Company: CMND
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005490
Chunk: 249

Company: Clearmind Medicine Inc.
Filing Date: 2025-01-22
Form: 20-F
Item: Item 19
Chunk 249
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 to March 31, 2026. At inception of a contract, the Company assesses whether
a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration. The Company reassesses whether a contract is, or contains, a lease only if
the terms and conditions of the contract are changed.

F-15

CLEARMIND
MEDICINE INC.

Notes to
the Consolidated Financial Statements

(Expressed
in United States Dollars)

  Material                         

  Leases (continued)  

At
the commencement date, the Company measures the lease liability at the present value of the lease payments that are not paid at that
date, including, inter alia, the exercise price of a purchase option if the Company is reasonably certain to exercise that option. Simultaneously,
the Company recognizes a right-of-use (“ ROU”) asset in the amount of the lease liability.

The
discount rate applied by the Company is the rate of interest that the Company would have to pay to borrow over a similar term, and with
a similar security, the funds necessary to obtain an asset of a similar value to the ROU asset in a similar economic environment. The
weighted average of lessee’s incremental annual borrowing rate applied to the lease liabilities as of October 31, 2024 was estimated
at 10

The
lease term is the non-cancellable period for which the Company has the right to use an underlying asset, together with both, the periods
covered by an option to extend the lease if the Company is reasonably certain to exercise that option and periods covered by an option
to terminate the lease if the Company is reasonably certain not to exercise that option.

After
the commencement date, the Company measures the ROU asset applying the cost model, less any accumulated depreciation and any accumulated
impairment losses and adjusted for any remeasurement of the lease liability.

Assets
are depreciated by the straight-line method over the estimated useful lives of the ROU asset or the lease period, whichever is shorter.

Interest
on the lease liability is recognized in profit or loss in each period during the lease term in an amount that produces a constant periodic
rate of interest on the remaining balance of the lease liability.

The
Company applied the following practical expedients:

  Non-lease                                                                                   

  The                                                    

F-16

CLEARMIND
MED