Company: CMND
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005490
Chunk: 246

Company: Clearmind Medicine Inc.
Filing Date: 2025-01-22
Form: 20-F
Item: Item 19
Chunk 246
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 A financial asset (unless it is a trade receivable without a significant financing
component that is initially measured at the transaction price) is initially measured at fair value plus, for an item not at FVTPL, transaction
costs that are directly attributable to its acquisition. Subsequent to initial recognition, financial assets are measured at amortized
cost using the effective interest method, less any impairment.

F-12

CLEARMIND
MEDICINE INC.

Notes to
the Consolidated Financial Statements

(Expressed
in United States Dollars)

  Material                         

  Financial Instruments (continued)  

Financial
liabilities and equity instruments

Classification
as debt or equity

Debt
and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance
of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity
instruments

An
equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.
Equity instruments issued by the Company are recognized as the proceeds received, net of direct issue costs.

Other
financial liabilities

All
financial liabilities are measured subsequently at amortized cost using the effective interest method or at FVTPL.

Financial
liabilities at FVTPL

Financial
liabilities are classified as at FVTPL when the financial liability is (i) contingent consideration of an acquirer in a business combination,
(ii) held for trading or (iii) it is designated as at FVTPL.

A
financial liability is classified as held for trading if either:

  It                                                                                 

  On                                                                                          

  It                                                                                               

Financial
liabilities at FVTPL are measured at fair value, with any gains or losses arising on changes in fair value recognized in profit or loss.

Financial
liabilities measured subsequently at amortized cost

Financial
liabilities that are not (i) contingent consideration of an acquirer in a business combination, (ii) held-for-trading, or (iii) designated
as at FVTPL, are measured subsequently at amortized cost using the effective interest method.

The
effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over
the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees
and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts)
through the