Enertopia Corp. 10-Q

Item 1. Financial Statements. Our unaudited condensed financial statements for the six-month period ended February 28, 2023 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. ENERTOPIA CORP. UNAUDITED CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (Expressed in U.S. Dollars) February 28 August 31 2023 2022 ASSETS Current Cash $ 305,248 $ 615,207 Marketable securities (Note 4) 2,431,269 2,443,750 Accounts receivable 2,345 4,877 Prepaid expenses and deposit (Note 13) 293,463 139,307 Total Current Assets 3,032,325 3,203,141 Non-current assets, net Mineral property (Note 5) 10,500 10,500 TOTAL ASSETS $ 3,042,825 $ 3,213,641 LIABILITIES Current Accounts payable and accrued liabilities $ 302,812 $ 293,446 Due to related party (Note 8) 33,997 64,409 Total Liabilities 336,809 357,855 STOCKHOLDERS' EQUITY (DEFICIENCY) Share Capital (Note 9) Authorized: 200,000,000 common voting shares with a par value of $ 0.001 per share Issued and outstanding: 155,166,088 common shares at February 28, 2023 and 155,116,088 at August 31, 2022 155,167 155,117 Additional paid-in capital (Note 10) 15,397,607 15,395,657 Deficit ( 12,846,661 ) ( 12,694,988 ) Equity attributable to shareholders of the Company 2,706,113 2,855,786 Non-controlling interest ( 97 ) - TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 3,042,825 $ 3,213,641 The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements. F-1 ENERTOPIA CORP. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) (Expressed in U.S. Dollars) COMMON STOCK SHARES AMOUNT ADDITIONAL PAID-IN CAPITAL ACCUMULATED DEFICIT NON- CONTROLLING INTEREST TOTAL STOCKHOLDERS' EQUITY(DEFICIT) Balance, August 31, 2021 139,211,700 139,213 14,524,341 ( 14,669,395 ) - ( 5,841 ) Warrants exercised 2,791,000 2,791 128,599 - - 131,390 Stock options granted on Sept 1 - - 23,056 - - 23,056 Comprehensive loss - - - ( 116,219 ) - ( 116,219 ) Balance, November 30, 2021 142,002,700 142,004 14,675,996 ( 14,785,614 ) - 32,386 Shares issued for hydrogen technology 2,000,000 2,000 98,400 - - 100,400 Shares issued for investment in Joint Venture 10,000,000 10,000 440,000 - - 450,000 Shares issued for services 1,000,000 1,000 41,300 - - 42,300 Stock options granted - - 32,821 - - 32,821 Stock options exercised 113,388 113 ( 113 ) - - - Comprehensive loss - - - ( 738,508 ) - ( 738,508 ) Balance, February 28, 2022 155,116,088 $ 155,117 $ 15,288,404 $ ( 15,524,122 ) $ - $ ( 80,601 ) Comprehensive income - - - 3,635,630 - 3,635,630 Balance, May 31, 2022 155,116,088 $ 155,117 $ 15,288,404 $ ( 11,888,492 ) $ - $ 3,555,029 Stock options granted - - 107,253 - - 107,253 Comprehensive loss - - - ( 806,496 ) - ( 806,496 ) Balance, August 31, 2022 155,116,088 $ 155,117 $ 15,395,657 $ ( 12,694,988 ) $ - $ 2,855,786 Comprehensive loss - - - ( 446,834 ) - ( 446,834 ) Balance, November 30, 2022 155,116,088 $ 155,117 $ 15,395,657 $ ( 13,141,822 ) $ - $ 2,408,952 Warrants issued for cash 50,000 50 1,950 - - 2,000 Non controlling interest - - - - ( 97 ) ( 97 ) Comprehensive loss - - - 295,161 - 295,161 Balance, February 28, 2023 155,166,088 $ 155,167 $ 15,397,607 $ ( 12,846,661 ) $ ( 97 ) $ 2,706,016 The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements. F-2 ENERTOPIA CORP. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS (UNAUDITED) (Expressed in U.S. Dollars) THREE MONTHS ENDED SIX MONTHS ENDED February 28 February 28 February 28 February 28 2023 2022 2023 2022 Expenses Accounting and audit $ 38,293 $ 9,795 $ 49,550 $ 12,465 Consulting (Note 6, 8) 37,250 90,414 101,744 147,506 Fees and dues 19,239 10,970 40,434 16,975 Investor relations 19,269 8,608 39,642 20,356 Legal and professional 54,352 6,478 74,344 26,062 Office and miscellaneous 32,225 6,325 54,761 13,921 Mineral exploration costs 5,048 3,298 8,035 10,333 Research and development 41,826 645,912 57,352 651,137 Total expenses 247,502 781,800 425,862 898,755 Loss for the period before other items ( 247,502 ) ( 781,800 ) ( 425,862 ) ( 898,755 ) Other income (expense) Foreign exchange gain (loss) ( 1,145 ) ( 1,329 ) ( 2,357 ) ( 1,042 ) Realized gain (loss) on marketable securities ( 122,741 ) ( 7,641 ) ( 122,741 ) ( 7,641 ) Realized foreign exchange gain (loss) on marketable securities ( 11,403 ) - ( 11,403 ) - Unrealized gain (loss) on marketable securities 695,470 2,262 547,308 2,711 Unrealized foreign exchange gain (loss) on marketable securities ( 17,615 ) - ( 136,715 ) - Gain from mineral property sale - 50,000 - 50,000 Net income (loss) for the period 295,064 ( 738,508 ) ( 151,770 ) ( 854,727 ) Net loss attributable to: Common shareholders 295,161 ( 738,508 ) ( 151,673 ) ( 854,727 ) Non controlling interest ( 97 ) - ( 97 ) - Basic and diluted income (loss) per share Basic $ 0.00 $ ( 0.00 ) $ ( 0.00 ) $ ( 0.01 ) Diluted $ 0.00 $ ( 0.00 ) $ ( 0.00 ) $ ( 0.01 ) Weighted average number of common shares outstanding - Basic 155,122,755 151,986,777 155,119,403 146,780,966 - Diluted 169,146,124 151,986,777 155,119,403 146,780,966 The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements. F-3 ENERTOPIA CORP. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (UNAUDITED) (Expressed in U.S. Dollars) SIX MONTHS ENDED February 28 February 28 2023 2022 Cash flows used in operating activities Net Income (Loss) $ ( 151,770 ) $ ( 854,727 ) Changes to reconcile net loss to net cash used in operating activities Shares issued for consulting - 42,300 Shares issued for battery management system - 450,000 Shares issued for hydrogen technology - 100,400 Stock based compensation - 55,877 Income from mineral property sale - ( 50,000 ) Unrealized gain on marketable securities (547,306 ) ( 2,711 ) Unrealized foreign exchange loss on marketable securities 136,715 - Loss on disposal of marketable securities 122,741 7,641 Foreign exchange loss on disposal of marketable securities 11,403 - Change in non-cash working capital items: Accounts receivable 2,532 3,976 Prepaid expenses and deposits ( 154,156 ) ( 95,986 ) Accounts payable and accrued liabilities 9,366 ( 34,561 ) Due to related parties ( 30,412 ) ( 26,250 ) Net cash used in operating activities $ ( 600,887 ) $ ( 404,041 ) Cash flows used in investing activities Proceeds from sale of marketable securities 288,928 10,064 Proceeds from mineral property sale - 50,000 Staking of mineral property - ( 10,500 ) Net cash used in investing activities $ 288,928 $ 49,564 Cash flows from financing activities Net proceeds from warrants exercised 2,000 131,390 Net cash from financing Activities $ 2,000 $ 131,390 Decrease in cash and cash equivalents ( 309,959 ) ( 223,087 ) Cash and cash equivalents at beginning of period 615,207 354,286 Cash and cash equivalents at end of period $ 305,248 $ 131,199 Supplemental information of cash flows: Income taxes paid in cash $ - $ - Cash paid for taxes $ - $ - Cashless options exercised $ - $ 113 The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements. F-4 ENERTOPIA CORP. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) February 28, 2023 (Expressed in U.S. Dollars) 1. ORGANIZATION The unaudited condensed consolidated interim financial statements for the period ended February 28, 2023 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. These unaudited condensed consolidated interim financial statements should be read in conjunction with the August 31, 2022 audited annual financial statements and notes thereto. The Company was formed on November 24, 2004 under the laws of the State of Nevada and commenced operations on November 24, 2004. The Company is engaged in the business of Lithium exploration at their Nevada claims, along with holding intellectual property & patents in the green technology space. The Company office is located in Kelowna, B.C., Canada. 2. GOING CONCERN UNCERTAINTY The accompanying unaudited condensed consolidated 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. The Company incurred net cash outflows from operating activities of $ 600,887 for the six months ended February 28, 2023 ($ 404,041 for the six months ended February 28, 2022) and as at February 28, 2023 has incurred cumulative losses of $ 12,846,661 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. There is no assurance that the Company will be able to continue to finance the Company on this basis. In view of these conditions, the ability of the Company to continue as a going concern is in substantial doubt and dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis, to obtain additional financing as may be required, to receive the continued support of the Company's shareholders, and ultimately to obtain successful operations. There are no assurances that we will be able to obtain further funds required for our continued operations. As noted herein, we are pursuing various financing alternatives to meet our immediate and long-term financial requirements. There can be no assurance that additional financing will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms. If we are not able to obtain the additional financing on a timely basis, we will be unable to conduct our operations as planned, and we will not be able to meet our other obligations as they become due. In such event, we will be forced to scale down or perhaps even cease our operations. There is significant uncertainty as to whether we can obtain additional financing. These unaudited condensed consolidated interim financial statements do not give effect to any adjustments which would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts different from those reflected in the accompanying unaudited condensed consolidated interim financial statements. Since March 2020, several measures have been implemented in Canada, the United States, and the rest of the world in response to the increased impact from the novel coronavirus ("COVID-19"). While the impact of COVID-19 is expected to be temporary, the current circumstances are dynamic and the impact on our business operations cannot be reasonably estimated at this time. We anticipate this could have an adverse impact on our exploration plans, results of operations, financial position and cash flows. Our cash is held in a Canadian national banking institution that is insured by the Canada Deposit Insurance Corporation (CDIC). The CDIC insures up to C$ 100,000 of deposits per insured category based on CDIC regulations. Our bank is one of the six largest banks in Canada and has been designated by the Government of Canada as a Domestically Systemically Important Bank (D-SIB) by the Superintendent of Financial Institutions in Canada specifying minimum loss absorbing capacity requirements. The banking failures in the United States have not extended into the Canadian market to date and management continues to monitor the situation. Our current cash exposure is limited as of February 28, 2023 and subsequent to February 28, 2023 our cash held in the bank is fully insured. 3. SIGNIFICANT ACCOUNTING POLICIES a. Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information and the instructions to Securities and Exchange Commission ("SEC") Form 10-Q and Article 10 of SEC Regulation S-X. They do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with our audited financial statements and notes thereto for the year ended August 31, 2022. b. Basis of Consolidation The financial statements have been prepared on a consolidated basis with those of the Company's 51% owned subsidiary, CapNTrack Inc. All intercompany transactions and balances have been eliminated. c. Accounting Estimates The preparation of financial statements in conformity with U.S GAAP requires us to make certain estimates, judgements and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Some of the Company's accounting policies require us to make subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. These accounting policies involve critical accounting estimates because they are particularly dependent on estimates and assumptions made by management about matters that are highly uncertain at the time the accounting estimates are made. Although we have used our best estimates based on facts and circumstances available to us at the time, different estimates reasonably could have been used. Changes in the accounting estimates used by the Company are reasonably likely to occur from time to time, which may have a material effect on the presentation of financial condition and results of operations. The Company reviews these estimates, judgments and assumptions periodically and reflect the effects of revisions in the period in which they are deemed to be necessary. We believe that these estimates are reasonable; however, actual results could differ from these estimates. Significant accounting estimates and assumptions are used for, but not limited to: a) The Valuation of Deferred Tax Assets Judgement is required in determining whether deferred tax assets are recognized on the balance sheet. The recognition of deferred tax assets requires management to assess the likelihood that the Company will generate taxable income in future periods to utilize the deferred tax assets. Due to the Company's history of losses, deferred tax assets have not been recognized by the Company. b) Value of Stock Options The Company provides compensation benefits to its employees, directors, officers, and consultants, through a stock option plan. The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model. Expected volatility assumption used in the model is based on the historical volatility of the Company's share price. The Company uses historical data to estimate the period of option exercises for use in the valuation model. The risk-free interest rate for the expected term of the option is based on the yields of government bonds. Changes in these assumptions, especially the share price volatility and the expected life determination could have a material impact on the Company's profit and loss for the periods presented. All estimates used in the model are based on historical data which may not be representative of future results. c) Fair value of shares issued in non cash transactions The Company at times grants common shares in lieu of cash to certain vendors for their services to the Company. The Company recognizes the associated cost in the same period and manner as if the Company paid cash for the services provided by calculating the fair value of the share offering at the cost of the service provided. d. Earnings Per Share Loss per share is computed using the weighted average number of shares outstanding during the period. The Company has adopted ASC 220 "Earnings Per Share". Basic earnings per share ("EPS") is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and stock awards. e. Financial Instruments ASC 820 "Fair Value Measurements and Disclosures" requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: Level 1 - Quoted prices in active markets for identical assets or liabilities; Level 2 - Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and Level 3 - Unobservable inputs that are supported by little or no market activity, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. The Company's financial instruments consist primarily of cash, marketable securities, accounts receivable, accounts payable and due to related parties. The carrying amounts of these financial instruments approximate their fair values due to their short maturities. Cash and marketable securities are in Level 1 within the fair value hierarchy. The Company's operations are in United States of America and Canada, which results in exposure to market risks from changes in foreign currency rates. The financial risk is the risk to the Company's operations that arise from fluctuations in foreign exchange rates and the degree of volatility of these rates. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk. f. Research and Development Research and development costs are expensed as incurred. g. Comparative Information The Company reclassified certain balances related to operations in the comparative period to conform with the current presentation. There has been no impact on net loss, comprehensive loss, or net assets as a result of the changes. 4. MARKETABLE SECURITIES 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. During the period ended February 28, 2023 Cypress underwent a name change to Century Lithium Corp ("Century"). The 3,000,000 shares were restricted for trade, 2,000,000 are tradable and 1,000,000 are tradable beginning May 4, 2023. Given the lock up conditions, the Company believes that there is a Lack of Marketability ("LOM") related to 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 end date of February 28, 2023. Marketable securities as at February 28, 2023 consist of the Company's investment in 3,000,000 shares of Century of which 332,800 were sold during the period leaving 2,657,200 shares. An additional 22,000 share sales were pending that were settled after the period end. As at February 28, 2023, the movement in the Company's marketable securities is as follows: Balance, August 31, 2021 $ 14,994 Additions 1 3,432,382 Unrealized loss ( 923,533 ) Unrealized foreign exchange loss ( 62,388 ) Proceeds from disposal ( 10,064 ) Loss on disposal ( 7,641 ) Balance, August 31, 2022 $ 2,443,750 Additions - Unrealized gain (loss) 547,308 Unrealized foreign exchange gain (loss) ( 136,717 ) Proceeds from disposal ( 288,928 ) Realized loss on disposal ( 122,741 ) Realized Foreign exchange loss on disposal ( 11,403 ) Balance, February 28, 2022 $ 2,431,269 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 November 30, 2022 using the closing rate of CAD$ 1.05 per share and discounting rate of 10 %, with the resulting changes in fair value being recorded as part of other income (expense). 5. MINERAL PROPERTY West Tonopah On February 25, 2022, the Company staked 1,760 acres of unpatented mineral claims in Esmeralda County, Nevada for cash consideration of $ 10,500 . During the period ended February 28, 2023, the Company paid a 50 % deposit of $ 194,400 for a planned drilling program recorded in Prepaid Expenses (Note 13). 6. TECHNOLOGY DEVELOPMENT 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. 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 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. On August 17, 2021 the Company announced the filing of its third provisional patent, known as Enertopia Rainmaker TM . On January 12, 2023 the Company announced the filing of its fourth provisional patent application, known as Enertopia BMT. On December 6, 2021, The Company entered into a Definitive Purchase and Sale Agreement to acquire 100 % ownership and rights to the hydrogen technology ("Hydrogen Technology"). By acquiring this Hydrogen Technology, the Company is currently researching the opportunity to create process gas that can be used in commercial, industrial and mining applications by splitting the hydrogen from water via electrolysis. The Company paid $ 25,000 in cash and issued 2,000,000 shares, with 1,000,000 of the issued shares held in escrow pending successful patenting of the intellectual property, valued at $ 100,400 , for a total of $ 125,400 in consideration expensed during the year ended August 31, 2022, for acquiring the Hydrogen Technology. The technology is still in research and development phase and is not commercially feasible as at the period ended February 28, 2023. The Company has incurred an additional $ 168,016 as research and development costs for the hydrogen technology during the year ended August 31, 2022 and $ 36,088 for the period ended February 28, 2023. 7. ENERGY MANAGEMENT SYSTEM ("EMS") On December 17, 2021, The Company entered into a Definitive Purchase and Sale Agreement to acquire 100 % ownership and rights to their Provisional Patent Pending EMS. The Company created a Joint Venture ("JV") with 51 % controlling interest in CapNTrack to run the commercial and industrial operations related to the EMS 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 EMS. As at the period ended date of February 28, 2023, there have been no operations in the JV and insurance setup costs only. The EMS is still in the research and development phase and has not obtained commercial or operational feasibility as at the period end date of February 28, 2023. The Company has recorded the entire consideration of $ 480,000 for the ownership of the EMS as research and development expense in the statement of operations during the year ended August 31, 2022. There were insurance setup expenses only related to the EMS incurred during the period ended February 28, 2023. 8. RELATED PARTIES TRANSACTION For the six-month period ended February 28, 2023, the Company was party to the following related party transactions: The Company incurred $ 57,000 (February 28, 2022: $ 0 ) 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, 2023 is $ 33,997 (August 31, 2022 - $ 64,409 ). The Company incurred $ 10,000 (February 28, 2022: $ 0 ) to the CFO of the Company in consulting fees. The related party transactions are recorded at the exchange amount established and agreed to between the related parties. 9. COMMON STOCK During the six months ended February 28, 2023, the Company issued 50,000 common shares for the exercise of warrants for $ 2,000 in cash. As at February 28, 2023 the Company had 155,166,088 (August 31, 2022: 155,116,088 ) shares issued and outstanding. As at February 28, 2023 the Company had 7,000,000 (August 31 2022 - 7,000,000 ) shares held in escrow, that are included in the total shares issued and outstanding. 10. STOCK OPTIONS AND WARRANTS Stock Options On July 15, 2014, the shareholders approved and adopted at the Annual General Meeting the Company's 2014 Stock Option Plan. The purpose of these Plans is to advance the interests of the Corporation, through the grant of Options, by providing an incentive mechanism to foster the interest of eligible persons in the success of the Corporation and its affiliates; encouraging eligible persons to remain with the Corporation or its affiliates; and attracting new Directors, Officers, Employees and Consultants. The aggregate number of Common Shares that may be reserved, allotted and issued pursuant to Options shall not exceed 17,400,000 shares of common stock, less the aggregate number of shares of common stock then reserved for issuance pursuant to any other share compensation arrangement. For greater certainty, if an Option is surrendered, terminated or expires without being exercised, the Common Shares reserved for issuance pursuant to such Option shall be available for new Options granted under this Plan. The options are deemed as vested and exercisable on issuance and the maximum life of the options granted under this Plan may not exceed 5 years. Subsequent to February 28, 2023, at the Annual General Meeting held March 22, 2023, a new 2023 Stock Option Plan was approved. Under the 2023 Stock Option Plan (the "2023 Plan") the Company may grant options to purchase shares of common stock, $ 0.001 par value per share, of the Company. The stock subject to options granted under the 2023 Plan shall be shares of authorized but unissued or reacquired common stock. The maximum number of shares of common stock of the Company which may be issued and sold under the 2023 Plan shall be 31,000,000 , subject to adjustment for stock splits or consolidations with a maximum life of 5 years and vesting at the discretion of the Board of Directors. Management plans to issue all new option grants under the 2023 Plan and to cancel the 2014 Plan once all currently issued options are either exercised or expire. During the six months ended February 28, 2023 the Company did not issue any options. During the six-month period ended February 28, 2023, the Company recorded $ 0 (February 28, 2022 $ 55,877 ) as stock based compensation expenses. In addition, a total of 800,000 stock options expired without being exercised (February 28, 2022: 2,950,000 ). A summary of the changes in stock options for the six months ended February 28, 2023 is presented below: Options Outstanding Number of Options Weighted Average Exercise Price $ Weighted Average Remaining Life (Years) Aggregate Intrinsic Value $ Balance, August 31, 2021 10,076,776 0.08 Issued 3,500,000 0.07 Expired ( 3,450,000 ) 0.07 Exercised ( 226,776 ) 0.04 Balance, August 31, 2022 9,900,000 0.08 Expired ( 800,000 ) 0.05 Balance, February 28, 2023 (Outstanding & Exercisable) 9,100,000 0.08 3.08 2,100 The Company has the following options outstanding and exercisable as at February 28, 2023: Issue Date Expiry Date Exercise Price Number of Options Remaining Life (Years) 11-May-18 11-May-23 0.06 500,000 0.20 22-May-18 22-May-23 0.07 450,000 0.23 14-Dec-20 14-Dec-25 0.05 2,100,000 2.79 28-Jan-21 28-Jan-26 0.14 2,000,000 2.92 4-Feb-21 4-Feb-26 0.18 100,000 2.94 5-Feb-21 5-Feb-26 0.18 300,000 2.94 27-Apr-21 27-Apr-26 0.12 100,000 3.16 28-May-21 28-May-26 0.12 50,000 3.25 1-Sep-21 1-Sep-26 0.08 500,000 3.51 6-Dec-21 6-Dec-26 0.07 1,000,000 3.77 18-Aug-22 18-Aug-27 0.06 2,000,000 4.47 Balance outstanding and exercisable 9,100,000 3.08 Warrants There were no warrants issued during the period ended February 28, 2023. A summary of warrants as at February 28, 2023 is as follows: Number of Warrants Weighted Average Exercise Price Balance, August 31, 2021 9,716,869 $ 0.05 Issued - - Forfeited ( 1,952,500 ) 0.08 Exercised ( 2,791,000 ) 0.05 Balance, August 31, 2022 4,973,369 $ 0.04 Exercised ( 50,000 ) 0.04 Balance, February 28, 2022 4,923,369 $ 0.04 The Company has the following warrants outstanding as at February 28, 2023: Issue Date Expiry Date Exercise Price Number of Warrants* Weighted Average Life (Years) Intrinsic Value 27-Mar-19 27-Mar-23 0.04 4,923,369 0.04 4,923,369 0.07 54,157 *Each warrant entitles a holder to purchase one common share. Subsequent to February 28, 2023, 4,923,369 warrants expired unexercised. 11. COMMITMENTS The Company has a consulting agreement with the President of the Company for corporate administration and consulting services for $ 9,500 per month plus goods and services tax ("GST") on a continuing basis. The Company has a consulting agreement with the CFO of the Company for corporate administration and consulting services for $ 5,000 per quarter plus goods and services tax ("GST") on a continuing basis. The Company has a rental agreement for a corporate office for CDN $ 1,100 per month plus GST. The agreement expired December 31, 2022. The agreement was renewed during the period ended February 28, 2023 with a 1 % increase to CDN $ 1,111 per month plus GST and expires December 31, 2023. Rent expense for the three and six months ended February 28, 2023, were $ 2,473 and $ 4,922 , respectively. 12. SEGMENTED INFORMATION The Company's operations involve the development of natural resources and green technologies. The Company is centrally managed and its chief operating decision maker, being the CEO, uses the consolidated and other financial information to make operational decisions and to assess the performance of the Company. The Company has increased its reportable segments from one to three during the year ended August 31, 2022. The decision for this change was made keeping in mind the Company's strategic direction and the need to better report the results for each of the identified three reportable segments: Natural Resources, Technology and Corporate, none of which are revenue generating as at the period ended date of February 28, 2023. Long term Assets Amount United States of America $ 10,500 Balance February 28, 2023 $ 10,500 Natural Resources Technology Corporate Consolidated Total February 28, 2023 $ $ $ $ Operating expenses ( 8,035 ) ( 57,352 ) ( 360,475 ) ( 425,862 ) Other income (Note 4) - - 274,092 274,092 Segment Loss ( 8,035 ) ( 57,352 ) ( 86,383 ) ( 151,770 ) Total Assets (Note 4, 5) 10,500 - 3,032,325 3,042,825 Long term Assets Amount United States of America $ 10,500 Balance August 31, 2022 $ 10,500 August 31, 2022 Natural Resources Technology Corporate Total Operating expenses $ ( 212,348 ) $ ( 808,800 ) $ ( 545,087 ) $ 1,566,235 Other income (expenses) (Note 4, 5, 6) 4,532,382 - ( 991,740 ) 3,540,642 Segment income (loss) $ 4,320,034 $ ( 808,800 ) $ ( 1,536,827 ) $ 1,974,407 Total Assets (Note 4, 5) $ 10,500 $ - $ 3,203,141 $ 3,213,641 13. PREPAID EXPENSES AND DEPOSITS The balance of Prepaid Expenses and Deposits consisted of the following: February 28, Prepaid Expenses & Deposits 2023 Advertising $ 2,952 Clean Technology Expense 47,000 Consultants 20,000 Exploration costs 194,400 Filing fees 8,375 Insurance 13,763 Office Expenses 6,973 Total Prepaid Expenses& Deposits $ 293,463 14. NET INCOME (LOSS) PER COMMON SHARE Three Months Ended Six Months Ended February 28, February 28, 2023 2022 2023 2022 Numerator: Net income (loss) $ 295,064 $ ( 738,508 ) $ ( 151,770 ) $ ( 854,727 ) Net income (loss) - diluted $ 295,064 $ ( 738,508 ) $ ( 151,770 ) $ ( 854,727 ) Denominator: Weighted average common shares outstanding 155,122,755 151,986,777 155,119,403 146,780,966 Effect of dilutive shares 14,023,369 - - - Diluted 169,146,124 151,986,777 155,119,403 146,780,966 Net income (loss) per common share: Basic $ 0.00 $ ( 0.00 ) $ ( 0.00 ) $ ( 0.01 ) Diluted $ 0.00 $ ( 0.00 ) $ ( 0.00 ) $ ( 0.01 ) 15. SUBSEQUENT EVENTS Management has evaluated subsequent events through the date these financial statements were issued. Based on our evaluation the are no material events have occurred that require disclosure.