Foremost Lithium Resource & Technology .(FMST) - 2025 Q4 - Annual Report

Financial Performance - Foremost Clean Energy Ltd. has not generated any revenues during the fiscal year ended March 31, 2025, as the company remains at the exploration stage [417]. - The Company reported a net comprehensive loss of $3,615,375 for the year ended March 31, 2025, a decrease of $856,795 compared to the previous year [483]. - The company reported a net comprehensive income of $778,565 for the three-month period ended March 31, 2025, compared to a net loss of $1,513,401 in the same period of 2024, reflecting a net change of $2,291,966 [485]. - The company reported a net income of $778,565 for the period ending March 31, 2025, compared to a net loss of $2,012,936 in the previous period [490]. - Basic and diluted earnings per share were $0.07 for the period ending March 31, 2025, an improvement from a loss of $0.23 in September 2024 [490]. - The Company recognized a gain on the spin-out transaction of $1,914,814 in 2025, attributed to the completion of the spin-out of Sierra into Rio Grande [486]. - The gain on derivative liabilities for the three-month period ended March 31, 2025, was $166,656, a substantial increase of $558,668 from a loss of $392,012 in the same period of 2024 [486]. Exploration and Development - The total exploration expenditures incurred for the year ended March 31, 2025, amounted to CAD 21,324,785, with significant costs in various properties including CAD 8,990,709 for the Zoro Property and CAD 2,823,815 for the Lac Property [426]. - The company has an option to earn up to a 70% interest in 10 prospective uranium properties spanning over 330,000 acres in the Athabasca Basin region [424]. - Foremost Clean Energy has a portfolio of lithium projects covering over 55,000 acres in Manitoba and Quebec, indicating a diversified exploration strategy [425]. - The Zoro Lithium Project encompasses approximately 3,390 hectares located near Wekusko Lake in Manitoba, highlighting the company's focus on lithium exploration [428]. - The Company has identified a total of 13 pegmatite dykes at the Zoro Lithium Project, with five new dykes discovered during a drilling program that involved 3,054 meters of drilling across 22 holes [433]. - The Company has completed a ten-hole, 1,509-meter drill program at the Zoro Lithium Property, resulting in the discovery of a sixteenth spodumene-bearing pegmatite dyke [452]. - The Company plans follow-up drill programs based on positive results from previous exploration efforts in 2024 [444]. - The 2024 Winter Drill Program at Zoro Lithium Property completed a 5,826-meter drilling campaign, confirming an inferred resource of 1,074,567 tons at a grade of 0.91% Li2O [455]. - The continuity of lithium mineralization along Dyke 1 has been confirmed, extending its strike length from 265 meters to over 400 meters [456]. - The drilling program targeted untested mineralization at depth, enhancing the understanding of lithium distribution in the area [455]. - The results from the drilling campaign and metallurgical tests indicate favorable conditions for future lithium production and market expansion [461]. Financial Position and Assets - Total assets increased to $27,741,039 as of March 31, 2025, up from $16,598,857 in 2024, representing a growth of approximately 67.5% [488]. - Exploration and evaluation assets rose to $21,324,785 in 2025, compared to $15,094,413 in 2024, indicating an increase of about 41.2% [488]. - Shareholders' equity increased to $24,492,262 in 2025, compared to $13,209,537 in 2024, marking a growth of approximately 85.1% [488]. - As of March 31, 2025, the Company had a cash balance of $5,005,346, compared to $998,262 in 2024, to settle current liabilities of $3,248,777 [520]. - The company has a working capital deficit of $2,111,763 as of March 31, 2025, an improvement from a deficit of $1,904,107 in the previous year [495]. - The company continues to seek additional financing through equity and/or debt to support its operations and exploration programs [492]. Costs and Expenditures - The company has incurred acquisition costs of CAD 4,082,338 for its mineral properties as of March 31, 2025 [426]. - The Company has incurred $8,000,000 in exploration expenditures on the Exploration Properties as part of the option agreement with Denison [442]. - The Company has incurred $881,337 in exploration expenditures as part of the option agreement for the Peg North Property, with a total commitment of $3,000,000 due by June 9, 2027 [482]. - The Company incurred $96,768 in interest on a loan agreement during the year ended March 31, 2025, with a principal repayment of $600,000 [510]. - For the year ended March 31, 2025, total remuneration for key management personnel was $1,443,380, an increase from $1,472,267 in 2024 [507]. Risks and Challenges - The company faces high risks in mineral exploration, with no assurance of discovering economically viable mineral deposits [541]. - The company is exposed to liquidity risk and is dependent on obtaining regular financings to continue as a going concern [520]. - The company has generated losses to date and anticipates requiring additional funds to further explore its properties [541]. - The overall risk management strategy focuses on minimizing potential adverse effects on financial performance due to market unpredictability [702]. - The company has no history of earnings, and there is no assurance that its current or future mineral properties will generate profits [541]. Corporate Actions and Agreements - The company began trading on NASDAQ under the symbols FMST and FMSTW on August 22, 2023, marking a significant milestone in its market presence [418]. - The Company has entered into an option agreement with Denison Mines Corp. to acquire up to a 70% interest in the Athabasca Properties, covering over 330,000 acres in the Athabasca Basin [435]. - The Company has earned a 100% interest in the Zoro 1 claim by paying CAD 50,000 in cash and issuing 140,000 common shares [429]. - The Company has earned 100% interest in all lithium-bearing pegmatite dykes on 15 additional claims by paying $500,000 in cash and issuing $500,000 in shares [447]. - The Company has contracted XPS Expert Process Solutions to refine spodumene concentrate into saleable lithium products, supporting the EV battery ecosystem [460]. - A statement of claim was filed against the Company on June 3, 2025, alleging wrongful dismissal, with unspecified damages sought [525].