Company: ALM
Filing Date: 2025-07-07
Form Type: F-10
Source: 0001641172-25-017947
Chunk: 20

Company: Almonty Industries Inc.
Filing Date: 2025-07-07
Form: F-10
Chunk 20
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 changes in these estimates or adverse
developments in the Company’s operations or financing activities could materially impact its ability to continue as a going concern.

Negative Cash Flows From Operations

In its most
recently completed financial year, the Company has sustained net losses from operations and has had a negative cash flow from operating
activities of $7.498 million. The Company continues to have negative operating cash flow from operations of $4.4 million as
at March 31, 2025. It is highly likely the Company may have negative cash flow in any future period and as a result, the Company will
need to use available cash, including proceeds to fund any such negative cash flow. The Company believes that, after receiving the proceeds
from the Offering, it will have sufficient funds to operate and advance its business objectives and key milestones for a period of at
least twelve months. The proceeds from the Offering are expected to fund the Company’s development of the Tungsten Oxide Facility.
The Company expects that the operations at the Tungsten Oxide Facility could begin in 2028.

The Company
anticipates increased cash flow from operating activities once production begins at the Sangdong Mine, meaning any delay would impact
our ability to be cash flow positive. The Company may, in the future, seek further financing through long-term debt from financial institutions,
debt or equity financing though capital markets, or private placements. The availability of this capital is subject to general economic
conditions and lender and investor interest in the Company’s projects and there can be no assurance that additional capital or
financing will be available if needed or that, if available, the terms of such financings will be acceptable to the Company. Any changes
in these estimates or adverse developments in the availability of capital could materially impact the Company’s financial performance
and results of operations.

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Weaknesses in Disclosure Control
and Procedures and Financial Disclosures

In its assessment
of the effectiveness in internal control over financial reporting as of December 31, 2019, the Company determined it had ineffective
design and implementation of internal controls over the financial statement close and disclosure process, including regarding assertions
about the completeness, existence and accuracy of the financial information. Due to this material weakness, management concluded that
ICFR was not effective as of December 31, 2019.

A material weakness
is a significant deficiency, or combination of significant deficiencies, that result in more than a remote likelihood that a material
misstatement of the annual