Note 12 - Derivative Liabilities

6 Months Ended

Jan. 31, 2023

Notes to Financial Statements

Derivatives and Fair Value [Text Block]

NOTE 12:         DERIVATIVE LIABILITIES

On August 19, 2022, the Company issued Replacement Warrants (refer to Note 3) in connection with the closing of the UEX Acquisition. The Replacement Warrants are accounted for as derivative liabilities as the exercise prices of the Replacement Warrants are denominated in Canadian dollars which differs from our functional currency.

As at January 31, 2023, the fair value of the Replacement Warrants was estimated using the Black-Scholes model with the following assumptions, which is level 2 of the fair value measurement hierarchy:

Exercise Price in USD	$1.08		to	$3.33
Exercise Price in CAD	CA$1.44		to	CA$4.44
Expected Risk Free Interest Rate		4.35%	to	4.69	%
Expected Volatility		57.80%	to	87.25	%
Expected Life in Years		0.30	to	1.60
Expected Dividend Yield				0.00	%

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

Balance, July 31, 2022	$	-
Fair value of derivative liabilities assumed from UEX Acquisition (Note 3)		8,903
Warrants exercised		(188	)
Change in fair value during the period		1,087
Balance, January 31, 2023		9,802
Derivative liabilities, current		2,320
Derivative liabilities, non-current	$	7,482