INTREPID METALS CORP. INTREPID METALS CORP.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
MARCH 31, 2024
(Expressed in Canadian Dollars)
(Unaudited)
NOTICE OF NO AUDITOR REVIEW OF
CONDENSED CONSOLIDATED 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 an auditor has not reviewed the financial statements.
The accompanying unaudited condensed interim consolidated financial statements of Intrepid Metals Corp. (the "Company") have been prepared by and are the responsibility of the Company's management.
The Company's independent auditor has not performed a review of these condensed interim consolidated financial statements in accordance with standards established by the Chartered Professional Accountants of Canada for a review of interim financial statements by an entity's auditor.
INTREPID METALS CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION (Unaudited)
(Expressed in Canadian dollars)
AS AT | AS AT | |||
MARCH 31, | DECEMBER 31, | |||
2024 | 2023 | |||
ASSETS | ||||
Current assets | ||||
Cash | $ | 5,181,802 | $ | 295,243 |
Amounts receivable | 20,585 | 12,882 | ||
Prepaid expenses (notes 5 and 10) | 419,655 | 149,224 | ||
Investment (note 6) | 1 | 1 | ||
5,622,043 | 457,350 | |||
Exploration and evaluation assets (note 7) | 2,012,850 | 1,718,107 | ||
$ | 7,634,893 | $ | 2,175,457 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current liabilities | ||||
Accounts payable and accrued liabilities | ||||
(notes 8 and 10) | $ | 628,580 | $ | 265,479 |
Promissory notes payable (note 9) | 50,000 | 102,827 | ||
678,580 | 368,306 | |||
Equity | ||||
Share capital (note 11) | 20,846,554 | 17,579,981 | ||
Obligation to issue shares (notes 7 and 9) | - | 95,000 | ||
Equity reserves | 6,549,450 | 2,833,096 | ||
Accumulated other comprehensive income | 825 | 825 | ||
Deficit | (20,440,516) | (18,701,751) | ||
6,956,313 | 1,807,151 | |||
$ | 7,634,893 | $ | 2,175,457 |
Nature of operations and going concern (note 1)
Subsequent events (note 15)
Approved on May 29, 2024 on behalf of the Board of Directors:
"Mark Lotz" | Director | "Kenneth Brophy" | Director |
Mark Lotz | Kenneth Brophy |
1
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
INTREPID METALS CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS (Unaudited)
(Expressed in Canadian dollars)
THREE MONTH | THREE MONTH | |||
PERIOD ENDED | PERIOD ENDED | |||
MARCH 31, | MARCH 31, | |||
2024 | 2023 | |||
EXPENSES | ||||
Exploration and evaluation (note 7) | $ | 1,272,359 | $ | 89,682 |
General and administration (note 12) | 336,952 | 321,066 | ||
Marketing and investor relations | 73,961 | 114,602 | ||
Share-based payments (note 11) | 131,652 | 68,627 | ||
(1,814,924) | (593,977) | |||
OTHER ITEMS | ||||
Interest expense (note 9) | (1,321) | (2,309) | ||
Interest income | 67,746 | 21,562 | ||
Foreign exchange gain (loss) | 9,734 | (2,336) | ||
76,159 | 16,917 | |||
LOSS FROM CONTINUING OPERATIONS | (1,738,765) | (577,060) | ||
Loss from discontinued operations (note 4) | - | (2,100) | ||
LOSS FOR THE YEAR | (1,738,765) | (579,160) | ||
Cumulative translation adjustment | - | 139 | ||
COMPREHENSIVE LOSS | $ | (1,738,765) | $ | (579,021) |
Continuing operations | $ | (1,738,765) | $ | (576,921) |
Discontinued operations | $ | - | $ | (2,100) |
$ | (1,738,765) | $ | (579,021) | |
Basic and diluted loss per common share | $ | (0.04) | $ | (0.03) |
Continuing operations | $ | (0.04) | $ | (0.03) |
Discontinued operations | $ | (0.00) | $ | (0.00) |
Weighted average number of common shares | ||||
outstanding - basic and diluted | 41,315,791 | 24,406,561 |
2
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
INTREPID METALS CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (Unaudited)
(Expressed in Canadian dollars)
THREE MONTH | THREE MONTH | |||
PERIOD ENDED | PERIOD ENDED | |||
MARCH 31, | MARCH 31, | |||
2024 | 2023 | |||
OPERATING ACTIVITIES | ||||
Loss | $ | (1,738,765) | $ | (579,160) |
Items not affecting cash: | ||||
Loss on sale of subsidiary | - | - | ||
Share-based payments | 131,652 | 68,627 | ||
Depreciation | - | - | ||
Interest accretion | 1,067 | 2,309 | ||
Units issued for services | - | - | ||
Net change in non-cash working capital items: | ||||
Amounts receivable | (7,703) | (2,597) | ||
Prepaid expenses | (270,431) | (6,278) | ||
Deposits | - | - | ||
Accounts payable and accrued liabilities | 363,101 | 15,552 | ||
Cash used in operating activities - continuing | (1,523,213) | (499,447) | ||
Cash used in operating activities - discontinued | - | (2,100) | ||
INVESTING ACTIVITIES | ||||
Acquisition of exploration and evaluation assets | (24,745) | (50,000) | ||
Cash used in investing activities - continuing | (24,745) | (50,000) | ||
Cash used in investing activities - discontinued | - | - | ||
FINANCING ACTIVITIES | ||||
Repayment of promissory note | (53,894) | - | ||
Private placement | 6,590,000 | - | ||
Share issuance costs | (147,223) | - | ||
Exercise of warrants | 43,500 | - | ||
Cash provided by financing activities - continuing | 6,432,383 | - | ||
Cash provided by financing activities - discontinued | - | - | ||
Net change in cash | 4,884,425 | (551,547) | ||
Effect of foreign exchange on cash | 4,454 | - | ||
Cash, beginning | 295,243 | 2,151,249 | ||
Cash, ending | $ | 5,181,802 | $ | 1,599,702 |
Cash received for | ||||
Interest | $ | 60,154 | $ | 21,599 |
Supplementary cash flow information | ||||
Shares issued for exploration and evaluation assets | $ | 269,998 | $ | 299,999 |
3
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
INTREPID METALS CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY (Unaudited)
(Expressed in Canadian dollars)
ACCUMULATED | |||||||||||||
NUMBER OF | OBLIGATION | OTHER | OTHER | ||||||||||
COMMON | SHARE | TO ISSUE | EQUITY | COMPREHENSIVE | |||||||||
SHARES | CAPITAL | SHARES | RESERVES | DEFICIT | INCOME | TOTAL | |||||||
Balance, December 31, 2022 | 23,656,563 | $ | 16,584,982 | $ | 85,000 | $ | 2,645,528 | $ | (17,001,304) | $ | 1,456 | $ | 2,315,662 |
Exploration and evaluation asset acquisitions | |||||||||||||
(notes 7 and 11) | 749,998 | 269,999 | - | - | - | - | 269,999 | ||||||
Share-based payments (note 11) | - | - | - | 68,627 | - | - | 68,627 | ||||||
Net loss from continuing operations | - | - | - | - | (576,921) | - | (576,921) | ||||||
Net loss from discontinued operations (note 4) | - | - | - | - | (2,100) | - | (2,100) | ||||||
Translation adjustment | - | - | - | - | - | (139) | (139) | ||||||
Balance, March 31, 2023 | 24,406,561 | 16,854,981 | 85,000 | 2,714,155 | (17,580,325) | 1,317 | 2,075,128 | ||||||
Exploration and evaluation asset acquisitions | |||||||||||||
(notes 7 and 11) | 2,025,000 | 725,000 | - | - | - | - | 725,000 | ||||||
Obligation to issue shares (note 11) | - | - | 10,000 | - | - | - | 10,000 | ||||||
Share-based payments (note 11) | - | - | - | 118,941 | - | - | 118,941 | ||||||
Net loss from continuing operations | - | - | - | - | (1,108,755) | - | (1,108,755) | ||||||
Net loss from discontinued operations (note 4) | - | - | - | - | (12,671) | - | (12,810) | ||||||
Translation adjustment | - | - | - | - | - | (492) | (492) | ||||||
Balance, December 31, 2023 | 26,431,561 | $ | 17,579,981 | $ | 95,000 | $ | 2,833,096 | $ | (18,701,751) | $ | 825 | $ | 1,807,151 |
Private placement (note 11) | 17,188,235 | 6,600,000 | (8,500) | - | - | - | 6,591,500 | ||||||
Private placement - refund of oversubscription | - | - | (1,500) | - | - | - | (1,500) | ||||||
Fractional rounding due to share consolidation | (24) | - | - | - | - | - | - | ||||||
Share issuance costs - cash (note 11) | - | (35,693) | - | - | - | - | (35,693) | ||||||
Share issuance costs - finders' fees (note 11) | - | (111,530) | - | - | - | - | (111,530) | ||||||
Share issuance costs - finders' warrants (note | |||||||||||||
11) | - | (59,190) | - | 59,190 | - | - | - | ||||||
Warrants reserve (note 11) | - | (3,645,512) | - | 3,645,512 | - | - | - | ||||||
Exercise of restricted share units (note 11) | 500,000 | 120,000 | - | (120,000) | - | - | - | ||||||
Exercise of warrants (note 11) | 108,750 | 43,500 | - | - | - | - | (43,500) | ||||||
Exploration and evaluation asset acquisitions | |||||||||||||
(notes 7 and 11) | 624,996 | 354,998 | (85,000) | - | - | - | 269,998 | ||||||
Share-based payments (note 11) | - | - | - | 131,652 | - | - | 131,652 | ||||||
Net loss from continuing operations | - | - | - | - | (1,738,765) | - | (1,738,765) | ||||||
Balance, March 31, 2024 | 44,853,518 | $ | 20,846,554 | $ | - | $ | 6,549,450 | $ | (20,440,516) | $ | 825 | $ | 6,956,313 |
4
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
INTREPID METALS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2024
(Expressed in Canadian dollars)
1. NATURE OF OPERATIONS AND GOING CONCERN
Intrepid Metals Corp. (the "Company" or "Intrepid") common shares trade on the TSX Venture Exchange ("TSX-V" or the "Exchange") under the symbol "INTR", trade on the OTCQB under the symbol "IMTCF" and was incorporated on June 26, 1978 and exists under the Business Corporations Act (British Columbia). Following a change of business transaction on April 21, 2022, the Company is a mineral exploration company, whereby it's engaged in the acquisition, exploration, and development of mineral properties. The Company has acquired rights to mineral properties in south-eastern Arizona, USA. On April 11, 2022, the Company changed its name from Voleo Trading Systems Inc. to Intrepid Metals Corp.
The Company's registered and records office is #2400 - 1055 West Georgia Street, Vancouver, British Columbia, V6E 3P3.
Going concern
At March 31, 2024, the Company had not yet determined whether its properties contain reserves that are economically recoverable. The recoverability of amounts shown for exploration and evaluation assets and related deferred exploration costs is dependent upon the discovery of economically recoverable reserves, confirmation of the Company's interest in the underlying mineral claims, the ability of the Company to obtain necessary financing to complete the development, and upon future profitable production from the exploration and evaluation assets or proceeds from the disposition of the exploration and evaluation asset.
These condensed consolidated interim financial statements have been prepared with the going concern assumption, which assumes that the Company will continue in operation for the foreseeable future and, accordingly will be able to realize its assets and discharge its liabilities in the normal course of operations. At March 31, 2024, the Company had an accumulated deficit of $20,440,516 and expected to incur further losses, and required additional equity financing to continue developing its business and to meet its obligations. While the Company has been successful at raising additional equity financing in the past, there is no guarantee that it will continue to do so in the future, which results in a material uncertainty that casts significant doubt on the Company's ability to continue as a going concern.
The Company's ability to continue its operations and to realize its assets at their carrying values is dependent upon obtaining additional financing and generating revenues sufficient to cover its operating costs. These condensed consolidated interim financial statements do not give effect to any adjustments which would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts different from those reflected in the accompanying condensed consolidated interim financial statements. These adjustments could be material.
5
INTREPID METALS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2024
(Expressed in Canadian dollars)
2. BASIS OF PRESENTATION Statement of compliance
These condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Boards ("IASB"), in accordance with International Accounting Standards ("IAS") 34, Interim Financial Reporting and interpretations issued by the International Reporting Interpretation Committee ("IFRIC"). The condensed consolidated interim financial statements do not include all the information required for full annual financial statements.
Basis of presentation
These condensed consolidated interim financial statements are presented in Canadian dollars unless otherwise indicated, the functional currency of the Company. These condensed consolidated interim financial statements have been prepared on a historical cost basis, except for certain financial instruments which are measured 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 consolidated interim financial statements were authorized for issue by the Board of Directors on May 29, 2024.
Basis of consolidation
These condensed consolidated interim financial statements include the accounts of the Company and its wholly owned subsidiary Intrepid Metals (USA) Corp. All intercompany transactions and balances have been eliminated on consolidation.
Percentage ownership | |||
March 31, | December 31, | ||
Subsidiary Name | Incorporation Jurisdiction | 2024 | 2023 |
Intrepid Metals (USA) Corp. | Arizona, USA | 100% | 100% |
Critical accounting estimates and judgments
The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets, liabilities, shareholders' equity, and the disclosure of contingent assets and liabilities as at the date of the financial statements, and expenses for the years reported.
Significant assumptions about the future and other sources of estimation uncertainty that management has made at the end of the reporting period, which could result in a material adjustment to the carrying amounts of assets and liabilities in the event that actual results differ from assumptions made, relate to, but are not limited to, the following:
- The recoverability of receivables, prepayments and deposits that are included in the consolidated statements of financial position.
9
INTREPID METALS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2024
(Expressed in Canadian dollars)
2. BASIS OF PRESENTATION (continued)
Critical accounting estimates and judgments (continued)
- The fair value of stock options, warrants and compensation options, which requires the estimation of stock price volatility, the expected forfeiture rate and the expected term of the underlying instruments.
- The fair value of restricted share units which requires the estimation of the number of awards likely to vest on grant and at each reporting date up to the vesting date.
- The fair value of the investment for which a quoted market price in an active market is not available.
- The recoverability of deferred tax assets based on the assessment of the Company's ability to utilize the underlying future tax deductions against future taxable income prior to expiry of those deductions.
- The assessment of the Company's ability to continue as a going concern and to raise sufficient funds to pay its ongoing operating expenditures and to meet its liabilities for the ensuing year involves significant judgment based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances.
- The classification and allocation of expenses as exploration and evaluation expenditures or operating expenses.
- The determination of impairment indicators involves significant judgment and estimation. Management assesses the carrying value of mining properties for indicators of impairment at each reporting date. Key indicators considered include, but are not limited to, significant declines in commodity prices, adverse changes in market conditions, significant underperformance relative to historical or projected future operating results, and changes in technology or reserve estimates. Management considers both internal and external sources of information in assessing impairment indicators. Internal sources may include changes in production plans, exploration results, and cash flow forecasts. External sources may include industry reports, market trends, and analyst projections. While management exercises judgment in assessing impairment indicators, actual impairment charges may vary based on future market conditions and operational performance.
- The classification of an option to acquire a mining subsidiary company involves significant judgment and estimation. Management assesses whether the option should be classified as a financial asset or as part of the business combination. Management considers the terms and conditions of the option agreement and any other contractual provisions. Additionally, management evaluates the substance of the arrangement to determine whether it represents an investment in a financial asset or a business combination. If the option is classified as a financial asset, it is measured at fair value through profit or loss, with changes in fair value recognized in the income statement. If the option is considered part of a business combination, it is initially recognized at fair value and subsequently accounted for in accordance with the applicable accounting standards for business combinations. The determination of the classification of the option involves judgment and estimation and may impact the reported financial position and results of operations. Management reassesses the classification of the option at each reporting date and adjusts its accounting treatment as necessary based on changes in facts and circumstances.
10
INTREPID METALS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2024
(Expressed in Canadian dollars)
3. MATERIAL ACCOUNTING POLICY INFORMATION Financial instruments
IFRS 9, Financial Instruments ("IFRS 9") provides three different measurement categories for non- derivative financial assets - subsequently measured at amortized cost, fair value through profit or loss ("FVTPL") or fair value through other comprehensive income - while all non-derivative financial liabilities are classified as subsequently measured at amortized cost. The category into which a financial asset is placed and the resultant accounting treatment is largely dependent on the nature of the business of the entity holding the financial asset. All financial instruments are initially recognized at fair value.
Financial Assets and Liabilities | Classification |
Cash | FVTPL |
Amounts receivable | Amortized Cost |
Investment | FVTPL |
Accounts payable | Amortized Cost |
Promissory notes payable | Amortized Cost |
Financial assets
The Company's financial assets at amortized cost are initially recognized at fair value plus or minus transaction costs, respectively, and subsequently carried at amortized cost less any impairment. The Company's financial assets carried at FVTPL are initially recorded at fair value and transaction costs are expensed in the statements of loss and comprehensive loss. Realized and unrealized gains and losses arising from changes in the fair value of the financial assets held at FVTPL are included in the statement of comprehensive loss in the period in which they arise.
Financial liabilities
The Company measures all of its financial liabilities as subsequently measured at amortized cost. Financial liabilities are recognized initially at fair value, net of transaction costs incurred, and are subsequently measured at amortized cost. Any difference between the amounts originally received, net of transaction costs, and the redemption value is recognized in profit and loss over the period to maturity using the effective interest method.
The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also derecognizes a financial liability when the terms of the liability are modified such that the terms and/or cash flows of the modified instrument are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value. Gains and losses on derecognition are generally recognized in profit or loss.
11
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Intrepid Metals Corp. published this content on 29 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 May 2024 22:06:19 UTC.
