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AnorTech Inc. — Interim / Quarterly Report 2025
Mar 3, 2025
45051_rns_2025-03-03_ee71bb66-966b-48b1-a502-c6eeaf4c8f2c.pdf
Interim / Quarterly Report
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ANORTECH
ANORTECH INC.
(Formerly HUDSON RESOURCES INC.)
FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED DECEMBER 31, 2024 AND 2023
(Unaudited)
(Expressed in Canadian Dollars)
NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS
Under National Instrument 51-102, Part 4, subsection 4.3(3) (a), if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor. The Company's independent auditor has not performed a review of these financial statements in accordance with standards established by the Canadian Institute of Chartered Accountants for a review of interim financial statements by an entity's auditor.
The accompanying unaudited condensed interim financial statements of AnorTech Inc. for the nine months ended December 31, 2024, have been prepared by the management of the Company and approved by the Company's Audit Committee and the Company's Board of Directors.
The accompanying unaudited condensed interim financial statements of the Company have been prepared by and are the responsibility of the Company's management.
AnorTech Inc.
Statements of Financial Position
(Unaudited)
(Expressed in Canadian Dollars)
| As at | December 31, 2024 | March 31, 2024 |
|---|---|---|
| ASSETS | ||
| Current assets | ||
| Cash | $ 2,694,622 | $ 3,421,955 |
| Sales tax and other receivables | 14,964 | 31,235 |
| Prepaid expenses | 33,164 | 16,126 |
| 2,742,750 | 3,469,316 | |
| Non-current assets | ||
| Equipment and right of use asset (note 3) | 3,987 | 5,534 |
| Resource properties (note 4) | 6,380 | 6,380 |
| 10,367 | 11,914 | |
| TOTAL ASSETS | $ 2,753,117 | $ 3,481,230 |
| LIABILITIES | ||
| Current liabilities | ||
| Accounts payable and accrued liabilities (note 5) | $ 8,990 | $ 80,245 |
| TOTAL LIABILITIES | 8,990 | 80,245 |
| EQUITY (DEFICIENCY) | ||
| Share capital (note 6(b)) | $ 78,370,502 | $ 78,370,502 |
| Reserves | 13,488,208 | 13,407,500 |
| Deficit | (89,114,583) | (88,377,017) |
| TOTAL EQUITY (DEFICIENCY) | 2,744,127 | 3,400,985 |
| TOTAL EQUITY (DEFICIENCY) AND LIABILITIES | $ 2,753,117 | $ 3,481,230 |
Corporate information and continuance of operations (note 1)
Commitments (note 8)
Segmented information (note 9)
The accompanying notes are an integral part of these unaudited condensed interim financial statements.
/s/ Kevin Crawford Director
/s/ Donna Phillips Director
AnorTech Inc.
Statements of Loss and Comprehensive Loss
(Unaudited)
(Expressed in Canadian Dollars)
| For the three months ended | For the nine months ended | |||
|---|---|---|---|---|
| December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |
| EXPENSES | ||||
| Depreciation (note 3) | $ 516 | $ 807 | $ 1,547 | $ 1,442 |
| Directors' fees (note 7) | - | 24,000 | - | 72,000 |
| Exploration and evaluation costs | 122,231 | 15,571 | 451,202 | 127,083 |
| Foreign exchange | (1,151) | 226 | (3,698) | 442 |
| Interest | 591 | 295 | 1,576 | 3,013 |
| Office | 11,415 | 6,350 | 28,511 | 19,585 |
| Personnel costs (note 7) | 79,278 | 84,763 | 224,730 | 353,900 |
| Professional fees (note 7) | 20,841 | 33,999 | 84,260 | 103,045 |
| Rent | 367 | 376 | 1,477 | 1,504 |
| Share-based payments (note 6, 7) | 19,525 | 4,156 | 80,708 | 21,989 |
| Shareholder and community engagement | 530 | 706 | 2,762 | 4,596 |
| Transfer agent and filing fees | 12,074 | 4,975 | 23,725 | 15,633 |
| Travel and accommodation | (4,752) | 174 | 34,398 | 5,640 |
| TOTAL EXPENSES | (261,465) | (176,398) | (931,198) | (729,872) |
| OTHER ITEMS | ||||
| Other income | 29,325 | 374,608 | 82,084 | 548,043 |
| Interest income | 28,904 | 41,822 | 111,548 | 106,455 |
| Gain on sale of mineral property (note 4) | - | - | - | 4,679,376 |
| NET INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD | $ (203,236) | $ 240,032 | $ (737,566) | $ 4,604,002 |
| Basic earnings (loss) per share for the period | $ (0.00) | $ 0.00 | $ (0.00) | $ 0.03 |
| Fully diluted earnings (loss) per share for the period | $ (0.00) | $ 0.00 | $ (0.00) | $ 0.03 |
| Weighted average number of common shares outstanding - basic | 181,642,538 | 181,642,538 | 181,642,538 | 181,642,538 |
| Weighted average number of common shares outstanding - fully diluted | 181,642,538 | 181,642,538 | 181,642,538 | 181,642,538 |
The accompanying notes are an integral part of these unaudited condensed interim financial statements.
AnorTech Inc.
Statement of Changes in Deficiency
(Unaudited)
(Expressed in Canadian Dollars)
| Note | Share capital | Reserves | Deficit | Total | ||||
|---|---|---|---|---|---|---|---|---|
| Number of shares | Amount | Additional paid-in capital | Stock options reserve | Warrants reserve | ||||
| Balance at March 31, 2023 | 181,642,538 | $ 78,370,502 | $ 11,166,545 | $ 1,751,209 | $ 464,804 | $ (92,835,900) | $ (1,082,840) | |
| Expiry of stock options | 6(d) | - | - | 775,370 | (775,370) | - | - | - |
| Share-based payments | 6(d) | - | - | - | 21,989 | - | - | 21,989 |
| Loss and comprehensive loss | - | - | - | - | - | 4,604,002 | 4,604,002 | |
| Balance at December 31, 2023 | 181,642,538 | $ 78,370,502 | $ 11,941,915 | $ 997,828 | $ 464,804 | $ (88,231,898) | $ 3,543,151 | |
| Balance at March 31, 2024 | 181,642,538 | $ 78,370,502 | $ 12,119,172 | $ 823,524 | $ 464,804 | $ (88,377,017) | $ 3,400,985 | |
| Expiry of warrants | 6(c) | - | - | 464,804 | - | (464,804) | - | - |
| Cancellation and foreiture of stock options | 6(d) | - | - | 14,336 | (14,336) | - | - | - |
| Share-based payments | 6(d) | - | - | - | 80,708 | - | - | 80,708 |
| Income and comprehensive income | - | - | - | - | - | (737,566) | (737,566) | |
| Balance at December 31, 2024 | 181,642,538 | $ 78,370,502 | $ 12,598,312 | $ 889,896 | $ - | $ (89,114,583) | $ 2,744,127 |
The accompanying notes are an integral part of these unaudited condensed interim financial statements.
AnorTech Inc.
Statements of Cash Flows
(Unaudited)
(Expressed in Canadian Dollars)
| For the nine months ended December 31, 2024 December 31, 2023 | ||
|---|---|---|
| Cash flows from (used in): | ||
| OPERATING ACTIVITIES | ||
| Net income (loss) for the Year | $ (737,566) | $ 4,604,002 |
| Adjustments for items not affecting cash: | ||
| Depreciation | 1,547 | 1,442 |
| Share-based payments | 80,708 | 21,989 |
| Interest and financing costs | - | 1,795 |
| Gain on sale of mineral property | - | (4,679,376) |
| (655,311) | (50,148) | |
| Net changes in non-cash working capital items: | ||
| Sales tax and other receivables | 16,271 | (5,195) |
| Prepaid expenses | (17,038) | (29,389) |
| Accounts payable and accrued liabilities | (71,255) | (625,646) |
| Net cash flows used in operating activities | (727,333) | (710,378) |
| FINANCING ACTIVITIES | ||
| Repayment of note payable | - | (224,520) |
| Net cash flows from (used in) financing activities | - | (224,520) |
| INVESTING ACTIVITIES | ||
| Equipment purchases | - | (6,875) |
| Resource property acquisition costs | - | (3,295) |
| Proceeds from sale of mineral properties | - | 4,377,796 |
| Net cash flows from investing activities | - | 4,367,626 |
| Net increase (decrease) in cash | (727,333) | 3,432,728 |
| Cash, beginning of period | 3,421,955 | 100,205 |
| Cash, end of period | $ 2,694,622 | $ 3,532,933 |
| Cash received during the period for interest | $ 111,547 | $ 106,455 |
| Cash paid during the year for interest on note payable | $ - | $ 29,520 |
| Supplementary cash flow information | ||
| Reclassification of the fair value of options expired | $ 14,336 | $ 775,370 |
| Reclassification of the fair value of warrants expired | $ 464,804 | $ - |
The accompanying notes are an integral part of these unaudited condensed interim financial statements.
AnorTech Inc.
Notes to the Financial Statements
For the Nine months ended December 31, 2024 and 2023
(Unaudited)
(Expressed in Canadian Dollars)
1. CORPORATE INFORMATION AND CONTINUANCE OF OPERATIONS
AnorTech Inc. (formerly "Hudson Resources Inc.") ("AnorTech" or the "Company") is a publicly listed company and its shares are listed on the TSX Venture Exchange under the symbol "ANOR" (formerly "HUD") and on the OTCQB Venture Market ("OTCQB") under the symbol "ANORF". The Company was incorporated on March 7, 2000, under the Company Act of the Province of British Columbia and changed its name to AnorTech Inc. effective March 21, 2024. The Company's head office and the registered records office are located at Suite 1500 - 701 West Georgia St, Vancouver, BC V7Y 1C6.
The Company is in the business of prospecting for, developing, and mining mineral resources located in Greenland. AnorTech previously completed the sale of its wholly owned Nukittooq niobium - tantalum ("Nb-Ta") project and its Sarfartoq rare earth element ("REE") project but retains a 5% future interest. The Company is currently focused on the exploration of its wholly owned Gronne Bjerg exploration license for anorthosite located in Greenland. The Company is continuing to carry out research and testwork of the uses of anorthosite with a focus on green alumina and CO₂ free cement. The Company may also acquire, explore and evaluate other resource properties, and either joint venture or develop these properties further or dispose of them when the evaluation is completed.
The Company has not generated revenue from operations and has experienced recurring operating losses. For the current nine months ended December 31, 2024, the Company recorded a net loss of $737,566 and has an accumulated deficit of $89,114,583.
As at December 31, 2024, the Company had working capital of $2,733,760. Working capital is defined as current assets less current liabilities and provides a measure of the Company's ability to settle liabilities that are due within one year with assets that are also expected to be converted into cash within one year. The Company believes it has the necessary cash to fund its operations over the next 12 months. The Company will, however, periodically need to raise funds to continue operations and, although it has been successful in doing so in the past, there is no assurance it will be able to do so in the future.
These financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern. Realizable values may be substantially different from carrying values as shown.
Page 7 of 17
AnorTech Inc.
Notes to the Financial Statements
For the Nine months ended December 31, 2024 and 2023
(Unaudited)
(Expressed in Canadian Dollars)
2. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION
Statement of compliance and basis of preparation
These financial statements of the Company have been prepared in accordance with IFRS Accounting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB") and interpretations of the International Financial Reporting Interpretations Committee ("IFRIC").
These condensed interim financial statements comply with International Accounting Standard 34, Interim Financial Reporting ("IAS 34"). These condensed interim financial statements, including comparatives, have been prepared on the basis of IFRS standards that are published at the time of preparation and that are effective on April 1, 2024.
Basis of consolidation and equity accounting
Subsidiaries are all entities (including structured entities) over which the Company has control. The Company controls an entity where the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. Subsidiaries are deconsolidated from the date that control ceases. All intercompany balances, transactions, income and expenses, and profits or losses are eliminated on consolidation.
Associates are all entities over which the Company has significant influence but not control or joint control. This is generally the case where the Company holds between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting after initially being recognized at cost.
Under the equity method of accounting, the investments are initially recognized at cost and adjusted thereafter to recognize the Company's share of the post-acquisition profits or losses of the investee in profit or loss, and the Company's share of movements in other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates and joint ventures are recognized as a reduction in the carrying amount of the investment. Where the Company's share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the Company does not recognize further losses, unless it has incurred obligations or made payments on behalf of the other entity.
Unrealized gains on transactions between the Company and its associates and joint ventures are eliminated to the extent of the Company's interest in these entities. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
The carrying amount of equity-accounted investments is tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs of disposal and value in use.
The Company previously accounted for its interest in Lumina Sustainable Minerals A/S (Lumina) on an equity basis. During the year ended March 31, 2024, AnorTech relinquished its 31.1% interest in Lumina to allow the Company to focus all efforts on its 100% owned Gronne Bjerg anorthosite project. Since the carrying value of this investment was reduced to $nil from its share of cumulative losses associated with Lumina during the fiscal year ended March 31, 2022, no gain or loss was recorded on this transaction.
Page 8 of 17
AnorTech Inc.
Notes to the Financial Statements
For the Nine months ended December 31, 2024 and 2023
(Unaudited)
(Expressed in Canadian Dollars)
2. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONTINUED)
Basis of presentation
These condensed interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting. They do not include all of the information and disclosures required in full annual financial statements and should be read in conjunction with the Company's annual financial statements as at March 31, 2024 which have been prepared in accordance with IFRS. These condensed interim financial statements have been prepared on a historical cost basis except for financial instruments carried at fair value. In addition, these condensed consolidated interim financial statements have been prepared using the accrual basis of accounting except for cash flow information.
These condensed interim financial statements follow the same accounting policies and methods of application as the annual audited financial statements for the year ended March 31, 2024.
These condensed interim financial statements were approved and authorized for issue by the Company's Board of Directors on February 28, 2025.
Functional and presentation currency
These condensed consolidated interim financial statements are presented in Canadian dollars ("CAD") which is the functional currency of the Company.
3. EQUIPMENT AND RIGHT OF USE ASSET
| Computer equipment | Right of use asset | Total | |
|---|---|---|---|
| Cost | |||
| As at March 31, 2024 | $ 30,136 | $ 138,210 | $ 168,346 |
| Additions | - | - | - |
| Balance as at December 31, 2024 | $ 30,136 | $ 138,210 | $ 168,346 |
| Depreciation | |||
| As at March 31, 2024 | $ (24,602) | $ (138,210) | $ (162,812) |
| Charged for the year | (1,547) | - | (1,547) |
| Balance as at December 31, 2024 | $ (26,149) | $ (138,210) | $ (164,359) |
| Net book value | |||
| As at March 31, 2024 | $ 5,534 | $ - | $ 5,534 |
| As at December 31, 2024 | $ 3,987 | $ - | $ 3,987 |
AnorTech Inc.
Notes to the Financial Statements
For the Nine months ended December 31, 2024 and 2023
(Unaudited)
(Expressed in Canadian Dollars)
4. RESOURCE PROPERTIES
The Company currently has one Exploration Licenses ("EL") in Greenland. The Gronne Bjerg EL (2021/56) with license M-306 is located near Nuuk in West Greenland
| Sarfartoq Mineral Claim | Gronne Bjerg Mineral Claim | Total | |
|---|---|---|---|
| Acquisition costs / license fees | |||
| Balance as at March 31, 2023 | $ 7,246 | $ 6,380 | $ 13,626 |
| Additions | 885 | - | 885 |
| Balance as at March 31, 2024 | $ 8,131 | $ 6,380 | $ 14,511 |
| Disposition | (8,131) | - | (8,131) |
| Balance as at December 31, 2024 | $ - | $ 6,380 | $ 6,380 |
In April 2023, the Company completed the sale of its Sarfartoq Exploration License ("Agreement") to Neo Performance Materials Inc. ("Neo"). The Company received proceeds totaling $4,687,506 (US$ 3,500,000) and recorded a gain on sale of mineral property of $4,679,376.
Upon closing of the transaction, the Company transferred the License to a special purpose entity ("SPE") pursuant to the Agreement. If within five years from the date of closing of the transaction (1) the SPE transfers the License, or there is a change in control of the SPE pursuant to an acquisition or merger, the Company will receive 5% of the total consideration received by the SPE in connection with such transfer, or (2) the SPE conducts an initial public offering on a stock exchange ("IPO"), then the Company will receive 5% of the fully diluted equity interests in the SPE immediately prior to the IPO.
5. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
The Company's accounts payable and accrued liabilities are broken down as follows:
| December 31, 2024 | March 31, 2024 | ||
|---|---|---|---|
| Trade payables | $ | 2,469 | $ 11,983 |
| Accrued liabilities | 6,521 | 68,262 | |
| $ | 8,990 | $ 80,245 |
AnorTech Inc.
Notes to the Financial Statements
For the Nine months ended December 31, 2024 and 2023
(Unaudited)
(Expressed in Canadian Dollars)
6. SHARE CAPITAL
a) Authorized share capital
Unlimited number of common shares without par value.
b) Issued share capital
For the nine months ended December 31, 2024
- none
For the nine months ended December 31, 2023
- None
c) Share purchase warrants
| Number outstanding | Weighted average exercise price | |
|---|---|---|
| Balance, March 31, 2024 | 2,850,000 | $ 0.45 |
| Expired | (2,850,000) | 0.45 |
| Balance, December 31, 2024 | - | $ - |
A summary of changes in warrants during the nine months ended December 31, 2024 and 2023 are as follow:
For the nine months ended December 31, 2024
- 2,850,000 warrants with an exercise price of $0.45 expired without exercise.
For the nine months ended December 31, 2023
- None.
Page 11 of 17
AnorTech Inc.
Notes to the Financial Statements
For the Nine months ended December 31, 2024 and 2023
(Unaudited)
(Expressed in Canadian Dollars)
6. SHARE CAPITAL (CONTINUED)
d) Stock options
The Company has a stock option plan whereby the maximum number of shares reserved for issue shall not exceed 10% of the issued and outstanding common shares of the Company as at the date of the grant. The maximum number of common shares reserved for issue to any one optionee under the plan cannot exceed 5% of the total issued and outstanding number of common shares on a non-diluted basis. The maximum number of common shares reserved for issue to any insiders as a group shall not exceed 10% of the total number of issued and outstanding shares on a non-diluted basis. The maximum number of common shares reserved for issue to any one consultant shall not exceed 2% of the total number of issued and outstanding shares on a non-diluted basis. The maximum number of common shares reserved for issue to all eligible persons who undertake investor relation activities shall not exceed 2% in the aggregate of the total number of issued and outstanding shares on a non-diluted basis. The Company has granted directors, officers and consultants common share purchase options ("Options"). These Options are granted with an exercise price equal to no less than the closing market price of the Company's shares prevailing on the day that the Option is granted. Options may have a maximum term of ten years. Under the stock option plan, the Board of Directors can determine vesting periods for Options granted.
| Number outstanding | Weighted average exercise price | |
|---|---|---|
| Balance, March 31, 2024 | 7,540,000 | $ 0.14 |
| Granted | 4,950,000 | 0.05 |
| Cancelled | (290,000) | 0.15 |
| Balance, December 31, 2024 | 12,200,000 | $ 0.10 |
The changes in stock options during the nine months ended December 31, 2024 and 2023 are as follow:
For the Nine months ended December 31, 2024
- 4,950,000 stock options with exercise price of $0.05 and expiry of September 4, 2029 were granted to the Company's employees and directors.
- 290,000 stock options with an exercise price of $0.15 were cancelled.
For the Nine months ended December 31, 2023
- 3,580,000 stock options with exercise price of $0.47 expired without exercise.
Page 12 of 17
AnorTech Inc.
Notes to the Financial Statements
For the Nine months ended December 31, 2024 and 2023
(Unaudited)
(Expressed in Canadian Dollars)
6. SHARE CAPITAL (CONTINUED)
d) Stock options (continued)
The following summarizes information about Options outstanding and exercisable as at September 30, 2024:
| Expiry date | Options outstanding | Options exercisable | Exercise price | Estimated grant date fair value | Weighted average remaining contractual life (in years) |
|---|---|---|---|---|---|
| August 10, 2025 | 3,350,000 | 3,640,000 | $ 0.15 | $ 179,955 | 0.61 |
| November 10, 2025 | 900,000 | 900,000 | $ 0.40 | $ 161,171 | 0.86 |
| October 17, 2027 | 3,000,000 | 2,000,002 | $ 0.05 | $ 71,171 | 2.79 |
| September 4, 2029 | 4,950,000 | 1,650,004 | $ 0.05 | $ 150,291 | 4.68 |
| 12,200,000 | 8,190,006 | $ 0.10 | $ 412,297 | $ 2.82 |
The estimated grant date fair value of the options granted during the nine months ended December 31, 2024 was calculated using the Black-Scholes option pricing model with the following weighted average assumptions:
| Share price at the grant date | $ | 0.04 |
|---|---|---|
| Risk-free interest rate | 2.82% | |
| Expected annual volatility | 107.08% | |
| Expected life | 5.00 | |
| Expected dividend yield | - | |
| Grant date fair value per option | $ | 0.03 |
During the nine months ended December 31, 2024, the Company recognized share-based payments expense of $80,708 (2024 – $21,989) from stock options.
d) Reserves
Additional paid-in capital
Additional paid-in capital records the fair value of the expired options and warrants initially recorded in stock options reserve or warrants reserve.
Stock options reserve
The stock options reserve records items recognized as share-based payments expense until such time that the stock options are exercised, at which time the corresponding amount will be transferred to share capital. If the options expire unexercised, the amount recorded is transferred to additional paid-in capital.
Warrants reserve
The warrants reserve records the fair value of the warrants issued until such time that the warrants are exercised, at which time the corresponding amount will be transferred to share capital. If the warrants expire unexercised, the amount recorded is transferred to additional paid-in capital.
Page 13 of 17
AnorTech Inc.
Notes to the Financial Statements
For the Nine months ended December 31, 2024 and 2023
(Unaudited)
(Expressed in Canadian Dollars)
7. RELATED PARTY TRANSACTIONS AND BALANCES
a) Related party balances
The total balance due to related parties included in accounts payable and accrued liabilities was $Nil for personnel costs as at December 31, 2024 (March 31, 2024 – $13,244). These amounts are unsecured and non-interest bearing.
b) Key management personnel compensation
Key management personnel are persons responsible for planning, directing and controlling the activities of an entity, and include executive and non-executive directors. Key management personnel compensation is comprised of:
| For the nine months ended | ||
|---|---|---|
| December 31, 2024 | December 31, 2023 | |
| Short-term benefits - personnel costs | $ 198,360 | $ 336,996 |
| Short-term benefits - professional fees | 56,250 | 56,250 |
| Short-term - directors' fees | - | 72,000 |
| Share-based payments | 79,959 | 21,989 |
| $ 334,568 | $ 487,235 |
The Company entered into a consulting agreement with the SPE from the completion of the sale of Sarfartoq to provide technical and consulting services by its President through the Company with the agreement dating back to September 2022. Personnel costs in the prior period include retroactive compensation to September 2022 for the additional time spent by the Company's President on this arrangement.
8. COMMITMENTS
The Gronne Bjerg license has certain minimum work commitment expenditures amounting to approximately DKK 450,000 (approximately $90,000) per calendar year for 2024. 2025, and 2026 under its exploration license.
Page 14 of 17
AnorTech Inc.
Notes to the Financial Statements
For the Nine months ended December 31, 2024 and 2023
(Unaudited)
(Expressed in Canadian Dollars)
9. SEGMENTED INFORMATION
The Company has one operating segment: the exploration and evaluation, and development of resource properties in Greenland. The Company's assets are located in the following geographic areas:
| Canada | Greenland | Total | |
|---|---|---|---|
| As at March 31, 2024 | |||
| Equipment and right of use asset | $ 616 | $ - | $ 616 |
| Resource properties | - | 14,511 | 14,511 |
| $ 616 | $ 14,511 | $ 15,127 | |
| As at December 31, 2024 | |||
| Equipment | $ 3,987 | $ - | $ 3,987 |
| Resource properties | - | 6,380 | 6,380 |
| $ 3,987 | $ 6,380 | $ 10,367 |
10. CAPITAL MANAGEMENT
The Company manages and adjusts its capital structure based on the funds available to the Company in order to support future development activities. The Board of Directors does not establish quantitative returns on capital criteria for management, but rather relies on the expertise of the Company's management to sustain the future development of the business.
In order to further exploration and development activities, the Company will spend its existing working capital and raise additional funds, if required. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable.
There were no changes in the Company's approach to capital management during the nine months ended December 31, 2024.
The Company has no externally imposed capital requirements.
Page 15 of 17
AnorTech Inc.
Notes to the Financial Statements
For the Nine months ended December 31, 2024 and 2023
(Unaudited)
(Expressed in Canadian Dollars)
11. FINANCIAL INSTRUMENTS
a) Fair value
Financial assets and liabilities that are recognized on the statement of financial position at fair value follow in a hierarchy that is based on the significance of the inputs used in making the measurements. The levels in the hierarchy are:
- Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities
- Level 2 - Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices)
- Level 3 - Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).
| December 31, 2024 | March 31, 2024 | |||
|---|---|---|---|---|
| Carrying amount | Fair value | Carrying amount | Fair value | |
| Financial assets: | ||||
| Amortized cost | ||||
| Cash | $ 2,694,622 | $ 2,694,622 | $ 3,421,955 | $ 3,421,955 |
| Sales tax and other receivables | 14,964 | 14,964 | 31,235 | 31,235 |
| $ 2,709,586 | $ 2,709,586 | $ 3,453,190 | $ 3,453,190 | |
| Financial liabilities: | ||||
| Amortized cost | ||||
| Accounts payable and accrued liabilities | $ 8,990 | $ 8,990 | $ 80,245 | $ 80,245 |
| $ 8,990 | $ 8,990 | $ 80,245 | $ 80,245 |
The carrying values of the Company's financial assets and liabilities are considered to be a reasonable approximation of fair value due to the short-term nature of these instruments. There are no financial instruments recorded at fair value through profit or loss (FVTPL) on the statements of financial position.
b) Financial risk management
Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company's cash and sales tax and other receivables are exposed to credit risk. The Company reduces its credit risk on cash by placing these instruments with institutions of high credit worthiness. As at September 30, 2024, the Company's maximum exposure to credit risk is the carrying value of its financial assets.
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AnorTech Inc.
Notes to the Financial Statements
For the Nine months ended December 31, 2024 and 2023
(Unaudited)
(Expressed in Canadian Dollars)
11. FINANCIAL INSTRUMENTS (CONTINUED)
b) Financial risk management (continued)
Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in raising funds to meet commitments associated with financial instruments. The Company manages liquidity by maintaining adequate cash balances to meet liabilities as they become due.
As at September 30, 2024, the Company had cash of $2,694,622 in order to meet short-term business requirements and accounts payable and accrued liabilities of $18,343. All accounts payable and accrued liabilities are current liabilities.
The Company believes it has sufficient cash to fund its operations over the next 12 months.
Market Risk
The significant market risks to which the Company is exposed are interest rate risk and currency risk.
Interest Rate Risk
Interest rate risk is the risk that the fair value or the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's cash are held mainly in high yield saving accounts and term deposits and therefore there is currently minimal interest rate risk. Because of the short-term nature of these financial instruments, fluctuations in market rates do not have a significant impact on estimated fair values. As at September 30, 2024.
Other price risk
Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices other than those arising from interest rate risk, financial market risk, or currency risk. The Company is not exposed to significant other price risk.
Currency risk
The Company is exposed to currency risk to the extent that monetary assets and liabilities held by the Company are not denominated in Canadian dollars. The Company has not entered into any foreign currency contracts to mitigate this risk.
The Company's cash, sales tax and other receivables, accounts payable and accrued liabilities, and notes payable are all denominated in CAD.
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