5)    Leases

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The Company’s lease arrangement consists of an operating lease for the corporate office.  On July 1, 2024, the Company entered into a four-year lease for office space expiring in June 2028. The lease has no extension option.  The current monthly lease payment is approximately CDN$9,700 consisting of both base rent and variable operating costs.

Total lease expense recorded within general and administrative expenses was comprised of the following components:

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Variable lease costs consist primarily of the Company’s portion of operating costs associated with the office space lease as the Company elected to apply the practical expedient not to separate lease and non-lease components. For the nine-month period ended August 31, 2025, variable lease costs have been reduced by a refund received for adjusted operating costs.

As at August 31, 2026, the remaining lease term is 1.8 years.  The discount rate used to measure the lease liability is 9%. Judgment was used in the determination of the incremental borrowing rate which included estimating the Company’s credit rating.

Supplemental cash flow information relating to our leases during the nine-month period ended August 31, 2026, is as follows:

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Future minimum payments relating to the lease recognized in our balance sheet as of August 31, 2026 are as follows:

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