Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 45

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1A
Chunk 45
---
 An impairment loss is recognized when the carrying value of
the assets is higher than the recoverable amount and when mineral licence tenements are relinquished or have lapsed. In undertaking this
review, management of the Company is required to make significant estimates of, among other things, discount rates, commodity prices,
foreign exchange rates, availability of financing, future operating and capital costs and all aspects of project advancement. These estimates
are subject to various risks and uncertainties, which may ultimately have an effect on the expected recoverability of the carrying values
of the assets.

(b)Asset
                                            lives for depreciation and amortization

Property,
plant and equipment comprise a large component of the Company’s assets and as such, the depreciation of these assets have a significant
effect on the Company’s financial statements. Management must make estimates of the useful lives, as well as residual values, of
each asset when calculating the depreciation of these assets. These useful life and residual value estimates are subject to various risks
and uncertainties, and an asset’s useful life may ultimately be shorter or longer than Management’s estimate, and residual
values may differ from what was originally estimated.

(c)Going
                                            concern

The
consolidated financial statements are prepared on a going concern basis unless management either intends to liquidate the Company or
has no 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