What changed in this filing

/stocks — the workspaceLOADING

Item 7. Management’s Discussion and Analysis

2021-11-10 compared with 2020-11-04 · 32 added, 29 removed, 103 unchanged (37% of the section changed)

11 unchanged sentences

• identify and secure sources of equity and/or debt financing for continued testing for Lithium technology

• identify and secure sources of equity and/or debt financing for clean technology acquisitions;

We anticipate that we will incur the following operating expenses during this period:

4 unchanged sentences

Management Consulting Fees

Technology Acquisition and Development

Professional fees

19 unchanged sentences

Stock-based Compensation

Change Between

August 31, 2020

and Year Ended

August 31, 2019

Other administrative costs

2 unchanged sentences

This $250,000 will assist the Company with its future exploration plans and was recognized as income.

As a result, our financial statements report a net income of $34,132 for the year ended August 31, 2020.

This is comparison to a net loss of $422,341 for the year ended August 31, 2019.

Our operating costs however during the year ended August 31, 2020 were $170,136 compared to $418,961 during the year ended August 31, 2019.

The decrease in costs were primarily attributable to the lower level of activity for the year ended August 31, 2020 compared to August 31, 2019.

The Company incurred significantly lower costs for its investor relation program (2020 - $22,510;

2019 - $101,668).

Also during the year ended August 31, 2019, the Company conducted drilling on its Clayton Valley project resulting in higher exploration costs during that year (2020 - $16,732;

Our financial statements report a net loss of $389,368 for the year ended August 31, 2021.

This is comparison to a net income of $34,132 for the year ended August 31, 2020.

The loss in the current year was mainly due to a stock-based compensation expense of $297,691 that was incurred in the current year as a result of more stock options that were granted in the current year.

Apart from the stock-based compensation, our other operating costs during the year ended August 31, 2021 were $164,263 higher than the year ended August 31, 2020 which increased the loss incurred in the current year.

The increase in costs were primarily attributable to the higher level of activity for the year ended August 31, 2021 compared to August 31, 2020.

The Company incurred significantly higher costs for its legal and consulting expenses (2021 - $83,307;

2020 - $8,688).

3 unchanged sentences

Current liabilities

Working capital surplus/(deficit)

Working capital deficit

Cash flows used in operating activities

1 unchanged sentence

Cash flows from (used in) financing activities

Net increase (decrease) in cash during year

Net increase in cash during year

Operating Activities

Net cash used in operating activities was $408,202 for the year ended August 31, 2021 compared with cash used in operating activities of $127,109 in 2020.

The decrease in net cash used in operating activities is due to the overall reduction in cost as described above.

The increase in net cash used in operating activities is due to the overall increase in cost as described above.

Investing Activities

Net cash provided in investing activities was $178,847 for the year ended August 31, 2020 compared to $Nil in the same period in 2019.

Net cash provided in investing activities was $307,168 for the year ended August 31, 2021 compared to $178,847 in the same period in 2020.

The net cash inflow was primarily the result of the Company's 1% Royalty agreement with respect to any future commercial lithium production from our Clayton Valley, Nevada claims.

Financing Activities

Net cash used in financing activities was 15,968 for the year ended August 31, 2020 compared to net cash provided by financing activities of $159,337 in the same period in 2019.

Net cash provided in financing activities was $409,792 for the year ended August 31, 2021, compared to net cash used in financing activities of $15,968 in the same period in 2020.

Contractual Obligations

42 unchanged sentences

Recently Issued Accounting Standards

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820):

Disclosure Framework - Changes to the Disclosure Requirements to Fair Value Measurement.

For all entities, amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.

The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption.

All other amendments should be applied retrospectively to all periods presented upon their effective date.

Early adoption is permitted.

An entity is permitted to early adopt any removed or modified disclosures upon issuance of ASU No.

2018-13 and delay adoption of the additional disclosures until their effective date.

We do not expect that the adoption of this ASU will have a significant impact on our financial statements.

In June 2018, the FASB issued ASU 2018-07, which simplifies the accounting for nonemployee share-based payment transactions.

The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor's own operations by issuing share-based payment awards.

The standard will be effective for us in the first quarter of our fiscal year 2020, although early adoption is permitted (but no sooner than the adoption of Topic 606).

We do not expect that the adoption of this ASU will have a significant impact on our financial statements.

In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses".

The standard, including subsequently issued amendments (ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10 and ASU 2019-11), requires a financial asset measured at amortized cost basis, such as accounts receivable and certain other financial assets, to be presented at the net amount expected to be collected based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount.

In November 2019, the FASB issued ASU No.

2019-10 to postpone the effective date of ASU No.

2016-13 for public business entities eligible to be smaller reporting companies defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years.

The Company is evaluating the impact of this guidance on its consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740):

Simplifying the Accounting for Income Taxes:

2019-12 is effective as for public business entities, for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years.

This ASU removes specific exceptions to the general principles in Topic 740 in Generally Accepted Accounting Principles (GAAP).

It eliminates the need for an organization to analyses whether the following apply in a given period:

-Exception to the incremental approach for intra period tax allocation;

-Exceptions to accounting for basis differences when there are ownership changes in foreign investments;

-Exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses.

The ASU also improves financial statement preparers' application of income tax-related guidance and simplifies GAAP for:

- Franchise taxes that are partially based on income;

- Transactions with a government that result in a step up in the tax basis of goodwill;

- Separate financial statements of legal entities that are not subject to tax;

- Enacted changes in tax laws in interim periods.

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company's financial statements upon adoption.

2 unchanged sentences

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-K

Item 7. Management’s Discussion and Analysis