Company: CMND
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005490
Chunk: 267

Company: Clearmind Medicine Inc.
Filing Date: 2025-01-22
Form: 20-F
Item: Item 19
Chunk 267
---
379                       4,310,379  

The
fair value of other assets and liabilities, which include cash and cash equivalents, amounts receivable, accounts payable and accrued
liabilities and amounts due to related parties, approximate their carrying values due to the relatively short-term maturity of these
instruments.

  Credit Risk  

Financial
instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents. The
Company limits its exposure to credit loss by placing its cash with high credit quality financial institutions. The carrying amount of
financial assets represents the maximum credit exposure.

  Foreign Exchange Rate Risk  
 ──────────────────────────────

Foreign
currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in foreign
exchange rates. The Company is exposed to foreign currency risk to the extent that monetary assets and liabilities are denominated in
a foreign currency. The Company’s subsidiary operates in Israel and has certain monetary financial instruments denominated in New
Israeli Shekel and CAD. The Company has not entered into foreign exchange rate contracts to mitigate this risk.

F-32

CLEARMIND
MEDICINE INC.

Notes to
the Consolidated Financial Statements

(Expressed
in United States Dollars)

  12.      Financial                                    

  Foreign Exchange Rate Risk  
  (continued)                 
 ──────────────────────────────

The
following table indicates the impact of foreign currency exchange risk on net working capital as of October 31, 2024. The table below
also provides a sensitivity analysis of a 10 10

  Cash and cash equivalents                                                  137,666  
  Amounts receivable                                                          49,038  
  Accounts payable and accrued liabilities                                 ( 192,971  
  Due to related parties                                                    ( 38,962  
  Total foreign currency financial assets and                               ( 45,229  
  Impact of a 10% strengthening or weakening of foreign exchange rate        ( 4,523  

  Interest Rate Risk  

Interest
rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. The fair value of the derivative warrant liabilities can fluctuate depending on the fluctuation in the risk-free interest
rate.

  Liquidity Risk  

Liquidity
risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company’s objective
to managing liquidity risk is