The Company’s primary listing is on the TSX Ventures Exchange (“TSXV”). The consolidated financial statements filed on that exchange are now filed in terms of US GAAP. Previously the consolidated financial statements were filed in terms of International Financial Reporting Standards (“IFRS”) (Note 1).

The Company’s comparative consolidated financial statements were prepared using US GAAP, therefore a reconciliation of the comparative IFRS and US GAAP presentation was performed for the comparative period. 

The main differences between IFRS and US GAAP are as follows: 

Share-based compensation 

The Company granted certain directors, officers and consultants of the Company stock options with vesting terms attached thereto, 25% vested immediately and a further 25%, per annum will vest on the grant date of the stock options. These stock options were valued using a Black Scholes valuation model utilizing the assumptions as disclosed in Note 16(a) above. 

Under IFRS share-based compensation paid to certain directors, consultants and employees were amortized over the vesting period of the stock option grant using a weighted average expense over the vesting period, including the immediately vesting stock options. 

Under US GAAP, the stock options issued to consultants were expensed immediately and the stock options issued to directors and officers were amortized as follows; (i) the value of the 25% of the stock options that vested immediately were expensed immediately; (ii) the remaining value of the 75% of the stock options which vest equally on an annual basis are being expensed over the vesting period on a straight line basis. 

This gave rise to an additional expense of $528,874 for the year ended August 31, 2018 and $nil for the year ended August 31, 2017, as all stock options issued prior to September 1, 2016 and during the twelve months ended August 31, 2017 were either fully vested or had immediate vesting terms.