Company: FMST
Filing Date: 2025-06-20
Form Type: 20-F
Source: 0001171843-25-004004
Chunk: 207

Company: Foremost Clean Energy Ltd.
Filing Date: 2025-06-20
Form: 20-F
Item: Item 19
Chunk 207
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 cash flows are solely payments of principal and interest.

The Company classifies its financial assets into oneof the categories described below, depending on the purpose for which the asset was acquired. Management determines the classification of its financial assets at initial recognition.

Equity instruments that are held for trading (including all equity derivative instruments) are classified as FVTPL, and on the day of acquisition the Company can make an irrevocable election (on an instrument-by-instrument basis) to designate them as at fair value through other comprehensive income (“ FVTOCI”).

FVTPL - Financial assets carried at FVTPL are initially recorded at fair value and transaction costs are expensed in the statement of (loss) income and comprehensive (loss) income. Realized and unrealized gains and losses arising from changes in the fair value of the financial asset held at FVTPL are included in the statement of (loss) income and comprehensive (loss) income in the period in which they arise. Derivatives are also categorized as FVTPL unless they are designated as hedges.

FVTOCI - Investments in equity instruments at FVTOCI are initially recognized at fair value plus transaction costs. Subsequently, they are measured at fair value, with gains and losses arising from changes in fair value recognized in other comprehensive income. There isnosubsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment.

Financial assets at amortized cost - A financial asset is measured at amortized cost using the effective interest method if the objective of the business model is to hold the financial asset for the collection of contractual cash flows and the asset's contractual cash flows are comprised solely of payments of principal and interest. They are classified as current assets or noncurrent assets based on their maturity date and are initially recognized at fair value and subsequently carried at amortized cost less any impairment.

The following table shows the classification and measurement of the Company’s financial instruments under IFRS9:

  Financial assets/liabilities                  Classification and measurement  
 ────────────────────────────────────────────────────────────────────────────────
  Cash                                          at amortized cost               
  Receivables                                   at amortized cost               
  Promissory note receivable                    at amortized cost               
  Accounts payable and accrued liabilities      at amortized cost               
  Term loans payable                            at amortized cost               
  Derivative liability                          at FVTPL                        

Financial liabilities other than derivative liabilities are recognized initially at fair value and are subsequently stated at amortized