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


Balance as at July 31, 2024	$	881,544
Issued		13,686,133
Fair value of embedded derivative		(138,250	)
Issuance discount		(800,000	)
Transaction costs		(85,000	)
Repayment		(448,151	)
Accretion		346,424
Interest		305,591
Accrued interest transferred to accrued liabilities		(21,129	)
Extinguishment		(3,982,650	)
Assumed on RTO		3,345,000
Balance as at July 31, 2025	$	13,089,512
Repayment		(899,938	)
Accretion		468,111
Interest		557,401
Balance as at January 31, 2026	$	13,215,086

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, 2025)	As at July 31, 2025		As at January 31, 2026
Probability of De-SPAC Transaction closing	90% - 99%	N/A		N/A
Risk-free interest rate	0.61% - 4.25%	2.75	%	2.36	%
Expected term (years)	0.01 – 2.00	1.63		1.38
Expected annual volatility for the Company	92.5% - 150%	150	%	150	%
Expected annual volatility for Focus Impact	2.5% - 100%	N/A		N/A
Common conversion ratio	0.063 – 0.1462	N/A		N/A
Foreign exchange rate	0.718 – 0.734	N/A		N/A