Note 12 - Derivative Liabilities

3 Months Ended

Oct. 31, 2022

Notes to Financial Statements

Derivatives and Fair Value [Text Block]

NOTE 12: DERIVATIVE LIABILITIES

On August 19, 2022, the Company issued Replacement Warrants (Note 3) in connection with the closing of the UEX Acquisition. The Replacement Warrants are accounted for as derivative liabilities because the exercise prices of the warrants are denominated in Canadian dollars which differs from our functional currency.  As at October 31, 2022, the fair value of the Replacement Warrants was estimated using the Black-Scholes model with the following assumptions, which is level 3 of the fair value measurement hierarchy:

Exercise Price in USD	$1.06	to	$3.25
Exercise Price in CAD	CA$1.44	to	CA$4.44
Expected Risk Free Interest Rate	4.53%	to	4.48%
Expected Volatility	92.88%	to	96.99%
Expected Life in Years	0.55	to	1.85
Expected Dividend Yield		0.00%

The movement in derivative liabilities during the period is as follows:

Balance, July 31, 2022	$	-
Fair value of derivative liability assumed from UEX Acquisition (Note 3)		8,903
Change in fair value during the period		2,625
Balance, October 31, 2022		11,528
Derivative liabilities, current		2,706
Derivative liabilities, non-current	$	8,822