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Item 1. Financial Statements

2022-07-13 compared with 2022-04-13 · 128 added, 119 removed, 566 unchanged (30% of the section changed)

Financial Statements.

Our unaudited condensed financial statements for the six month period ended February 28, 2022 form part of this quarterly report.

Our unaudited condensed financial statements for the nine month period ended May 31, 2022 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.

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Cash and cash equivalents

Marketable securities

Marketable securities (Note 4)

Accounts receivable

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Issued and outstanding:

155,116,088 common shares at February 28, 2022 and August 31,2021:

155,116,088 common shares at May 31, 2022 and August 31, 2021:

Additional paid-in capital (Note 10)

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Balance, February 28, 2022

Comprehensive income/(loss)

Balance, May 31, 2022

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

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THREE MONTHS ENDED

SIX MONTHS ENDED

NINE MONTHS ENDED

Accounting and audit

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Office and miscellaneous

Research and development (Note 6,7)

Research and development

Stock based compensation (Note 10)

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Income from mineral property sale (Note 5)

Income from royalty grant (Note 5)

Net Income (loss) and comprehensive Income (loss) for the period

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(Expressed in U.S.

SIX MONTHS ENDED

NINE MONTHS ENDED

Cash flows used in operating activities

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Changes to reconcile net loss to net cash used in operating activities

Shares received for mineral property sale

Shares issued for consulting

Shares issued for purchase of hydrogen technology

Shares issued for battery management technology

Stock based compensation

Fair value of shares issued for hydrogen technology

Income from Royalty grant

Income from mineral property sale

Unrealized gain on marketable securities

Loss (gain) on disposal of marketable securities

Unrealized loss/(gain) on marketable securities

Gain on disposal of marketable securities

Interest on loan payable

Change in non-cash working capital items:

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Proceeds from disposal of marketable securities

Staking of mineral property

Proceeds from mineral property sale

Purchase of mineral property

Purchases of marketable securities

Proceeds from royalty grant

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Net proceeds from subscriptions received

Repayment of loan from related party

Net cash from (used in) Financing activities

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Cash and cash equivalents, end of period

Supplemental information of cash flows

Cashless option exercise

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

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NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

February 28, 2022

(Expressed in U.S.

The unaudited condensed interim financial statements for the period ended February 28, 2022 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, 2022 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 $ 404,041 for the six months ended February 28, 2022 ($ 167,835 for the six months ended February 28, 2021) and as at February 28, 2022 has incurred cumulative losses of $ 15,524,122 that raises substantial doubt about its ability to continue as a going concern.

The Company incurred net cash outflows from operating activities of $ 551,009 for the nine months ended May 31, 2022 ($ 298,188 for the nine months ended May 31, 2021) and as at May 31, 2022 has incurred cumulative losses of $ 11,888,492 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, 2022, the movement in the Company's marketable securities is as follows:

On May 4, 2022 ("Closing Date"), the Company announced the sale of its Clayton Valley unpatented mining claims to Cypress Development Corporation ("Cypress") and as a result of this transaction received 3,000,000 shares of Cypress along with $ 1,100,000 in cash.

The 3,000,000 shares have been restricted for trade, the Company may trade 1,000,000 of these shares four months and one day after the Closing Date and thereafter may trade 1,000,000 shares in each three-month period following the Closing Date.

Given the lock up conditions, the Company believes that there is a Lack of Marketability ("LOM") of these shares and thus recorded the shares using a discounting factor, the discounting factor was also used in fair valuing the shares as at the period ended date of May 31, 2022.

Marketable securities as at May 31, 2022 consist of the Company's investment in 3,000,000 shares of Cypress.

As at May 31, 2022, the movement in the Company's marketable securities is as follows:

Balance, August 31, 2020

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Balance, August 31, 2021

Unrealized gain

Unrealized gain/(loss)

Proceeds from disposal

Loss on disposal

Balance, February 28, 2022

Balance, May 31, 2022

1 Company recorded the 3,000,000 shares received from Cypress on May 4, 2022 as an investment and valued the investment using the closing rate of CAD 1.63 per share and a discount rate of 10 % due to LOM.

The shares were subsequently revalued as at the period ended date of May 31, 2022 using the closing rate of CAD 1.28 per share and discounting rate of 9 %, with the resulting changes in fair value being recorded as part of other profit or loss.

MINERAL PROPERTY

During the year ended August 30, 2017 the Company staked lode and placer claims on BLM lands in Esmerelda county Nevada covering approximately 160 Acres subject to adjustment.

During the year ended August 30, 2017 the Company staked lode and placer claims on BLM lands in Esmerelda county Nevada ("Clayton Valley") covering approximately 160 Acres subject to adjustment.

The Company has a 100 % interest in the lands and is only responsible for the yearly maintenance fees to keep its 100% interest.

The claims are in good standing until August 31, 2022.

On October 28, 2019, the Company signed an LOI with Eagle Plains Resources Ltd.

("Eagle Plains") to earn up to 75 % interest in the Pine Channel gold project in Saskatchewan, Canada (the "Pine Channel SK Property").

The terms of the LOI included periodic payments cash payments, exploration expenditures, as well as issuance of common shares of the Company.

Upon signing the LOI, the Company issued 1,000,000 of its common shares to Eagle Plains, valued at $ 11,489 .

The Company dropped the LOI on Dec 13 th , 2019 and has no further related commitments.

On February 11, 2020, the Company signed a 1 % Royalty agreement with respect to any future commercial lithium production from the Company's Clayton Valley, Nevada claims in exchange for $ 200,000 .

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The Company has a right of first refusal to repurchase the royalty upon any proposed sale by the royalty holder to a third party.

On February 24, 2022, the Company announced the proposed sale of the Lode and Placer claims of BLM lands in Esmeralda county Nevada covering approximately 160 Acres subject to adjustment to Cypress Development Corp.

The Agreed upon selling price is $ 1,100,000 cash with $ 50,000 of this total being received on signing the definitive agreement and the issuance of 3,000,000 shares of Cypress Development Corp.

This proposed sale is subject to Company shareholders approving the transaction at a special meeting to be held April 29, 2022 with a shareholder date of record being March 25th 2022, and other regulatory approvals.

On February 25, 2022 the Company completed the staking of approximately 1,760 acres, covering 88 lode claims, prospective for Lithium Claystone in the Big Smoky Valley of western Nevada.

Respective payments have been made to Esmeralda County and BLM for the year ending August 31, 2022.

The Company owns 100 % of the project, with no royalties payable.

On February 23, 2022, the Company accepted an offer subject to shareholder approval to sell the 160 Acre mineral property in Clayton Valley Nevada to Cypress Development (Nevada) Inc.

for $ 1,100,000 cash with a deposit of $ 50,000 being paid on signing and the issuance of 3,000,000 common shares of Cypress Development Corp.

On February 25, 2022, the Company staked 1,760 acres of unpatented mineral claims in Esmeralda county, NV.

On April 29, 2022, at the Company's Special General Meeting ("SGM") shareholders voted in favor to sell the 160 acre Clayton Valley property.

On May 4, 2022, the Company closed the Clayton valley property sale and received the remainder of $ 1,050,000 in cash and subscribed to 3,000,000 shares of Cypress Development Corp (Note 4) on closing.

TECHNOLOGY DEVELOPMENT

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Terry Galyon in consideration for acquiring the Hydrogen Technology.

The Company has recorded the considerations for the purchase of the Hydrogen Technology as research and development expense in the condensed statement of operations for the period ended February 28, 2022, as follows:

Consideration for Purchase of Hydrogen Technology

2,000,000 shares at FV 0.0502 (Adjusted closing price on the date of the issuance)

The technology is still in research and development phase and is not commercially feasible as at period ended February 28, 2022.

The Company has incurred an additional $ 16,905 as research and development costs for the period ended February 28, 2022 related to hydrogen technology.

The technology is still in research and development phase and is not commercially feasible as at period ended May 31, 2022.

The Company has incurred an additional $ 48,926 as research and development costs for the hydrogen technology, in addition to the $ 125,400 acquisition related costs for the period ended May 31, 2022.

BATTERY MANAGEMENT TECHNOLOGY ("BMT")

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The Company created a Joint Venture ("JV") with 51 % controlling interest to run the commercial and industrial operations related to the BMT and has paid $ 30,000 in cash and issued 10,000,000 shares ( 5,000,000 shares of which are in escrow) valued at $ 450,000 for purchase of the BMT.

BMT is still in research and development phase and have not obtained commercial or operational feasibility as at period ended February 28, 2022.

The The Company has recorded the entire considerations of $ 480,000 for the ownership of the BMT as research and development expense in the condensed statement of operations for the period ended February 28, 2022.

BMT is still in research and development phase and have not obtained commercial or operational feasibility as at period ended May 31, 2022.

The Company has recorded the entire considerations of $ 480,000 for the ownership of the BMT as research and development expense in the condensed statement of operations for the period ended May 31, 2022.

RELATED PARTIES TRANSACTION

For the six month period ended February 28, 2022, the Company was party to the following related party transactions:

The Company incurred $ Nil (February 28, 2021:

For the nine month period ended May 31, 2022, the Company was party to the following related party transactions:

The Company incurred $ 9,975 (May 31, 2021:

$ Nil ) to the President of the Company in consulting fees.

The amounts outstanding in accounts payable to the President of the Company as at February 28, 2022 is $ 85,409 (August 31, 2021 - $ 111,659 ).

The amounts outstanding in accounts payable to the President of the Company as at May 31, 2022 is $ 80,159 (August 31, 2021 - $ 111,659 ).

On December 6, 2021 the Company issued 250,000 stock options valued at $ 8,205 to the President of the Company (Note 10).

The related party transactions are recorded at the exchange amount established and agreed to between the related parties.

On December 14, 2020 the Company issued 1,000,000 common shares and an additional 1,000,000 common shares in escrow in connection with the signed Definitive Agreement (Note 6).

On January 14, 2021 the Company closed the final tranche of a private placement of 3,000,000 units at a price of $ 0.06 per unit for gross proceeds of $ 180,000 .

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 year ended August 31, 2021 the Company also issued 3,020,000 common shares as a result of the exercise of stock options and 2,720,000 common shares as a result of the exercise of warrants.

During the six months ended February 28, 2022, the Company also issued 113,388 common shares as a result of the exercise of stock options and 2,791,000 common shares as a result of the exercise of warrants (Note10).

During the nine months ended May 31, 2022, the Company issued 113,388 common shares as a result of the exercise of stock options and 2,791,000 common shares as a result of the exercise of warrants (Note10).

On December 6, 2021 the Company issued 1,000,000 common shares and an additional 1,000,000 common shares in escrow in connection with the purchase of Hydrogen Technology (Note 6).

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On February 25, 2022, the Company issued 1,000,000 shares to one consultant of the Company.

As at February 28, 2022 and August 31, 2021 the Company had 155,116,088 (August 31, 2021:

As at May 31, 2022 the Company had 155,116,088 (August 31, 2021:

139,211,700 ) shares issued and outstanding.

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Grant date fair value per option

During the six month period ended February 28, 2022, the Company recorded $ 55,877 (February 28, 2021 $ 288,686 ) as stock based compensation expenses.

In addition, the Company issued 113,388 (February 28, 2021:

2,720,000 ) common shares of the Company as a result of exercise of 226,776 cashless stock options and a total of 2,950,000 stock options expired without being exercised (February 29, 2021:

A summary of the changes in stock options for the six months ended February 28, 2022 is presented below:

During the nine month period ended May 31, 2022, the Company recorded $ 55,877 (May 31, 2021 $ 297,691 ) as stock based compensation expenses.

In addition, the Company issued 113,388 (May 31, 2021:

2,920,000 ) common shares of the Company as a result of exercise of 226,776 cashless stock options and a total of 3,450,000 stock options expired without being exercised (May 31, 2021:

A summary of the changes in stock options for the nine months ended May 31, 2022 is presented below:

Options Outstanding

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Balance, August 31, 2021

Balance, February 28, 2022

The Company has the following options outstanding and exercisable:

February 28, 2022

Balance, May 31, 2022

The Company has the following options outstanding and exercisable as at May 31, 2022:

October 27, 2017

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December 6, 2026

*As at February 28, 2022 the market price of the Company's common shares was $ 0.0423 per share.

*As at May 31, 2022 the market price of the Company's common shares was $ 0.045 per share.

No incentive stock options were in the money.

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A total of 3,626,776 incentive stock options were in the money with an intrinsic value of $ 48,589

During the period ended February 28, 2022 the Company extended 1,500,000 warrants attached to units in a private placement January 14 th 2021 until May 14, 2022 ( Note 9).

A summary of warrants as at February 28, 2022 and August 31, 2021 is as follows:

A summary of warrants as at May 31, 2022 and August 31, 2021 is as follows:

Weighted Average

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Balance, August 31, 2021

Balance, February 28, 2022

The Company has the following warrants outstanding:

February 28, 2022

Balance, May 31, 2022

The Company has the following warrants outstanding as at May 31, 2022:

Exercise Price

March 27, 2019

March 27, 2023

January 14, 2021

*Each warrant entitles a holder to purchase one common share.

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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.

On May 1, 2022, the Company entered into a consulting agreement with the President of the Company for $ 9,500 per month plus goods and services tax ("GST") on a continuing basis.

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

The agreement expires December 31, 2022.

SEGMENTED INFORMATION

As at February 28, 2022 and August 31, 2021, the Company is operating its business in one reportable segment:

As at May 31, 2022 and August 31, 2021, the Company is operating its business in one reportable segment:

natural resource acquisitions.

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In May 2017 the Company dropped the Lithium Brine Project and subsequently acquired the Clayton Valley, NV Lithium Project announced in August 2017.

In February 2022 the Company acquired the West Tonopah, NV Lithium Project.

The Company's main focus is in natural resource sector.

On February 23, 2022, the Company accepted an offer subject to shareholder approval to sell the 160 Acre mineral property in Clayton Valley Nevada to Cypress Development (Nevada) Inc.

for $1,100,000 cash with a deposit of $50,000 being paid on signing and the issuance of 3,000,000 common shares of Cypress Development Corp.

The transaction Closed on May 4, 2022 and the Company received the total proceeds of $1,100,000 along with 3,000,000 shares of Cypress Development Corp.

The address of our principal executive office is #18 1873 Spall Road, Kelowna, British Columbia V1Y 4R2.

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Summary of Recent Business

On February 12 th 2020 the Company signed a 1% Royalty agreement with respect to any future commercial lithium production from the Company's Clayton Valley, Nevada claims in exchange for $200,000.

The Company has a right of first refusal to repurchase the royalty upon any proposed sale by the royalty holder to a third party.

On February 25 th 2020 the Company signed Mark Snyder to a one year Technology Advisory Board.

Monthly contract rate of $1,000 per month and the issuance of 2,000,000 stock options valid for two years at a strike price of $0.02 per share.

On October 29, 2020 the Company signed a 1% royalty agreement with respect to any future commercial lithium production from the Company's Clayton Valley, Nevada claims in exchange for $250,000.

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The Company issued 1,000,000 additional common shares in escrow to be released upon the successful approval of patent pending work derived from patent #6,024,086.

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

The patent has since expired and was therefore written off.

On December 14, 2020 the Company signed Rodney Blake to a 12 month contract for the issuance of 100,000 stock options valid for 5 years at $0.05 cents each.

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On May 25, 2021 the Company announced the filing of provisional patent #1, known as the Enertopia Solar Booster TM

On May 26, 2021the Company announced the filing of provisional patent #2, known as Enertopia Heat Extractor TM

On May 26, 2021the Company announced the filing of provisional patent #2, known as Enertopia Heat ExtractorTM

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.

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is an issuer-paid independent research house.

On August 17, 2021 the Company announced the filing of provisional patent #3, known as Enertopia Rainmaker TM

On August 17, 2021 the Company announced the filing of provisional patent #3, known as Enertopia RainmakerTM

On Sep 01, 2021 the Company granted 500,000 options to a consultant of the Company for 5yrs at $0.08 per common share.

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On December 6, 2021, the Company issued 250,000 stock options to one director of the Company with an exercise price of $0.07 vested immediately, expiring December 6, 2026.

On July 29, 2021 the Company announced it had engaged Fundamental Research Corp.

Fundamental Research Corp.

is an issuer-paid independent research house.

On August 17, 2021 the Company announced the filing of provisional patent #3, known as Enertopia RainmakerTM

On Sep 01, 2021 the Company granted 500,000 options to a consultant of the Company for 5yrs at $0.08 per common share.

On December 6, 2021, the Company issued 500,000 stock options to one of the consultants of the Company with an exercise price of $0.07 vested immediately, expiring December 6, 2026.

On December 6, 2021, the Company issued 250,000 stock options to one of the consultants of the Company with an exercise price of $0.07 vested immediately, expiring December 6, 2026.

On February 23, 2022, the Company accepted an offer subject to shareholder approval to sell the 160 Acre mineral property in Clayton Valley Nevada to Cypress Development (Nevada) Inc.

for $1,100,000 cash with a deposit of $50,000 being paid on signing and the issuance of 3,000,000 common shares of Cypress Development Corp.

On February 25, 2022, the Company issued 1,000,000 shares at $0.04 to one consultant of the Company and $2,500 cash.

On February 25, 2022, the Company received confirmation of staking 1,760 Acres of 88 unpatented lode claims in Esmeralda county, Nevada

On April 29, 2022, at the Company's SGM shareholders voted 99.12% 45,021,336 in favor, 0.46% 209,236 against and 0.42% 189,752 abstained, for the resolution to sell the 160 acre clayton valley property.

On May 4, 2022, the Company closed the sale of the 160 acre clayton valley property and received the remaining $1,050,000 in cash and the issuance of 3,000,000 shares of Cypress Development Corp on closing, as per the agreement.

Chronological Overview of our Business over the Last Five Years

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On December 31st, 2019, the Company accepted the resignation of directors Kristian Ross and Kevin Brown.

On February 12th, 2020, the Company signed a 1% Royalty agreement with respect to any future commercial lithium production from the Company's Clayton Valley, Nevada claims in exchange for $200,000.

The Company has a right of first refusal to repurchase the royalty upon any proposed sale by the royalty holder to a third party.

On February 25th, 2020, the Company signed Mark Snyder to a one year Technology Advisory Board.

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On November 12, 2020 the Company signed Flathead Business Solutions to a 12 month contract for $12,000 and the issuance of 500,000 stock options valid for 5 years at $0.05 cents each.

On February 12th, 2020, the Company signed a 1% Royalty agreement with respect to any future commercial lithium production from the Company's Clayton Valley, Nevada claims in exchange for $200,000.

The Company has a right of first refusal to repurchase the royalty upon any proposed sale by the royalty holder to a third party.

On December 14, 2020 the Company signed Definitive Agreement to acquire 100% interest in United States Patent and Trademark Office ("USPTO") patent #6,024,086 - Solar energy collector having oval absorption tubes by issuing 1,000,000 common shares of the Company.

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On May 25, 2021 the Company announced the filing of provisional patent #1, known as the Enertopia Solar Booster TM

On Sep 02, 2021 the Company issued 100,000 common shares as a result of the exercise of 100,000 warrants exercised at $0.04 per common share and the Company issued 120,000 common shares as a result of the exercise of 120,000 warrants exercised at $0.05 per common share.

On Sep 08, 2021 the Company issued 520,000 common shares as a result of the exercise of 520,000 warrants exercised at $0.04 per common share and the Company issued 155,000 common shares as a result of the exercise of 155,000 warrants exercised at $0.05 per common share.

On Sep 13, 2021 the Company issued 96,000 common shares as a result of the exercise of 96,000 warrants exercised at $0.04 per common share and issued 100,000 common shares as a result of the exercise of 100,000 warrants exercised at $0.05 per common share.

On Sep 17, 2021 the Company issued 1,550,000 common shares as a result of the exercise of 1,550,000 warrants exercised at $0.05 per common share.

On Sep 21, 2021 the Company issued 50,000 common shares as a result of the exercise of 50,000 warrants exercised at $0.05 per common share.

On Oct 29, 2021 the Company issued 100,000 common shares as a result of the exercise of 100,000 warrants exercised at $0.04 per common share.

On May 26, 2021the Company announced the filing of provisional patent #2, known as Enertopia Heat ExtractorTM.

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On Sep 01, 2021 the Company granted 500,000 options to a consultant of the Company for 5yrs at $0.08 per common share.

On Sep 17, 2021 the Company issued 1,550,000 common shares as a result of the exercise of 1,550,000 warrants exercised at $0.05 per common share.

On Sep 21, 2021 the Company issued 50,000 common shares as a result of the exercise of 50,000 warrants exercised at $0.05 per common share.

On Oct 29, 2021 the Company issued 100,000 common shares as a result of the exercise of 100,000 warrants exercised at $0.04 per common share.

Our Current Business

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During the year ending August 31, 2019, the Company paid $2,805 in maintenance fees.

The claims are in good standing until August 31, 2020.

Access to the property can be achieved by paved Hwy 265 to Silver Springs, NV or paved Hwy from north of Goldfields, NV.

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On April 2, 2020 the Company announced it's maiden 43-101 Lithium resource report which can be found at the Company's website www.enertopia.com

On February 24, 2022 the Company announced the proposed sale of the Lode and Placer claims of BLM lands in Esmeralda county Nevada covering approximately 160 Acres subject to adjustment to Cypress Development Corp.

The Agreed upon selling price is $1,100,000 cash with $50,000 of this total being received on Signing the definitive agreement and the issuance of 3,000,000 shares of Cypress Development Corp.

This proposed sale is subject to Company shareholders approving the transaction at a special meeting to be held April 29, 2022 with a shareholder date of record being March 25th 2022.

On February 25, 2022 the Company completed the staking of approximately 1,760 acres, covering 88 lode claims, prospective for Lithium Claystone in the Big Smoky Valley of western Nevada.

Respective payments have been made to Esmeralda County and BLM for the year ending August 31, 2022.

The Company owns 100% of the project, with no royalties payable.

On May 4, 2022 the Company announced the sale of the property to Cypress Development Corp.

Esmeralda County Lode and Placer Claims:

West Tonopah Project

The company announced on February 25, 2022 that it had acquired and staked 88 lode claims covering 1,760 acres

In Esmeralda County, NV approximately 4 miles west of Tonopah, NV

Esmeralda County MS Lode Claims:

MS Lode Claims

County Document #

BLM Document #

2022-230856 to 2022-230943

NV 105296951 to NV 105297039

The continuation of our business is dependent upon obtaining further financing, a successful program of development, and, finally, achieving a profitable level of operations.

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McAllister 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.

On May 1, 2022, the Company entered into a consulting agreement with President of the Company for $9,500 per month plus goods and services tax ("GST") on a continuing basis.

We do not expect any material changes in the number of employees over the next 12 month period.

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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, 2022 and February 28, 2021

The following summary of our results of operations should be read in conjunction with our financial statements for the quarter ended February 28, 2022, which are included herein.

Our operating results for the three months ended February 28, 2022, for the three months ended February 28, 2021 and the changes between those periods for the respective items are summarized as follows:

Results of Operations - Three Months Ended May 31, 2022 and May 31, 2021

The following summary of our results of operations should be read in conjunction with our financial statements for the quarter ended May 31, 2022, which are included herein.

Our operating results for the three months ended May 31, 2022 and May 31, 2021 and the changes between those periods for the respective items are summarized as follows:

Change Between

Three Month Period

February 28, 2022 and

February 28, 2021

Revenue (cost recovery)

Cost of product sales

Ended May 31, 2022 and May

Revenue (cost recovery) $ Nil $ Nil $ Nil

Cost of product sales Nil Nil Nil

Professional fees 31,888 24,609 7,279

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Net loss (income) (3,635,630) 91,066 (3,726,696)

Our financial statements report revenue of $Nil for the three months ended February 28, 2022 and February 28, 2021.

Our financial statements report a net loss of $738,508 for the three-month period ended February 28, 2022, compared to a net loss of $295,225 for the three-month period ended February 28, 2021.

Our net loss has increased by $443,283 for the three-month period ended February 28, 2022.

Our operating costs were higher by $454,008 for February 28, 2022 compared to February 28, 2021.

The increased costs were primarily due to increase in research and development costs, higher by $644,563 when compared to February 28, 2021.

Results of Operations - Six Months Ended February 28, 2022 and February 28, 2021

The following summary of our results of operations should be read in conjunction with our financial statements for the quarter ended February 28, 2022, which are included herein.

Our operating results for the six months ended February 28, 2022, for the six months ended February 28, 2021 and the changes between those periods for the respective items are summarized as follows:

Six Months Ended

Our financial statements report revenue of $Nil for the three months ended May 31, 2022, and May 31, 2021.

Our financial statements report a net income of $3,635,630 for the three-month period ended May 31, 2022, compared to a net loss of $91,066 for the three-month period ended May 31, 2021.

Our net income has increased by $3,726,696 for the three-month period ended May 31, 2022.

Our operating costs were higher by $90,835 for May 31, 2022, compared to May 31, 2021.

The increase was largely due to an increase in research and development, and exploration costs compared to May 31, 2021.

Results of Operations - Nine Months Ended May 31, 2022 and May 31, 2021

The following summary of our results of operations should be read in conjunction with our financial statements for the quarter ended May 31, 2022, which are included herein.

Our operating results for the nine months ended May 31, 2022, for the nine months ended May 31, 2021 and the changes between those periods for the respective items are summarized as follows:

Nine Months Ended

Change Between

Three Month Period

February 28, 2022 and

February 28, 2021

Revenue (cost recovery)

Cost of product sales

Nine Month Period

May 31, 2022 and May

Revenue (cost recovery) $ Nil $ Nil $ Nil

Cost of product sales Nil Nil Nil

Professional fees 70,415 52,035 18,380

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Net loss (income) (2,780,901) 163,688 (2,944,589)

Our accumulated losses are $15,524,122 at February 28, 2022.

Our financial statements report revenue of $Nil for the six months ended February 28, 2022 and February 28, 2021.

Our financial statements report a net loss of $854,727 for the six month period ended February 28, 2022, compared to a net loss of $72,622 for the six month period ended February 28, 2021.

Our net loss was higher by $782,105 for the six month period ended February 28, 2022.

Our operating costs were higher by $527,712 for February 28, 2022 when compared to February 28, 2021.

The higher net loss in February 28, 2022 is primarily attributable to increase in research and development costs, higher by $647,804 when compared to February 28, 2021.

As at February 28, 2022, we had $360,125 in current liabilities, which is lower than the current liabilities of $420,936 as at August 31, 2021.

Our net cash used in operating activities for the six months ended February 28, 2022 was $404,041 compared to $167,835 used in the six months ended February 28, 2021.

Our accumulated losses are $11,888,492 at May 31, 2022.

Our financial statements report revenue of $Nil for the nine months ended May 31, 2022 and May 31, 2021.

Our financial statements report a net income of $2,780,901 for the nine-month period ended May 31, 2022, compared to net loss of $163,688 for the nine-month period ended May 31, 2021.

Our operating costs were higher by $618,547 for May 31, 2022 compared to May 31, 2021.

The increase was largely due to research and development during the nine months ended May 31, 2022, higher by $684,680, offset by decrease of $241,814 in share-based compensation, compared to the nine months ended May 31, 2021.

As at May 31, 2022, we had $366,786 in current liabilities, which is lower by $54,150 when compared to current liabilities as at August 31, 2021.

Our net cash used in operating activities for the nine months ended May 31, 2022 was $551,009 compared to $298,188 used in the nine months ended May 31, 2021.

Liquidity and Financial Condition

Working Capital

Working Capital At At

May 31, August 31,

Current assets $ 3,911,315 $ 415,095

3 unchanged sentences

Cash flows from investing activities 1,099,564 307,168

Cash flows from (used in) financing activities

Cash flows from financing activities 131,390 270,648

Net increase in cash during year $ 679,945 $ 279,628

Operating Activities

Net cash used in operating activities was $404,041 in the six months ended February 28, 2022 compared with net cash used in operating activities of $167,835 in the same period in 2021.

Net cash used in operating activities was $551,009 in the nine months ended May 31, 2022 compared with net cash used in operating activities of $298,188 in the same period in 2021.

Financing Activities

Net cash provided by financing activities was $131,390 in the six months ended February 28, 2022 compared to $256,648 in the same period in 2021.

Net cash provided by financing activities was $131,390, in the nine months ended May 31, 2022 compared to cash provided by financing activities of $270,648 in the same period in 2021.

Investing Activities

Net cash from investing activities was $49,564 in the six months ended February 28, 2022 compared to $281,905 used by investing activities in the same period in 2021.

Net cash provided by investing activities was $1,099,564 in the nine months ended May 31, 2022 compared to $307,168 for the same period in 2021.

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