Company: CMND
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005490
Chunk: 244

Company: Clearmind Medicine Inc.
Filing Date: 2025-01-22
Form: 20-F
Item: Item 19
Chunk 244
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 statements in accordance with IFRS requires management to make judgments, estimates, and assumptions
that affect the application of policies and reported amounts of assets, liabilities, income, and expenses. The estimates and associated
assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances,
the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent
from other sources. Actual results may differ from these estimates.

Significant
Estimates

Share-based
Compensation

Fair
values are determined using the Black-Scholes option pricing model. Estimating fair value requires determining the most appropriate valuation
model for a grant of equity instruments, which is dependent on the terms and conditions of the grant. Option-pricing models require the
use of highly subjective estimates and assumptions including the expected stock price volatility. Changes in the underlying assumptions
can materially affect the fair value estimates and, therefore, existing models do not necessarily provide reliable measurement of the
fair value of the Company’s stock options.

Derivative
Warrant Liabilities and Assets

The
Company analyses warrants issued to determine whether they meet the classification as liabilities or equity. Derivative warrant
liabilities and assets are adjusted to reflect fair value at each reporting period, with any increase or decrease in the fair value
recorded in the results of operations. The Company uses a fair valuation specialist to estimate the value of these instruments using
the Black and Scholes and binomial pricing model.

The
key assumptions used in the models are the expected future volatility in the price of the Company’s shares, the expected life of the
warrants, the risk-free interest rate and the probability of any future adjustment event.

F-10

CLEARMIND
MEDICINE INC.

Notes to
the Consolidated Financial Statements

(Expressed
in United States Dollars)

  Material                         

  Significant Accounting               

Significant
Judgments

The
critical judgments that the Company’s management has made in the process of applying the Company’s accounting policies that
have the most significant effect on the amounts recognized in the Company’s consolidated financial statements are as follows:

Going
Concern

The
application of the going concern assumption requires management to take into account all available information about the future, which
is at least but not limited to, 12 months from the year end of the reporting period. The Company is aware that material uncertainties
related to events or conditions raise substantial doubt upon the Company’s ability to continue