Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 63

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1A
Chunk 63
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, including exploration and evaluation assets and property, plant and equipment, are subject to impairment tests whenever events
or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances that could trigger a review include,
but are not limited to: significant decreases in the market price of the assets; significant adverse changes in the business climate
or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction
of the assets; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated
with the use of the assets; and current expectation that the assets will more likely than not be sold or significantly disposed of before
the end of their estimated useful life.

When
indicators of potential impairment are present, the Company prepares a projected undiscounted cash flow analysis for the respective asset
or asset group. If the sum of the undiscounted cash flows is less than the carrying value of the asset or asset group, an impairment
loss is recognized equal to the excess of the carrying value over the fair value. Fair value can be determined using a market approach,
income approach or cost approach. Recognized impairment losses are not reversed.

Based
on the Company’s evaluation, no impairment has been recorded on the unproven mining properties for the year ended December 31,
2024.

 (j) Leases

At
commencement of a contract, the Company assesses whether a contract is, or contains, a lease by determining whether the contract conveys
the right to control the use of an identified asset for a period of time in exchange for consideration. A right-of-use (the “ROU”)
asset and lease liability are recognized at the lease commencement date. The lease liability is initially measured at the present value
of all future lease payments that have not been paid as of the commencement date of the lease, discounted using the Company’s incremental
borrowing rate, unless the rate implicit in the lease is readily determinable. The ROU asset is initially measured at cost, which is
calculated as the initial amount of the lease liability, with an adjustment for any initial direct costs incurred, plus adjustments for
any lease payments made in advance of the commencement date, and less any lease incentives received.

ASC
842 requires a lessee to classify a lease as either a finance or operating lease. Interest and amortization expense are recognized for
finance leases while only a single lease expense is recognized for operating leases, typically on a straight