What changed in this filing

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Item 1. Financial Statements

2021-07-08 compared with 2021-04-14 · 69 added, 66 removed, 596 unchanged (18% of the section changed)

Financial Statements.

Our unaudited condensed financial statements for the six month period ended February 28, 2021 form part of this quarterly report.

Our unaudited condensed financial statements for the nine month period ended May 31, 2021 form part of this quarterly report.

They are stated in United States Dollars (US$) and are prepared in accordance with United States generally accepted accounting principles.

16 unchanged sentences

Issued and outstanding:

136,231,700 common shares at February 28, 2021 and August 31,2020:

136,431,700 common shares at May 31, 2021 and

August 31,2020:

Additional paid-in capital (Note 9)

30 unchanged sentences

Balance, February 28, 2021

Stock options granted

Stock options exercised

Comprehensive loss

Balance, May 31, 2021

The accompanying notes are an integral part of these unaudited condensed interim financial statements

3 unchanged sentences

THREE MONTHS ENDED

SIX MONTHS ENDED

NINE MONTHS ENDED

Accounting and audit

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(Expressed in U.S.

SIX MONTHS ENDED

NINE MONTHS ENDED

Cash flows used in operating activities

15 unchanged sentences

Proceeds from disposal of marketable securities

Purchases of marketable securities

Proceeds from royalty grant

15 unchanged sentences

NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

February 28, 2021

(Expressed in U.S.

The unaudited condensed interim financial statements for the period ended February 28, 2021 included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission.

The unaudited condensed interim financial statements for the period ended May 31, 2021 included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission.

Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with United States generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations.

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The accompanying unaudited condensed interim financial statements have been prepared on a going concern basis which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business for the foreseeable future.

The Company incurred net cash outflows from operating activities of $167,835 for the six months ended February 28, 2021 ($61,713 for the six months ended February 29, 2020) and as at February 28, 2021 has incurred cumulative losses of $14,352,649 that raises substantial doubt about its ability to continue as a going concern.

The Company incurred net cash outflows from operating activities of $298,188 for the nine months ended May 31, 2021 ($101,007 for the nine months ended May 31, 2020) and as at May 31, 2021 has incurred cumulative losses of $14,443,715 that raises substantial doubt about its ability to continue as a going concern.

Management has been able, thus far, to finance the operations through equity financing and cash on hand.

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MARKETABLE SECURITIES

Marketable securities consist of the Company's investment in units of Grayscale Bitcoin Trust.

As at February 28, 2021, the movement in the Company's marketable securities is as follows:

Marketable securities consist of the Company's investment in units of STEM Inc.

As at May 31, 2021, the movement in the Company's marketable securities is as follows:

Balance, August 31, 2019

2 unchanged sentences

Balance, August 31, 2020

Additions - cost

Proceeds from disposals

1 unchanged sentence

Unrealized gain

Balance, February 28, 2021

Balance, May 31, 2021

MINERAL PROPERTY

14 unchanged sentences

The shares were issued at a price of $0.0345 resulting in a purchase price of $69,000.

On May 25, 2021 the Company announced the filing of its first provisional patent application, Solar Heat Absorber technology.

On May 26, 2021 the Company announced the filing of its second provisional patent application, Solar PV Heat Extraction Technology.

RELATED PARTIES TRANSACTION

For the six month period ended February 28, 2021, the Company was party to the following related party transactions:

The Company incurred $Nil (February 29, 2020:

For the nine month period ended May 31, 2021, the Company was party to the following related party transactions:

The Company incurred $Nil (May 31, 2020:

$10,500) to the President of the Company in consulting fees.

During the six months ended February 28, 2021, the Company repaid $28,875 of amounts outstanding resulting in accounts payable to the President of the Company of $159,959 as at February 28, 2021 (August 31, 2020:

During the nine months ended May 31, 2021, the Company repaid $50,925 of amounts outstanding resulting in accounts payable to the President of the Company of $137,909 as at May 31, 2021 (August 31, 2020:

On December 14, 2020 the Company issued 500,000 stock options valued at $10,926 to the President of the Company (Note 9).

5 unchanged sentences

Each unit consists of one common share of the Company and one half (0.5) of a non-transferable share purchase warrant, each warrant entitling the holder to purchase one additional common share of the Company for a period of 12 months from the date of issuance at a purchase price of $0.09.

During the six months ended February 28, 2021 the Company also issued 2,720,000 common shares as a result of the exercise of stock options and 40,000 common shares as a result of the exercise of warrants (Note 9).

As at February 28, 2021 and August 31, 2020 the Company had 136,231,700 (August 31, 2020:

During the nine months ended May 31, 2021 the Company also issued 2,920,000 common shares as a result of the exercise of stock options and 40,000 common shares as a result of the exercise of warrants (Note 9).

As at May 31, 2021, the Company had 136,431,700 (August 31, 2020:

128,471,700) shares issued and outstanding.

11 unchanged sentences

On February 5, 2021, the Company issued 300,000 stock options to three of the consultants of the Company with an exercise price of $0.18 vested immediately, expiring February 5, 2026.

On April 27, 2021, the Company issued 100,000 stock options to one of the consultants of the Company with an exercise price of $0.12 vested immediately, expiring April 27, 2026.

On May 28, 2021, the Company issued 50,000 stock options to one of the consultants of the Company with an exercise price of $0.12 vested immediately, expiring May 28, 2026.

The fair value of the options granted was estimated on the date of the grant using the Black-Scholes options pricing model, with the following weighted average assumptions:

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Grant date fair value per option

During the six month period ended February 28, 2021, the Company recorded $288,686 (February 29, 2020 - $17,308) as stock based compensation expenses.

In addition, the Company issued 2,720,000 (February 29, 2020:

Nil) common shares of the Company as a result of exercised stock options for gross proceeds of $75,048 and a total of 1,100,000 stock options expired without being exercised (February 29, 2020:

A summary of the changes in stock options for the six months ended February 28, 2021 is presented below:

During the nine month period ended May 31, 2021, the Company recorded $297,691 (May 31, 2020 - $17,308) as stock based compensation expenses.

The Company issued 2,920,000 (May 31, 2020:

Nil) common shares of the Company as a result of exercised stock options for gross proceeds of $89,048.

A total of 1,100,000 stock options expired without being exercised (May 31, 2020:

A summary of the changes in stock options for the nine months ended May 31, 2021 is presented below:

Options Outstanding

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Balance, August 31, 2020

Balance, February 28, 2021

Balance, May 31, 2021

The Company has the following options outstanding and exercisable:

February 28, 2021

Exercise Price

Number of Options

Remaining Life

September 19, 2016

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February 5, 2026

*As at February 28, 2021 the market price of the Company's common shares was $0.1426 per share.

April 27, 2021

April 27, 2026

*As at May 31, 2021 the market price of the Company's common shares was $0.0965 per share.

A total of 7,126,776 incentive stock options were in the money with an intrinsic value of $263,198.

August 31, 2020

Exercise Price

Number of Options

Remaining Life

October 23, 2015

10 unchanged sentences

February 25, 2022

During the period ended February 28, 2021 the Company issued 1,500,000 warrants attached to units in a private placement, see Note 8.

A summary of warrants as at February 28, 2021 and August 31, 2020 is as follows:

During the period ended May 31, 2021 the Company issued 1,500,000 warrants attached to units in a private placement, see Note 8.

A summary of warrants as at May 31, 2021 and August 31, 2020 is as follows:

Weighted Average

3 unchanged sentences

Balance, August 31, 2020

Balance, February 28, 2021

Balance, May 31, 2021

The Company has the following warrants outstanding:

February 28, 2021

Exercise Price

Number of Warrants*

August 31, 2018

8 unchanged sentences

August 31, 2020

Exercise Price

Number of Warrants*

August 31, 2018

6 unchanged sentences

The President voluntarily suspended and terminated accrual of these consulting fees commencing on December 1, 2019 and continuing until such time as the Company's financial condition permits a resumption of such cost.

The Company has a rental agreement for a corporate office for $1,100 per month plus GST.

The agreement expires December 31, 2021.

SEGMENTED INFORMATION

As at February 28, 2021 and August 31, 2020, the Company is operating its business in one reportable segment:

As at May 31, 2021 and August 31, 2020, the Company is operating its business in one reportable segment:

natural resource acquisitions.

1 unchanged sentence

SUBSEQUENT EVENTS

During March 2021, the Company issued 200,000 common shares as a result of the exercise of 200,000 stock options exercised at $0.07 per common share.

During June 2021, the Company issued 2,500,000 common shares as a result of the exercise of 2,500,000 warrants exercised at $0.05 per common share.

In addition, the Company issued 100,000 common shares as a result of the exercise of options exercised at $0.07 per common share.

Management's Discussion and Analysis of Financial Condition and Results of Operations

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On February 5, 2021 the Company signed Richard Smith to a 12 month contract for the issuance of 100,000 stock options valid for 5 years each at $0.18 cents each.

On April 27, 2021 the Company signed Michael Cornelius to a 12 month contract for the issuance of 100,000 stock options valid for 5 years at $0.12 cents each.

On May 28, 2021, the Company issued 50,000 stock options to one of the consultants of the Company with an exercise price of $0.12 vested immediately, expiring May 28, 2026.

Chronological Overview of our Business over the Last Five Years

215 unchanged sentences

Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments.

Results of Operations - Three Months Ended February 28, 2021 and February 29, 2020

The following summary of our results of operations should be read in conjunction with our financial statements for the quarter ended February 28, 2021, which are included herein.

Our operating results for the three months ended February 28, 2021, for the three months ended February 29, 2020 and the changes between those periods for the respective items are summarized as follows:

Results of Operations - Three Months Ended May 31, 2021 and May 31, 2020

The following summary of our results of operations should be read in conjunction with our financial statements for the quarter ended May 31, 2021, which are included herein.

Our operating results for the three months ended May 31, 2021 and May 31, 2020 and the changes between those periods for the respective items are summarized as follows:

Change Between

Three Month Period

February 28, 2021 and

February 29, 2020

May 31, 2021 and May

Revenue (cost recovery)

10 unchanged sentences

Net loss (income)

Our financial statements report revenue of $Nil for the three months ended February 28, 2021 and February 29, 2020.

Our financial statements report a net loss of $295,225 for the three-month period ended February 28, 2021, compared to a net income of $145,785 for the three-month period ended February 29, 2020.

Our net loss has increased by $441,010 for the three-month period ended February 28, 2021.

The net income for the period ended February 29, 2020 is the result of a royalty sale for proceeds of $200,000.

Our operating costs were higher by $272,143 for February 28, 2021 compared to February 29, 2020.

The increase was largely due to stock based compensation during the three months ended February 28, 2021, higher by $255,928 compared to February 29, 2020.

Results of Operations - Six Months Ended February 28, 2021 and February 29, 2020

The following summary of our results of operations should be read in conjunction with our financial statements for the quarter ended February 28, 2021, which are included herein.

Our operating results for the six months ended February 28, 2021, for the six months ended February 29, 2020 and the changes between those periods for the respective items are summarized as follows:

Our financial statements report revenue of $Nil for the three months ended May 31, 2021, and May 31, 2020.

Our financial statements report a net loss of $91,066 for the three-month period ended May 31, 2021, compared to a net loss of $30,797 for the three-month period ended May 31, 2020.

Our net loss has increased by $60,269 for the three-month period ended May 31, 2021.

Our operating costs were higher by $52,807 for May 31, 2021, compared to May 31, 2020.

The increase was largely due to an increases in stock-based compensation, professional fees, and fees and dues compared to May 31, 2020.

Results of Operations - Nine Months Ended May 31, 2021 and May 31, 2020

The following summary of our results of operations should be read in conjunction with our financial statements for the quarter ended May 31, 2021, which are included herein.

Our operating results for the nine months ended May 31, 2021, for the nine months ended May 31, 2020 and the changes between those periods for the respective items are summarized as follows:

Change Between

Three Month Period

February 28, 2021 and

February 29, 2020

Nine Month Period

May 31, 2021 and May

Revenue (cost recovery)

10 unchanged sentences

Net loss (income)

Our accumulated losses are $14,352,649 at February 28, 2021.

Our financial statements report revenue of $Nil for the six months ended February 28, 2021 and February 29, 2020.

Our financial statements report a net loss of $72,622 for the six month period ended February 28, 2021, compared to a net income of $96,178 for the six month period ended February 29, 2020.

Our net loss has increased by $168,800 for the six month period ended February 28, 2021.

Our operating costs were higher by $265,887 for February 28, 2021 compared to February 29, 2020.

The increase was largely due to stock based compensation during the six months ended February 28, 2021, higher by $271,378 compared to February 29, 2020 offset by decreases in exploration, professional fees, and other administrative expenses.

As at February 28, 2021, we had $434,469 in current liabilities, which is comparable to current liabilities as at August 31, 2020.

Our net cash used in operating activities for the six months ended February 28, 2021 was $167,835 compared to $61,713 used in the six months ended February 29, 2020.

Our accumulated losses are $14,443,715 at May 31, 2021.

Our financial statements report revenue of $Nil for the nine months ended May 31, 2021 and May 31, 2020.

Our financial statements report a net loss of $163,688 for the nine month period ended May 31, 2021, compared to net income of $65,381 for the nine month period ended May 31, 2020.

During the period ended May 31, 2020, we signed a 1% Royalty agreement in exchange for $200,000 which resulted in net income for that period.

Our operating costs were higher by $318,694 for May 31, 2021 compared to May 31, 2020.

The increase was largely due to stock-based compensation during the nine months ended May 31, 2021, higher by $280,383 compared to the nine months ended May 31, 2020.

As at May 31, 2021, we had $420,712 in current liabilities, which is lower by $58,4580 when compared to current liabilities as at August 31, 2020.

Our net cash used in operating activities for the nine months ended May 31, 2021 was $298,188 compared to $101,007 used in the nine months ended May 31, 2020.

Liquidity and Financial Condition

8 unchanged sentences

Operating Activities

Net cash used in operating activities was $167,835 in the six months ended February 28, 2021 compared with net cash used in operating activities of $61,713 in the same period in 2020.

Net cash used in operating activities was $298,188 in the nine months ended May 31, 2021 compared with net cash used in operating activities of $101,007 in the same period in 2020.

Financing Activities

Net cash provided by financing activities was $281,905 in the six months ended February 28, 2021 compared to $200,000 in the same period in 2020.

Net cash provided by financing activities was $270,648, in the nine months ended May 31, 2021 compared to net cash used of $15,968 in the same period in 2020.

Investing Activities

Net cash provided in investing activities was $256,648 in the six months ended February 28, 2021 compared to $15,968 used by investing activities in the same period in 2020.

Net cash provided in investing activities was $307,168 in the nine months ended May 31, 2021 compared to $200,000 for the same period in 2020.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements