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Talent Infinity Resource Developments Inc. — Audit Report / Information 2025
Sep 30, 2025
48195_rns_2025-09-29_cddc4659-b279-4df1-9c07-d40e06f1d5a8.pdf
Audit Report / Information
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TALENT INFINITY RESOURCE DEVELOPMENTS INC.
(an exploration stage company)
FINANCIAL STATEMENTS
(Expressed in Canadian Dollars)
FOR THE YEARS ENDED MAY 31, 2025 AND 2024
10290 171A STREET
SURREY, BC V4N 3L2
T: 604.318.5465
E: [email protected]
Adam Kim
ADAM SUNG KIM LTD.
CHARTERED PROFESSIONAL ACCOUNTANT
INDEPENDENT AUDITOR'S REPORT
To: the Shareholders of Talent Infinity Resource Developments Inc.
Opinion
I have audited the financial statements of Talent Infinity Resource Developments Inc. (the "Company"), which comprise the statements of financial position as at May 31, 2025 and May 31, 2024, and the statements of loss and comprehensive loss, statements of cash flows and statements of changes in equity for the years ended May 31, 2025 and May 31, 2024, and notes to the financial statements, including material accounting policy information.
In my opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at May 31, 2025 and May 31, 2024, and its financial performance and its cash flow for the years ended May 31, 2025 and May 31, 2024 in accordance with International Financial Reporting Standards (IFRSs).
Basis for Opinion
I conducted my audit in accordance with Canadian generally accepted auditing standards. My responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of my report. I am independent of the Company in accordance with the ethical requirements that are relevant to my audit of the financial statements in Canada, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Material Uncertainty Related to Going Concern
I draw attention to Note 1 in the financial statements, which indicates that the Company incurred a net loss of $36,769 during the year ended May 31, 2025 and, as of that date, the Company had not yet achieved profitable operations, had accumulated losses of $640,410 since its inception, and expects to incur further losses in the development of its business. As stated in Note 1, these events or conditions, along with other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. My opinion is not modified in respect of this matter.
Key Audit Matter
Key audit matters are those matters that, in my professional judgment, were of most significance in my audit of the financial statements for the year ended May 31, 2025. These matters were addressed in the context of my audit of the financial statements as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters.
In addition to the matter described in the "Material Uncertainty Related to Going Concern" section of the auditor's report, I have determined the matters described below to be the key audit matters to be communicated in my auditors' report.
Evaluation of indicators of impairment for exploration and evaluation assets
Description of the matter
I draw attention to Notes 5 to the financial statements. The Company has exploration and evaluation assets of $120,000 as at May 31, 2025. The carrying amounts of the Company's exploration and evaluation assets are reviewed each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. Significant judgment is required in assessing indicators of impairment. The Company completes an evaluation at each reporting period of potential impairment indicators.
Why the matter is a key audit matter
I identified the evaluation of indicators of impairment for exploration and evaluation assets as a key audit matter. This matter represented an area of significant risk of material misstatement given the magnitude of exploration and evaluation assets. This matter was of most significance due to the difficulties in evaluating the result of my audit procedures to assess the Company's determination of whether the factors, individually and in the aggregate, resulted in indicators of impairment.
How the matter was addressed in the audit
The following are the primary procedures I performed to address this key audit matter.
I evaluated the Company's analysis of impairment indicators by:
- Obtaining an understanding of management's process for developing an assessment of the existence of impairment indicators.
- Assessing whether the information in the analysis was consistent with information included in internal communicates to management and the Board of Directors, the Company's press releases, management's discussion and analysis, and other public filings
- Reading updated technical reports for any indicators of impairment arising from changes to estimates of mineral reserves and resources
- Considering evidence obtained in other areas of the audit, including the status of significant mineral licenses and expenditures on mineral properties, the results of exploration activities and any updates to estimates of mineral reserves and resources
- Comparing the Entity’s market capitalization to the carrying value of its net assets.
Other Information
Management is responsible for the other information. The other information comprises the Management Discussion and Analysis.
My opinion on the financial statements does not cover the other information and I do not express any form of assurance conclusion thereon.
In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I are required to report that fact. I have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRSs, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, I exercise professional judgment and maintain professional skepticism throughout the audit. I also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I are required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.
I also provide those charged with governance with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards.
The engagement partner on the audit resulting in this independent auditor’s report is Adam Kim, CPA, CA.
“Adam Sung Kim Ltd.”
Chartered Professional Accountant
10290 171A Street
Surrey, BC V4N 3L2
September 29, 2025
TALENT INFINITY RESOURCE DEVELOPMENTS INC.
(an exploration stage company)
STATEMENTS OF FINANCIAL POSITION
(Expressed in Canadian Dollars)
| As at, | Notes: | May 31, 2025 | May 31, 2024 |
|---|---|---|---|
| ASSETS | |||
| Current | |||
| Cash | $ 4,491 | $ 5,765 | |
| Prepaid expenses | 3,583 | 2,295 | |
| Receivables | 8,857 | 6,295 | |
| Loan receivable | 9 | - | 26,086 |
| Total current assets | 16,931 | 40,441 | |
| Non-current | |||
| Mineral property acquisition costs | 5 | 120,000 | 120,000 |
| TOTAL ASSETS | $ 136,931 | $ 160,441 | |
| LIABILITIES AND SHAREHOLDERS’ DEFICIENCY | |||
| Current | |||
| Accounts payable and accrued liabilities | 4 | $ 40,845 | $ 17,713 |
| Loans payable | 8 | 213,045 | 239,910 |
| Total current liabilities | 253,890 | 257,623 | |
| Non-current | |||
| Loan payable | 8 | 41,542 | 24,550 |
| TOTAL LIABILITIES | 295,432 | 282,173 | |
| Shareholders’ Deficiency | |||
| Share capital | 7 | 479,593 | 479,593 |
| Contributed surplus | 7 | 2,316 | 2,316 |
| Deficit | (640,410) | (603,641) | |
| Total shareholders’ deficiency | (158,501) | (121,732) | |
| TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIENCY | $ 136,931 | $ 160,441 |
Nature and continuance of operations (Note 1)
Letter of intent (Note 13)
Approved and authorized by the Board on September 29, 2025:
"Derrick Gaon" Director "Barry Bergstrom" Director
Derrick Gaon Barry Bergstrom
The accompanying notes are an integral part of these financial statements.
TALENT INFINITY RESOURCE DEVELOPMENTS INC.
(an exploration stage company)
STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
For the years ended May 31, 2025 and 2024
(Expressed in Canadian Dollars)
| May 31, 2025 | May 31, 2024 | |
|---|---|---|
| EXPENSES | ||
| Management and Consulting fees | $ 13,152 | $ 10,517 |
| Exploration (Note 5) | - | 5,940 |
| General and office administration | 2,225 | 11,628 |
| Professional fees | 20,110 | 2,735 |
| Filing fees | 20,584 | 19,528 |
| (56,071) | (50,348) | |
| OTHER INCOME (EXPENSE) | ||
| Consulting | 14,400 | - |
| Interest income | 1,831 | 2,976 |
| Foreign exchange loss | (3,069) | (822) |
| Gain on loan payable (Note 8) | 10,539 | - |
| Finance costs (Note 8) | (4,399) | (17,815) |
| Loss and comprehensive loss for the year | $ (36,769) | $ (66,009) |
| Basic and diluted loss per common share | ($0.00) | ($0.00) |
| Weighted average number of common shares outstanding | 19,978,548 | 19,978,548 |
The accompanying notes are an integral part of these financial statements.
4
TALENT INFINITY RESOURCE DEVELOPMENTS INC.
(an exploration stage company)
STATEMENTS OF CASH FLOWS
For the years ended May 31, 2025 and 2024
(Expressed in Canadian Dollars)
| May 31, 2025 | May 31, 2024 | |
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Loss for the year | $ (36,769) | $ (66,009) |
| Gain on loan payable | 10,539 | |
| Accrued interest income | (1,795) | (2,684) |
| Accretion and accrued interest expense on loans payable | 4,399 | 18,139 |
| Change in non-cash working capital items: | ||
| Accounts payable and accrued liabilities | 23,131 | (28,025) |
| Receivables | (2,562) | (1,874) |
| Prepaid expenses | (1,287) | 2,704 |
| Net Cash used in operating activities | (4,344) | (77,749) |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||
| Loans payable | (24,811) | 25,000 |
| Net cash provided by financing activities | (24,811) | 25,000 |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Exploration and evaluation assets | - | - |
| Loan receivable | 27,881 | - |
| Net cash used in investing activities | 27,881 | - |
| Change in cash for the year | (1,274) | (52,749) |
| Cash, beginning of year | 5,765 | 58,514 |
| Cash, end of year | $ 4,491 | $ 5,765 |
| Cash paid for interest | $- | $- |
| Cash paid for income taxes | $- | $- |
The accompanying notes are an integral part of these financial statements.
TALENT INFINITY RESOURCE DEVELOPMENTS INC. (an exploration stage company)
STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIENCY
For the years ended May 31, 2025 and 2024
(Expressed in Canadian Dollars)
| Share Capital | |||||
|---|---|---|---|---|---|
| Notes: | Number | Amount | Contributed Surplus | Deficit | |
| Balance at June 1, 2023 | 19,978,548 | $ 479,593 | $ - | $ (537,632) | |
| Capital contribution by a related party | - | - | 2,316 | - | |
| Loss for the year | - | - | - | (66,009) | |
| Balance at May 31, 2024 | 19,978,548 | $ 479,593 | $ 2,316 | $ (603,641) | |
| Balance at June 1, 2024 | 19,978,548 | $ 479,593 | $ 2,316 | $ (603,641) | |
| Loss for the year | - | - | - | (36,769) | |
| Balance at May 31, 2025 | 19,978,548 | $ 479,593 | $ 2,316 | $ (640,410) |
The accompanying notes are an integral part of these financial statements.
TALENT INFINITY RESOURCE DEVELOPMENTS INC. (an exploration stage company)
NOTES TO THE FINANCIAL STATEMENTS
(Expressed in Canadian Dollars)
FOR THE YEARS ENDED MAY 31, 2025 and 2024
- NATURE AND CONTINUANCE OF OPERATIONS
Talent Infinity Capital Corporation (the "Company") is incorporated under the Business Corporations Act, (British Columbia). On January 14, 2022, the Company changed its name to Talent Infinity Resource Developments Inc. The Company is engaged in the acquisition, exploration and development of mineral resource properties located in Canada. The Company was incorporated on June 25, 2020.
The Company's head office and records office is located at 5728 East Boulevard, Vancouver, British Columbia, Canada, V6M 4M4.
The recovery of the amounts comprising mineral properties is dependent upon the confirmation of economically recoverable reserves, the ability of the Company to obtain necessary financing to successfully complete their exploration and development, and upon future profitable production.
These financial statements have been prepared by management on a going concern basis which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. As at May 31, 2025 the Company had not yet achieved profitable operations, had accumulated losses of $640,410 since its inception, and expects to incur further losses in the development of its business, all of which casts significant doubt about the Company's ability to continue as a going concern. A number of alternatives including, but not limited to selling an interest in one or more of its properties or completing a financing, are being evaluated with the objective of funding ongoing activities and obtaining working capital. The continuing operations of the Company are dependent upon its ability to continue to raise adequate financing and to commence profitable operations in the future and repay its liabilities arising from normal business operations as they become due.
The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.
- BASIS OF PREPARATION
Statement of Compliance
These financial statements, including comparatives, have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and Interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC").
Basis of Presentation
The financial statements have been prepared on a historical cost basis except for certain financial assets measured at fair value. All dollar amounts presented are in Canadian Dollars unless otherwise specified.
Significant accounting judgments and estimates
The preparation of financial statements in conformity with IFRS requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported revenues and expenses during the year. Although management uses historical experience and its best knowledge of the amount, events or actions to form the basis for judgments and estimates, actual results may differ from these estimates. The most significant accounts that require estimates as the basis for determining the stated amounts include valuation of share-based payments and recognition of deferred income tax amounts and provision for restoration, rehabilitation and environmental costs.
TALENT INFINITY RESOURCE DEVELOPMENTS INC. (an exploration stage company)
NOTES TO THE FINANCIAL STATEMENTS
(Expressed in Canadian Dollars)
FOR THE YEARS ENDED MAY 31, 2025 and 2024
2. BASIS OF PRESENTATION (CONTINUED)
Critical judgments exercised in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements are as follows:
Determination of functional currency
The Company determines the functional currency through an analysis of several indicators such as expenses and cash flow, financing activities, retention of operating cash flows, and frequency of transactions with the reporting entity.
Income taxes
In assessing the probability of realizing income tax assets, management makes estimates related to expectations of future taxable income, applicable tax opportunities, expected timing of reversals of existing temporary differences and the likelihood that tax positions taken will be sustained upon examination by applicable tax authorities. In making its assessments, management gives additional weight to positive and negative evidence that can be objectively verified.
3. MATERIAL ACCOUNTING POLICIES
Foreign exchange
The functional currency of an entity is the currency of the primary economic environment in which the entity operates. The functional currency of the Company is the Canadian Dollar. The functional currency determinations were conducted through an analysis of the consideration factors identified in IAS 21, The Effects of Changes in Foreign Exchange Rates.
Transactions in currencies other than the Canadian Dollar are recorded at exchange rates prevailing on the dates of the transactions. At the end of each reporting period, monetary assets and liabilities denominated in foreign currencies are translated at the period end exchange rate while non-monetary assets and liabilities are translated at historical rates. Revenues and expenses are translated at the exchange rates approximating those in effect on the date of the transactions. Exchange gains and losses arising on translation are included in comprehensive loss.
Financial instruments
IFRS 9 includes requirements for classification and measurement of financial assets and financial liabilities; impairment methodology for financial instruments; and general hedge accounting. IFRS 9 has specific requirements for whether debt instruments are accounted for at amortized cost, fair value through other comprehensive income or fair value through profit or loss. IFRS 9 requires equity instruments to be measured at fair value through profit or loss unless an irrevocable election is made to measure them at fair value through other comprehensive income, which results in changes in fair value not being recycled to the income statement.
The following is the Company’s accounting policy for financial instruments under IFRS 9:
Recognition and Classification
The Company recognized a financial asset or financial liability on the statement of financial position when it becomes party to the contractual provisions of the financial instrument.
The Company classifies its financial instruments in the following categories: at fair value through profit and loss (“FVTPL”), at fair value through other comprehensive income (loss) (“FVTOCI”) or at amortized cost. The Company determines the classification of financial assets at initial recognition. The classification of debt instruments is driven by the Company’s business model for managing the financial assets and their contractual cash flow characteristics.
TALENT INFINITY RESOURCE DEVELOPMENTS INC. (an exploration stage company)
NOTES TO THE FINANCIAL STATEMENTS
(Expressed in Canadian Dollars)
FOR THE YEARS ENDED MAY 31, 2025 and 2024
3. MATERIAL ACCOUNTING POLICIES (CONTINUED)
Equity instruments that are held for trading are classified as FVTPL. For other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument-by-instrument basis) to designate them as at FVTOCI. Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or if the Company has opted to measure them at FVTPL.
The Company completed a detailed assessment of its financial assets and liabilities as at May 31, 2023. The following table shows the classifications under IFRS 9:
| | Classification
IFRS 9 |
| --- | --- |
| Cash | FVTPL |
| Accounts payable and accrued liabilities | Amortized cost |
| Loan receivable and Loans payable | Amortized cost |
Measurement
Financial assets at FVTOCI
Elected investments in equity instruments at FVTOCI are initially recognized at fair value plus transaction costs.
Subsequently they are measured at fair value, with gains and losses recognized in other comprehensive income (loss).
Financial assets and liabilities at amortized cost
Financial assets and liabilities at amortized cost are initially recognized at fair value plus or minus transaction costs, respectively, and subsequently carried at amortized cost less any impairment.
Financial assets and liabilities at FVTPL
Financial assets and liabilities carried at FVTPL are initially recorded at fair value and transaction costs are expensed in the consolidated statements of net (loss) income. Realized and unrealized gains and losses arising from changes in the fair value of the financial assets and liabilities held at FVTPL are included in the consolidated statements of net (loss) income in the period in which they arise. Where management has opted to recognize a financial liability at FVTPL, any changes associated with the Company's own credit risk will be recognized in other comprehensive income (loss).
Impairment of financial assets at amortized cost
The Company recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost.
At each reporting date, the Company measures the loss allowance for the financial asset at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. If at the reporting date, the financial asset has not increased significantly since initial recognition, the Company measures the loss allowance for the financial asset at an amount equal to the twelve month expected credit losses. The Company shall recognize in the consolidated statements of net (loss) income, as an impairment gain or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized.
Derecognition
Financial assets
TALENT INFINITY RESOURCE DEVELOPMENTS INC. (an exploration stage company)
NOTES TO THE FINANCIAL STATEMENTS
(Expressed in Canadian Dollars)
FOR THE YEARS ENDED MAY 31, 2025 and 2024
The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets
3. MATERIAL ACCOUNTING POLICIES (CONTINUED)
expire, or when it transfers the financial assets and substantially all of the associated risks and rewards of ownership to another entity. Gains and losses on derecognition are generally recognized in the consolidated statements of net(loss) income. However, gains and losses on derecognition of financial assets classified as FVTOCI remain within accumulated other comprehensive income (loss).
Financial liabilities
The Company derecognizes financial liabilities only when its obligations under the financial liabilities are discharged, cancelled or expired. Generally, the difference between the carrying amount of the financial liability derecognized and the consideration paid and payable, including any non-cash assets.
Loss per share
Basic loss per share is calculated by dividing the net loss available to common shareholders by the weighted average number of shares outstanding during the year. Diluted earnings per share reflect the potential dilution of securities that could share in earnings of an entity. In a loss year, potentially dilutive common shares are excluded from the loss per share calculation as the effect would be anti-dilutive. Basic and diluted loss per share are the same for the periods presented.
Income taxes
Income tax expense comprises current and deferred tax. Income tax is recognized in profit or loss except to the extent that it relates to items recognized directly in equity. Current tax expense is the expected tax payable on taxable income for the year, using tax rates enacted or substantively enacted at period end, adjusted for amendments to tax payable with regards to previous years.
Deferred tax is recorded using the liability method, providing for temporary differences, between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Temporary differences are not provided for relating to goodwill not deductible for tax purposes, the initial recognition of assets or liabilities that affect neither accounting or taxable loss, and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the end of the reporting period. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized.
Exploration and evaluation assets
Exploration and evaluation costs of mineral resource interests are expensed to the statement of loss and comprehensive loss and acquisition costs are capitalized to the statement of financial position.
At the end of each reporting period, the Company's exploration and evaluation assets are reviewed to determine whether there is any indication that those assets may be impaired. If such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. The recoverable amount is the higher of the asset's fair value less costs to sell and its value in use. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm's length transaction between knowledgeable and willing parties. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset
TALENT INFINITY RESOURCE DEVELOPMENTS INC. (an exploration stage company)
NOTES TO THE FINANCIAL STATEMENTS
(Expressed in Canadian Dollars)
FOR THE YEARS ENDED MAY 31, 2025 and 2024
is reduced to its recoverable amount and the impairment loss is recognized in profit or loss for the period. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash generating unit to which the asset belongs.
11
TALENT INFINITY RESOURCE DEVELOPMENTS INC. (an exploration stage company)
NOTES TO THE FINANCIAL STATEMENTS
(Expressed in Canadian Dollars)
FOR THE YEARS ENDED MAY 31, 2025 and 2024
3. MATERIAL ACCOUNTING POLICIES (CONTINUED)
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but to an amount that does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.
Provision for environmental rehabilitation
The Company recognizes liabilities for legal or constructive obligations associated with the retirement of mineral properties and equipment. The net present value of future rehabilitation costs is capitalized to the related asset along with a corresponding increase in the rehabilitation provision in the period incurred. Discount rates using a pre-tax rate that reflect the time value of money are used to calculate the net present value. The Company's estimates of reclamation costs could change as a result of changes in regulatory requirements, discount rates and assumptions regarding the amount and timing of the future expenditures. These changes are recorded directly to the related assets with a corresponding entry to the rehabilitation provision. The increase in the provision due to the passage of time is recognized as interest expense.
As at May 31, 2025, the Company, given the early stage of exploration on its mineral properties, has no reclamation costs and therefore no provision for environmental rehabilitation has been made.
4. ACCOUNTS PAYABLES AND ACCRUED LIABILITIES
The Company's accounts payable and accrued liabilities are as follows:
| May 31, 2025 | May 31, 2024 | |
|---|---|---|
| Trade payables | $ 31,845 | $ 8,713 |
| Accrued liabilities | 9,000 | 9,000 |
| Total | $ 40,845 | $ 17,713 |
TALENT INFINITY RESOURCE DEVELOPMENTS INC. (an exploration stage company)
NOTES TO THE FINANCIAL STATEMENTS
(Expressed in Canadian Dollars)
FOR THE YEARS ENDED MAY 31, 2025 and 2024
5. MINERAL PROPERTIES
Wildcat Property
On June 30, 2020 and amended on September 13, 2024 and September 24, 2025, the Optionor granted the Company (the "Optionee") the sole and exclusive right and option (the "Option") for a period of 7 years plus 5 months from the Effective Date (the "Option Period" the total period ending on November 30, 2027), to acquire, at the election of the Optionee, an undivided $70\%$ interest in certain mineral claims situated in the Quesnel Terrane area of the Province of British Columbia (the "Wildcat Property"). The exploration expense and option payment requirements are summarized as follows:
| Date | Option Payments to the Optionor | Exploration Expenses Requirements |
|---|---|---|
| By July 31, 2021 | $20,000 (paid) | - |
| By November 30, 2021 | $50,000 (paid) | - |
| On or before the earlier of the second anniversary of the Listing Date or by November 30, 2022 | $50,000 (paid) | - |
| On or before the earlier of the fifth anniversary of the Listing Date or by November 30, 2025 | $200,000 | - |
| On or before November 30, 2026 | $350,000 | $250,000 to be allocated and available to be spent as expenditures in developing the property. |
| On or before November 30, 2027 | $1,400,000 | $2,000,000 to be spent as expenditures in developing the property. |
| Total | $2,070,000 | $2,250,000 |
The following is the Company's mineral property acquisition costs as at May 31, 2025:
| Wildcat Property | Total | |
|---|---|---|
| Acquisition Costs | ||
| Balance May 31, 2023 | $ 120,000 | $ 120,000 |
| Additions | - | - |
| Balance, May 31, 2024 and May 31, 2025 | $ 120,000 | $ 120,000 |
The following table shows the activity by category of exploration:
| Exploration Expenses | May 31, 2025 ($) | May 31, 2024 ($) |
|---|---|---|
| Geological surveying, consulting and reporting | - | 5,940 |
| Field support and supplies | - | - |
| Total | - | 5,940 |
TALENT INFINITY RESOURCE DEVELOPMENTS INC. (an exploration stage company)
NOTES TO THE FINANCIAL STATEMENTS
(Expressed in Canadian Dollars)
FOR THE YEARS ENDED MAY 31, 2025 and 2024
6. RELATED PARTY TRANSACTIONS
The Company entered into the following transactions with related parties:
During the year ended May 31, 2025, the company incurred management, consulting, office and professional service fees to directors and officers of the Company of $14,921 (2024 - $19,201).
As at May 31, 2025, the company had amounts payable to a director of the Company of $9,593 (May 31, 2024 - $1,315) and an amount receivable of $Nil from a director of the Company (May 31, 2024 - 2,310).
As at May 31, 2024, the company had amounts payable to a director and former CFO of the Company of $5,266 (May 31, 2024 - $2,114)
Refer to Notes #8 and #9 (Loan Payable and Loan Receivable) for related party transactions.
All related party transactions are in the normal course of operations and have been measured at the agreed to amount, which is the amount of consideration established and agreed to by the related parties.
7. SHARE CAPITAL
a. Authorized share capital
As at May 31, 2025, the authorized share capital of the Company is an unlimited number of common shares without par value.
b. Issued share capital:
For the years ended May 31, 2025 and May 31, 2024:
There were no share capital transactions during the years ended May 31, 2025 and May 31, 2024.
c) Warrants
As at May 31, 2025, the Company had Nil outstanding warrants and no warrant transactions during the year then ended.
d) Options
As at May 31, 2025, the Company had Nil outstanding stock options and no stock option transactions during the year then ended.
8. LOANS PAYABLE
During the year ended May 31, 2021, the Company was advanced $253,283 (US$210,157) in cash by way of a non-interest bearing, non-recourse loan with no fixed date of repayment (the "Loan Payable"). During the year ended May 31, 2022, the Company repaid $100,427 of the outstanding loan balance and had foreign exchange adjustments of $12,010. On August 23, 2021, the Company settled $75,000 of the outstanding loan balance via issuance of 750,000 common shares of the Company. On December 8, 2021, the company negotiated with a creditor to convert $82,259 (US $65,000) of the Loan Payable into an interest-bearing loan as described the below. During the year ended May 31, 2025, the Company recognized a foreign exchange loss of $74 (2024 - $20). As at May 31, 2025, the Loan Payable had an outstanding balance of $8,276 (2024 - $8,202) with a non-interest bearing, unsecured and due on demand, which was classified as current liabilities on a statement of financial position.
TALENT INFINITY RESOURCE DEVELOPMENTS INC. (an exploration stage company)
NOTES TO THE FINANCIAL STATEMENTS
(Expressed in Canadian Dollars)
FOR THE YEARS ENDED MAY 31, 2025 and 2024
8. LOANS PAYABLE (CONTINUED)
On December 8, 2021, the company negotiated with a creditor to convert $82,259 (US $65,000) of the Loan Payable into an interest-bearing loan (the "Interest-Bearing Loan"). The Interest-Bearing Loan bear simple interest of 10% and had a 24-month term with a maturity date of December 8, 2023. No interest payments were due until the term of the loan. The Interest-Bearing Loan was accounted for at amortized cost using the effective interest rate method with the effective interest rate of 15% per annum. The Interest-Bearing Loan was recorded at amortized cost of $74,636, with a gain of $7,624 on a long-term loan that was recorded in the statement of loss for the year ended May 31, 2022. For the year ended May 31, 2022, the Company recognized accretion and interest of $5,368 on the Interest-Bearing Loan and foreign exchange adjustment of $52. As at May 31, 2022, the carrying value of the Interest-Bearing loan was $79,952, which was classified as non-current liabilities on a statement of financial position. During the year ended May 31, 2023, the Company recognized accretion and interest expense of $12,037 and a foreign exchange loss of $6,194. The carrying value of the Interest-Bearing Loan as at May 31, 2023 was $98,453, which was classified as current liabilities on a statement of financial position. Upon the maturity date of the Interest-Bearing Loan on December 8, 2023, the Interest-Bearing Loan became a loan with a non-interest-bearing, unsecured and due on demand (the "Loan Payable #4"). During the year ended May 31, 2024, the Company recognized $7,916 of accretion, interest and foreign exchange adjustment. As at May 31, 2024, the Loan Payable #4 had an outstanding balance of $106,369 with a non-interest bearing, unsecured and due on demand, which was classified as current liabilities on a statement of financial position. During the year ended May 31, 2025, the Company recognized a foreign exchange loss of $943. As at May 31, 2025, the Loan Payable #4 had an outstanding balance of $107,312 with a non-interest bearing, unsecured and due on demand, which was classified as current liabilities on a statement of financial position.
During the year ended May 31, 2022, the Company was advanced $25,611 in cash by way of a non-interest bearing, non-recourse loan with no fixed date of repayment. (the "Loan Payable #2"). As at May 31, 2022, the Loan Payable #2 had an outstanding balance of $25,611, which was classified as current liabilities on a statement of financial position. During the period ended May 31, 2023, the Company received an additional advance under the existing terms of the Loan Payable #2 of $13,057 and repaid $33,311 of the balance owing. Accordingly, the outstanding amount payable as at May 31, 2023 under the Loan Payable #2 was $5,357, which was classified as current liabilities on the statement of financial position. The balance of $5,357 under the Loan Payable #2 remained unchanged as at May 31, 2024 and May 31, 2025.
On November 30, 2021, the Company was advanced $99,985 in cash by way of an interest-bearing loan. The loan bear simple interest of 10% and had a 24-month term with a maturity date of November 29, 2023. (the "Loan Payable #3"). No interest payments were due until the term of the loan. The loan was accounted for at amortized cost using the effective interest rate method with the effective interest rate of 15% per annum. The loan was recorded at amortized cost of $90,719, with a gain of $9,266 on a long-term loan that was recorded in the statement of loss for the year ended May 31, 2022. During the year ended May 31, 2022, the Company recorded accretion and interest of $6,819 on the loan payable. As at May 31, 2022, the carrying value of the Loan Payable #3 was $97,538, which was classified as non-current liabilities on a statement of financial position. During the period ended May 31, 2023, the Company recognized accretion and interest expense of $14,107. The carrying value of the Loan Payable #3 as at May 31, 2023 was $111,645, which was classified as current liabilities on the statement of financial position. Upon the maturity date of the Loan Payable #3 on November 29, 2023, the Loan Payable #3 became a loan with a non-interest-bearing, unsecured and due on demand (the "Loan Payable #3A"). During the year ended May 31, 2024, the Company recognized $7,312 of accretion and interest expense. As at May 31, 2024, the Loan Payable #3A had an outstanding balance of $119,982 with a non-interest bearing, unsecured and due on demand, which was classified as current liabilities on a statement of financial position. For the year ended May 28, 2025, $27,881 of the outstanding balance of the Non-Interest-Bearing Loan Payable #3A was repaid. As at May 31, 2025, the Loan Payable #3A had an outstanding balance of $92,101 with a non-interest bearing, unsecured and due on demand, which was classified as current liabilities on a statement of financial position.
TALENT INFINITY RESOURCE DEVELOPMENTS INC. (an exploration stage company)
NOTES TO THE FINANCIAL STATEMENTS
(Expressed in Canadian Dollars)
FOR THE YEARS ENDED MAY 31, 2025 and 2024
8. LOANS PAYABLE (CONTINUED)
On November 14, 2023, the Company was advanced $25,000 in cash by way of an interest-bearing loan from a director of the Company. The loan bears simple interest of 10% and has a 24-month term with a maturity date of November 14, 2025 (the "Loan Payable #5"). No interest payments are due until the term of the loan. The Loan Payable #5 was accounted for at amortized cost using the effective interest rate method with the effective interest rate of 15% per annum. The Loan Payable #5 was recorded at amortized cost of $22,684, with an increase in contributed surplus of $2,316 as a capital contribution by a related party. During the year ended May 31, 2024, the Company recognized $1,866 of accretion and interest expense. The carrying value of the Loan Payable #5 as at May 31, 2024 was $24,550, which was classified as non-current liabilities on a statement of financial position as it does not mature within the next 12-month period. During the year ended May 31, 2025, the Company repaid the Loans Payable #5 in full resulting in a $nil outstanding balance as at May 31, 2025. During the year ended May 31, 2025, the Company recognized $1,753 of accretion and interest expense.
On January 24, 2025, the Company obtained a loan (the "Loan Payable #6") of $50,000 for a three-year term at 8% per annum interest rate with the first six months being interest free and with all interest and principal due at the end of the term. The Loan Payable #6 was accounted for at amortized cost using the effective interest rate method with the effective interest rate of 15% per annum. The Loan Payable #6 was recorded at amortized cost of $39,461, with a gain of $10,539 on the Loan Payable #6 that was recorded in the statement of loss for the year ended May 31, 2025. During the year ended May 31, 2025, the Company recognized $2,081 of accretion expense. The carrying value of the Loan Payable #6 as at May 31, 2025 was $41,542, which was classified as non-current liabilities on a statement of financial position as it does not mature within the next 12-month period.
9. LOAN RECEIVABLE
On July 19, 2021, the Company entered into a term loan agreement (the "Loan Receivable") with a director of the Company whereby the Company loaned $20,000 to a director of the Company. The Loan Receivable carried an interest rate of 10% per annum and had a fixed term of 24 months. The Loan Receivable was accounted for at amortized cost using the effective interest rate method with the effective interest rate of 15% per annum. The loan was recorded at amortised cost of $18,146, with reduction of share capital of $1,854 as capital contribution by a related party. Upon the maturity date of the Loan Receivable on July 19, 2023, Loan Receivable became a loan with an interest rate of 10% per annum, unsecured and due on demand (the "Loan Receivable #2"). During the year ended May 31, 2025, the Company recorded accretion and interest income of $1,795 (2024 - $2,684) and the Loan Receivable #2 was collected in full resulting in a $nil outstanding balance as at May 31, 2025 (May 31, 2024 - $26,086).
10. SEGMENTED INFORMATION
The Company operates in one reportable operating segment, being the acquisition and exploration of mineral properties in Canada. As the operations comprise a single reporting segment, amounts disclosed also represent segment amounts.
TALENT INFINITY RESOURCE DEVELOPMENTS INC. (an exploration stage company)
NOTES TO THE FINANCIAL STATEMENTS
(Expressed in Canadian Dollars)
FOR THE YEARS ENDED MAY 31, 2025 and 2024
11. FINANCIAL AND CAPITAL RISK MANAGEMENT
The three levels of the fair value hierarchy are:
Level 1 – unadjusted quoted prices in active markets for identical assets or liabilities;
Level 2 – inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and
Level 3 – inputs that are not based on observable market data.
The Company enters into financial instruments to finance its operations in the normal course of business. The fair values of cash and accounts payable approximate their carrying values due to the short-term maturity of these instruments.
The fair value of the Company’s financial instruments has been classified within the fair value hierarchy as at May 31, 2025 as follows:
| Level 1 | Level 2 | Level 3 | Total | |
|---|---|---|---|---|
| Financial Assets | ||||
| Cash | $ 4,491 | - | - | $ 4,491 |
| $ 4,491 | - | - | $ 4,491 |
The Company is exposed to varying degrees to a variety of financial instrument related risks:
Foreign exchange risk
Foreign exchange risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company has certain monetary assets denominated in United States Dollars. As at May 31, 2025, the Company had United States Dollar cash on hand with a Canadian dollar equivalent of $779. Assuming that all other variables remain constant, a fluctuation of +/- 1.0 percent in the exchange rate between the Canadian Dollar and the United States Dollar would impact loss by $8 as at May 31, 2025.
Credit risk
The Company’s cash is largely held in large Canadian financial institutions. The Company does not have any asset-backed commercial paper. The Company maintains cash deposits with Schedule A financial institution, which from time to time may exceed federally insured limits. The Company has not experienced any significant credit losses and believes it is not exposed to any significant credit risk.
Interest rate risk
Interest rate risk is the risk the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Financial assets and liabilities with variable interest rates expose the Company to ash flow interest rate risk. The Company does not hold any financial liabilities with variable interest rates. The Company does maintain bank accounts which earn interest at variable rates but it does not believe it is currently subject to any significant interest rate risk.
Liquidity risk
The Company’s ability to continue as a going concern is dependent on management’s ability to raise required funding through future equity issuances and through short-term borrowing. The Company manages its liquidity risk by forecasting cash flows from operations and anticipating any investing and financing activities. Management and the Board of Directors are actively involved in the review, planning and approval of significant expenditures and commitments.
TALENT INFINITY RESOURCE DEVELOPMENTS INC. (an exploration stage company)
NOTES TO THE FINANCIAL STATEMENTS
(Expressed in Canadian Dollars)
FOR THE YEARS ENDED MAY 31, 2025 and 2024
11. FINANCIAL AND CAPITAL RISK MANAGEMENT (CONTINUED)
Price risk
The ability of the Company to explore its mineral properties and the future profitability of the Company are directly related to the market price of precious metals. The Company monitors precious metals prices to determine the appropriate course of action to be taken by the Company.
Capital management
The Company defines its capital as shareholders' equity. The Company manages its capital structure and makes adjustments to it, based on the funds available to the Company, in order to support the acquisition and exploration and development of mineral properties. The Board of Directors do not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company's management to sustain future development of the business. The properties in which the Company currently has an interest are in the exploration stage. As such, the Company has historically relied on the equity markets to fund its activities. In addition, the Company is dependent upon external financings to fund activities. In order to carry out planned exploration and pay for administrative costs, the Company will need to raise additional funds. The Company will continue to assess new properties and seek to acquire an interest in additional properties if it feels there is sufficient geologic or economic potential and if it has adequate financial resources to do so. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable.
12. INCOME TAXES
The income taxes shown in the Statements of Loss and Comprehensive Loss differ from the amounts obtained by applying statutory rates to the loss before income taxes due to the following:
| 2025 | 2024 | |
|---|---|---|
| Statutory Tax Rate | 27.0% | 27.0% |
| Loss before income taxes | $ (36,769) | $ (66,009) |
| Expected tax recovery | (9,928) | (17,822) |
| Items deductible and not deductible for income tax purposes | (2,148) | 2,527 |
| Current and prior tax attributes not recognized | 12,076 | 15,295 |
| Deferred income tax recovery | - | - |
Details of deferred tax assets are as follows:
| 2025 | 2024 | |
|---|---|---|
| Non-capital losses | 132,569 | 120,486 |
| Share issuance costs | - | 7 |
| Exploration and evaluation costs | 39,997 | 39,997 |
| Less: Unrecognized deferred tax assets | (172,566) | (160,490) |
| Deferred income tax assets | $ - | $ - |
The Company has approximately $490,000 of non-capital losses available, which will expire through to 2045 and may be applied against future taxable income. The Company has approximately $268,000 of exploration and development costs which are available for deduction against future income for tax purposes. As at May 31, 2025 the
TALENT INFINITY RESOURCE DEVELOPMENTS INC. (an exploration stage company)
NOTES TO THE FINANCIAL STATEMENTS
(Expressed in Canadian Dollars)
FOR THE YEARS ENDED MAY 31, 2025 and 2024
net amount which would give rise to a deferred income tax asset has not been recognized as it is not probable that
such benefit will be utilized in the future years.
13. LETTER OF INTENT
On November 17, 2023, the Company entered into a non-binding letter of intent with Premier Silver Corp. (“Premier”), whereby the Company would acquire up to 100% of the issued and outstanding common shares of Premier for proceeds of $46,700,000 (the “Proposed Transactions”). The acquisition consideration would be paid in the form of common shares of the Company at a deemed issuance price of $1 per common share. Under terms of the agreement, existing Premier share purchase would be exchanged for warrants of the Company that would confer the right to purchase the number of common shares of the Company which the Premier warrant holder would have been entitled to upon the completion of the transaction if the Premier warrant holder had been a shareholder at the time of the completion of the transaction. The deadline for the closing date of the Proposed Transactions was June 30, 2024. On September 13, 2024, the Company signed an amendment to the letter of intent with Premier surrounding the proposed acquisition of Premier. The deadline for the closing date of the Proposed Transactions was extended to September 30, 2025. The remainder of the terms and conditions surrounding the original non-binding letter of intent remained unchanged. During the year ended May 31, 2025, the letter of intent was terminated.