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Interest rate risk is the risk that the fair value of our future cash flows and our financial instruments will fluctuate because of changes in market interest rates.
−Removed: Our current practice is to invest excess cash in investment -grade short -term deposit certificates issued by reputable Canadian financial institutions with which we keep our bank accounts and management believes the risk of loss to be remote.
+Added: Our current practice is to invest excess cash in investment-grade short-term deposit certificates issued by reputable financial institutions with which we keep our bank accounts and management believes the risk of loss to be remote.
We periodically monitor the investments we make and are satisfied with the credit ratings of our banks.
−Removed: Due to the current high cash need of our operating plan, we have kept our funds readily available, placed in secure, highly liquid interest-bearing investments, as at September 30, 2025.
+Added: Due to the current high cash need of our operating plan, we have kept our funds readily available, placed in secure, highly liquid interest-bearing investments, as at March 31, 2026.
Credit risk is a risk of loss that may arise on outstanding financial instruments should a counter party default on its obligation.
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Regulatory Risk
−Removed: Both the ISA and the U.S.
−Removed: regime under DSHMRA have not yet been used for commercial production of seafloor polymetallic nodules.
−Removed: To date, NOAA has not issued a commercial recovery permit, and while the legal framework is established, it has not yet been applied to the full lifecycle of a seabed mining project.
−Removed: Our April 2025 applications are under NOAA review.
−Removed: On August 11, 2025, TMC USA received notice of full compliance from NOAA on its exploration applications, and confirmation that TMC USA has priority right over both exploration areas.
−Removed: Both applications are fully compliant and have moved into the certification process.
−Removed: There can be no assurance that the certification process will be favorable.
−Removed: There is also no assurance that any of our applications will result in NOAA granting us any exploration licenses or a commercial recovery permit on a timely basis or at all, or on commercially viable terms and conditions, and any such failure would materially and adversely affect our business, financial condition, liquidity, results of operations and prospects.
−Removed: There is no guarantee that NOAA’s proposed amendments that introduce a new consolidated application procedure under § 971.214, allowing submission of a single application for both an exploration license and commercial recovery permit, will be adopted as proposed or at all.
−Removed: If NOAA requires us to begin the DSHMRA permitting process with an exploration license, this could delay our intended commercialization timeline and increase permitting costs and complexity.
−Removed: In addition, there is no assurance that we will be able to comply with, or obtain a waiver of, the requirement under DSHMRA requirement that minerals be processed in the United States, should we pursue this avenue.
−Removed: In addition, permitting under DSHMRA will subject us to a complex regulatory system in the United States which we are currently analyzing to determine applicability and how compliance will impact our development plans and potential commercial operations.
−Removed: For example, we will be subject to the Merchant Marine Act of 1920 and will need to be in full compliance with U.S.
−Removed: environmental laws, and NOAA may deny a commercial recovery permit if it determines that significant adverse environmental effects cannot be adequately mitigated.
−Removed: The review and approval process will also be subject to a full EIS process under NEPA, as well as public comment and potential legal challenge in U.S.
−Removed: courts by third parties.
−Removed: Although the recent Executive Order signed by President Trump on April 24, 2025 directs the Commerce Secretary to implement an expedited permitting process under DSHMRA, the timing of license or permit issuance remains uncertain, as there is no statutory deadline under DSHMRA and actual review timelines will depend on the scope and outcome of NOAA’s assessment.
+Added: Regulations related to emissions limits, such as cap-and-trade schemes and carbon taxes, would likely increase our future cost of operations, energy purchase, and equipment selection in addition to costs associated with potential carbon tax and/or purchase of carbon offsets.
+Added: It is difficult to estimate the impact of potential future regulations on future operations.
+Added: We are working on a plan for continuous reduction of emissions and aiming to develop operations with near zero emissions.
+Added: When selecting the location of our onshore plant, one of our requirements is access to renewable energy as our metallurgical process will be the most energy intensive step in our operations.
+Added: In addition, we are seeking to replace metallurgical coal used as reductant during calcining of nodules and have tested potential renewable alternatives.
+Added: We are also identifying the best approach for decarbonizing our offshore operations.
+Added: To date, we have not experienced any material impact to our business related to potential regulations but will continue to evaluate and monitor future developments.
We are exposed to a variety of markets and other risks including the effects of inflation and foreign currency translation, commodity pricing risks and transaction risks as well as risks to the availability of funding sources, hazard events specific asset risks, regulatory risks, public policy risks and technology risks.
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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.