Foremost Lithium Resource & Technology .(FMST) - 2023 Q3 - Quarterly Report

Financial Position - Total assets increased to CAD 15,134,061 as of December 31, 2023, up from CAD 13,300,444 as of March 31, 2023, representing a growth of approximately 13.8%[2] - Current assets rose to CAD 1,820,562, a significant increase from CAD 795,349, marking a growth of about 128.5%[2] - Exploration and evaluation assets increased to CAD 13,293,755, up from CAD 12,477,791, reflecting a growth of approximately 6.5%[2] - Total liabilities decreased to CAD 2,087,488 from CAD 2,912,822, a reduction of approximately 28.3%[2] - Cash at the end of the period was CAD 1,453,147, compared to CAD 2,312,446 at the end of the previous year, indicating a decrease of about 37.2%[6] - As of December 31, 2023, the total equity of Foremost Lithium Resource & Technology Ltd. is CAD 13,046,573, an increase from CAD 10,689,324 as of December 31, 2022[7] - The deficit increased to CAD 20,820,828 as of December 31, 2023, up from CAD 17,869,111 as of March 31, 2023[13] - The working capital deficiency as of December 31, 2023, is CAD 1,992, a slight improvement from CAD 2,117,473 as of March 31, 2023[13] - Total shares outstanding increased to 4,866,417 as of December 31, 2023, from 3,969,617 as of March 31, 2023[7] Financial Performance - The company reported a net loss of CAD 2,958,769 for the nine months ended December 31, 2023, compared to a profit of CAD 634,626 in the same period of 2022[4] - Basic loss per common share was CAD (0.68) for the nine-month period ended December 31, 2023, compared to a profit of CAD 0.17 in the same period of 2022[4] - Cash flow from operating activities was CAD (2,805,372) for the nine months ended December 31, 2023, compared to CAD (2,101,353) in the prior year[6] - The company incurred share-based payments of CAD 855,461 for the nine months ended December 31, 2023, down from CAD 1,316,890 in the same period of 2022[4] - The company reported a loss for the period of CAD 2,958,769 for the nine months ended December 31, 2023, compared to an income of CAD 634,626 for the same period in the previous year[7] - The company has not generated any revenues from operations as of December 31, 2023[13] Financing Activities - The company raised CAD 5,418,400 through private placements during the nine months ended December 31, 2023[6] - The company continues to seek additional financing through equity and/or debt issuances to support its operations[15] - The company closed a public offering selling 800,000 units at a price of $6.77 per unit, generating gross proceeds of $5,418,400 before expenses[75] Exploration and Development - The company is focused on the exploration and development of high-potential mineral opportunities in stable jurisdictions[12] - The company incurred exploration costs totaling $9,188,035 for the period ended December 31, 2023, up from $8,829,882 for the previous period[43] - The company staked additional claims on the Grass River Property for $1,755 during the period ended December 31, 2023[51] - The company earned a 100% interest in the Zoro North property by paying $250,000 in cash and issuing $250,000 in shares[46] - The company acquired a 100% interest in the Little Granite claims by issuing a US$75,000 promissory note, fully paid by December 31, 2023[57] - The company received a grant of $300,000 from the Manitoba Government for exploration work, with $200,000 received in the year ended March 31, 2023, and the remaining $100,000 received by December 31, 2023[67] Risk Factors - The company has significant uncertainties regarding its ability to continue as a going concern due to ongoing losses and working capital deficiencies[13] - The company is exposed to liquidity risk and is dependent on obtaining regular financings to continue as a going concern[103] - The Company is exposed to price risk related to commodity and equity prices, which can adversely impact earnings[108] - Commodity price risk involves potential adverse impacts on earnings and economic value due to fluctuations in commodity prices, particularly gold and lithium[108] - The Company actively monitors commodity prices and stock market movements to inform strategic decisions[108] Share-Based Compensation - A total of 198,500 stock options were granted during the period, with an estimated fair value of $1,059,800, while 36,000 options were exercised and 30,000 expired or were forfeited[80] - The company recorded $47,361 as share-based compensation for performance stock options during the nine-month period[83] - The weighted average exercise price of stock options as of December 31, 2023 was $10.81, with a weighted average remaining life of 2.61 years[80] - The company granted stock options for an aggregate of 85,000 shares to officers, exercisable at $6.60 per share for five years, with an estimated fair value of $445,500[79] - The company had 121,000 stock options that expired or were forfeited, resulting in a reallocation of share-based reserves of $891,400 from reserves to deficit[79]