Foremost Lithium Resource & Technology .(FMST) - 2026 Q2 - Quarterly Report

Financial Performance - Net loss for the three-month period ended September 30, 2025, was CAD 2,649,057, compared to a loss of CAD 1,523,910 for the same period in 2024, indicating a year-over-year increase in losses of approximately 74%[4] - For the six months ended September 30, 2025, the company reported a loss of $2,243,218 compared to a loss of $2,381,004 for the same period in 2024, indicating a 5.8% improvement in loss[7] - The basic loss per common share for the six-month period ended September 30, 2025, was CAD 0.19, compared to CAD 0.44 for the same period in 2024, showing a decrease in loss per share[4] Assets and Liabilities - Total assets increased to CAD 35,585,010 as of September 30, 2025, up from CAD 27,741,039 as of March 31, 2025, representing a growth of approximately 28%[2] - Total liabilities decreased to CAD 2,689,876 as of September 30, 2025, down from CAD 3,248,777 as of March 31, 2025, indicating a reduction of approximately 17%[2] - Shareholders' equity increased to CAD 32,895,134 as of September 30, 2025, compared to CAD 24,492,262 at the end of March 2025, marking a rise of approximately 34%[2] Cash Flow and Financing - Cash reserves rose to CAD 6,560,975, an increase of 31% from CAD 5,005,346 at the end of March 2025[2] - The net cash used in operating activities increased significantly to $4,439,519 from $1,617,038 in the previous year, reflecting a 174.5% increase in cash outflow[7] - The company raised $4,967,341 through cash financings, a substantial increase from $1,350,129 in the prior year, representing a 267.5% increase in financing activities[7] - The company continues to seek additional financing through equity and/or debt to support its operations and corporate objectives[11] Exploration and Evaluation - Exploration and evaluation assets grew to CAD 25,509,180, up from CAD 21,324,785 as of March 31, 2025, reflecting an increase of about 20%[2] - The company incurred exploration and evaluation expenditures of $3,243,125 for the period, compared to $538,252 in the previous year, marking a 502.5% increase in investment in exploration[7] - The Company incurred exploration costs of $15,297,803 during the period ended September 30, 2025, compared to $11,564,023 for the year ended March 31, 2025, representing an increase of about 32%[28] Share Issuance and Compensation - The company issued shares for private placements totaling CAD 10,500,250 during the reporting period, contributing to the increase in capital stock[5] - The company recorded share-based compensation of $12,476 for the vested portion of stock options during the period ended September 30, 2025[61] - The company granted a total of 413,100 Restricted Share Units (RSUs) during the period ended September 30, 2025, with an estimated fair value of $1,891,998[67] Legal and Regulatory Matters - The company is currently facing a claim for wrongful dismissal from a former officer, seeking unspecified damages[113] - The probability and amounts of potential loss from the claim are currently undeterminable, with no amounts accrued in the financial statements[114] - Any unfavorable outcomes or significant settlements could materially affect the company's results of operations, cash flows, and financial position[115]