Note 11 - Investments in Equity Securities

12 Months Ended

Jul. 31, 2025

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE 11: INVESTMENTS IN EQUITY SECURITIES

The changes in our investments in equity securities are summarized as follows:

	July 31, 2025			July 31, 2024
Balance, beginning of year	$	75,264		$	38,656
Investment in public listed companies		25,695			12,115
Sale of investment in public listed companies		(54,438	)		(3,008	)
Fair value gain (loss) on equity securities (Note 18)		(18,051	)		27,505
Foreign exchange difference		-			(4	)
Balance, end of year		28,470			75,264
Current investment in equity securities		-			(68,731	)
Non-current investment in equity securities	$	28,470		$	6,533

On January 15, 2025, the Company completed the acquisition of 1,428,572 post-consolidated common shares of Anfield ⁽¹⁾ for total consideration of $10.46 million pursuant to a subscription agreement between the Company and Anfield. On February 20, 2025, the Company entered into an indemnification support agreement with Anfield. Under this agreement the Company provides an indemnity of $3.00 million in favour of Anfield for its surety bond and, in return, obtains the right to nominate members to Anfield board of directors in proportion to the Company’s ownership in Anfield. The indemnity may be canceled by the Company upon delivery of 30 days’ written notice. On June 20, 2025, the Company acquired an additional 2,266,666 post-consolidated common shares of Anfield by a private agreement for total consideration of $14.24 million.

Pursuant to ASC 323 Investments – Equity Method and Joint Ventures, there is a rebuttable presumption that equity method of accounting shall be applied for investments of 20% or more of the investee’s outstanding voting common stock. As at July 31, 2025, the Company owned 4,978,877 post-consolidated common shares⁽¹⁾ of Anfield ( July 31, 2024: 1,283,639 on a post-consolidated basis⁽¹⁾), representing approximately 31.8% ( July 31, 2024: 9.5%) of the outstanding common shares of Anfield on a non-diluted basis and approximately 37.0% ( July 31, 2024: 13.1%) on a partially diluted basis after assuming the exercise of 1,283,639 post - consolidated share purchase warrants of Anfield (the "Anfield Warrants") held by the Company. As a result, the Company’s investment in Anfield’s common shares is subject to equity method of accounting. However, as permitted under ASC 825 Financial Instruments, the Company elected to apply the fair value option to account for its investment in Anfield’s common shares. All subsequent changes in fair value of the common shares of Anfield are recognized in the consolidated statements of operations.

As at July 31, 2025, the fair value of the Company’s investment in Anfield’s common shares was $26.14 million ( July 31, 2024: $4.72 million) and the fair value of Anfield Warrants was $1.39 million ( July 31, 2024: $1.74 million). The fair value gain on the Company's investment in Anfield's common shares from the date of the fair value option was elected to July 31, 2025 was $1.22 million. See also Note 18. 

The cumulative revaluation adjustment since acquisition of the equity securities held as at  July 31, 2025 is a loss of $8.18 million.

⁽¹⁾ Effective August 1, 2025, Anfield completed a share consolidation on the basis of one (1) post-consolidation common share for every seventy-five (75) pre-consolidation common shares. All references to Anfield’s common shares in this note are presented on a post-consolidated basis.