FISSION URANIUM CORP. Financial Statements
Fission Uranium Corp.
For the Year Ended
December 31, 2023
(expressed in thousands of Canadian Dollars, except as noted)
Fission Uranium Corp.
Financial Statements
For the Year Ended
December 31, 2023
(expressed in thousands of Canadian Dollars, except as noted)
Table of contents | |
Statements of financial position | 1 |
Statements of loss and comprehensive loss | 2 |
Statements of changes in equity | 3 |
Statements of cash flows | 4 |
Notes to the financial statements | 5-20 |
Independent auditor's report
To the Shareholders of Fission Uranium Corp.
Our opinion
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Fission Uranium Corp. (the Company) as at December 31, 2023 and 2022, and its financial performance and its cash flows for the years then ended in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards).
What we have audited
The Company's financial statements comprise:
- the statements of financial position as at December 31, 2023 and 2022;
- the statements of loss and comprehensive loss for the years then ended;
- the statements of changes in equity for the years then ended;
- the statements of cash flows for the years then ended; and
- the notes to the financial statements which include material accounting policies and other explanatory information.
Basis for opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada. We have fulfilled our other ethical responsibilities in accordance with these requirements.
PricewaterhouseCoopers LLP
250 Howe Street, Suite 1400, Vancouver, British Columbia, Canada, V6C 3S7 T: +1 604 806 7000, F: +1 604 806 7806, ca_vancouver_main_fax@pwc.com
PwC" refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the year ended December 31, 2023. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter
Assessment of impairment indicators of exploration and evaluation assets
Refer to note 2 - Material accounting policy information, note 3 - Key estimates and judgements and note 7 - Exploration and evaluation assets to the financial statements.
The net book value of exploration and evaluation assets amounted to $378 million as at December 31, 2023. On an ongoing basis, management applies judgment in assessing whether any impairment indicators relating to exploration and evaluation assets exist. If any indication of impairment exists, then an estimate of the exploration and evaluation asset's recoverable amount is calculated. Indicators of impairment may include (i) the period during which the Company has the right to explore in the specific area has expired during the year or will expire in the near future, (ii) substantive expenditure on further exploration for and evaluation of mineral resources in the specific area is neither budgeted nor planned,
-
the Company has decided to discontinue activities in an area as the exploration and evaluation activities in the area have not led to the discovery of commercially viable quantities of mineral resources and (iv) sufficient data exists to indicate that the carrying amount exceeds the recoverable amount. No impairment indicators were
identified by management as at December 31, 2023.
We considered this a key audit matter due to the significance of the exploration and evaluation
How our audit addressed the key audit matter
Our approach to addressing the matter included the following procedures, among others:
- Assessed the judgment made by management in determining the impairment indicators, which included the following:
- Obtained mining titles to assess (i) the right to explore the area and (ii) title expiration dates.
- Read the board of directors' meeting minutes and obtained budget approvals to evidence continued and planned exploration expenditure, which included evaluating the results of management's current-year work programs and longer term plans.
- Assessed whether the exploration and evaluation activities in an area have not led to the discovery of commercially viable quantities of mineral resources, or if other facts and circumstances suggest that the carrying amount may exceed the recoverable amount, based on evidence obtained in other areas of the audit.
Key audit matter | How our audit addressed the key audit matter |
assets and the judgments made by management in its assessment of impairment indicators related to exploration and evaluation assets. This in turn resulted in a high degree of subjectivity in performing audit procedures related to the judgments applied by management.
Other information
Management is responsible for the other information. The other information comprises the Management's Discussion and Analysis.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of management and those charged with governance for the financial statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRS Accounting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company's financial reporting process.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partner on the audit resulting in this independent auditor's report is Eric Talbot.
/s/PricewaterhouseCoopers LLP
Chartered Professional Accountants
Vancouver, British Columbia
March 8, 2024
Fission Uranium Corp.
Statements of financial position
(Expressed in thousands of Canadian dollars, except as noted)
December 31 | December 31 | ||
Note | 2023 | 2022 | |
$ | $ | ||
Assets | |||
Current assets | |||
Cash and cash equivalents | 74,014 | 41,356 | |
Amounts receivable | 262 | 170 | |
Prepaid expenses | 277 | 802 | |
74,553 | 42,328 | ||
Non-current assets | |||
Investment in F3 Uranium Corp. | 4 | - | 3,400 |
Right-of-use assets | 5 | 317 | 266 |
Property and equipment | 6 | 112 | 79 |
Exploration and evaluation assets | 7 | 378,448 | 357,311 |
378,877 | 361,056 | ||
Total Assets | 453,430 | 403,384 | |
Liabilities | |||
Current liabilities | |||
Accounts payable and accrued liabilities | 2,546 | 1,414 | |
Lease obligations - current portion | 8 | 89 | 54 |
2,635 | 1,468 | ||
Non-current liabilities | |||
Lease obligations | 8 | 247 | 225 |
Flow-through share premium liability | 9(b) | 2,706 | - |
2,953 | 225 | ||
Total Liabilities | 5,588 | 1,693 | |
Shareholders' Equity | |||
Share capital | 9 | 551,585 | 503,495 |
Other capital reserves | 9 | 48,098 | 41,116 |
Deficit | (151,841) | (142,920) | |
447,842 | 401,691 | ||
Total Liabilities and Shareholders' Equity | 453,430 | 403,384 |
Subsequent events (Note 15)
Approved by the Board of Directors and authorized for issue on March 8, 2024
"Frank Estergaard"
Director
"William Marsh"
Director
The accompanying notes form an integral part of these financial statements | Page 1 |
Fission Uranium Corp.
Statements of loss and comprehensive loss
(Expressed in thousands of Canadian dollars, except as noted)
Year Ended | Year Ended | ||
December 31 | December 31 | ||
Note | 2023 | 2022 | |
$ | $ | ||
Expenses | |||
Wages, consulting and directors fees | 2,773 | 2,297 | |
Public relations and corporate development | 1,676 | 1,032 | |
Office and administration | 899 | 804 | |
Professional fees | 545 | 232 | |
Share-based compensation | 9(d) | 6,375 | 4,947 |
Depreciation | 98 | 80 | |
12,366 | 9,392 | ||
Other items - income/(expense) | |||
Foreign exchange loss | (2) | (4) | |
Interest and miscellaneous income | 2,695 | 917 | |
Interest - lease obligations | (18) | (18) | |
Gain on investment in F3 Uranium Corp. | 4 | 770 | 1,081 |
Financing costs - credit facility | - | (1,450) | |
Loss on short-term investments | - | (304) | |
Gain on warrant liability | - | 411 | |
3,445 | 633 | ||
Net loss and comprehensive loss for the year | (8,921) | (8,759) | |
Basic and diluted loss per common share | (0.01) | (0.01) | |
Weighted average number of common | |||
shares outstanding | 730,242,709 | 681,339,953 |
The accompanying notes form an integral part of these financial statements | Page 2 |
Fission Uranium Corp.
Statements of changes in equity
(Expressed in thousands of Canadian dollars, except as noted)
Total | ||||||
Share capital | Other capital | shareholders' | ||||
Note | Shares | Amount | reserves | Deficit | equity | |
$ | $ | $ | $ | |||
Balance, January 1, 2022 | 674,699,631 | 484,821 | 36,404 | (134,161) | 387,064 | |
Common shares issued | 9(b) | 10,899,300 | 7,999 | - | - | 7,999 |
Share issuance costs | 9(b) | - | (348) | - | - | (348) |
Stock options exercised | 9(c) | 1,239,463 | 1,344 | (864) | - | 480 |
Warrants exercised | 9(c) | 16,627,059 | 9,578 | (1,009) | - | 8,569 |
Director remuneration shares issued | 11 | 121,792 | 101 | - | - | 101 |
Share-based compensation | 9(d) | - | - | 6,585 | - | 6,585 |
Net loss and comprehensive loss | - | - | - | (8,759) | (8,759) | |
Balance, December 31, 2022 | 703,587,245 | 503,495 | 41,116 | (142,920) | 401,691 | |
Common shares issued | 9(b) | 50,141,400 | 41,097 | - | - | 41,097 |
Flow-through shares issued | 9(b) | 7,731,092 | 9,200 | - | - | 9,200 |
Flow-through share premium liability | 9(b) | (2,706) | - | - | (2,706) | |
Share issuance costs | 9(b) | - | (2,650) | - | - | (2,650) |
Stock options exercised | 9(c) | 4,564,625 | 2,652 | (1,907) | - | 745 |
Warrants exercised | 9(c) | 330,000 | 340 | (59) | - | 281 |
Director remuneration shares issued | 11 | 205,601 | 157 | - | - | 157 |
Share-based compensation | 9(d) | - | - | 8,948 | - | 8,948 |
Net loss and comprehensive loss | - | - | - | (8,921) | (8,921) | |
Balance, December 31, 2023 | 766,559,963 | 551,585 | 48,098 | (151,841) | 447,842 |
The accompanying notes form an integral part of these financial statements | Page 3 |
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Fission Uranium Corp. published this content on 09 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 March 2024 03:11:06 UTC.
