Enertopia Corp. 10-Q

Item 1. Financial Statements. Our unaudited condensed financial statements for the nine-month period ended May 31, 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. CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (UNAUDITED) (Expressed in U.S. Dollars) May 31, August 31, 2023 2022 ASSETS Current Cash $ 240,292 $ 615,207 Marketable securities (Note 4) 1,536,726 2,443,750 Accounts receivable 5,799 4,877 Prepaid expenses and deposit (Note 12) 77,559 139,307 Total Current Assets 1,860,376 3,203,141 Non-current assets, net Mineral property (Note 5) 10,500 10,500 TOTAL ASSETS $ 1,870,876 $ 3,213,641 LIABILITIES Current Accounts payable and accrued liabilities $ 287,096 $ 293,446 Due to related party (Note 7) 17,159 64,409 Total Liabilities 304,255 357,855 STOCKHOLDERS' EQUITY (DEFICIENCY) Share Capital (Note 8) Authorized: 500,000,000 common voting shares ( 200,000,000 August 31, 2022) with a par value of $ 0.001 per share Issued and outstanding: 155,166,088 common shares at May 31, 2023 and 155,116,088 at August 31, 2022 155,167 155,117 Additional paid-in capital (Note 9) 15,397,607 15,395,657 Deficit ( 13,985,764 ) ( 12,694,988 ) Equity attributable to shareholders of the Company 1,567,010 2,855,786 Non-controlling interest (Note 6) ( 389 ) - TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,870,876 $ 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 Non controlling interest - - - - ( 292 ) ( 292 ) Comprehensive loss - - - ( 1,139,103 ) - ( 1,139,103 ) Balance, May 31, 2023 155,166,088 $ 155,167 $ 15,397,607 $ ( 13,985,764 ) $ ( 389 ) $ 1,566,621 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 NINE MONTHS ENDED May 31, May 31, May 31, May 31, 2023 2022 2023 2022 Expenses Accounting and audit $ ( 4,419 ) $ 15,461 $ 45,131 $ 27,926 Consulting (Note 7) 30,752 32,546 132,496 180,052 Fees and dues 39,651 23,804 80,085 40,779 Investor relations 12,812 10,049 52,454 30,405 Legal and professional 7,259 16,427 81,603 42,489 Office and miscellaneous 31,168 16,759 85,929 30,680 Mineral exploration costs (Note 5) 421,716 22,254 429,751 32,587 Research and development (Note 6) 45,072 39,521 102,424 690,658 Total expenses 584,011 176,821 1,009,873 1,075,576 Loss for the period before other items ( 584,011 ) ( 176,821 ) ( 1,009,873 ) ( 1,075,576 ) Other income (expense) Foreign exchange loss ( 1,379 ) ( 358 ) ( 3,736 ) ( 1,402 ) Realized loss on marketable securities ( 204,637 ) - ( 327,378 ) ( 7,641 ) Realized foreign exchange loss on marketable securities ( 19,134 ) - ( 30,537 ) - Unrealized gain (loss) on marketable securities ( 324,529 ) ( 669,573 ) 222,779 ( 666,862 ) Unrealized foreign exchange loss on marketable securities ( 5,705 ) - ( 142,420 ) - Gain from mineral property sale - 4,482,382 - 4,532,382 Net income (loss) for the period ( 1,139,395 ) 3,635,630 ( 1,291,165 ) 2,780,901 Net income (loss) attributable to: Common shareholders ( 1,139,103 ) 3,635,630 ( 1,290,776 ) 2,780,901 Non controlling interest ( 292 ) - ( 389 ) - Basic and diluted income (loss) per share Basic and diluted $ ( 0.01 ) $ 0.02 $ ( 0.01 ) $ 0.02 Weighted average number of common shares outstanding - Basic and diluted 155,166,088 155,116,088 155,135,136 149,600,199 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) NINE MONTHS ENDED May 31, May 31, 2023 2022 Cash flows used in operating activities Net Income (Loss) $ ( 1,291,165 ) $ 2,780,901 Changes to reconcile net loss to net cash used in operating activities Shares received for mineral property sale - ( 3,432,382 ) 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 - ( 1,100,000 ) Unrealized gain on marketable securities ( 222,780 ) 666,862 Unrealized foreign exchange loss on marketable securities 142,420 - Loss on disposal of marketable securities 327,378 7,641 Foreign exchange loss on disposal of marketable securities 30,537 - Change in non-cash working capital items: Accounts receivable ( 922 ) 1,814 Prepaid expenses and deposits 61,748 ( 70,272 ) Accounts payable and accrued liabilities ( 6,350 ) ( 22,650 ) Due to related parties ( 47,250 ) ( 31,500 ) Net cash used in operating activities $ ( 1,006,384 ) $ ( 551,009 ) Cash flows used in investing activities Proceeds from sale of marketable securities 629,469 10,064 Proceeds from sale of royalty grant - 1,100,000 Staking of mineral property - ( 10,500 ) Net cash from investing activities $ 629,469 $ 1,099,564 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 ( 374,915 ) 679,945 Cash at beginning of period 615,207 354,286 Cash at end of period $ 240,292 $ 1,034,231 Supplemental information of cash flows: Income taxes paid in cash $ - $ - Cash paid for taxes $ - $ - 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) May 31, 2023 (Expressed in U.S. Dollars) 1 ORGANIZATION Enertopia Corp. (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 $ 1,006,384 for the nine months ended May 31, 2023 ($ 551,009 for the nine months ended May 31, 2022) and as at May 31, 2023 has incurred cumulative losses of $ 13,985,764 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. 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 unaudited condensed consolidated interim 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 party. 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 January 2023 Cypress underwent a name change to Century Lithium Corp ("Century"). The 3,000,000 shares were restricted for trade and as of May 31, 2023 are all tradable. Marketable securities as at May 31, 2023 consist of the Company's investment in 3,000,000 shares of Century of which a total of 776,700 were sold during the nine month period ended May 31, 2023 (three months ended May 31, 2023 - 443,900 ) leaving 2,223,300 shares. An additional 6,500 share sales were pending that were settled after the period end. As at May 31, 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) 222,779 Unrealized foreign exchange gain (loss) ( 142,420 ) Proceeds from disposal ( 629,469 ) Realized loss on disposal ( 327,378 ) Realized Foreign exchange loss on disposal ( 30,537 ) Balance, May 31, 2023 $ 1,536,726 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 nine month periods ended May 31, 2023 and 2022, the mineral exploration expense consisted of: May 31, May 31, 2023 2022 Drilling $ 325,170 $ 20,924 Geologists 72,042 - Sample Assays 15,918 8,572 Travel & Misc 16,621 3,091 Total Exploration $ 429,751 $ 32,587 6. RESEARCH AND DEVELOPMENT Clean Technologies 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 technology is still in the research and development phase and is not commercially feasible as at the period ended May 31, 2023. 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. As at the period ended date of May 31, 2023, there have been no operations in the JV and only insurance costs have been incurred. The EMS is still in the research and development phase and it has not obtained commercial or operational feasibility as at the period end date of May 31, 2023. The research and development expenses for the nine months ending May 31, 2023 and 2022 consisted of the following: May 31, May 31, 2023 2022 Clean Technologies $ 98,722 $ 200,991 Energy Management Systems 3,702 489,667 Total Research and Development $ 102,424 $ 690,658 7. RELATED PARTIES TRANSACTION For the nine-month period ended May 31, 2023, the Company was party to the following related party transactions: • The Company incurred $ 85,500 (May 31, 2022: $ 9,500 ) to the President of the Company in consulting fees. • The amounts outstanding in accounts payable to the President of the Company as at May 31, 2023 is $ 17,159 (August 31, 2022 - $ 64,409 ). • The Company incurred $ 15,000 (May 31, 2022: $ 0 ) to the CFO of the Company in consulting fees. • The Company incurred $ 8,500 to a director of the Company in geological consulting services. The related party transactions are recorded at the exchange amount established and agreed to between the related parties. 8. COMMON STOCK At the Annual General Meeting held in March of 2023, the authorized share capital was increased from 200 million shares to 500 million shares. During the nine months ended May 31, 2023, the Company issued 50,000 common shares for the exercise of warrants for $ 2,000 in cash. As at May 31, 2023 the Company had 155,166,088 (August 31, 2022: 155,116,088 ) shares issued and outstanding. As at May 31, 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. Escrow shares are scheduled to be released upon satisfaction of certain milestones relating to the Company's research and development agreements (Note 6). 9. 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. 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 nine months ended May 31, 2023 the Company did not issue any options. During the nine-month period ended May 31, 2023, the Company recorded $ 0 (May 31, 2022 $ 55,877 ) as stock based compensation expenses. In addition, a total of 1,750,000 stock options expired without being exercised (May 31, 2022: 3,450,000 ). A summary of the changes in stock options for the nine months ended May 31, 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 ( 1,750,000 ) 0.06 Balance, May 31, 2023 (Outstanding & Exercisable) 8,150,000 0.09 3.16 - The Company has the following options outstanding and exercisable as at May 31, 2023: Issue Date Expiry Date Exercise Price Number of Options Remaining Life (Years) 14-Dec-20 14-Dec-25 0.05 2,100,000 2.54 28-Jan-21 28-Jan-26 0.14 2,000,000 2.67 4-Feb-21 4-Feb-26 0.18 100,000 2.68 5-Feb-21 5-Feb-26 0.18 300,000 2.69 27-Apr-21 27-Apr-26 0.12 100,000 2.91 28-May-21 28-May-26 0.12 50,000 2.99 1-Sep-21 1-Sep-26 0.08 500,000 3.26 6-Dec-21 6-Dec-26 0.07 1,000,000 3.52 18-Aug-22 18-Aug-27 0.06 2,000,000 4.22 Balance outstanding and exercisable 8,150,000 3.16 Warrants There were no warrants issued during the period ended May 31, 2023. A summary of warrants as at May 31, 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 Issued - - Expired ( 4,923,369 ) 0.04 Exercised ( 50,000 ) 0.04 Balance, May 31, 2023 - $ 0.00 10. 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 $ 1,111 per month plus GST expiring December 31, 2023. Rent expense for the three and nine months ended May 31, 2023, were $ 2,586 and $ 7,507 , respectively. 11. 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 May 31, 2023. Long term Assets Amount United States of America $ 10,500 Balance May 31, 2023 $ 10,500 Natural Resources Technology Corporate Consolidated Total May 31, 2023 $ $ $ $ Expenses ( 429,751 ) ( 102,424 ) ( 477,698 ) ( 1,009,873 ) Other income (Note 4) - - ( 281,292 ) ( 281,292 ) Segment Loss ( 429,751 ) ( 102,424 ) ( 758,990 ) ( 1,291,165 ) Total Assets (Note 4, 5) 10,500 - 1,860,376 1,870,876 Long term Assets Amount United States of America $ 10,500 Balance August 31, 2022 $ 10,500 August 31, 2022 Natural Resources Technology Corporate Total 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 12. PREPAID EXPENSES AND DEPOSITS The balance of Prepaid Expenses and Deposits consisted of the following: May 31, August 31, Prepaid Expenses & Deposits 2023 2022 Advertising $ 6,000 $ 20,863 Clean Technology Expense 47,000 71,000 Consultants 14,000 24,540 Exploration costs - 9,077 Filing fees 4,425 8,748 Office Expenses 6,134 5,079 Total Prepaid Expenses& Deposits $ 77,559 $ 139,307 13. NET INCOME (LOSS) PER COMMON SHARE Three Months Ended Nine Months Ended May 31, May 31, 2023 2022 2023 2022 Numerator: Net income (loss) $ ( 1,139,395 ) $ 3,635,630 $ ( 1,291,165 ) $ 2,780,901 Net income (loss) - diluted $ ( 1,139,395 ) $ 3,635,630 $ ( 1,291,165 ) $ 2,780,901 Denominator: Weighted average common shares outstanding 155,166,088 155,116,088 155,135,136 149,600,199 Effect of dilutive shares - - - - Diluted 155,166,088 155,116,088 155,135,136 149,600,199 Net income (loss) per common share: Basic $ ( 0.01 ) $ 0.02 $ ( 0.01 ) $ 0.02 Diluted $ ( 0.01 ) $ 0.02 $ ( 0.01 ) $ 0.02 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.