Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 67

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1A
Chunk 67
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 whether such instruments should be recorded as liabilities or as equity, is reassessed
at the end of each reporting period. Derivative instruments that become subject to reclassification are reclassified at the fair value
of the instrument on the reclassification date.

 (s) Use of Estimates

The
preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions
that can affect reported amounts of assets, liabilities, revenues and expenses and the accompanying disclosures. Estimates and assumptions
are continuously evaluated and are based on management’s historical experience and on other assumptions believed to be reasonable
at the time of preparation of the consolidated financial statements. However, different estimates and assumptions could result in outcomes
that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. The more significant areas
requiring the use of management estimates and assumptions include the recoverability of exploration and evaluation assets; asset lives
for depreciation and amortization; the Company’s ability to continue as a going concern; valuation of share-based compensation
and warrants; deferred taxes and valuation allowances; and asset retirement obligations. Management has determined that the Company has
no asset retirement obligations at December 31, 2024.

    F-14

Notes
to the Consolidated Financial Statements

For
the years ended December 31, 2024 and 2023

(Expressed
in Canadian dollars)

Recently
Adopted Accounting Pronouncements

a)ASU
                                            2023-07, Segment Reporting - Improvements to Reportable Segment Disclosures.

The
Accounting Standards Update (“ASU”) is applicable to all public entities that are required to report segmented information
in accordance with ASC 280 – Segment Reporting and is effective for annual reporting periods beginning after December 15,
2023. ASU 2023-07, Segment Reporting - Improvements to Reportable Segment Disclosures was issued to improve a public entity’s
disclosure of reportable segments, with the most significant requirement being for a public entity to disclose its significant segment
expense categories and amounts for each reportable segment. The Company adopted the new pronouncement effective January 1, 2024, with
no impact to its consolidated financial statements.

Recently
Issued Accounting Pronouncements and Disclosures Not Yet Adopted

a)ASU
                                            2023-09, Income Taxes: Improvements to Income Tax Disclosures

In
December 2023, the Financial Accounting Standards Board (“FASB”) issued a