Note 15 - Derivative Liabilities

12 Months Ended

Jul. 31, 2023

Notes to Financial Statements

Derivatives and Fair Value [Text Block]

NOTE 15: 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 July 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 U.S. dollars	2.444 to3.3636
Exercise Price in Canadian dollars	CAD$3.22 to CAD$4.44
Expected Risk Free Interest Rate	5.25	%
Expected Volatility	64.43	%
Expected Life in Years	1.11
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
Exercise of Replacement Warrants		(1,297	)
Change in fair value		(3,293	)
Balance, July 31, 2023	$	4,313