Convertible debentures (Tables)

3 Months Ended

Oct. 31, 2025

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

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
Repayment		(345,909	)
Accretion		230,015
Interest		271,200
Balance as at October 31, 2025	$	13,244,818

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

	October 31, 2025		July 31, 2025
Convertible debentures, short-term, related party	$	379,703	$	375,027
Convertible debentures, long-term, related party		4,052,638		3,914,146
Convertible debentures, long-term		8,812,477		8,800,339
	$	13,244,818	$	13,089,512

Below is a continuity of the embedded derivative liabilities:

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
Change in fair value of derivative liabilities		1,500
Balance as at October 31, 2025	$	74,000

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, 2025)			As at July 31, 2025			As at October 31, 2025
Probability of De-SPAC Transaction closing		90% - 99	%		N/A			N/A
Risk-free interest rate		0.61% - 4.25	%		2.75	%		2.33	%
Expected term (years)		0.01 – 2.00			1.63			1.38
Expected annual volatility for the Company		92.5% - 150	%		150	%		150	%
Expected annual volatility for Focus Impact		2.5% - 100	%		N/A			N/A
Common conversion ratio		0.063 - 0.1462			N/A			N/A
Foreign exchange rate		0.718 - 0.734			N/A			N/A