Company: CMND
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005490
Chunk: 242

Company: Clearmind Medicine Inc.
Filing Date: 2025-01-22
Form: 20-F
Item: Item 19
Chunk 242
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 listing on the Nasdaq, which was completed in November 2022, the primary economic environment and generation
and use of cash flows of the Company became mainly denominated in U. S dollars. Consequently, effective on November 1, 2022, the Company
changed both its functional currency and the presentation currency of its consolidated financial statements from the Canadian dollar
to the U. S dollar.

The
Company is in its research and development stages and has not generated revenues since inception. In consideration of the indicators
in IAS 21, the Company determined that the new and future financing activities of the Company and the currency in which cash and cash
equivalents are retained were relevant factors indicating that the Canadian dollar will not be the currency to reflect the principal
economic environment in which the Company will generate and expend its cash.

Under
IAS 21, a change in an entity’s functional currency is applied prospectively from the date of the change. The Company applied the
practical expedient to apply the transaction procedures applicable to the new functional currency prospectively beginning on November
1, 2022. The change in the functional currency was accounted for prospectively from the date of the change by translating all items of
the financial statement into the new functional currency using the exchange rate of $0.7327 CAD/USD at the date of the change.

The
change in the presentation currency of the consolidated financial statement was accounted for as a change in accounting policy and applied
retrospectively, as if the new presentation currency had always been the presentation currency of the consolidation financial statements.
Consequently, comparative figures for the years prior to the effective date of November 1, 2022 have been restated to the new presentation
currency using the exchange rate in effect on effective date of the change.

Following
the change in the Company’s functional currency, the Company elected, as an accounting policy, not to reclassify instruments which, had
the change in functional currency occurred before initial recognition of the instrument, would have changed its classification.

  In October 2023, Israel was attacked by a terrorist organization and                                                                         
  entered a state of war. In addition, there have been continued hostilities along Israel’s northern border with Lebanon (with                 
  the Hezbollah terror organization) and on other fronts from various extremist groups in the region, such as the Houthis in Yemen             
  and various rebel militia groups in Syria and Iraq. Israel has carried out a number of targeted strikes on sites belonging to these