Investment in associate

6 Months Ended

Jan. 31, 2026

On November 6, 2024, the Company received 2,000,000 shares in FCS, in connection with an agreement to acquire a stake in FCS in exchange for 200,000 shares of the Company that was entered into on October 28, 2024. At the time of acquisition, the 2,000,000 shares of FCS received by the Company represented 50% of shares outstanding, and the initial balance of investment was determined to be $1,220,000 being the fair value of the shares issued by the Company in consideration for the exchange. As at January 31, 2026, the Company’s share of ownership remained at 50%. Management assessed that the Company has significant influence over FCS based on its share of ownership, and that the investment should be accounted for using the equity method of accounting.

Summarized financial information of FCS and a reconciliation of the carrying amount of the investment set forth in the consolidated balance sheets are set out below:

Summarized balance sheet


	January 31, 2026
ASSETS
Cash	$	175
Due from related parties		123,075
Start-up costs, net		99,483
Total assets	$	222,733

LIABILITIES
Accounts payable and accrued liabilities	$	255,388
Convertible notes		1,322,100
Loan to shareholder		1,118
Total liabilities	$	1,578,606

Summarized statement of loss


	For the six months ended January 31, 2026			For the three months ended January 31, 2026
Operating expenses
General and administrative expenses	$	2,546		$	207
Guaranteed payments		150,899			-
Legal and professional fees		1,749			412
Travel		1,241			-
Amortization		7,869			2,376
Total operating expenses		(164,304	)		(2,995	)

Interest expenses		(36,050	)		(18,225	)
Net loss	$	(200,354	)	$	(21,220	)
Company’s ownership		50	%		50	%
Company’s share of loss	$	(100,177	)	$	(10,610	)

A continuity of the Company’s investment in associate is as follows:


Balance as at July 31, 2024	$	-
Investment by the Company		1,220,000
Company’s share of loss		(512,011	)
Balance as at July 31, 2025	$	707,989
Company’s share of loss		(100,177	)
Balance as at January 31, 2026	$	607,812