved to the Company was $75, of which $50 was invoiced and recorded as a reduction in Research and Development costs in the consolidated financial statements for the year-ended May 31, 2025. As of May 31, 2025, $25 of this grant has been received.

Innovation Grant

In January 2022, the Company entered into a Market Research Investment Agreement (the “Agreement”) with Collaboration.Ai, a company engaged with the United States Operations Command and the U.S. Air Force to administer selection and awards for the AFWERX Challenge program to foster innovation within the services. In connection with the Agreement, the Company will provide research, development, design, manufacturing, services, support, testing, integration, and equipment in aid of delivery of market research in accordance with one or more statements of work or market research plans. A fixed fee fund of $366 was approved. As of May 31, 2025, the Company had received $235 of this amount.

Scientific Research and Experimental Development

In connection with the year-ended May 31, 2024, the Company filed an application for Scientific Research and Experimental Development (“SRED”) credits with the Canadian federal government in the amount of $307. This amount was received in August 2024.