Note 7 - Equity-accounted Investment

12 Months Ended

Jul. 31, 2021

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

NOTE

7:

         

EQUITY-ACCOUNTED INVESTMENT

Uranium Royalty Corp. is a public company listed on the TSX Venture Exchange with the trading symbol URC.V and on NASDAQ with the trading symbol UROY.

During Fiscal

2021,

we participated in an equity financing and acquired an additional

1,000,000

common shares of URC at a price of

CA$4.10

per share for total consideration of

$3,396,852.

As at

July 31, 2021,

we hold

15,000,000

URC shares with an approximate fair value of

$43.9

million.

As at

July 31, 2021,

we owned a

18.1%

(

July 31, 2020:

19.5%

) interest in URC. In addition,

two

of our officers are members of URC's board of directors,

one

of which is also an executive officer of URC. As a consequence, our ability to exercise significant influence over URC's operating and financing policies continued to exist at

July 31, 2021.

Should URC's outstanding options and warrants be fully exercised, UEC's ownership interest would decrease from

18.1%

to

13.9%.

During Fiscal

2021

and Fiscal

2020,

we recorded a gain on ownership interest dilution of

$4,471,558

and

$3,056,656,

respectively, as a result of URC issuing more shares from its equity financings and the exercises of URC's share purchase warrants.

During Fiscal

2021,

we recorded a translation gain of

$613,491,

whereas during Fiscal

2020,

we recorded a translation loss of

$132,705,

as a result of translating the ending balance of the equity-accounted investment denominated in Canadian Dollars to U.S. Dollars using the period end exchange rates, which was included in other comprehensive income (loss) in our Consolidated Statements of Operations and Comprehensive Loss.

During Fiscal

2021

and Fiscal

2020,

the changes in carrying value of our equity-accounted investment are summarized as follows:

Balance, July 31, 2019	$	8,680,449
Loss from equity-accounted investment		(89,073	)
Gain on ownership interest dilution		3,056,656
Translation loss		(132,705	)
Balance, July 31, 2020		11,515,327
Addition		3,396,852
Income from equity-accounted investment		732,446
Gain on ownership interest dilution		4,471,558
Translation gain		613,491
Balance, July 31, 2021	$	20,729,674