Company: RHNO
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001493152-25-022052
Chunk: 624

Company: RHINO BITCOIN INC.
Filing Date: 2025-11-13
Form: 10-K
Item: Item 8
Chunk 624
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ATED FINANCIAL STATEMENTS

FOR
THE YEARS ENDED JULY 31, 2025 AND 2024

(Currency
expressed in United States Dollars (“US$”), except for number of shares)

Fair
value of financial instruments:

The
carrying value of the Company’s financial instruments: cash and cash equivalents, prepayments, deposits, accounts payable and accrued
liabilities and amount due to a director approximate at their fair values because of the short-term nature of these financial instruments.

The
Company also follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”),
with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy
that prioritizes the inputs used in measuring fair value as follows:

Level
1: Observable inputs such as quoted prices in active markets;

Level
2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

Level
3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

Leases

Prior
to August 1, 2019, the Company accounted for leases under ASC 840, Accounting for Leases. Effective August 1, 2019, the Company
adopted the guidance of ASC 842, Leases, which requires an entity to recognize a right-of-use asset and a lease liability for
virtually all leases. The implementation of ASC 842 did not have a material impact on the Company’s consolidated financial statements
and did not have a significant impact on our liquidity. The Company adopted ASC 842 using a modified retrospective approach. As a result,
the comparative financial information has not been updated and the required disclosures prior to the date of adoption have not been updated
and continue to be reported under the accounting standards in effect for those years. (See Note 14)

Recent
accounting pronouncements

Accounting
Standards Issued, Adopted

In
November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”,
which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant
segment expenses. The ASU 2023-07 is effective for annual reporting periods beginning after December 15, 2023, and interim