Convertible debentures (Tables)

12 Months Ended

Jul. 31, 2025

A continuity of the Company’s convertible debentures is as follows:

Balance as at August 1, 2023	$	-
Issued		920,000
Fair value of embedded derivative		(73,550	)
Transaction costs		(36,484	)
Accretion		52,552
Interest		19,026
Balance as at July 31, 2024	$	881,544
Issued		13,686,133
Fair value of embedded derivative		(138,250	)
Issuance discount		(800,000	)
Transaction costs		(85,000	)
Repayment		(448,151	)
Accretion		346,424
Interest		305,591
Accrued interest transferred to accrued liabilities		(21,129	)
Extinguishment		(3,982,650	)
Assumed on RTO		3,345,000
Balance as at July 31, 2025	$	13,089,512

Breakdown of the Company’s convertible debentures is as follows:

	July 31, 2025		July 31, 2024
Convertible debentures, short-term, related party	$	375,027	$	881,544
Convertible debentures, long-term, related party		3,914,146		-
Convertible debentures, long-term		8,800,339		-
	$	13,089,512	$	881,544

Below is a continuity of the embedded derivative liabilities:

Balance as at August 1, 2023	$	-
Derivative liability component		73,550
Change in fair value of derivative liabilities		845,700
Balance as at July 31, 2024	$	919,250
Derivative liability component		138,250
Change in fair value of derivative liabilities		(719,000	)
Transferred to equity		(266,000	)
Balance as at July 31, 2025	$	72,500

The key inputs used in the Monte Carlo model for the derivative liabilities were as follows:

	At initial measurement (for the year ended July 31, 2024)			As at July 31, 2024			At initial measurement (for the year ended July 31, 2025)			As at July 31, 2025
Probability of De-SPAC Transaction closing		90	%		90	%		90% - 99	%		N/A
Risk-free interest rate		4.60% - 4.87	%		4.27% - 4.38	%		0.61% - 4.25	%		2.75	%
Expected term (years)		0.35 – 0.82			0.26 - 0.54			0.01 – 2.00			1.63
Expected annual volatility for the Company		90% - 145	%		85% - 112	%		92.5% - 150	%		150	%
Expected annual volatility for Focus Impact		2.5% - 5	%		2.5	%		2.5% - 100	%		N/A
Common conversion ratio		0.083 - 0.155			0.083			0.063 – 0.1462			N/A
Foreign exchange rate		0.727 - 0.747			0.7242			0.718 – 0.734			N/A