Company: MMTIF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0001062993-25-003888
Chunk: 106

Company: MICROMEM TECHNOLOGIES INC
Filing Date: 2025-02-28
Form: 20-F
Item: Item 18
Chunk 106
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 and there has been no change with respect to the overall capital risk management strategy during the year ended October 31, 2024.

23. Financial risk management
(a)Currency risk
Currency risk is the risk that the fair value of, or future cash flows from, the Company's financial instruments will significantly fluctuate due to changes in foreign exchange rates. The Company is exposed to currency risk to the extent that it incurs expenses and issues convertible debentures denominated in Canadian dollars (CAD). The Company manages currency risk by monitoring the Canadian dollar position of these monetary financial instruments on a periodic basis throughout the course of the reporting period.
As at October 31, 2024, and October 31, 2023, balances that are denominated in CAD are as follows:
As at As at
October 31, October 31,
2024 2023
CAD CAD
Cash $34,362 $38,444
Other receivables $10,182 $29,080
Trade payables and other liabilities $439,667 $290,311
Convertible debentures $2,738,716 $2,544,289
Debenture payable $52,031 $52,031
Derivative liabilities $2,010,760 $1,087,044
Warrant liabilities $1,514,051 $-
Long-term loan $62,351 $60,000
A10% strengthening of the US dollar against the CAD dollar would decrease net loss and comprehensive loss by $487,000as at October 31, 2024 (October 31, 2023 - decrease net loss and comprehensive loss by $260,000). A10% weakening of the USD against the CAD would have the opposite effect of the same magnitude.
(b)Interest rate risk
Interest rate risk is the risk that the fair value of, or future cash flows from, the Company's financial instruments will significantly fluctuate due to changes in market interest rates. The Company is exposed to interest rate risk on its interest-bearing convertible debentures, long-term loan and debenture payable. The exposure to interest rates on convertible debentures and the debenture payable is limited due to the short-term nature of these instruments. The Company's long-term loan is at a fixed interest rate. The exposure to interest rates for the Company is considered minimal.
(c)Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet