Company: PRMLF
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022391
Chunk: 159

Company: NexMetals Mining Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 8
Chunk 159
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’s credit risk is primarily associated with its cash and cash equivalents. The Company’s exposure to credit risk arises
from the potential default of the counterparty to its cash and cash equivalents, and the maximum exposure is limited to the carrying
value of these instruments. The Company limits exposure to credit risk on its cash and cash equivalents by holding these instruments
at highly-rated financial institutions.

Liquidity
Risk

Liquidity
risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled
by delivering cash or another financial asset. The Company manages the liquidity risk inherent in these financial obligations by regularly
monitoring actual cash flows against its budget, which forecasts expected cash availability to meet future obligations. The Company will
defer discretionary expenditures, as required, in order to manage and conserve cash required for current liabilities.

44

Critical
Accounting Estimates and Judgments

This
management’s discussion and analysis of our financial condition and results of operations is based on our unaudited condensed interim
consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these unaudited condensed
interim consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities,
revenues and expenses and the disclosure of contingent assets and liabilities in our unaudited condensed interim consolidated financial
statements. We base our estimates on historical experience, known trends and events, and other assumptions that we believe are reasonable
under the circumstances, and we evaluate these estimates on an ongoing basis. Actual results may differ from these estimates under different
assumptions or conditions.

There
have been no significant changes to the critical accounting estimates and judgements disclosed in our Annual Report on Form 10-K for
the year ended December 31, 2024, with the exception of the below:

Debt
Extinguishment

Upon
the extinguishment of debt, the difference between the amount paid on extinguishment, including miscellaneous costs of reacquisition,
and the net carrying amount of the debt being extinguished, being the amount due at maturity, adjusted for unamortized premiums, discounts,
and costs of issuance, is recognized as a gain or loss when the debt is extinguished. The fair value of the assets transferred or the
fair value of an equity interest granted is used in accounting for the settlement of the debt unless the fair value of the debt being
settled is more clearly evident.

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