Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 321

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1C
Chunk 321
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 realistic alternative but to do so. Assessment of the Company’s ability to continue as a going concern requires the consideration
of all available information about the future, which is at least, but not limited to, twelve months from the end of the reporting period.
This information includes estimates of future cash flows and other factors, the outcome of which is uncertain. When management is aware,
in making its assessment, of material uncertainties related to events or conditions that may cast substantial doubt upon the Company’s
ability to continue as a going concern, those uncertainties are disclosed.

(d)Valuation
                                            of share-based compensation and warrants

The
Company uses the Black-Scholes option pricing model to calculate the fair value of stock-based awards issued under the Company’s
stock option plan. This model is affected by the Company’s stock price as well as assumptions regarding a number of subjective
variables. These subjective variables include, but are not limited to, the Company’s expected stock price volatility over the estimated
term of the awards, and actual and projected stock option exercise behaviours. The value of the portion of the award that is ultimately
expected to vest is recognized as an expense in net loss over the requisite service period.

As
part of the Company’s financing transactions, units are issued containing Common Share purchase warrants. The fair value of these
Common Share purchase warrants are calculated using a Monte Carlo model, which models the probability of a number of different outcomes
not easily predicted.

(e)Deferred
                                            tax

The
Company uses the asset and liability method in accounting for deferred taxes. Under this method, deferred taxes are recognized for
future income tax. In preparing these estimates, management is required to interpret substantially enacted legislation as well as economic
and business conditions along with management’s tax and corporate structure plans which may impact taxable income in future periods.

(f)Asset
                                            retirement obligations

Management’s
best estimates regarding asset retirement obligations are based on the current economic environment. Changes in estimates of contamination,
restoration standards and restoration activities result in changes to provisions from period to period. Actual asset retirement obligations
will ultimately depend on future market prices for future restoration obligations.

Item
7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Quantitative
and qualitative disclosures about market risk have been omitted as permitted under rules applicable to smaller reporting companies.

Item
8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

The
audited financial statements of Premium Resources Ltd. as of December 31, 202