NOTE 5 – ARBITRATION FINANCING

On September 5, 2023, the Company entered into a litigation funding agreement (“Funding Agreement” or the “LFA”) with Bench Walk, a third party that specializes in funding litigation and arbitration claims. Under the terms of the LFA, Bench Walk agreed to fund the Company with up to $9.5 million to cover the Company’s legal, tribunal and external expert costs and defined corporate operating expenses associated with the Arbitration proceedings as a purchase of a contingent entitlement to damages.

During the nine months ended July 31, 2026, pursuant to the terms of the LFA, the Company received $400,000 reimbursement of corporate operating costs from Bench Walk (July 31, 2025: $600,000). Additionally, Bench Walk has made payments on the Company’s behalf for legal and arbitration costs totaling $191,892 during the nine months ended July 31, 2026 and accumulated legal and arbitration costs of $5,925,000 since September 2023.

The Company agreed that Bench Walk shall be entitled to receive a share of any proceeds arising from the Claim (the “Claim Proceeds”) of up to 3.5x Bench Walk’s capital outlay (or, if greater, a return of 1.0x Bench Walk’s capital outlay plus 30% of Claim Proceeds).

As security for Bench Walk’s entitlement to receive a share of the Claim Proceeds under the LFA, the Company granted to Bench Walk a security interest in the Claim Proceeds, the Claim, all documents of title pertaining to the claim, rights under any appeal bond or similar instrument posted by any of the defendants in the Claim, and all proceeds of any of the foregoing.

During the nine months ended July 31, 2026 and 2025, the following is a summary of the Company’s expenditures that were incurred and reimbursed by Bench Walk. 

Following the unfavorable award issued by the ICSID tribunal, Bench Walk terminated the Funding Agreement, and the Company wrote off the related accounts receivable balance of $192,132. The Company recorded $nil contra expense during the three months ended July 31, 2026.