Acquisition and Consolidation - NAN completed the 100% acquisition of PNRC on August 3, 2022, accounting for it as a reverse takeover, impacting the consolidated financial statements for the year ended December 31, 2022 [136]. - The consolidated financial statements reflect the results from PNRC's operations and cash flows combined with those of NAN from the acquisition date to December 31, 2022 [136]. - Consolidated financial statements are prepared on a going concern basis, requiring assessment of future cash flows and potential uncertainties impacting the Company's ability to continue operations [189]. Financial Reporting and Currency - The Company’s functional and presentation currency is the Canadian dollar, with foreign currency transactions translated at prevailing exchange rates [137]. - Financial assets and liabilities are classified into categories such as FVTPL, FVTOCI, and amortized cost, with cash classified as FVTPL [141]. - Deferred income taxes are recognized for future income tax using the asset and liability method, requiring interpretation of enacted legislation and economic conditions [192]. Impairment and Asset Valuation - The Company applies an 'expected credit loss' impairment model for financial assets at amortized cost, recognizing impairment losses based on estimated future cash flows [144]. - Exploration and evaluation assets are capitalized and assessed for impairment when sufficient data indicates technical feasibility and commercial viability [150]. - Management conducts periodic reviews for impairment indicators of exploration and evaluation assets, requiring significant estimates of discount rates, commodity prices, and future costs [187]. - The carrying value of exploration and evaluation assets is $31,823,982 as of December 31, 2022, dependent on the ability to obtain financing for profitable production or advantageous disposal [186]. - The Company has determined no restoration obligations exist as of December 31, 2022, based on current economic conditions [188]. Property, Plant, and Equipment - The Company’s property, plant, and equipment are stated at historical cost less accumulated depreciation, with specific estimated useful lives for different asset categories [159][161]. - Depreciation of property, plant, and equipment is based on estimates of useful lives, which are subject to judgment and market conditions [193]. Share-Based Compensation - The Company adopted a Deferred Share Unit (DSU) plan in 2022, recording the fair value of the liability at the date incurred and adjusting it at each reporting period [168]. - The DSU plan allows eligible non-management directors to redeem units for cash based on the volume-weighted average price of Common Shares [170]. - The fair value of share-based compensation is estimated using the Black-Scholes Option Pricing Model, which involves significant assumptions regarding expected term, volatility, and forfeiture rates [190]. Dilution and Earnings Per Share - The Company uses the treasury stock method to compute the dilutive effect of options and warrants on loss per share [171].
NexMetals Mining Corp(NEXM) - 2022 Q4 - Annual Report