XML 36 R22.htm IDEA: XBRL DOCUMENT
v3.24.3

RISK MANAGEMENT | 9 Months Ended
--- | ---
Sep. 30, 2024
Risks and Uncertainties [Abstract] |
RISK MANAGEMENT | 14. RISK MANAGEMENT The Company’s exposure to market risk includes, but is not limited to, the following risks: Interest Rate Risk Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not subject to significant changes in interest rates. Notes to the Unaudited Condensed Interim Consolidated Financial Statements For the three and nine months ended September 30, 2024 and 2023 (Expressed in Canadian dollars) Foreign Currency Exchange Rate Risk Currency risk is the risk that the fair value of future cash flows will fluctuate because of changes in foreign currency exchange rates. In addition, the value of cash and other financial assets and liabilities denominated in foreign currencies can fluctuate with changes in currency exchange rates. The Company primarily operates in Canada, Barbados and Botswana and undertakes transactions denominated in foreign currencies such as the United States dollar and Botswana Pula, and consequently is exposed to exchange rate risks. Exchange rate risks are managed by matching levels of foreign currency balances and related obligations and by maintaining operating cash accounts in non-Canadian dollar currencies. Foreign currency denominated financial assets and liabilities which expose the Company to currency risk are disclosed below. The amounts shown are those reported and translated into CAD at the closing rate. SCHEDULE OF RISK MANAGEMENT
|  | Short-term exposure |  |  | Long-term exposure |
|  | USD $ |  |  | BWP $ |  |  | BWP $ |
September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |
Financial assets |  |  | 1,746,290 |  |  |  | 1,495,375 |  |  |  | 70,525,700 |
Financial liabilities |  |  | (1,637,329 | ) |  |  | (2,190,746 | ) |  |  | (1,240,006 | )
Total exposure |  |  | 108,961 |  |  |  | (695,371 | ) |  |  | 69,285,694 |
|  | Short-term exposure |  |  | Long-term exposure |
|  | USD $ |  |  | BWP $ |  |  | BWP $ |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |
Financial assets |  |  | 2,576,180 |  |  |  | 755,386 |  |  |  | 54,082,922 |
Financial liabilities |  |  | (501,458 | ) |  |  | (4,851,201 | ) |  |  | (3,508,714 | )
Total exposure |  |  | 2,074,722 |  |  |  | (4,095,815 | ) |  |  | 50,574,208 |
The following table illustrates the sensitivity of net loss in relation to the Company’s financial assets and financial liabilities and the USD/CAD exchange rate and BWP/CAD exchange rate, all other things being equal. It assumes a +/- 5% change of the USD/CAD and BWP/CAD exchange rates for the nine months ended September 30, 2024 and the year ended December 31, 2023, respectively. If the CAD strengthened against the USD and BWP by 5%, it would have had the following impact: SENSITIVITY ANALYSIS FOR EFFECT OF FOREIGN CURRENCY CHANGES
|  | Short-term exposure |  |  | Long-term exposure |
|  | USD $ |  |  | BWP $ |  |  | Total $ |  |  | BWP $ |
September 30, 2024 |  |  | 5,448 |  |  |  | (34,769 | ) |  |  | (29,321 | ) |  |  | 3,464,285 |
December 31, 2023 |  |  | 103,736 |  |  |  | (204,791 | ) |  |  | (101,055 | ) |  |  | 2,528,710 |
Notes to the Unaudited Condensed Interim Consolidated Financial Statements For the three and nine months ended September 30, 2024 and 2023 (Expressed in Canadian dollars) If the CAD weakened against the USD and BWP by 5%, respectively, it would have had the following impact:
|  | Short-term exposure |  |  | Long-term exposure |
|  | USD $ |  |  | BWP $ |  |  | Total $ |  |  | BWP $ |
September 30, 2024 |  |  | (5,448 | ) |  |  | 34,769 |  |  |  | 29,321 |  |  |  | (3,464,285 | )
December 31, 2023 |  |  | (103,736 | ) |  |  | 204,791 |  |  |  | 101,055 |  |  |  | (2,528,710 | )
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 credit risk is primarily associated with liquid financial assets. The Company limits exposure to credit risk on liquid financial assets by holding cash and cash equivalents at highly-rated financial institutions. Liquidity Risk Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The Company manages the liquidity risk inherent in these financial obligations by regularly monitoring actual cash flows against its annual budget, which forecasts expected cash availability to meet future obligations. The Company will defer discretionary expenditures, as required, in order to manage and conserve cash required for current liabilities. The following table shows the Company’s contractual obligations as at September 30, 2024: SCHEDULE OF CONTRACTUAL OBLIGATIONS
|  | Less than 1 year $ |  |  | 1 - 2 years $ |  |  | 2 - 5 years $ |  |  | Total $ |
Trade payables and accrued liabilities |  |  | 4,904,635 |  |  |  | - |  |  |  | - |  |  |  | 4,904,635 |
Vehicle financing |  |  | 34,232 |  |  |  | 136,929 |  |  |  | 109,309 |  |  |  | 280,470 |
Term Loan |  |  | 2,088,235 |  |  |  | 22,448,529 |  |  |  | - |  |  |  | 24,536,764 |
Lease liabilities |  |  | 675,181 |  |  |  | - |  |  |  | - |  |  |  | 675,181 |
|  |  | 7,702,283 |  |  |  | 22,585,458 |  |  |  | 109,309 |  |  |  | 30,397,050 |
DSUs liability and provision for leave and severance are not presented in the above liquidity analysis as management considers it is not practical to allocate the amounts into maturity groupings. Capital Risk Management The Company manages its capital to ensure that it will be able to continue as a going concern, so that adequate funds are available or are scheduled to be raised to meet its ongoing administrative and operating costs and obligations. This is achieved by the Board of Directors’ review and ultimate approval of budgets that are achievable within existing resources, and the timely matching and release of the next stage of expenditures with the resources made available from capital raises and debt funding from related or other parties. In doing so, the Company may attempt to issue new shares, restructure or issue new debt. Although the Company has been successful in its past equity capital raises and debt funding, there is no assurance that the Company will be able to continue successfully raising equity capital or debt funding in the same manner in the future. Notes to the Unaudited Condensed Interim Consolidated Financial Statements For the three and nine months ended September 30, 2024 and 2023 (Expressed in Canadian dollars) The Company is not subject to any externally imposed capital requirements by a regulator or a lending institution. In the management of capital, the Company includes the components of equity and debt (vehicle financing, lease liabilities and the Term Loan), net of cash. SCHEDULE OF CAPITAL RISK MANAGEMENT
|  | September 30, 2024 $ |  |  | December 31, 2023 $ |
Shareholder’s equity |  |  | 7,718,897 |  |  |  | 9,745,686 |
Vehicle financing |  |  | 280,470 |  |  |  | 236,124 |
Lease liabilities |  |  | 675,181 |  |  |  | 1,611,143 |
Term Loan |  |  | 18,710,277 |  |  |  | 17,956,423 |
Capital Gross Amount |  |  | 27,384,825 |  |  |  | 29,549,376 |
Cash and cash equivalents |  |  | (17,358,377 | ) |  |  | (19,245,628 | )
Capital Net of Cash |  |  | 10,026,448 |  |  |  | 10,303,748 |

X
- Definition The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 275 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/275/tableOfContent + Details
Name: | us-gaap_ConcentrationRiskDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_RisksAndUncertaintiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration