Investment in associate

3 Months Ended

Oct. 31, 2025

7.	Investment in associate

On November 6, 2024, the Company received 2,000,000 shares in FCS, in connection with an agreement to acquire a stake in FCS in exchange for 200,000 shares of the Company that was entered into on October 28, 2024. At the time of acquisition, the 2,000,000 shares of FCS received by the Company represented 50% of shares outstanding, and the initial balance of investment was determined to be $1,220,000 being the fair value of the shares issued by the Company in consideration for the exchange. As at October 31, 2025, the Company’s share of ownership remained at 50%. Management assessed that the Company has significant influence over FCS based on its share of ownership, and that the investment should be accounted for using the equity method of accounting.

Summarized financial information of FCS and a reconciliation of the carrying amount of the investment set forth in the consolidated balance sheets are set out below:

Summarized balance sheet

	October 31, 2025
ASSETS
Cash	$	162
Due from related parties		123,075
Start-up costs, net		101,859
Total assets	$	225,096

LIABILITIES
Accounts payable and accrued liabilities	$	255,875
Convertible notes		1,303,875
Total liabilities	$	1,559,750

Summarized statement of loss

	For the three months ended October 31, 2025
Operating expenses
General and administrative expenses	$	2,339
Guaranteed payments		150,899
Legal and professional fees		1,337
Travel		1,241
Amortization		5,493
Total operating expenses		(161,309	)

Interest expenses		(17,825	)
Net loss	$	(179,134	)
Company’s ownership		50	%
Company’s share of loss	$	(89,567	)

A continuity of the Company’s investment in associate is as follows:

Balance as at July 31, 2024	$	-
Investment by the Company		1,220,000
Company’s share of loss		(512,011	)
Balance as at July 31, 2025	$	707,989
Company’s share of loss		(89,567	)
Balance as at October 31, 2025	$	618,422