Note 15 - Derivative Liabilities

12 Months Ended

Jul. 31, 2024

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, 2024, 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:

	July 31, 2024			July 31, 2023
Exercise Price in U.S. dollars	2.333 to3.2222			2.444 to3.3636
Exercise Price in Canadian dollars	CAD$3.22 to CAD$4.44			CAD$3.22 to CAD$4.44
Expected Risk Free Interest Rate		5.42	%		5.25	%
Expected Volatility		55.00	%		64.43	%
Expected Life in Years		0.1			1.1
Expected Dividend Yield		0.00	%		0.00	%

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

	July 31, 2024			July 31, 2023
Balance, beginning of year	$	4,313		$	—
Derivative liabilities assumed from UEX Acquisition (Note 3)		-			8,903
Exercise of Replacement Warrants		(9,509	)		(1,297	)
Change in fair value		8,226			(3,293	)
Balance, end of year	$	3,030		$	4,313
Current derivative liabilities		(3,030	)		-
Non-current derivative liabilities	$	-		$	4,313

Subsequent to July 31, 2024, 1,043,172 Replacement Warrants were exercised and proceeds of $3,387 were received.  The remaining 40,329 were expired unexercised on September 7, 2024.