Management's Discussion and Analysis of Financial Condition and Results of Operations
−Removed: The following discussion should be read in conjunction with our audited financial statements and the related notes that appear elsewhere in this annual report.
+Added: The following discussion should be read in conjunction with our audited consolidated financial statements and the related notes that appear elsewhere in this annual report.
The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs.
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those discussed below and elsewhere in this annual report, particularly in the section Item 1A entitled Risk Factors of this annual report.
−Removed: Our audited financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles.
+Added: Our audited consolidated financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles.
Plan of Operation
19 unchanged sentences
Our net income (loss) and comprehensive income (loss) for our year ended August 31, 2023, for our year ended August 31, 2022 and the changes between those periods for the respective items are summarized as follows:
−Removed: Change Between
−Removed: August 31, 2022
−Removed: and Year Ended
−Removed: August 31, 2021
−Removed: Non-operating (Income) Expenses
−Removed: Exploration Costs
+Added: General and administrative
+Added: Investor relations
Consulting fees
−Removed: Professional Fees
Fees and dues
−Removed: Investor relations
+Added: Exploration expenses
Research and development
−Removed: Other administrative costs
−Removed: Net (income) loss
−Removed: Our financial statements report no revenue for the years ended August 31, 2022, and August 31, 2021.
−Removed: Our financial statements report a net income of $1,974,407 for the year ended August 31, 2022, compared to a net loss of $389,368 for the year ended August 31, 2021.
−Removed: Our net income has increased by $2,363,775 for the year ended August 31, 2022, primarily due to the increase in non-operating income as a result of the sale of our Clayton Valley unpatented mining claims.
−Removed: Our operating costs were higher by $951,453 for August 31, 2022, compared to August 31, 2021, primarily due to research and development costs for the Hydrogen Technology project - $293,416 (August 31, 2021 - $0), Rainmaker and Soler Booster projects - $25,717 (August 31, 2021 - $0) and Battery Management Technology - $480,000 (August 31, 2021 - $0).
−Removed: The increase of exploration costs by $204,460 is due to increase in the exploration activities of the Company after a slowdown period due to COVID -19, the exploration costs are primarily attributable to the West Tonopah property.
−Removed: Overall, the operating expenses have increased due to increase in the exploration activity and addition of new research and development projects during the year ended August 31, 2022.
+Added: Professional fees
+Added: Other expense (income)
+Added: Net loss (income)
+Added: Our consolidated financial statements report no revenue for the years ended August 31, 2023, and August 31, 2022.
+Added: Our consolidated financial statements report a net loss of $1,832,178 for the year ended August 31, 2023, compared to a net income of $1,974,407 for the year ended August 31, 2022.
+Added: Our net income has decreased by $3,806,585 for the year ended August 31, 2023, primarily due to the decrease in Other expense (income).
+Added: Our operating costs were lower by $341,651 for August 31, 2023, compared to August 31, 2022, primarily due to increase costs of our drilling program of $325,170 offset by reduced research and development technology costs of $156,561 compared to $808,800 in the prior year).
+Added: The increase of exploration costs by $252,317 is primarily due to the exploration drilling activities of the Company in our West Tonopah property.
+Added: Other expense (income) for the year ended August 31, 2023 primarily consisted of realized losses and realized foreign exchange losses on the sale of marketable securities of $564,346 and $41,735, compared to unrealized losses and unrealized foreign exchange losses on marketable securities of $923,533 and $62,388, respectively, and a gain on the sale of a mineral property of $4,532,382 in the prior year.
Liquidity and Financial Condition
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Current liabilities
−Removed: Working capital (deficit)
+Added: Working capital
Cash flows used in operating activities
1 unchanged sentence
Cash flows from financing activities
−Removed: Net increase in cash during year
+Added: Net (decrease) increase in cash during year
Operating Activities
3 unchanged sentences
Net cash provided in investing activities was $854,599 for the year ended August 31, 2023 compared to $1,099,564 in the same period in 2022.
−Removed: The net cash inflow was primarily the result of the sale of Clayton Valley, Nevada claims.
+Added: During the year ended August 31, 2023, the net cash was provided by the sale of the Century Lithium stock compared to the prior year being the result of the sale of Clayton Valley, Nevada claims.
Financing Activities
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Going Concern
−Removed: Our financial statements have been prepared in accordance with accounting principles generally accepted in the United States applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business.
−Removed: The Company had a working capital of $2,845,286 as at August 31, 2022 (2021 - deficit of $5,841).
+Added: Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business.
+Added: The Company had a working capital of $1,015,108 as at August 31, 2023 (2022 - $2,845,286).
As at August 31, 2023, the Company has incurred cumulative losses of $14,526,485.
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The outcome of these matters cannot be predicted at this time and the financing environment is exceptionally difficult.
−Removed: The Company's financial statements do not include any adjustments to reflect the future effects on the recoverability and classification of assets or the amounts and classification of liabilities that might result from the outcome of this uncertainty.
+Added: The Company's consolidated financial statements do not include any adjustments to reflect the future effects on the recoverability and classification of assets or the amounts and classification of liabilities that might result from the outcome of this uncertainty.
At this time, we cannot provide investors with any assurance that we will be able to raise sufficient funding from the sale of our common stock or through a loan from our directors to meet our obligations over the next twelve months.
3 unchanged sentences
Critical Accounting Policies
−Removed: The discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with the accounting principles generally accepted in the United States of America.
−Removed: Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses.
+Added: The discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with the accounting principles generally accepted in the United States of America.
+Added: Preparing consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses.
These estimates and assumptions are affected by management's application of accounting policies.
−Removed: We believe that understanding the basis and nature of the estimates and assumptions involved with the following aspects of our financial statements is critical to an understanding of our financial statements.
+Added: We believe that understanding the basis and nature of the estimates and assumptions involved with the following aspects of our consolidated financial statements is critical to an understanding of our consolidated financial statements.
Mineral Properties
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The continuation of our Company as a going concern is dependent upon our Company attaining and maintaining profitable operations and/or raising additional capital.
−Removed: The financial statements do not include any adjustment relating to the recovery and classification of recorded asset amounts or the amount and classification of liabilities that might be necessary should our Company discontinue operations.
+Added: The consolidated financial statements do not include any adjustment relating to the recovery and classification of recorded asset amounts or the amount and classification of liabilities that might be necessary should our Company discontinue operations.
The continuation of our business is dependent upon us raising additional financial support and/or attaining and maintaining profitable levels of internally generated revenue.
1 unchanged sentence
Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments.
−Removed: Quantitative and Qualitative Disclosures About Market Risk
−Removed: As a "smaller reporting company", we are not required to provide the information required by this Item.
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.