DIOS EXPLORATION INC.
Annual Financial Statements
DECEMBER 31, 2024 AND 2023
Table of content
Independant Auditor's Report | 2-6 |
Statements of Financial Position | 7 |
Statements of Comprehensive Loss | 8 |
Statements of Changes in Equity | 9 |
Statements of Cash Flows | 10 |
Notes to Financial Statements | 11-33 |
P.O. BoX 114, Montreal QC H4A 3 P4
Phone: 514-923-9123
Email: mjgirard@diosexplo.com
Web site: www.diosexplo.com
Independent Auditor's Report
Raymond Chabot
Grant Thornton LLP
To the Shareholders of Dios Exploration Inc.
Opinion
50 Dallaire Avenue
Rouyn-Noranda, Quebec
J9X 4S7
- 819-762-1714
We have audited the financial statements of Dios Exploration Inc. (hereafter ''the Corporation''), which comprise the statements of financial position as at December 31, 2024 and 2023 , and the statements of comprehensive loss, the statements of changes in equity and the statements of cash flows for the years endend December 31, 2024 and 2023, and notes to financial statements, including material accounting policy information.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Corporation as at December 31, 2024 and 2023, and its financial performance and its cash flows in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (hereafter ''IFRS Accounting Standards'').
Basis for opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the "Auditor's responsibilities for the audit of the financial statements" section of our report. We are independent of the Corporation in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Material uncertainty related to going concern
We draw attention to Note 2 to the financial statements, which indicates the existence of a material uncertainty that may cast significant doubt about the the Corporation's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Member of Grant Thornton International Ltd | rcgt.com |
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Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the "material uncertainly related to going concern" section of our report, we have determined that the matter described below is the key audit matter to be communicated in our auditor's report.
Assessment of impairment of exploration and evaluation assets
As described in Note 4 of the financial statements, all individual assets or cash- generating units are reviewed for impairment at each reporting date whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. We have identified the assessment for impairment of exploration and evaluation assets as a key audit matter.
Why the matter was determined to be a key audit matter
The assessment for impairment of exploration and evaluation assets is significant to our audit, because the balance of $3,194,716 as at December 31, 2024 is material for the financial statements. In addition, management's assessment process is subjective and requires the use of judgments and assumptions, in particular, but not limited to:
- technical feasibility and assessment of commercial viability of extraction;
- the likelihood that expenses will be recovered through future exploitation of the property or disposal of the property when activities have not reached a sufficient stage to permit assessment of the existence of reserves;
- the Company's ability to obtain the necessary financing to complete exploration and development;
- renewal of permits.
How the matter was addressed in the audit
Our audit procedures related to the assessment of impairment of exploration and evaluation assets inclueded, among others things, of the following:
- We assessed management's appreciation of the facts and circumtances to determine wheter an indication of impairment was presented by inspecting the Corporation's communications, including minutes and press releasses and making request for information from management;
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- We reviewed budgets to assess management's intention to pursue exploration and evaluation work;
- We inspected government records to determine if the mining rights on the properties were valid.
Information other than the financial statements and the auditor's report thereon
Management is responsible for the other information. The other information comprises the information included in Management's Discussion and Analysis.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
We obtained Management's Discussion and Analysis prior to the date of this auditor's report. If, based on the work we have performed on this other information, we conclude that there is a material misstatement of this other information, we are required to report that fact in this auditor's report. We have nothing to report in this regard.
Responsibilities of management and those charged with governance for the financial statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRS Accounting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Corporation's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Corporation or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Corporation's financial reporting process.
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Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Corporation's internal control;
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management;
- Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Corporation's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Corporation to cease to continue as a going concern;
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- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partner on the audit resulting in this independent auditor's report is Carole Lepage.
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Rouyn-Noranda
April 7, 2025
___________________________________
1 CPA auditor, public accountancy permit no. A119351
DIOS EXPLORATION INC.
Statements of Financial Position
December 31, | December 31, | ||
Notes | 2024 | 2023 | |
$ | $ | ||
ASSETS | |||
Current | |||
Cash | 6 | 55,965 | 60,844 |
Term deposit, 4.5% retractable and expiring in July 2024 | - | 310,685 | |
Good and services tax receivable | 5,343 | 11,626 | |
Prepaid expenses | 2,480 | 4,205 | |
63,788 | 387,360 | ||
Non-current | |||
Fixed assets | 7 | - | 515 |
Exploration and evaluation assets | 8 | 3,194,716 | 6,916,063 |
3,194,716 | 6,916,578 | ||
Total assets | 3,258,504 | 7,303,938 | |
LIABILITIES | |||
Current | |||
Trade and other payables | 41,275 | 48,301 | |
Provision for compensation | 10 | 90,419 | 84,977 |
Other liabilities | - | 66,342 | |
Total liabilities | 131,694 | 199,620 | |
EQUITY | |||
Share capital | 11.1 | 24,786,494 | 24,786,494 |
Contributed surplus | 3,246,082 | 3,211,473 | |
Deficit | (24,905,766) | (20,893,649) | |
Total equity | 3,126,810 | 7,104,318 | |
Total liabilities and equity | 3,258,504 | 7,303,938 |
The accompanying notes are an integral part of the financial statements.
These financial statements were approved and authorized by the Board of Directors on April 7, 2025.
(signed) Marie-José Girard | (signed) Normand Payette |
Marie-José Girard, Director | Normand Payette, Director |
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DIOS EXPLORATION INC.
Statements of Comprehensive Loss
(in Canadian dollars)
Years ended | |||
December 31, | |||
Notes | 2024 | 2023 | |
$ | $ | ||
EXPENSES | |||
Professional fees | 51,108 | 43,188 | |
Employee benefits expenses | 12.1 | 34,609 | 68,084 |
Trustees, registration fees and shareholders relations | 22,843 | 27,630 | |
Consulting fees | 14,450 | 33,101 | |
Income taxes of section XII.6 and III.14 | 3,549 | 29,749 | |
Insurances, taxes and permits | 2,678 | 11,265 | |
Office expenses | 2,142 | 11,114 | |
Publicity, travel and promotion | 2,007 | 6,237 | |
Amortization of fixed assets | 515 | 574 | |
Bank charges | 481 | 609 | |
Provision for compensation | 10 | 5,442 | 84,977 |
Devaluation of exploration and evaluation assets | 8 | 3,863,899 | - |
Write-off of exploration and evaluation assets | 8 | 84,983 | - |
Reversal of a devaluation of exploration and evaluation assets | 8 | - | (30,000) |
OPERATIONAL LOSS | 4,088,706 | 286,528 | |
OTHER REVENUES | |||
Financial income | 13 | 10,247 | 29,057 |
LOSS BEFORE INCOME TAXES | (4,078,459) | (257,471) | |
Deferred income taxes | 16 | 66,342 | 128,657 |
NET LOSS AND COMPREHENSIVE LOSS | (4,012,117) | (128,814) | |
NET LOSS PER SHARE - basic and diluted | 15 | (0.030) | (0.001) |
The accompanying notes are an integral part of the financial statements.
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DIOS EXPLORATION INC.
Statements of Changes in Equity
(in Canadian dollars)
Contributed | ||||||
Notes | Share capital | surplus | Deficit | Total Equity | ||
Number of | ||||||
shares | $ | $ | $ | $ | ||
As of January 1st, 2023 | 121,207,066 | 24,774,569 | 3,162,164 | (20,764,835) | 7,171,898 | |
Net loss and comprehensive loss | - | - | - | (128,814) | (128,814) | |
Share-based payments | 12.2 | - | - | 53,734 | - | 53,734 |
Exercise of options | 11.1 | 75,000 | 11,925 | (4,425) | - | 7,500 |
As of December 31, 2023 | 121,282,066 | 24,786,494 | 3,211,473 | (20,893,649) | 7,104,318 | |
As of January 1st, 2024 | 121,282,066 | 24,786,494 | 3,211,473 | (20,893,649) | 7,104,318 | |
Net loss and comprehensive loss | - | - | - | (4,012,117) | (4,012,117) | |
Share-based payments | 12.2 | - | - | 34,609 | - | 34,609 |
As of December 31, 2024 | 121,282,066 | 24,786,494 | 3,246,082 | (24,905,766) | 3,126,810 |
The accompanying notes are an integral part of the financial statements.
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DIOS EXPLORATION INC.
Statements of Cash Flows
(in Canadian dollars)
Years ended | |||
December 31, | |||
Notes | 2024 | 2023 | |
$ | $ | ||
OPERATING ACTIVITIES | |||
Net loss | (4,012,117) | (128,814) | |
Adjustments | |||
Share-based payments | 34,609 | 53,734 | |
Provision for compensation | 10 | 5,442 | 84,977 |
Reversal of a devaluation of exploration and evaluation | |||
assets | 8 | - | (30,000) |
Devaluation of exploration and evaluation assets | 8 | 3,863,899 | - |
Write-off of exploration and evaluation assets | 8 | 84,983 | - |
Financial income not cashed | - | (2,649) | |
Amortization of fixed assets | 7 | 515 | 574 |
Deferred income taxes | 16 | (66,342) | (128,657) |
Change in working capital items | 17 | (14,113) | 86,242 |
Cash flows used in operating activities | (103,124) | (64,593) | |
INVESTING ACTIVITIES | |||
Additions to term deposit | - | (518,643) | |
Disposal of term deposit | 310,685 | 1,089,615 | |
Repayment of advance on exploration and evaluation assets | - | 22,005 | |
Additions to exploration and evaluation assets | 8 | (212,440) | (635,237) |
Payment received on option | - | 30,000 | |
Tax credit received | - | 112,784 | |
Cash flows from investing activities | 98,245 | 100,524 | |
FINANCING ACTIVITIES | |||
Exercise of options | - | 7,500 | |
Repayment of the guaranteed loan | - | (40,000) | |
Issuance cost of shares | - | (4,700) | |
Cash flows used from financing activities | - | (37,200) | |
NET CHANGE OF CASH | (4,879) | (1,269) | |
CASH, BEGINNING | 60,844 | 62,113 | |
CASH, END | 55,965 | 60,844 | |
For additional information on cash flow, see Note 17. | |||
Supplementary information | |||
Interests received related to operating activities | 5,597 | 26,409 |
The accompanying notes are in integral part of the financial statements.
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