DERIVATIVE LIABILITY

3 Months Ended

Oct. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

10. DERIVATIVE LIABILITY

The exercise price of the Company's share purchase warrants is fixed in Canadian dollars and the functional currency of the Company is the USD. These warrants are considered to be a derivative as a variable amount of cash in the Company's functional currency will be received on exercise of the warrants. Accordingly, the share purchase warrants issued as part of past financings, are classified and accounted for as a derivative liability.

The following table shows a continuity of the Company's derivative liability:

				Number of warrants
				accounted for as
		Warrant derivative		derivative liability
Balance, July 31, 2022	$	373,910		4,991,645
Fair value adjustment		(233,895	)	-
Balance, July 31, 2023	$	140,015		4,991,645
Fair value adjustment		82,481		-
Balance, October 31, 2023	$	222,496		4,991,645

For the three-month period ended October 31, 2023, the Company recorded a total loss on fair value of derivative liability of $82,481 during the period (October 31, 2022 - gain of $17,984).

The following weighted average assumptions were used for the Black-Scholes pricing model valuation of warrants as at October 31, 2023 and July 31, 2023:

	October 31, 2023	July 31, 2023

Risk-free interest rate	4.63%	4.67%
Expected life of warrants	0.67 to 0.80 years	0.93 to 1.05 years
Expected annualized volatility	158.5% to 167.04%	151.04% to 154.60%
Share price at measurement date	$0.29	$0.19
Dividend	Nil	Nil
Forfeiture rate	0%	0%