Condensed Interim Financial Statements
Fission Uranium Corp.
For the Three and Nine Month Periods Ended September 30, 2023
(expressed in thousands of Canadian Dollars, except as noted)
(Unaudited)
Fission Uranium Corp.
Condensed Interim Financial Statements
For the Three and Nine Month Periods Ended September 30, 2023
(expressed in thousands of Canadian Dollars, except as noted) | |
(Unaudited) | |
Table of contents | |
Condensed interim statements of financial position | 1 |
Condensed interim statements of loss and comprehensive loss | 2 |
Condensed interim statements of changes in equity | 3 |
Condensed interim statements of cash flows | 4 |
Notes to the condensed interim financial statements | 5-14 |
Fission Uranium Corp.
Condensed interim statements of financial position (Expressed in thousands of Canadian dollars, except as noted) (Unaudited)
September 30 | December 31 | ||
Note | 2023 | 2022 | |
$ | $ | ||
Assets | |||
Current assets | |||
Cash and cash equivalents | 50,149 | 41,356 | |
Amounts receivable | 185 | 170 | |
Prepaid expenses | 564 | 802 | |
50,898 | 42,328 | ||
Non-current assets | |||
Investment in F3 Uranium Corp. | 4 | 4,857 | 3,400 |
Right-of-use assets | 341 | 266 | |
Property and equipment | 107 | 79 | |
Exploration and evaluation assets | 5 | 373,270 | 357,311 |
378,575 | 361,056 | ||
Total Assets | 429,473 | 403,384 | |
Liabilities | |||
Current liabilities | |||
Accounts payable and accrued liabilities | 1,931 | 1,414 | |
Lease obligations - current portion | 88 | 54 | |
2,019 | 1,468 | ||
Non-current liabilities | |||
Lease obligations | 270 | 225 | |
270 | 225 | ||
Total Liabilities | 2,289 | 1,693 | |
Shareholders' Equity | |||
Share capital | 6 | 528,106 | 503,495 |
Other capital reserves | 6 | 48,124 | 41,116 |
Deficit | (149,046) | (142,920) | |
427,184 | 401,691 | ||
Total Liabilities and Shareholders' Equity | 429,473 | 403,384 |
Subsequent events (Note 10)
Approved by the Board of Directors and authorized for issue on November 10, 2023
"Frank Estergaard"
Director
"William Marsh"
Director
The accompanying notes form an integral part of these financial statements | Page 1 |
Fission Uranium Corp.
Condensed interim statements of loss and comprehensive loss (Expressed in thousands of Canadian dollars, except as noted) (Unaudited)
Three Months | Three Months | Nine Months | Nine Months | ||
Ended | Ended | Ended | Ended | ||
September 30 | September 30 | September 30 | September 30 | ||
Note | 2023 | 2022 | 2023 | 2022 | |
$ | $ | $ | $ | ||
Expenses | |||||
Wages, consulting and directors fees | 482 | 378 | 1,484 | 1,150 | |
Public relations and corporate development | 408 | 413 | 1,183 | 789 | |
Office and administration | 188 | 175 | 691 | 656 | |
Professional fees | 112 | 10 | 325 | 172 | |
Share-based compensation | 6(d) | 1,034 | 784 | 5,595 | 4,372 |
Depreciation | 26 | 22 | 66 | 61 | |
2,250 | 1,782 | 9,344 | 7,200 | ||
Other items - income/(expense) | |||||
Foreign exchange gain (loss) | 1 | 3 | (1) | (1) | |
Interest and miscellaneous income | 649 | 271 | 1,774 | 524 | |
Interest - lease obligations | (4) | (5) | (12) | (14) | |
Gain (loss) on investment | |||||
in F3 Uranium Corp. | 4 | 1,188 | 108 | 1,457 | (1,401) |
Financing costs - credit facility | - | - | - | (1,450) | |
Loss on short-term investments | - | - | - | (304) | |
Gain on warrant liability | - | - | - | 411 | |
1,834 | 377 | 3,218 | (2,235) | ||
Net loss and comprehensive loss for the perio | (416) | (1,405) | (6,126) | (9,435) | |
Basic and diluted loss per common share | (0.00) | (0.00) | (0.01) | (0.01) | |
Weighted average number of common | |||||
shares outstanding | 725,301,851 | 681,537,557 | 721,501,417 | 678,133,325 |
The accompanying notes form an integral part of these financial statements | Page 2 |
Fission Uranium Corp.
Condensed interim statements of changes in equity (Expressed in thousands of Canadian dollars, except as noted) (Unaudited)
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 | |
Share issuance cost recovery | 6(b) | - | (2) | - | - | (2) |
Stock options exercised | 6(c) | 1,224,065 | 1,333 | (853) | - | 480 |
Warrants exercised | 6(c) | 4,671,070 | 3,575 | (84) | - | 3,491 |
Director remuneration shares issued | 8 | 52,594 | 43 | - | - | 43 |
Share-based compensation | 6(d) | - | - | 5,820 | - | 5,820 |
Net loss and comprehensive loss | - | - | - | (9,435) | (9,435) | |
Balance, September 30, 2022 | 680,647,360 | 489,770 | 41,287 | (143,596) | 387,461 | |
Common share units issued - ATM Financing | 6(b) | 10,899,300 | 7,999 | - | - | 7,999 |
Share issuance costs | 6(b) | - | (346) | - | - | (346) |
Stock options exercised | 6(c) | 15,398 | 11 | (11) | - | - |
Warrants exercised | 6(c) | 11,955,989 | 6,003 | (925) | - | 5,078 |
Director remuneration shares issued | 8 | 69,198 | 58 | - | - | 58 |
Share-based compensation | 6(d) | - | - | 765 | - | 765 |
Net income and comprehensive income | - | - | - | 676 | 676 | |
Balance, December 31, 2022 | 703,587,245 | 503,495 | 41,116 | (142,920) | 401,691 | |
Common shares issued - ATM financing | 6(b) | 32,678,000 | 24,591 | - | - | 24,591 |
Share issuance costs | 6(b) | - | (1,118) | - | - | (1,118) |
Stock options exercised | 6(c) | 2,399,400 | 1,055 | (615) | - | 440 |
Director remuneration shares issued | 8 | 133,479 | 83 | - | - | 83 |
Share-based compensation | 6(d) | - | - | 7,623 | - | 7,623 |
Net loss and comprehensive loss | - | - | - | (6,126) | (6,126) | |
Balance, September 30, 2023 | 738,798,124 | 528,106 | 48,124 | (149,046) | 427,184 |
The accompanying notes form an integral part of these financial statements | Page 3 |
Fission Uranium Corp.
Condensed interim statements of cash flows
(Expressed in thousands of Canadian dollars, except as noted) (Unaudited)
Three Months | Three Months | Nine Months | Nine Months | ||
Ended | Ended | Ended | Ended | ||
September 30 | September 30 | September 30 | September 30 | ||
Note | 2023 | 2022 | 2023 | 2022 | |
$ | $ | $ | $ | ||
Operating activities | |||||
Net loss and comprehensive loss | (416) | (1,405) | (6,126) | (9,435) | |
Items not involving cash: | |||||
Depreciation | 26 | 22 | 66 | 61 | |
Share-based compensation | 6(d) | 1,034 | 784 | 5,595 | 4,372 |
Director remuneration shares issued | 8 | - | - | 83 | 43 |
Interest income earned on cash | |||||
and cash equivalents | (649) | (271) | (1,770) | (523) | |
Financing costs - credit facility | - | - | - | 1,212 | |
Foreign exchange (gain) loss on credit facility | - | - | - | (66) | |
(Gain) loss on investment | |||||
in F3 Uranium Corp. | 4 | (1,188) | (108) | (1,457) | 1,401 |
Loss on short-term investments | - | - | - | 304 | |
Gain on warrant liability | - | - | - | (411) | |
(1,193) | (978) | (3,609) | (3,042) | ||
Changes in non-cash working capital items: | |||||
(Increase) decrease in amounts receivable | 61 | (15) | (16) | 13 | |
(Increase) decrease in prepaid expenses | 10 | 84 | (171) | (84) | |
Increase (decrease) in accounts payable | |||||
and accrued liabilities | 102 | 21 | (215) | (352) | |
Cash flow used in operating activities | (1,020) | (888) | (4,011) | (3,465) | |
Investing activities | |||||
Interest income earned on cash | |||||
and cash equivalents | 649 | 271 | 1,770 | 523 | |
Net proceeds on disposal of | |||||
investment in F3 Uranium Corp. | 4 | - | - | - | 56 |
Net equipment additions | (30) | (69) | (41) | (70) | |
Exploration and evaluation asset additions | 5 | (4,196) | (3,226) | (13,071) | (10,468) |
Cash flow used in investing activities | (3,577) | (3,024) | (11,342) | (9,959) | |
Financing activities | |||||
Credit facility financing costs | - | - | - | (9) | |
Credit facility repayment | - | - | - | (8,773) | |
Gross proceeds from the issuance of | |||||
common shares | 6(b) | 7,832 | - | 24,591 | - |
Share issuance costs | 6(b) | (242) | (24) | (840) | (373) |
Stock option exercises | 6(c) | - | - | 440 | 480 |
Warrant exercises | 6(c) | - | 62 | - | 1,339 |
Lease obligation payments | (18) | (12) | (45) | (36) | |
Cash flow provided (used) by financing activities | 7,572 | 26 | 24,146 | (7,372) | |
Increase (decrease) in cash and | |||||
cash equivalents during the period | 2,975 | (3,886) | 8,793 | (20,796) | |
Cash and cash equivalents, beginning of period | 47,174 | 36,691 | 41,356 | 53,601 | |
Cash and cash equivalents, end of period | 50,149 | 32,805 | 50,149 | 32,805 |
Supplemental disclosure with respect to cash flows (Note 7)
The accompanying notes form an integral part of these financial statements | Page 4 |
Fission Uranium Corp.
Notes to the condensed interim financial statements
For the Three and Nine Month periods ended September 30, 2023 (Expressed in thousands of Canadian dollars, except as noted) (Unaudited)
-
Nature of operations
Fission Uranium Corp. (the "Company" or "Fission Uranium") was incorporated on February 13,
2013 under the laws of the Canada Business Corporations Act in connection with a court approved plan of arrangement to reorganize Fission Energy Corp. which was completed on April
26, 2013. The Company's principal business activity is the acquisition and development of exploration and evaluation assets. To date, the Company has not generated revenues from operations and is considered to be in the exploration stage. The Company's head office is located at 700 - 1620 Dickson Ave., Kelowna, BC, V1Y 9Y2 and the Company is listed on the Toronto Stock Exchange under the symbol FCU, on the U.S. OTCQX under the symbol FCUUF, and on the Frankfurt Stock Exchange under the symbol 2FU.
The Company has not yet determined whether its exploration and evaluation assets contain ore reserves that have technical feasibility and commercial viability. The recoverability of the amounts shown for the exploration and evaluation assets, including the acquisition costs, is dependent upon the existence of economically recoverable reserves, the ability of the Company to obtain necessary permitting, licensing and financing to complete the development of those reserves, and upon future profitable production. - Significant accounting policies
-
Statement of compliance
These condensed interim financial statements are unaudited and have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS") applicable to the preparation of interim financial statements, including IAS 34, Interim Financial Reporting ("IAS 34") and do not contain all of the information required for annual financial statements. These unaudited condensed interim financial statements should be read in conjunction with the Company's audited annual financial statements for the year ended December 31,
2022 prepared in accordance with IFRS. These unaudited condensed interim financial statements were authorized for issue by the Board of Directors on November 10, 2023. - Basis of presentation
These unaudited condensed interim financial statements have been prepared on the historical cost basis except for certain financial instruments, which are measured at fair value. - Significant accounting policies
The accounting policies followed in these condensed interim financial statements are consistent with those disclosed in note 2 of the Company's financial statements for the year ended December 31, 2022.
-
Statement of compliance
- Key estimates and judgements
The key assumptions concerning the future and other key sources of estimation uncertainty that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, as well as the key judgements made in the process of applying the Company's accounting policies, at the reporting date, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
Page 5
Fission Uranium Corp.
Notes to the condensed interim financial statements
For the Three and Nine Month periods ended September 30, 2023 (Expressed in thousands of Canadian dollars, except as noted) (Unaudited)
- Key estimates and judgements (continued)
-
Impairment indicators of exploration and evaluation assets
Determination of whether any impairment indicators exist at each reporting date giving consideration to factors such as mining title expiration dates, budgeted expenditures, discontinuation of activities in any area and evaluation of any data which would indicate that the carrying amount of exploration and evaluation assets is not recoverable.
No impairment indicators were identified by management as at September 30, 2023. - Determination of technical feasibility and commercial viability
Assessing when the technical feasibility and commercial viability of the project has been determined, at which point the asset is reclassified to property and equipment.
The determination of technical feasibility and commercial viability of a mineral property requires significant judgement and takes into account, among other factors, a combination of (i) the extent to which mineral reserves or mineral resources have been defined in a definitive feasibility study in accordance with National Instrument 43- 101, Standards of Disclosure for Mineral Projects; (ii) the results of any optimization studies and further technical evaluation carried out to mitigate project risks identified in the definitive feasibility study; (iii) the status of environmental permits; and (iv) the status of mining leases or permits.
The Company has not yet determined whether its exploration and evaluation assets contain ore reserves that have technical feasibility and commercial viability.
-
Impairment indicators of exploration and evaluation assets
- Investment in F3 Uranium Corp.
F3 Uranium Corp. Shares | ||
Balance at December 31, 2021 | 10,792,602 | |
Additions | 4,000,000 | |
Disposals | (4,000,000) | |
Balance at December 31, 2022 | 10,792,602 | |
Balance at September 30, 2023 | 10,792,602 | |
Trading price at December 31, 2022 | $ | 0.315 |
Trading price at September 30, 2023 | $ | 0.450 |
Fair Value, December 31, 2022 | $ | 3,400 |
Fair Value, September 30, 2023 | $ | 4,857 |
F3 Uranium Corp. ("F3", formerly Fission 3.0 Corp.) is a public company incorporated in Canada, whose principal business activity is the acquisition, exploration and development of uranium resource properties. The Company's shareholdings in F3 are recorded at fair value, with the changes in fair value being recognized in the statement of loss and comprehensive loss.
During the year ended December 31, 2022, the Company acquired 4,000,000 shares through the exercise of warrants and disposed of 4,000,000 shares of F3 for a net gain of $56.
Page 6
Fission Uranium Corp.
Notes to the condensed interim financial statements
For the Three and Nine Month periods ended September 30, 2023 (Expressed in thousands of Canadian dollars, except as noted) (Unaudited)
5. | Exploration and evaluation assets | |||||
Patterson Lake | West Cluff | La Rocque | ||||
Period ended September 30, 2023 | South Property | Property | Property | Total | ||
$ | $ | $ | $ | |||
Acquisition costs | ||||||
Balance, beginning | 176,502 | 7 | - | 176,509 | ||
Additions | - | - | 1 | 1 | ||
Balance, end | 176,502 | 7 | 1 | 176,510 | ||
Exploration & evaluation expenditures | ||||||
Balance, beginning | 180,799 | 3 | - | 180,802 | ||
Incurred during | ||||||
Exploration | ||||||
Geology mapping/sampling | 23 | 1 | 1 | 25 | ||
Geophysics | 6 | - | - | 6 | ||
Drilling | 41 | - | - | 41 | ||
Resource Advancement | ||||||
Mine Planning | 2,899 | - | - | 2,899 | ||
Geotechnical | 6,866 | - | - | 6,866 | ||
Metallurgical | 176 | - | - | 176 | ||
Hydrogeological | 581 | - | - | 581 | ||
Infrastructure studies | 387 | - | - | 387 | ||
Permitting | - | |||||
Operational Permits & Other | 799 | - | - | 799 | ||
Environmental | 1,032 | - | - | 1,032 | ||
Community relations | 1,039 | - | - | 1,039 | ||
Other | - | |||||
Land retention and permitting | 3 | - | 1 | 4 | ||
General | 75 | - | - | 75 | ||
Share-based compensation | 2,028 | - | - | 2,028 | ||
Additions | 15,955 | 1 | 2 | 15,958 | ||
Balance, end | 196,754 | 4 | 2 | 196,760 | ||
Total | 373,256 | 11 | 3 | 373,270 |
Page 7
Fission Uranium Corp.
Notes to the condensed interim financial statements
For the Three and Nine Month periods ended September 30, 2023 (Expressed in thousands of Canadian dollars, except as noted) (Unaudited)
5. Exploration and evaluation assets (continued)
Patterson Lake | West Cluff | ||
Year ended December 31, 2022 | South Property | Property | Total |
$ | $ | $ | |
Acquisition costs | |||
Balance, beginning | 176,502 | - | 176,502 |
Additions | - | 7 | 7 |
Balance, end | 176,502 | 7 | 176,509 |
Exploration & evaluation expenditures | |||
Balance, beginning | 165,460 | - | 165,460 |
Incurred during | |||
Exploration | |||
Geology mapping/sampling | - | 2 | 2 |
Drilling | 24 | - | 24 |
Resource Advancement | |||
Mine Planning | 3,903 | - | 3,903 |
Geotechnical | 5,284 | - | 5,284 |
Metallurgical | 799 | - | 799 |
Resource Development | 2 | - | 2 |
Hydrogeological | 294 | - | 294 |
Infrastructure studies | 1,689 | - | 1,689 |
Permitting | |||
Operational Permits & Other | 5 | - | 5 |
Environmental | 737 | - | 737 |
Community relations | 845 | - | 845 |
Other | |||
Land retention and permitting | 8 | 1 | 9 |
General | 111 | - | 111 |
Share-based compensation | 1,638 | - | 1,638 |
Additions | 15,339 | 3 | 15,342 |
Balance, end | 180,799 | 3 | 180,802 |
Total | 357,301 | 10 | 357,311 |
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Fission Uranium Corp. published this content on 13 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 November 2023 14:10:19 UTC.