Note 12 - Derivative Liabilities

9 Months Ended

Apr. 30, 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 April 30, 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 U.S. dollars	1.066 to3.2727
Exercise Price in Canadian dollars	CA$1.44 to CA$4.44
Expected Risk Free Interest Rate		4.04% to 4.48	%
Expected Volatility		41.20% to 83.93	%
Expected Life in Years		0.05 to 1.36
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		(4,463	)
Balance, April 30, 2023		4,252
Derivative liabilities, current		1,034
Derivative liabilities, non-current	$	3,218