| Warrant liability [Text Block] |
12. Warrant liability
During the year ended October 31, 2025, the Company issued warrants as specified in note 13. These warrants were issued in connection with private placements and in debt settlement arrangements. The details of the warrants issued, including the exercise price and expiry date, are disclosed in note 13.
The Company determined that these warrants were exchangeable into a variable number of shares, and as such, the warrants were classified as financial liabilities measured at fair value through profit or loss ("FVTPL"). The Company uses the Black-Scholes pricing model to estimate fair value. Expected volatility has been based on an evaluation of the historical volatility of the Company's share price. The risk-free interest rate for the life of the warrants was based on the yield available on government benchmark bonds with a term approximating the remaining term of the warrants. The life of the warrant is based on the contractual term. The values as at the grant date are as follows:
| |
January 2, 2025 |
January 7, 2025 |
June 17, 2025 |
October 10, 2025 |
| |
(Grant Date) |
(Grant Date) |
(Grant Date) |
(Grant Date) |
| Share price |
$0.04 ($0.05 CAD) |
$0.04 ($0.05 CAD) |
$0.02 ($0.03 CAD) |
$0.04 ($0.05 CAD) |
| Exercise price |
$0.04 ($0.05 CAD) |
$0.04 ($0.05 CAD) |
$0.05 ($0.07 CAD) |
$0.04 ($0.06 CAD) |
| Volatility factor (based on historical volatility) |
157% |
157% |
161% |
151% |
| Risk free interest rate |
2.92% |
2.92% |
2.71% |
2.47% |
| Expected life (in years) of warrant |
3
|
3
|
3
|
1
|
| Expected dividend yield |
0% |
0% |
0% |
0% |
| |
|
|
|
September 26, |
| |
July 18, 2024 |
July 24, 2024 |
September 24, 2024 |
2024 |
| |
(Grant Date) |
(Grant Date) |
(Grant Date) |
(Grant Date) |
| Share price |
$0.01 ($0.02 CAD) |
$0.01 ($0.02 CAD) |
$0.01 ($0.02 CAD) |
$0.06 ($0.08 CAD) |
| Exercise price |
$0.04 ($0.05 CAD) |
$0.04 ($0.05 CAD) |
$0.04 ($0.05 CAD) |
$0.04 ($0.05 CAD) |
| Volatility factor (based on historical volatility) |
153% |
155% |
160% |
160% |
| Risk free interest rate |
3.83% |
3.77% |
2.95% |
3.01% |
| Expected life (in years) of warrant |
3
|
3
|
3
|
3
|
| Expected dividend yield |
0% |
0% |
0% |
0% |
As at October 31, 2025, the Company re-valued the warrant liability with the following inputs, assumptions and results, respectively:
| |
October 31, 2025 |
October 31, 2024 |
| Share price |
$0.03 ($0.05 CAD) |
$0.06 ($0.08 CAD) |
| Exercise price |
$0.04 ($0.05 CAD) - $0.05 ($0.07 CAD) |
$0.04 ($0.05 CAD) |
| Volatility factor (based on historical volatility) |
132% - 165% |
154% - 156% |
| Risk free interest rate |
2.39% |
3.09% |
| Expected life (in years) of warrant |
0 - 3
|
3
|
| Expected dividend yield |
0% |
0% |
The following summarizes the activity for warrants classified as a liability for the year ended October 31, 2025:
| |
|
Number of |
|
|
Value |
|
|
Weighted average |
|
| |
|
warrants |
|
|
of warrants |
|
|
exercise price |
|
| |
|
|
|
|
|
|
|
|
|
| Outstanding at October 31, 2023 |
|
- |
|
$ |
- |
|
$ |
- |
|
| Issued in a private placement (note 13 (b)) |
|
20,762,220 |
|
|
192,300 |
|
|
0.04 |
|
| Issued for debt settlement (note 13(b)) |
|
1,333,333 |
|
|
69,304 |
|
|
0.04 |
|
| Loss (gain) on revaluation of outstanding warrant liabilities |
|
|
|
|
826,393 |
|
|
|
|
| Outstanding at October 31, 2024 |
|
22,095,553 |
|
|
1,087,997 |
|
$ |
0.04 |
|
| Issued in a private placement (note 13 (c) (i-iii)) |
|
23,095,983 |
|
|
365,585 |
|
|
0.04 |
|
| Issued for debt settlement (note 13(b)) |
|
3,000,000 |
|
|
91,720 |
|
|
0.04 |
|
| Exercise of warrants (note 13 (d)) |
|
(12,150,205 |
) |
|
(563,017 |
) |
|
0.04 |
|
| Loss (gain) on revaluation of outstanding warrant liabilities |
|
|
|
|
(228,625 |
) |
|
- |
|
| Outstanding at October 31, 2025 |
|
36,041,331 |
|
$ |
753,660 |
|
$ |
0.04 |
|
During the year ended October 31, 2025, the Company allocated cash issuance costs totalling $24,558 (2024 - $13,326) to the warrants issued, which were included in other finance expenses in the statement of operations and comprehensive loss. See note 13.
|