Document and Entity Information
Document and Entity Information | 12 Months Ended |
Aug. 31, 2023 | |
Document and Entity Information | |
Document Type | F-1/A |
Entity Registrant Name | VISION MARINE TECHNOLOGIES INC. |
Amendment Description | Amendment No. 2 |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Central Index Key | 0001813783 |
Amendment Flag | true |
Consolidated statements of fina
Consolidated statements of financial position - CAD ($) | Aug. 31, 2023 | Aug. 31, 2022 |
Current | ||
Cash | $ 3,359,257 | $ 5,824,716 |
Trade and other receivables [note 6] | 550,836 | 472,548 |
Income tax receivable | 98,540 | |
Inventories [note 7] | 2,445,554 | 2,093,776 |
Prepaid expenses | 1,973,591 | 2,472,301 |
Grants and investment tax credits receivable [note 21] | 681,663 | |
Share subscription receivable [note 17] | 39,200 | 39,200 |
Advances to related parties [note 17] | 20,135 | 16,736 |
Total current assets | 8,487,113 | 11,600,940 |
Investment in Limestone [note 8] | 2,435,000 | |
Right-of-use assets [note 9] | 2,414,593 | 2,261,100 |
Property and equipment [note 10] | 2,313,926 | 2,218,982 |
Intangibles [note 11] | 966,724 | 1,112,670 |
Deferred income taxes [note 23] | 68,460 | |
Goodwill [note 5] | 9,680,941 | 9,352,640 |
Other financial assets | 114,755 | 118,877 |
Total assets | 24,046,512 | 29,100,209 |
Current | ||
Credit facility [note 12] | 155,000 | |
Trade and other payables [notes 13 & 17] | 1,754,900 | 1,030,331 |
Provision on onerous contracts | 91,667 | |
Income tax payable | 3,188 | |
Contract liabilities [note 14] | 1,815,731 | 1,029,318 |
Current portion of lease liabilities [note 15] | 647,638 | 561,168 |
Current portion of long-term debt [note 16] | 271,546 | 72,090 |
Other financial liabilities | 113,695 | 177,834 |
Total current liabilities | 4,850,177 | 2,873,929 |
Lease liabilities [note 15] | 1,994,156 | 1,854,381 |
Long-term debt [note 16] | 33,783 | 155,259 |
Derivative liabilities [note 18] | 5,558,822 | 0 |
Deferred income taxes [note 23] | 45,137 | 188,044 |
Total liabilities | 12,482,075 | 5,071,613 |
Shareholders' equity | ||
Capital stock [note 18] | 50,395,717 | 43,441,591 |
Contributed surplus [note 19] | 11,684,829 | 10,560,886 |
Accumulated other comprehensive income | 1,032,628 | 697,671 |
Deficit | (51,548,737) | (30,671,552) |
Total shareholders' equity | 11,564,437 | 24,028,596 |
Total shareholders' equity and liabilities | $ 24,046,512 | $ 29,100,209 |
Consolidated statements of chan
Consolidated statements of changes in shareholders' equity (deficit) - CAD ($) | Capital stock Initial Public Offering | Capital stock | Contributed surplus | Deficit | Accumulated other comprehensive income | Initial Public Offering | Total |
Shareholders' equity at Aug. 31, 2020 | $ 2,497,813 | $ 739,961 | $ (2,445,859) | $ 791,915 | |||
Shareholders' equity (in shares) at Aug. 31, 2020 | 4,585,001 | ||||||
Total comprehensive loss | (15,113,907) | $ 388,566 | (14,725,341) | ||||
Net of transactions costs | $ 33,158,513 | $ 2,231,999 | $ 33,158,513 | 2,231,999 | |||
Net of transactions costs (in shares) | 2,760,000 | 595,715 | |||||
Conversion of related party loans into shares [note 17 &18] | $ 898,489 | 898,489 | |||||
Conversion of related party loans into shares [note 17 &18] (in shares) | 69,650 | ||||||
Shares issued as consideration for the acquisition of intangible assets [note 11 & 18] | $ 573,936 | 573,936 | |||||
Shares issued as consideration for the acquisition of intangible assets [note 11 & 18] (in shares) | 30,000 | ||||||
Shares issued as consideration in a business combination [note 5 & 18] | $ 3,474,232 | 3,474,232 | |||||
Shares issued as consideration in a business combination [note 5 & 18] (Shares) | 284,495 | ||||||
Share-based compensation [note 19] | 7,121,444 | 7,121,444 | |||||
Shareholders' equity at Aug. 31, 2021 | $ 42,834,982 | 7,861,405 | (17,559,766) | 388,566 | 33,525,187 | ||
Shareholders' equity (in shares) at Aug. 31, 2021 | 8,324,861 | ||||||
Total comprehensive loss | (13,111,785) | 309,105 | (12,802,680) | ||||
Net of transactions costs | $ 606,609 | 606,609 | |||||
Net of transactions costs (in shares) | 93,062 | ||||||
Share-based compensation [note 19] | 2,699,481 | 2,699,481 | |||||
Shareholders' equity at Aug. 31, 2022 | $ 43,441,591 | 10,560,886 | (30,671,551) | 697,671 | 24,028,596 | ||
Shareholders' equity (in shares) at Aug. 31, 2022 | 8,417,923 | ||||||
Total comprehensive loss | (20,877,186) | 334,957 | (20,542,229) | ||||
Share issuance - options exercised | $ 175,699 | (12,239) | 163,460 | ||||
Share issuance - options exercised (in shares) | 57,219 | ||||||
Net of transactions costs | $ 6,778,427 | 6,778,427 | |||||
Net of transactions costs (in shares) | 2,697,658 | ||||||
Share-based compensation [note 19] | 1,136,182 | 1,136,182 | |||||
Shareholders' equity at Aug. 31, 2023 | $ 50,395,717 | $ 11,684,829 | $ (51,548,737) | $ 1,032,628 | $ 11,564,437 | ||
Shareholders' equity (in shares) at Aug. 31, 2023 | 11,172,800 |
Consolidated statements of ch_2
Consolidated statements of changes in shareholders' equity (deficit) (Parenthetical) | 12 Months Ended |
Aug. 31, 2021 CAD ($) | |
Transaction costs | $ 0 |
Initial Public Offering | |
Transaction costs | $ 3,328,687 |
Consolidated statements of comp
Consolidated statements of comprehensive loss - CAD ($) | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Consolidated statements of comprehensive loss | |||
Revenues [note 20] | $ 5,651,502 | $ 7,350,946 | $ 3,513,788 |
Cost of sales [note 7] | 4,023,409 | 4,065,381 | 1,909,606 |
Cost of sales - EMotion | 91,667 | ||
Gross profit | 1,536,426 | 3,285,565 | 1,604,182 |
Expenses | |||
Research and development [note 17] | 5,704,912 | 2,242,794 | 1,489,953 |
Office salaries and benefits [note 17] | 4,014,181 | 3,335,799 | 1,754,613 |
Selling and marketing expenses | 3,470,772 | 1,972,306 | 1,086,057 |
Professional fees | 3,764,465 | 3,590,816 | 1,633,477 |
Office and general | 3,100,024 | 1,949,583 | 1,239,457 |
Share-based compensation [note 19] | 1,136,182 | 2,699,481 | 7,121,444 |
Impairment loss on debentures [note 8] | 2,637,000 | 0 | 0 |
Depreciation | 588,957 | 268,490 | 184,855 |
Net finance income (expense) [note 22] | (1,604,536) | 223,660 | 2,256,392 |
Other income | (117,470) | (143,922) | (153,749) |
Operating expense | 22,694,487 | 16,139,007 | 16,612,499 |
Loss before tax | (21,158,061) | (12,853,442) | (15,008,317) |
Income taxes [note 23] | |||
Current tax expense (recovery) | (70,607) | 182,854 | 131,403 |
Deferred tax expense (recovery) | (210,268) | 75,489 | (25,813) |
Total income tax expense (recovery) | (280,875) | 258,343 | 105,590 |
Net loss for the period | (20,877,186) | (13,111,785) | (15,113,907) |
Items of comprehensive income that will be subsequently reclassified to earnings: | |||
Foreign currency translation differences for foreign operations, net of tax | 334,957 | 309,105 | 388,566 |
Other comprehensive income, net of tax | 334,957 | 309,105 | 388,566 |
Total comprehensive loss for the year, net of tax | $ (20,542,229) | $ (12,802,680) | $ (14,725,341) |
Weighted average shares outstanding, Basic | 9,268,709 | 8,318,121 | 7,412,899 |
Weighted average shares outstanding, Diluted | 9,268,709 | 8,318,121 | 7,412,899 |
Basic loss per share | $ (2.25) | $ (1.58) | $ (2.04) |
Diluted loss per share | $ (2.22) | $ (1.58) | $ (2.04) |
Consolidated statements of cash
Consolidated statements of cash flows - CAD ($) | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Operating activities | |||
Net loss | $ (20,877,186) | $ (13,111,785) | $ (15,113,907) |
Depreciation | 1,060,897 | 955,513 | 417,050 |
Accretion on long-term debt and lease liability | 166,719 | 157,270 | 70,379 |
Share-based compensation - options | 1,136,182 | 2,699,481 | 7,121,444 |
Shares issued for services | 1,670,415 | 596,608 | 109,069 |
Net loss on debentures | 2,435,000 | 330,000 | 550,000 |
Gain on disposal of property and equipment | 173,375 | ||
Interest income received | 85,000 | ||
Income tax expense | (280,875) | 258,343 | 105,590 |
Income tax received | 13,415 | ||
Income tax paid | (14,040) | (373,196) | |
Gain on derivative liabilities | (1,770,689) | ||
Gain on lease termination | (50,329) | (5,652) | (7,230) |
Effect of exchange rate fluctuation | 49,670 | 17,398 | (6,542) |
Operating activities before working capital items | (16,300,861) | (8,391,020) | (6,740,732) |
Net change in non-cash working capital items | |||
Trade and other receivables | (78,288) | (152,808) | (232,715) |
Provision for onerous contracts | 91,667 | ||
Inventories | (351,778) | (117,692) | (1,471,693) |
Grants and investment tax credits receivable | 681,663 | (573,361) | 293,937 |
Other financial assets | 4,121 | (85,597) | (25,595) |
Prepaid expenses | 498,710 | (1,927,459) | (552,196) |
Trade and other payables | 724,569 | 182,277 | 96,615 |
Contract liabilities | 786,413 | 130,605 | 396,097 |
Other financial liabilities | (64,139) | (61,764) | (15,156) |
Cash used in operating activities | (14,007,923) | (10,996,819) | (8,251,438) |
Investing activities | |||
Subscription to debentures [note 8] | (3,400,000) | ||
Business acquisition, net of cash acquired [note 5] | (5,029,416) | ||
Additions to property and equipment | (938,802) | (1,175,931) | (544,354) |
Proceeds from the disposal of property and equipment | 401,782 | 243,630 | 34,101 |
Additions to intangible assets | (32,202) | (528,726) | |
Cash used in investing activities | (537,020) | (964,503) | (9,468,395) |
Financing activities | |||
Credit facility | 155,000 | (170,000) | |
Addition in long-term debts | 258,000 | 282,424 | |
Repayment of long-term debt | (207,607) | (135,230) | (419,090) |
Advances from related parties | 176,771 | ||
Initial public offering, net of transaction costs paid | 33,430,239 | ||
Issuance of shares and warrants, net of transaction costs paid | 12,437,523 | 2,025,000 | |
Shares issued upon options conversion | 163,461 | 10,001 | |
Repayment of lease liabilities | (726,893) | (695,749) | (295,316) |
Cash provided by (used in) financing activities | 12,079,484 | (361,783) | 34,570,833 |
Net (decrease) increase in cash during the year | (2,465,459) | (12,323,105) | 16,851,000 |
Cash, beginning of year | 5,824,716 | 18,147,821 | 1,296,821 |
Cash, end of year | $ 3,359,257 | $ 5,824,716 | $ 18,147,821 |
Incorporation and nature of bus
Incorporation and nature of business | 12 Months Ended |
Aug. 31, 2023 | |
Incorporation and nature of business | |
Incorporation and nature of business | 1. Incorporation and nature of business Vision Marine Technologies Inc. [the “Company”] was incorporated on August 29, 2012 and its principal business is to manufacture and sell or rent electric boats. The Voting Common Shares of the Company are listed under the trading symbol “VMAR” on Nasdaq. The Company is incorporated in Canada and its head office and registered office is located at 730 Curé-Boivin boulevard, Boisbriand, Quebec, J7G 2A7. Business seasonality The Company’s operating results generally vary from quarter to quarter as a result of changes in general economic conditions and seasonal fluctuations, among other things, in each of its reportable segments. This means the Company’s results in one quarter are not necessarily indicative of how the Company will perform in a future quarter. Sale of electric boats The sale of electric boats segment has a seasonal aspect to its operations. Most customers purchase their electric boats from the Company with the intention of utilizing them during the summer period which typically runs from early June to late August and corresponds to the Company’s fourth quarter of a financial year. As such, the revenues in this operating segment fluctuate based on the level of boat deliveries, with a high and a low in the fourth quarter and the first quarter, respectively. Rental of electric boats Revenue generated by the rental of electric boats segment also has a seasonal aspect to its operations. Boat rental as an activity is highly sought by customers when the weather is milder, which is typically the case during the period from May to August. A colder-than-expected or rainier summer in any given year could have an impact on the segment’s revenues and hence on its profitability. Revenue from the boat club memberships is not impacted by seasonality as the memberships are typically on an annual basis. |
Basis of preparation
Basis of preparation | 12 Months Ended |
Aug. 31, 2023 | |
Basis of preparation | |
Basis of preparation | 2. Basis of preparation and going concern uncertainty Compliance with IFRS These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards [“IFRS”] as issued by the International Accounting Standards Board [“IASB”] and interpretations issued by the International Financial Reporting Interpretations Committee [“IFRIC”] in effect on August 31, 2023. The consolidated financial statements were authorized for issue by the Board of Directors on November 27, 2023. Going concern uncertainty As of August 31, 2023, the Company has cash of $3,359,257 and working capital of $3,676,936 . The Company has incurred recurring losses, has not yet achieved profitable operations and has a deficit of $51,548,737 since its inception. The cash flows from operations were negative for the three years ended August 31, 2023. Additional financing will be needed by the Company to fund its operations and to commercialize the E-Motion powertrain business. These matters, when considered in aggregate, indicate the existence of a material uncertainty that raises substantial doubt about the Company’s ability to continue as a going concern for at least 12 months from the issuance of these consolidated financial statements. In view of these matters, continuation as a going concern is dependent upon the continued operations of the Company which will be determined by the Company’s ability to meet its financial requirements, including its ability to raise additional capital. The Company is evaluating several different strategies and is actively pursuing actions that are expected to increase its liquidity position, including, but not limited to, pursuing additional cost savings initiatives and seeking additional financing from both the public and private markets through the issuance of equity securities. For the year ended August 31, 2023, the Company was able to raise net proceeds from issuance of shares of $12,437,523 . However, the Company's management cannot provide assurances that the Company will be successful in accomplishing any of its proposed financing plans. Management also cannot provide any assurance as to unforeseen circumstances that could occur within the next 12 months which could increase the Company’s need to raise additional capital on an immediate basis, which additional capital may not be available to the Company. The accompanying consolidated financial statements have been prepared on a going concern basis, which assumes the Company will continue its operations for the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. These consolidated financial statements as at and for the year ended August 31, 2023 do not include any adjustments to the carrying amounts and classification of assets, liabilities and reported expenses that may otherwise be required if the going concern basis was not appropriate. Such adjustments could be material. Basis of consolidation The consolidated financial statements include the accounts of the Company, and the subsidiaries that it controls. Control exists when the Company has the power over the subsidiary, when it is exposed or has rights to variable returns from its involvement with the subsidiary and when it has the ability to use its power to affect its returns. Subsidiaries that the Company controls are consolidated from the effective date of acquisition up to the effective date of disposal or loss of control. Details of the Company’s significant subsidiaries at the end of the reporting period are set out below. Name of subsidiary Principal activity Country of incorporation and operation Proportion of ownership held by the Company 7858078 Canada Inc. Owns an electric boat rental center Canada 100% EB Rental Ltd. Operates an electric boat rental center United States 100% EB Rental Ventura Corp. Operates an electric boat rental center United States 100% Vision Marine Technologies Corp. Operates an electric boat service center United States 100% Use of estimates and judgments The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on management’s best knowledge of the amount, event or actions, actual results ultimately may differ from those estimates. Areas where estimates are significant to the consolidated financial statements are disclosed in note 4. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Aug. 31, 2023 | |
Significant accounting policies | |
Significant accounting policies | 3. Significant accounting policies Business combination Cash and cash equivalents Cash and cash equivalents include cash on hand, cash held on trust, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less. Trade and other receivables Trade receivables are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days. The Company has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit loss, trade receivables have been grouped based on days overdue. Other receivables are recognized at amortized cost, less any allowance for expected credit loss. Inventories Inventories are stated at the lower of cost and net realizable value. Raw materials are valued on a first-in first-out basis. Cost of work in progress and finished goods comprises direct materials and delivery costs, direct labour, import duties and other taxes, and appropriate proportion of variable and fixed overhead expenditure based on normal operating capacity. Cost of purchased inventory is determined after deducting rebates and discounts received or receivable. Net realizable value is the estimated selling price in the ordinary course of business less estimated costs of completion and the estimated costs necessary to make the sale. Grants and investment tax credits Government grants are recognized where there is reasonable assurance that the grant will be received, and all attached conditions will be complied with. When the grant relates to an expense item, it is recognized as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. Where retention of a government grant is dependent on the Company satisfying certain criteria, it is initially recognized as deferred income. When the criteria for retention have been satisfied, the deferred income balance is released to the statement of consolidated comprehensive loss or netted against the asset purchased. Leases Right-of-use assets The Company recognizes right-of-use assets at the commencement date of the lease [i.e., the date the underlying asset is available for use]. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Unless the Company is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognized right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term ranging from two to six years . Right-of-use assets are subject to impairment. Lease liabilities At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments [including in-substance fixed payments] less any lease incentives receivable and variable lease payments that depend on an index or a rate. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating a lease, if the lease term reflects the Company exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognized as expense in the period on which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Company uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. Interest accretion is recorded as interest expense in finance costs. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. Short-term leases and leases of low-value assets The Company applies the short-term lease recognition exemption to its short-term leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option. It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered of low value [i.e., below $5,000]. Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term. For the year-ended August 31, 2023, the expense for leases of low-value assets is insignificant. Property and equipment Property and equipment is stated at cost less accumulated depreciation and accumulated impairment losses, if any. Cost includes expenditures that are directly attributable to the acquisition of the asset. Depreciation is recorded to recognize the cost of assets over their useful lives. The estimated useful lives and depreciation methods are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. Asset type Methods Rates Computer equipment Declining balance method 55% Machinery and equipment Declining balance method 20% Rolling stock Declining balance method 30% Leasehold improvements Straight-line method Over the term of the lease Boat rental fleet Straight-line method 15 years Moulds Straight-line method 25 years Any item of property and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales and proceeds and the carrying amount of the asset and is recognized in profit or loss. Repairs and maintenance costs that do not improve or extend productive life are recognized in profit or loss in the period in which the costs are incurred. Intangible assets and goodwill Expenditure on research activities is recognized in net earnings as incurred. Development expenditure is capitalized only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and the Company intends to and has sufficient resources to complete development and to use or sell the asset. Otherwise, it is recognized in net earnings as incurred. The Company has not capitalized any development costs. When awarded with government grants and income tax credits, the Company recognizes the income either in net loss, netted with the related expenses, or as a reduction of the cost, when related with capitalized development expenditure. Goodwill arising from business combinations is initially recognized when the fair value of the separately identifiable assets the Company acquired and liabilities the Company assumed is lower than the consideration paid [including the recognized amount of the non-controlling interest, if any]. If the fair value of the consideration transferred is lower than that of the separately identified assets and liabilities, the Company immediately recognizes the difference as a gain in the consolidated statement of comprehensive loss. Other intangible assets, including intellectual property, software, trade name, backlog and website that have finite useful lives are measured at cost less accumulated amortization and accumulated impairment losses. Amortization is calculated over the cost of the asset less its residual value. Amortization is recognized in net earnings on a straight-line basis over the estimated useful lives of intangible assets from the date that they are available for use. The estimated useful lives are as follows: Asset type Methods Rates Intellectual property Straight-line method 10 years Software Straight-line method 7 years Trade name Straight-line method 5 years Backlog Straight-line method 3 years Website Straight-line method 5 years Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. Impairment of non-financial assets Non-financial assets other than goodwill At the end of each reporting period, the Company reviews the carrying amounts of its non-financial assets, other than goodwill, to determine whether there is any indication of impairment. If any such indication exists, the recoverable amount of the asset is estimated. Where it is not possible to estimate the recoverable amount of an individual asset, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets [the “cash-generating unit”, or “CGU”]. Recoverable amount is the greater of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. If the recoverable amount of an asset or CGU is lower than its carrying amount, the carrying amount is reduced to its recoverable amount. An impairment loss is recognized immediately in the consolidated statement of comprehensive loss. Where an impairment loss subsequently reverses, the carrying amount of the asset or CGU is increased to the revised recoverable amount, to the extent that the carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized. A reversal of an impairment loss is recognized immediately in the consolidated statement of comprehensive loss. Goodwill After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For purposes of impairment testing, goodwill is allocated to each of the Company’s CGU [or groups of CGUs] that is expected to benefit from the synergies of the combination. A CGU to which goodwill has been allocated is tested for impairment annually, or more frequently when there is indication that the CGU may be impaired. If the recoverable amount of the CGU is less than its carrying amount, the impairment loss is allocated first to reduce the goodwill allocated to the CGU and then, to reduce the carrying amounts of the other assets in the CGU on a pro-rata basis. Any impairment loss is recognized in the consolidated statement of comprehensive loss. An impairment loss recognized for goodwill is not reversed in subsequent periods. Trade and other payables These amounts represent liabilities for goods and services provided to the entity prior to the end of the financial year and which are unpaid. Due to their short-term nature, they are measured at amortized cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition. Provisions Provisions are recognized when the Company has a present obligation as a result of a past event, it is probable the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognized as a finance cost. Onerous contracts An onerous contract is a contract under which the unavoidable costs (i.e., the costs that the Company cannot avoid because it has the contract) of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The unavoidable costs under a contract reflect the least net cost of exiting from the contract, which is the lower of the cost of fulfilling it and any compensation or penalties arising from failure to fulfil it. The cost of fulfilling a contract comprises the costs that relate directly to the contract (i.e., both incremental costs and an allocation of costs directly related to contract activities). When the Company has a contract that is onerous, the present obligation under the contract is recognized and measured as a provision. However, before a separate provision for an onerous contract is established, the Company recognizes any impairment loss that has occurred on assets used in fulfilling the contract. Fair value measurement When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market. Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value measurement. Financial instruments Classification and measurement of financial instruments The Company measures its financial assets and financial liabilities at fair value on initial recognition, which is typically the transaction price unless a financial instrument contains a significant financing component. Subsequent measurement is dependent on the financial instrument’s classification which in the case of financial assets, is determined by the context of the Company’s business model and the contractual cash flow characteristics of the financial asset. Financial assets are classified into two categories: [1] measured at amortized cost and [2] fair value through profit and loss [“FVTPL”]. Financial liabilities are subsequently measured at amortized cost at the effective interest rate, other than financial liabilities that are measured at FVTPL or designated as FVTPL where any change in fair value resulting from an entity’s own credit risk is recorded as other comprehensive income [“OCI”]. The Company assesses the classification of warrants to purchase common shares of the Company, whether the warrants issued meet the criteria of an equity instrument (i.e. the warrants would be settled by the issuance of fixed number of common shares of the Company at a fixed exercise price) or a financial liability. Since the exercise price of these warrants is denominated in U.S. dollars, while the functional currency of the Company is Canadian dollar, the value of the proceeds on exercise of the warrants is not fixed and will vary based on the foreign exchange rate movements. As such, the Company classified the warrants, other than warrants issued as compensation for goods and services, as derivative liabilities, measured at fair value at initial recognition and at each reporting period. Any changes in fair value are recorded as gain or loss in the consolidated statement of comprehensive loss. Refer to note 19 and 25 for details on the warrants issued and outstanding for the year ended August 31, 2023, the derivative liabilities recorded and the assumptions used to determine the fair value. Amortized cost The Company classifies trade and other receivables, other financial assets, trade and other payables, other financial liabilities, long-term debt and advances to/from related parties as financial instruments measured at amortized cost. The contractual cash flows received from the financial assets are solely payments of principal and interest and are held within a business model whose objective is to collect the contractual cash flows. Fair value through profit and loss The Company classifies debentures as financial instruments measured at fair value through profit and loss since the contractual cash flows received from the financial asset are not solely payments of principal and interest. Impairment of financial assets The Company recognizes a loss allowance for expected credit losses on financial assets measured at amortized cost. The measurement of the loss allowance depends upon the Company’s assessment at the end of each reporting period as to whether the financial instrument’s credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain. Where there has not been a significant increase in exposure to credit risk, a 12-month expected credit loss allowance is estimated. The amount of expected credit loss recognized is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate. Impairment provisions for current and non-current trade receivables are recognized based on the simplified approach within IFRS 9 using a provision matrix in the determination of the lifetime expected credit losses. Equity instruments Financial instruments issued by the Company are classified as equity only to the extent that they do not meet the definition of a financial liability or financial asset. An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recorded at the proceeds received, net of direct issuance costs. The Company’s shares are classified as equity instruments. Revenue recognition Revenue is recognized at an amount that reflects the consideration to which the Company is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the Company: ● identifies the contract with the customer; ● identifies the performance obligations in the contract; ● determines the transaction price which takes into account estimates of variable consideration and the time value of money; ● allocates the transaction price to separate performance obligations on the basis of relative stand-alone selling price of each distinct good or service to be delivered; and, ● recognizes revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised. The Company enters into contracts with customers, as well as distributor agreements with specific distributors for the sale of boats. Sale of boats Revenue from the sale of boats, including incidental shipping fees, is recognized at the point in time when the customer obtains control of the goods, which is generally at the shipping point. In the context of its distributor agreements, control is passed at the shipping point to the distributor as the Company has no further performance obligations at that point. The Company concluded that it is the principal in its revenue arrangements, because it typically controls the boats before transferring them to the customer. The amount of consideration the Company receives, and the revenue recognized varies with volume rebate programs offered to distributors. When the Company offers retrospective volume rebates, it estimates the expected volume rebates based on an analysis of historical experience, to the extent that it is highly probable that a significant reversal will not occur. The Company adjusts its estimate of revenue related to volume rebates at the earlier of when the most likely amount of consideration expected to be received changes or when the consideration becomes fixed. The Company recognizes customer deposits on the sale of boats as contract liabilities. Boat rental and boat club membership revenue Revenue from boat rentals is recognized at a point in time when the services are completed given the short term rental period. Boat club membership revenue is recognized over time as the service is provided. These services are typically provided, and thus revenue is typically recognized, on a monthly basis. The Company recognizes customer prepayments on boat rentals and boat club memberships as contract liabilities. Sale of parts and boat maintenance Revenue from the sale of parts and related maintenance services are recognized at the point in time when the customer obtains control of the parts and when services are completed. Other Other revenue is recognized when it is received or when the right to receive payment is established. Contract liabilities A contract liability is recognized if a payment is received, or a payment is due [whichever is earlier] from a customer before the Company transfers the related goods or services. Contract liabilities are recognized as revenue when the Company performs under the contract [i.e., transfers control of the related goods or services to the customer]. Share-based payments The Company has a share option plan for key employees, consultants, advisors, officers and directors from which options to purchase common stock of the Company are issued. The Company also issues warrants to non-employees granting the right to purchase common stock of the Company at a determined exercise price . Share-based compensation costs are accounted for on a fair value basis, as measured at the grant date, using the Black-Scholes option pricing model taking into account the terms and conditions upon which the options were granted. An individual is classified as an employee when the individual is an employee for legal or tax purposes or provides services similar to those performed by an employee. In situations where options or warrants have been issued to non-employees and some or all of the services received by the Company can be specifically identified, the options or warrants are measured at the fair value of the services received. If the services cannot be specifically identified, the options or warrants are measured at the fair value of the options issued. All share-based remuneration is ultimately recognized as an expense in profit or loss with a corresponding credit to contributed surplus. If vesting periods or other vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate of the number of share options expected to vest. Any adjustment to cumulative share-based compensation resulting from a revision is recognized in the current period. The number of vested options ultimately exercised by holders does not impact the expense recorded in any period. Foreign currency translation The Company’s consolidated financial statements are presented in Canadian dollars, which is also the parent company’s functional currency. The functional currencies of 7858078 Canada Inc. and EB Rental Ltd. are the Canadian dollar and the US dollar, respectively. The Company and its subsidiaries each determine their functional currency based on the currency of the primary economic environment in which they operate. Transactions denominated in a currency other than the functional currency of an entity are translated at the exchange rate in effect on the transaction date. The resulting exchange gains and losses are included in each entity’s net loss in the period in which they arise. The Company’s foreign operations are translated to the Company’s presentation currency, for inclusion in the consolidated financial statements. Foreign-denominated monetary and non-monetary assets and liabilities of foreign operations are translated at exchange rates in effect at the end of the reporting period and revenue and expenses are translated at exchange rates in effect at the transaction date. The resulting translation gains and losses are included in other comprehensive income with the cumulative gain or loss reported in accumulated other comprehensive income. On disposal of a foreign operation, the component of OCI relating to that particular foreign operation is reclassified to profit or loss. The exchange rates for the currencies used in the preparation of the consolidated financial statements were as follows: Exchange rate as at Average exchange rate for year ended August 31, August 31, August 31, August 31, 2023 2022 2023 2022 US dollar 1.3535 1.3076 1.3465 1.2717 Taxes Tax expense comprises current and deferred tax. Tax is recognized in net loss except to the extent it relates to items recognized in other comprehensive income or directly in equity. Current tax Current tax expense is based on the results for the period as adjusted for items that are not taxable or not deductible. Current tax is calculated using tax rates and laws that were enacted or substantively enacted at the end of the reporting period. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. Deferred tax Deferred taxes are the taxes expected to be payable or recoverable on differences between the carrying amounts of assets in the statement of financial position and their corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences between the carrying amounts of assets and their corresponding tax bases. Deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized. Such assets and liabilities are not recognized if the temporary difference arises from the initial recognition of goodwill or from the initial recognition [other than in a business combination] of other assets in a transaction that affects neither the taxable profit nor the accounting profit. The Company offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered. Earnings per share Basic earnings per share is calculated by dividing the profit or loss attributable to equity holders of the Company by the weighted average number of common stock outstanding during the year. Diluted income per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of common stock outstanding, adjusted for the effects of all dilutive potential common stock. For the purpose of calculating diluted earnings per share, the Company assumes the exercise of dilutive options and warrants of the entity. The assumed proceeds from these instruments are regarded as having been received from the issue of common stock at the average market price of common shares during the period. The difference between the number of common shares issued and the number of common shares that would have been issued at the average market price of common shares during the period is treated as an issue of common shares for no consideration. New and amended standards and interpretations The Company applied certain amendments to the accounting standards, which are effective for annual periods beginning on or after 1 January 2023. The Company has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective. Onerous Contracts – Costs of Fulfilling a Contract – Amendments to IAS 37 In May 2020, the IASB issued amendments to IAS 37 to specify which costs an entity needs to include when assessing whether a contract is onerous or loss-making. The amendments apply a “directly related cost approach”. The costs that relate directly to a contract to provide goods or services include both incremental costs and an allocation of costs directly related to contract activities. General and administrative costs do not relate directly to a contract and are excluded unless they are explicitly chargeable to the counterparty under the contract. The amendments were effective for annual reporting periods beginning on or after January 1, 2022. The amendments did not have a material impact on the Company’s consolidated financial statements. Property, Plant and Equipment: Proceeds before Intended Use – Amendments to IAS 16 Property, plant and equipment The amendment prohibits entities from deducting from the cost of an item of property, plant and equipment, any proceeds of the sale of items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling such items, and the costs of producing those items, in profit or loss. The amendment is effective for annual reporting periods beginning on or after January 1, 2022 and must be applied retrospectively to items of property, plant and equipment made available for use on or after the beginning of the earliest period presented when the entity first applies the amendment. The amendments are not expected to have a material impact on the Company’s consolidated financial statements. Standards issued but yet not effective The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company’s financial statements are disclosed below. The Company intends to adopt these new and amended standards and interpretations, if applicable, when they become effective. Definition of Accounting Estimates - Amendments to IAS 8 The amendments to IAS 8 clarify the distinction between changes in accounting estimates, changes in accounting policies and the correction of errors. They also clarify how entities use measurement techniques and inputs to develop accounting estimates. The amendments are not expected to have a material impact on the Company’s consolidated financial statements. Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2 The amendments to IAS 1 and IFRS Practice Statement 2 Making Materiality Judgements provide guidance and examples to help entities apply materiality judgements to accounting policy disclosures. The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ‘significant’ accounting policies with a requirement to disclose their ‘material’ accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures. The amendments are not expected to have a material impact on the disclosures in the Company’s consolidated financial statements. Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12 The amendments to IAS 12 Income Tax narrow the scope of the initial recognition exception, so that it |
Significant accounting estimate
Significant accounting estimates and assumptions | 12 Months Ended |
Aug. 31, 2023 | |
Significant accounting estimates and assumptions | |
Significant accounting estimates and assumptions | 4. Significant accounting estimates and assumptions The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and contingent liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Estimates and judgments are continuously evaluated and are based on management’s experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual outcomes can differ from these estimates. Going concern uncertainty In assessing whether the going concern assumption is appropriate and whether there are material uncertainties that raise substantial doubt about the Company’s ability to continue as a going concern, management must estimate future cash flows for a period of at least twelve months following the end of the reporting period by considering relevant available information about the future. In addition, management must make assumptions about what actions it will take to increase the Company’s liquidity position. Given that it is difficult to adequately predict future cash flows and the Company’s ability to raise additional financing, management has concluded that there are material uncertainties related to events or conditions that raise substantial doubt upon the Company’s ability to continue as a going concern for at least the next twelve months. Impairment of non-financial assets Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The Company concluded the fair value less costs of disposal will yield a higher recoverable amount, which is based on a discounted cash flow (“DCF”) model. The fair value measurement is categorized within Level 3 of the fair value hierarchy. The cash flows are derived from cash flow projections over a 5 - year period, including future investments and expansion activities that will enhance the performance of the assets of the CGU. As at August 31, 2023, all of the Company’s goodwill is allocated to the boat rental operation CGU, which represents the lowest level within the Company at which the goodwill is monitored for internal management purposes. For the year ended August 31, 2023, there was no impairment of goodwill. The recoverable amount is sensitive to the discount rate used for the DCF model, as well as the expected future cash-inflows, gross profit and the growth rate used for extrapolation purposes. The post-tax discount rate of 28% used in the DCF is based on a weighted average cost of capital calculated using observable market-based inputs or a benchmark of a sample of representative publicly traded companies. The long-term growth rate of 2% used for extrapolation purposes is based on published research growth rates. Any reasonable negative change in the key assumptions used could cause the carrying value of this CGU to exceed its recoverable amount. Financial instruments measured at fair value In measuring financial instruments at fair value, the Company makes estimates and assumptions, including estimates and assumptions about interest rates, credit spreads and other market conditions. Financial instruments measured at fair value include derivative liabilities [note 19] and investment in Limestone [note 8]. Provision for impairment of inventories The provision for impairment of inventories assessment requires a degree of estimation and judgment. The level of the provision is assessed by taking into account the recent sales experience, the ageing of inventories and other factors that affect inventory obsolescence. Income tax Provisions for taxes are made using the best estimate of the amount expected to be paid based on a qualitative assessment of all relevant factors. The Company reviews the adequacy of these provisions at the end of the reporting period. However, it is possible that at some future date an additional liability could result from audits by taxing authorities. Where the final outcome of these tax-related matters is different from the amounts that were initially recorded, such differences will affect the tax provisions in the period in which such determination is made. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. In assessing the recoverability of deferred tax assets, the Company relies on the same forecast assumptions used elsewhere in the financial statements and in other management reports, which, among other things, reflect the potential impact of climate-related development on the business. Share-based payments The Company measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instrument at the date at which they are granted. The fair value is determined by using the Black-Scholes model taking into account the terms and conditions upon which the instruments were granted. Judgment is exercised in determining the expected life and historical volatility. The accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and liabilities but may impact profit or loss and equity. Lease term The lease term is a significant component in the measurement of both the right-of-use asset and lease liability. Judgment is exercised in determining whether there is reasonable certainty that an option to extend the lease will be exercised, when ascertaining the periods to be included in the lease term. In determining the lease term, all facts and circumstances that create an economical incentive to exercise an extension option are considered at the lease commencement date. The Company reassesses whether it is reasonably certain to exercise an extension option if there is a significant event or significant change in circumstances. Incremental borrowing rate Where the interest rate implicit in the lease cannot be readily determined, an incremental borrowing rate is estimated to discount future lease payments to measure the present value of the lease liability at the lease commencement date. Such a rate is based on what the Company estimates it would have to pay a third party to borrow the funds necessary to obtain an asset of a similar value to the right-of-use asset, with similar terms, security and economic environment. |
Goodwill
Goodwill | 12 Months Ended |
Aug. 31, 2023 | |
Goodwill. | |
Goodwill | 5. Goodwill On June 3, 2021, the Company completed the acquisition of EB Rental Ltd. [“EBR”] by acquiring all the issued and outstanding shares of 7858078 Canada Inc. EBR operates an electric boat rental operation located in Newport beach, California, with a fleet of over 20 ships. All boats operated by EBR are supplied by the Company, which offers the Company the ability to showcase its products and provide brand awareness. Before the acquisition, the Company and EBR were related through common ownership. EBR was acquired for cash consideration of U.S. $4,582,367 ( $5,546,039 ), financed entirely by the Company’s available cash on hand, and equity consideration of $3,474,232 representing 284,495 shares at U.S. $10.09 [approximately $12.21 ] per share. The balance of goodwill related to the acquisition of EBR is at $9,680,941 as at August 31, 2023 [2022 – $9,352,640 ], with the change since acquisition date due to foreign exchange translation. |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Aug. 31, 2023 | |
Trade and other receivables | |
Trade and other receivables | 6. Trade and other receivables 2023 2022 $ $ Trade receivables 59,364 108,716 Sales taxes receivable 159,114 194,523 Other receivables 332,358 169,309 550,836 472,548 Trade receivable disclosed above include amounts that are past due at the end of the reporting period for which the Company has not recognized an allowance for expected credit losses because there has not been a significant change in credit quality and the amounts are still considered recoverable. As at August 31, 2023, trade receivables of $59,364 [2022 – $108,706 ] were past due but not impaired. They relate to customers with no default history. The aging analysis of these receivables is as follows: 2023 2022 $ $ 0 – 30 13,986 77,625 31 – 60 — — 61 – 90 — 14,212 91 and over 45,378 16,879 59,364 108,716 There were no movements in the allowance for expected credit losses for years ended August 31, 2023 and August 31, 2022. |
Inventories
Inventories | 12 Months Ended |
Aug. 31, 2023 | |
Inventories | |
Inventories | 7. Inventories 2023 2022 $ $ Raw materials 1,553,501 1,709,368 Work-in-process 369,753 75,170 Finished goods 522,300 309,238 2,445,554 2,093,776 For the year ended August 31, 2023, inventories recognized as an expense amounted to $4,023,409 [2022 – $4,065,381 ; 2021 – $1,909,606 ]. For the year ended August 31, 2023, cost of sales includes depreciation of $471,940 [2022 – $687,023 ; 2021 - $232,195 ]. |
Investment in Limestone
Investment in Limestone | 12 Months Ended |
Aug. 31, 2023 | |
Investment in Limestone | |
Investment in Limestone | 8. Investment in Limestone On May 14, 2021, the Company subscribed for and purchased 3,400 senior unsecured subordinated convertible debentures of The Limestone Boat Company Limited [“Limestone”], a publicly traded company listed under the trading symbol "BOAT" on the TSX Venture Exchange [the "Debentures"], for an aggregate amount of $3,400,000 . The Debentures bear interest at a rate of 10% per annum, payable annually in arrears, and have a 36-month term [the “Term”]. The Debentures are convertible at any time at the option of the Company into common shares of Limestone [“Common Shares”] at a conversion price of $0.36 per Common Share [the “Conversion Price”]. If at any time following 120 days from the date of issuance of the Debentures [the “Closing Date“] and prior to the date that is 30 days prior to the end of the Term, the volume weighted average closing price of the Common Shares on the TSX Venture Exchange, or such other exchange on which the Common Shares may be listed, is equal to or higher than $0.50 per Common Share for 20 consecutive trading days, Limestone may notify the Company that the Debentures will be automatically converted into Common Shares at the Conversion Price 30 days following the date of such notice. The Debentures are carried at fair value through profit and loss and are considered as Level 2 financial instruments in the fair value hierarchy. On January 20, 2023, Limestone announced that Limestone’s U.S. subsidiaries filed for voluntary petitions for relief under Chapter 7 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Middle District of Tennessee. As a result, the Company recorded an impairment on the entire value of the Debentures at the amount $2,637,000 in the year ended August 31, 2023 [2022 – nil , 2021 - nil ]. For the year ended August 31, 2023, the Company recorded a loss of $88,866 [2022 - $670,000 ; 2021 – $550,000 ] for the change in fair value of the Debentures and interest income of $113,334 [2022 - $340,000 ; 2021 – $85,000 ] in net loss as a net financial income (expense). On July 18, 2023, the Company agreed with Limestone to convert the Debentures into common shares of Limestone at a conversion price of $0.071 , which was approved by the shareholders of Limestone and awaiting the issuance of the Company’s shareholder certificate. The Company maintained the fair value of its investment in Limestone at nil as at August 31, 2023. |
Right-of-use assets
Right-of-use assets | 12 Months Ended |
Aug. 31, 2023 | |
Right-of-use assets | |
Right-of-use assets | 9. Right-of-use assets Computer Boat rental Premises equipment Rolling stock fleet Total $ $ $ $ $ Cost Balance at August 31, 2021 2,746,118 3,646 202,536 326,868 3,279,168 Additions 93,565 — 141,043 — 234,608 Disposals — — (255,953) (115,409) (371,362) Currency translation 40,356 — 394 — 40,750 Balance at August 31, 2022 2,880,039 3,646 88,020 211,459 3,183,164 Additions 921,498 — — — 921,498 Disposals — — (46,200) (170,298) (216,498) Transferred to Property and equipment — (3,646) — (41,161) (44,807) Currency translation 38,255 — 2,099 — 40,354 Balance at August 31, 2023 3,839,792 — 43,919 — 3,883,711 Accumulated depreciation Balance at August 31, 2021 334,357 576 14,949 24,087 373,969 Depreciation 488,050 2,302 71,488 89,617 651,457 Disposal — — (66,122) (37,240) (103,362) Balance at August 31, 2022 822,407 2,878 20,315 76,464 922,064 Depreciation 615,937 768 23,934 21,442 662,081 Disposal — (3,646) (13,475) (97,906) (115,027) Balance at August 31, 2023 1,438,344 — 30,774 — 1,469,118 Net carrying amount As at August 31, 2022 2,057,632 768 67,705 134,995 2,261,100 As at August 31, 2023 2,401,448 — 13,145 — 2,414,593 During the year ended August 31, 2023, the Company exercised a purchase option and paid in full a lease liability related to a computer and boat rental fleet that was previously included in the right-of-use assets. As a result, the Company transferred the assets to property and equipment assets at its net book value of $44,807 [note 11] . |
Property and equipment
Property and equipment | 12 Months Ended |
Aug. 31, 2023 | |
Property and equipment. | |
Property and equipment | 10. Property and equipment Machinery and Rolling Computer Leasehold Boat equipment stock equipment Moulds improvements rental fleet Total $ $ $ $ $ $ $ Cost Balance at August 31, 2021 302,938 32,175 14,647 691,005 131,233 513,317 1,685,315 Additions 30,146 197,739 11,284 220,919 133,123 582,720 1,175,931 Disposals — (111,215) (4,899) — — (154,714) (270,828) Currency translation — (35) — — — 30,154 30,119 Balance at August 31, 2022 333,084 118,664 21,032 911,924 264,356 971,477 2,620,537 Additions 62,409 69,029 565 30,501 97,699 678,599 938,802 Transferred from Right-of-use assets — — 3,646 — — 41,161 44,807 Disposals — (136,072) — — — (499,770) (635,842) Currency translation — (2,347) — — — (70,115) (72,462) Balance at August 31, 2023 395,493 49,274 25,243 942,425 362,055 1,121,352 2,895,842 Accumulated depreciation Balance at August 31, 2021 167,604 24,362 8,398 50,420 11,579 8,443 270,806 Depreciation 30,200 23,938 5,079 22,608 32,926 43,196 157,947 Disposal — (18,301) (674) — — (8,223) (27,198) Balance at August 31, 2022 197,804 29,999 12,803 73,028 44,505 43,416 401,555 Depreciation 31,495 25,875 4,485 37,696 69,332 72,163 241,046 Disposal — (21,864) — — — (38,821) (60,685) Balance at August 31, 2023 229,299 34,010 17,288 110,724 113,837 76,758 581,916 Net carrying amount As at August 31, 2022 135,280 88,665 8,229 838,896 219,851 928,061 2,218,982 As at August 31, 2023 166,194 15,264 7,955 831,701 248,218 1,044,594 2,313,926 As at August 31, 2023, moulds of $377,253 [August 31, 2022 – $ 346,752 ] are not depreciated because they are not ready for use. |
Intangible assets
Intangible assets | 12 Months Ended |
Aug. 31, 2023 | |
Intangible assets | |
Intangible assets | 11. Intangible assets Intellectual Trade property Software name Backlog Website Total $ $ $ $ $ $ Cost Balance at August 31, 2021 1,035,070 73,573 93,856 79,220 18,771 1,300,490 Additions — 28,202 4,000 — — 32,202 Currency translation — — 438 330 87 855 Balance at August 31, 2022 1,035,070 101,775 98,294 79,550 18,858 1,333,547 Additions Currency translation — — 6,057 4,556 1,211 11,824 Balance at August 31, 2023 1,035,070 101,775 104,351 84,106 20,069 1,345,371 Accumulated depreciation Balance at August 31, 2021 55,581 7,107 4,633 6,520 927 74,768 Depreciation 103,508 17,593 9,806 13,310 1,892 146,109 Balance at August 31, 2022 159,089 24,700 14,439 19,830 2,819 220,877 Depreciation 103,508 12,920 20,426 16,911 4,005 157,770 Balance at August 31, 2023 262,597 37,620 34,865 36,741 6,824 378,647 Net carrying amount As at August 31, 2022 875,981 77,075 83,855 59,720 16,039 1,112,670 As at August 31, 2023 772,473 64,155 69,486 47,365 13,245 966,724 On February 16, 2021, the Company acquired intellectual property in exchange for cash consideration of EUR 300,000 ( $461,134 ) and the issuance of 30,000 shares of the Company [note 18] at a price of U.S. $15.07 [approximately $19.13 ] for total consideration of $1,035,070 . |
Credit facility
Credit facility | 12 Months Ended |
Aug. 31, 2023 | |
Credit facility | |
Credit facility | 12. Credit facility The Company has an authorized line of credit of $250,000 , renewable annually, bearing interest at prime rate plus 1% , secured by a first ranking movable hypothec of $750,000 on all present and future accounts receivable and inventory. As at August 31, 2023, the Company has drawn an amount of 155,000 [2022 – Nil ] on the line of credit. |
Trade and other payables
Trade and other payables | 12 Months Ended |
Aug. 31, 2023 | |
Trade and other payables. | |
Trade and other payables | 13. Trade and other payables 2023 2022 $ $ Trade payables 1,107,310 737,946 Sales taxes payable 62,398 21,547 Government remittances — 9,450 Salaries, vacation and other employee benefits payables 585,192 261,388 1,754,900 1,030,331 |
Contract liabilities
Contract liabilities | 12 Months Ended |
Aug. 31, 2023 | |
Contract liabilities | |
Contract liabilities | 14. Contract liabilities 2023 2022 $ $ Opening balance 1,029,318 898,713 Payments received in advance 3,330,235 2,502,080 Boat sale deposits 151,572 87,609 Payments reimbursed (8,131) (2,615) Transferred to revenues (2,718,943) (2,475,307) Currency translation 31,680 18,838 Closing balance 1,815,731 1,029,318 |
Lease liabilities
Lease liabilities | 12 Months Ended |
Aug. 31, 2023 | |
Lease liabilities | |
Lease liabilities | 15. Lease liabilities 2023 2022 $ $ Opening balance 2,415,549 2,966,816 Additions 921,498 234,608 Repayment (726,893) (695,749) Interest on lease liability 139,132 141,994 Lease termination (151,800) (273,652) Currency translation 44,308 41,532 Closing balance 2,641,794 2,415,549 Current 647,638 561,168 Non-current 1,994,156 1,854,381 2,641,794 2,415,549 Future undiscounted lease payments as at August 31, 2023 are as follows: $ Less than one year 775,991 One to five years 2,221,910 2,997,901 Included in rent expense is $127,511 of short-term lease expense [2022 – $58,663 , 2021 - $50,186 ]. The lease liabilities have a weighted average interest rate of 5.79% [2022 – 5.4% , 2021 – 5.2% ]. |
Long-term debt
Long-term debt | 12 Months Ended |
Aug. 31, 2023 | |
Long-term debt. | |
Long-term debt | 16. Long-term debt 2023 2022 $ $ The government assistance loan is non-interest bearing until December 31, 2022 at which time the loan bears interest at 5% per annum. The loan must be repaid by December 31, 2025. 40,000 39,342 Term loans, bearing interest at rates varying between 9.44% and 10.71% , repayable in monthly instalments of $23,337 , ending January 2025. 265,329 188,007 305,329 227,349 Current portion of long-term debt 271,546 72,090 33,783 155,259 |
Related party transactions
Related party transactions | 12 Months Ended |
Aug. 31, 2023 | |
Related party transactions | |
Related party transactions | 17. Related party transactions Companies related through common ownership EB Rental Ltd. [prior to June 3, 2021] [note 5] 7858078 Canada Inc. [prior to June 3, 2021] [note 5] Montana Strategies Inc. Key management personnel of the Company have control over the following entities California Electric Boat Company Inc. 9335-1427 Quebec Inc. Hurricane Corporate Services Ltd. Mac Engineering, SASU – Since February 16, 2021 Ultimate founder shareholders and their individually controlled entities Alexandre Mongeon Patrick Bobby Robert Ghetti Immobilier R. Ghetti Inc. Société de Placement Robert Ghetti Inc. The following table summarizes the Company’s related party transactions for the year: 2023 2022 2021 $ $ $ Revenues Sales of boats EB Rental Ltd. [prior to June 3, 2021] — — 84,149 Patrick Bobby — — — Sale of parts and boat maintenance EB Rental Ltd. [prior to June 3, 2021] — — 40,310 Expenses Cost of sales EB Rental Ltd. [prior to June 3, 2021] — — 11,444 Research and Development 9335-1427 Quebec Inc. — — 75,020 Mac Engineering, SASU 545,892 666,178 176,500 Travel and entertainment EB Rental Ltd. [prior to June 3, 2021] — — 8,926 Advertising and promotion EB Rental Ltd. [prior to June 3, 2021] — — 11,245 Office salaries and benefits Montana Strategies Inc. 29,059 62,462 — The Company leases its Boisbriand premises from California Electric Boat Company Inc. with a right-of-use assets as at August 31, 2023 of $1,270,955 [August 31, 2021 – $889,866 ] and lease liability of $1,395,732 [August 31, 2021 – $971,399 ] [notes 9 and 15]. Remuneration of directors and key management of the Company 2023 2022 2021 $ $ $ Wages 2,447,827 2,324,770 1,299,402 Share-based payments – capital stock 433,263 — — Share-based payments – stock options 382,196 2,560,031 6,081,900 3,263,286 4,884,801 7,381,302 At the end of the year, the amounts due to and from related parties are as follows: 2023 2022 $ $ Share subscription receivable 9335-1427 Quebec Inc. 25,000 25,000 Alexandre Mongeon 14,200 14,200 39,200 39,200 Current advances to related party Alexandre Mongeon 20,135 16,736 Amounts due to related parties included in trade and other payable Alexandre Mongeon 19,384 16,000 Patrick Bobby 13,847 12,308 Kulwant Sandher 8,654 8,062 Xavier Montagne 10,454 8,292 Mac Engineering, SASU 9,935 — 62,274 44,662 |
Capital stock
Capital stock | 12 Months Ended |
Aug. 31, 2023 | |
Capital stock. | |
Capital stock | 18. Capital stock Authorized Voting Common Shares – Series Founder, Series Investor 1, Series Investor 2, voting and participating Non-Voting Common Shares, non-voting Preferred shares, without par value, non-cumulative annual dividend, redeemable at their issue price, non-participating, non-voting Issued 2023 2022 $ $ 11,171,800 voting common shares [2022 – 8,471,923 ] 50,395,717 43,441,591 Subscription and issuance of Voting Common Shares On January 12, 2022 and February 1, 2022, the Board of Directors authorized the issuance of 25,000 Voting Common Shares and 5,435 Voting Common Shares respectively to a third party in exchange for marketing services provided to the Company. On January 31, 2022, the Board of Directors authorized the issuance of 6,479 Voting Common Shares to a third party in exchange for sub-contracting services provided to the Company related to research and development. During the six-month period ended August 31, 2022, the Company issued 53,445 Voting Common Shares to third parties in exchange for marketing services provided to the Company. On August 25, 2022, the Company issued 2,703 Voting Common Shares upon the exercise of a former employee’s stock options. During the year ended August 31, 2023, the Company issued a total of 299,393 Voting Common Shares, respectively, to third parties in exchange for marketing services provided to the Company. During the year ended August 31, 2023, the Company issued 57,219 Voting Common Shares upon the exercises of two former employees and a consultant’s stock options. During the year ended August 31, 2023, the Company issued 2,398,265 Voting Common Shares and warrants to purchase Voting Common Shares, respectively, as part of the financing rounds for a total cash consideration price of $12,012,591 , net of transaction costs of $1,225,676 . During the year ended August 31, 2023, the warrants issued are to purchase 2,398,265 Voting Common Shares of the Company for a period of three years from the issuance date at an exercise price at U.S. $4.21 . As at August 31, 2023, the derivative liabilities related to the warrants issued amounted to $5,558,822 [August 31, 2022 – Nil ], with the allocated transaction costs of $718,546 recorded in net finance income (expense) [note 22] . 2023 2022 $ $ Opening balance — — Additions 7,614,510 — Change in estimate (2,055,688) — Closing balance 5,558,822 — |
Share-based payments
Share-based payments | 12 Months Ended |
Aug. 31, 2023 | |
Share-based payments | |
Share-based payments | 19. Share-based payments Description of the plan The Company has a fixed option plan. The Company’s stock option plan is administered by the Board of Directors. Under the plan, the Company’s Board of Directors may grant stock options to employees, advisors and consultants, and designates the number of options and the share price pursuant to the new options, subject to applicable regulations. The options, when granted, will have an exercise price of no less than the estimated fair value of shares at the date of grant. Stock options On multiple grant dates, the Company granted a total of 1,664,526 stock options at exercise prices varying between $2.78 and $16.29 per share to directors, officers, employees and consultants of the Company. The stock options will expire 5 to 10 years from the grant dates. The Company recognizes share-based payments expense for option grants based on the fair value at the date of grant using the Black-Scholes valuation model. The share-based payments expense recognized for the year ended August 31, 2023 amounts to $1,136,182 [2022 – $2,699,481 ; 2021 - $7,121,444 ]. The table below lists the assumptions used to determine the fair value of these option grants. Volatility is based on the historical share price volatility of the Company and other public companies with characteristics similar to the Company. Exercise Market Expected Risk-free Expected Grant date price price volatility interest rate life $ $ % % [years] May 27, 2020 3.70 3.70 84 0.4 5 May 27, 2020 2.78 3.70 84 0.4 5 October 23, 2020 3.70 3.70 97 0.4 5 November 24, 2020 16.29 13.03 101 0.4 5 November 24, 2020 5.68 5.72 75 3.6 4 February 23, 2021 15.75 15.05 103 0.6 5 May 14, 2021 5.68 5.72 75 3.6 3 July 14, 2021 9.25 9.01 105 0.7 5 September 21, 2021 8.85 8.58 106 0.9 5 January 22, 2022 5.65 5.52 107 1.5 5 November 30, 2022 6.09 6.09 107 3.1 5 December 1, 2022 5.83 5.83 107 3.0 5 March 22, 2023 5.76 5.14 75 3.6 2 March 25, 2023 5.77 5.23 75 3.6 3 March 25, 2023 5.77 5.23 75 3.6 4 April 20, 2023 5.79 5.27 75 3.6 5 The following tables summarize information regarding the option grants outstanding as at August 31, 2023: Weighted Number of average options exercise price # $ Balance at August 31, 2021 1,659,121 9.95 Granted 152,500 6.70 Forfeited (102,500) 13.59 Exercised (2,703) 3.70 Balance at August 31, 2022 1,706,418 9.45 Granted 88,500 5.80 Forfeited (268,158) 9.65 Stock options modifications (370,000) 5.78 Exercised (57,219) 2.86 Balance at August 31, 2023 1,099,541 5.22 On March 25, 2023, 425,000 options previously granted to directors and officers of the Company with exercise price ranging from U.S. $7.42 ( $8.98 ) to U.S. $12.50 ( $16,29 ) and five-year term were cancelled and the Company agreed to issue 255,000 stock options with an exercise price of U.S. $4.21 ( $5.78 ). The modification of these stock options granted resulted in an increase in the fair value of the stock options at the date of modification of $129,800 , recorded as stock-based compensation expense for the year ended August 31, 2023. Number of Weighted average Weighted average Exercise price options grant date remaining Exercisable range outstanding fair value contractual life options $ # $ [years] # 2.78 – 3.70 454,041 2.48 2.13 497,869 5.65 – 5.83 580,500 2.94 4.51 498,300 6.09 – 8.85 30,000 6.26 7.83 25,000 16.29 35,000 9.33 7.50 35,000 Warrants On November 23, 2020, the Company granted the underwriter the option to purchase 151,800 Voting Common Shares of the Company for a period of five years from the date of the initial public offering at an exercise price of U.S. $12.50 ( $16.53 ). On August 5, 2022, the Company granted the underwriter the option to purchase 50,000 Voting Common Shares of the Company for a period of four years from the grant date at an exercise price of U.S. $8.00 ( $10.30 ). On January 19, 2023, as part of a share subscription, the Company issued warrants with the option to purchase 554,253 Voting Common Shares of the Company for a period of three years from the grant date at an exercise price of U.S. $4.21 ( $5.63 ). On February 17, 2023, as part of a share subscription, the Company issued warrants with the option to purchase 475,059 Voting Common Shares of the Company for a period of three years from the grant date at an exercise price of U.S. $4.21 ( $5.67 ). On April 19, 2023, as part of a share subscription, the Company issued warrants with the option to purchase 381,293 Voting Common Shares of the Company for a period of three years from the grant date at an exercise price of U.S. $4.21 ( $5.64 ). On June 16, 2023, as part of a share subscription, the Company issued warrants with the option to purchase 493,828 Voting Common Shares of the Company for a period of three years from the grant date at an exercise price of U.S. $4.21 ( $5.35 ). On August 2, 2023, as part of a share subscription, the Company issued warrants with the option to purchase 493,832 Voting Common Shares of the Company for a period of three years from the grant date at an exercise price of U.S. $4.21 ( $5.37 ). The table below lists the assumptions used to determine the fair value of these warrants granted or issued at the grant or issuance date. Volatility is based on the historical share price volatility of the Company and other public companies with characteristics similar to the Company. Risk-free Exercise Market Expected interest Expected price price volatility rate life Grant or Issuance date $ $ % % [years] August 5, 2022 10.30 7.20 100 2.9 3 January 19, 2023 5.63 5.63 100 3.4 3 February 17, 2023 5.67 6.05 100 4.0 3 April 19, 2023 5.64 5.55 75 3.9 3 June 16, 2023 5.35 5.50 75 4.1 3 August 2, 2023 5.37 5.10 75 4.8 3 Number of Weighted average warrants remaining Exercise price outstanding contractual life Grant or Issuance date $ # [years] November 23, 2020 16.53 151,800 2.23 August 5, 2022 10.30 50,000 1.93 January 19, 2023 5.63 554,253 2.39 February 17, 2023 5.67 475,059 2.47 April 19, 2023 5.64 381,293 2.64 June 16, 2023 5.35 493,828 2.79 August 2, 2023 5.37 493,832 2.92 |
Revenues
Revenues | 12 Months Ended |
Aug. 31, 2023 | |
Revenues | |
Revenues | 20. Revenues 2023 2022 2021 $ $ $ Sales of boats 1,287,979 2,459,365 2,080,110 Sales of parts and boat maintenance 324,720 97,721 75,205 Boat rental and boat club membership revenue 4,038,803 4,793,860 1,355,548 Other — — 2,925 5,651,502 7,350,946 3,513,788 The geographical distribution of revenues from external customers is as follows: Sale of Rental of 2023 electric boats electric boats Total $ $ $ Canada 348,570 — 348,570 USA 1,078,124 4,038,803 5,116,927 Other 186,005 — 186,005 1,612,699 4,038,803 5,651,502 2022 2021 Sale of Rental of electric boats electric boats Total Total $ $ $ $ Canada 557,639 — 557,639 571,216 USA 1,292,666 4,793,861 6,086,527 2,692,599 Other 706,780 — 706,780 249,973 2,557,085 4,793,861 7,350,946 3,513,788 |
Grants and investment tax credi
Grants and investment tax credits | 12 Months Ended |
Aug. 31, 2023 | |
Grants and investment tax credits | |
Grants and investment tax credits | 21. Grants and investment tax credits During the year ended August 31, 2023, the Company recognized grants and investment tax credits amounting to $232,882 [August 31, 2022 – $1,458,632 ; August 31, 2021 - $921,658 ], of which $144,032 are presented against research and development expenses [August 31, 2022 – $1,408,840 ; August 31, 2021 - $859,516 ], $Nil against cost of sales [August 31, 2022 – $8,535 ; August 31, 2021 - $Nil ] and $Nil as a reduction of property and equipment and intangible assets [August 31, 2022 – $40,584 ; August 31, 2021 - $44,939 ]. Office salaries and benefits are presented net of $88,850 [August 31, 2022 – $Nil ; August 31, 2021 - $17,203 ] of grants. |
Net finance expense (income)
Net finance expense (income) | 12 Months Ended |
Aug. 31, 2023 | |
Net finance expense (income) | |
Net finance expense | 22. Net finance expense (income) 2023 2022 2021 $ $ $ Interest and bank charges 142,117 184,895 123,100 Interest income (113,334) (379,288) — Foreign currency exchange (gain) loss (208,132) (251,947) 1,583,292 Transaction costs 719,167 — — Gain on derivative liabilities (2,055,688) — — Loss (gain) on Debentures [note 8] (88,666) 670,000 550,000 (1,604,536) 223,660 2,256,392 |
Income taxes
Income taxes | 12 Months Ended |
Aug. 31, 2023 | |
Income taxes | |
Income taxes | 23. Income taxes The income tax expense on the Company’s loss before tax differs from the theoretical amount that would arise using the federal, provincial and foreign statutory tax rates applicable. The difference is as follows: 2023 2022 2021 $ $ $ Income taxes at the applicable tax rate of 26.5% [2022 – 26.5% ; 2021 – 26.5% ] (5,606,886) (3,406,162) (3,977,204) Change in tax status following the initial public offering — — (127,979) Adjustment in respect of current and deferred income tax of previous year (72,894) (4,396) (207,601) Permanent differences 70,418 823,119 2,100,615 Change in recognition of deferred income tax assets 5,328,487 2,816,417 2,317,759 Other — 29,365 — Total income tax expense (recovery) (280,875) 258,343 105,590 Deferred income taxes reflect the net tax impact of temporary differences between the value of assets and liabilities for accounting and tax purposes. The main components of the deferred tax expense and deferred tax assets and liabilities were as follows: Balance as at Recognized Balance as at August 31, in net Recognized August 31, 2022 loss in equity Other 2023 $ $ $ $ $ Temporary differences Property and equipment (155,298) (20,228) — (8,650) (184,176) Intangibles (294,385) 39,009 — 98 (255,278) Net operating losses 4,790,012 4,564,752 — — 9,354,764 Financing fees 705,594 (107,450) 134,225 — 732,369 Research and development 430,835 557,162 — — 987,997 Difference in timing of recognition 259,118 493,379 — 3,403 755,900 Right-of-use asset (616,907) 19,531 — (6,613) (603,989) Lease liability 658,847 (7,400) — 12,861 664,308 Net capital losses 50,418 — — — 50,418 Unrecognized deferred tax assets (6,016,278) (5,328,487) (134,225) — (11,478,990) Deferred tax liability (188,044) 210,268 — 1,099 23,323 The net operating losses carried forward and deductible temporary differences for which deferred tax assets have not been recognized amounted to $45,415,000 as at August 31, 2023 [2022 - $23,849,000 ]. Of these amounts, $35,333,000 [2022 - $18,194,000 ] relates to net operating losses carried forward, that will expire between 2040 and 2043 and $3,541,000 [2022 - $1,439,000 ] relates to research and development expenditures, which can be carried forward indefinitely. As of August 31, 2023, the Company has available Canadian federal non-refundable investment tax credits of $642,000 (2022 - $240,000 ) related to research and development expenditures which may be used to reduce Canadian federal income taxes payable in future years. These non-refundable investment tax credits begin to expire in 2041. The benefits of these non-refundable investment tax credits have not been recognized in the consolidated financial statements. |
Capital disclosures
Capital disclosures | 12 Months Ended |
Aug. 31, 2023 | |
Capital disclosures | |
Capital disclosures | 24. Capital disclosures The Company’s objectives in managing capital are: ● to safeguard the entity’s ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders; and ● to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk. Capital is regarded as total equity, as recognized in the statement of financial position, plus net debt. Net debt is calculated as total borrowings less cash and cash equivalents. The Company manages and adjusts its capital structure considering changes in economic conditions. To maintain or adjust its capital structure, the Company may issue debt or new shares. Financing decisions are generally made on a specific transaction basis and depend on such things as the Company’s needs, capital markets and economic conditions at the time of the transaction. Management reviews its capital management approach on an ongoing basis and believes that this approach is reasonable, given the size of the Company. The Company does not have any externally imposed capital compliance requirements at August 31, 2023. |
Financial risk management and f
Financial risk management and fair value measurement | 12 Months Ended |
Aug. 31, 2023 | |
Financial risk management and fair value measurement | |
Financial risk management and fair value measurement | 25. Financial risk management and fair value measurement Fair value measurement and hierarchy The fair value measurement of the Company’s financial and non-financial assets and liabilities utilizes market observable inputs and data as far as possible. Inputs used in determining fair value measurements are categorized into different levels based on how observable the inputs used in the valuation technique utilized are (the “fair value hierarchy”): ● Level 1: Quoted prices in active markets for identical items [unadjusted]; ● Level 2: Observable direct or indirect inputs other than Level 1 inputs; and ● Level 3: Unobservable inputs [i.e., not derived from market data]. The classification of an item into the above levels is based on the lowest level of the inputs used that has a significant effect on the fair value measurement of the item. Transfers of items between levels are recognized in the period they occur. The carrying amount of trade and other receivables, advances from related parties and trade and other payables are assumed to approximate their fair value due to their short-term nature. The fair value of financial liabilities is estimated by discounting the remaining contractual maturities at the current market interest rate that is available for similar financial liabilities. Classified as Level 2, the fair value of Debentures was estimated using the partial differential equation model to value convertible debentures that include a call feature. Key assumptions used in the model include volatility, which was based on actual trading data, difference in volatility since initial issuance of the instrument and similar instruments on the market, and credit spread, which was based on corporate bond yield spreads in the market and credit spread data for similar public companies. The model included a fair value adjustment based on an initial calibration exercise. During the three months ended February 28, 2023, the Company recorded an impairment loss on the Debentures based on the estimated recoverable amount of the financial asset [note 8] . The fair value of the derivative liabilities related to the warrants issued is classified as Level 2 in the fair value hierarchy and is calculated using the Black-Scholes Option Pricing Model using the historical volatility of comparable companies as an estimate of future volatility. As at August 31, 2023, the Company used volatility of approximately 75% over the remaining contractual life in order to determine the fair value of the derivative liabilities. As at August 31, 2023, if the volatility used was increased by 10 % the impact would be an increase of $628,000 to the derivative liabilities with corresponding increase in total comprehensive loss. Financial risk management The Company is exposed to risks that arise from its use of financial instruments. This note describes the Company’s objectives, policies and processes for managing those risks and the methods used to measure them. [a] Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has a strict code of credit, including obtaining instalment payments, obtaining agency credit information and setting appropriate credit limits. The maximum exposure to credit risk at the reporting date, is the carrying amount of financial assets. The Company does not hold any collateral. Credit risk related with the Debentures is reflected in the fair value of the instrument [note 8] . Trade and other receivables are generally written off when there is no reasonable expectation of recovery. Indicators of this include the failure for a debtor to engage in a repayment plan, no active enforcement activity and a failure to make contractual payments. [b] Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty in meeting its financial obligations as they fall due. The Company is exposed to liquidity risk primarily from its trade and other payables, other financial liabilities and long-term debt. Contractual Less than cash flows one year 1-5 years $ $ $ August 31, 2023 Trade and other payables 550,836 550,836 — Other financial liabilities 113,694 113,694 — Long-term debt 305,329 231,546 73,783 969,859 896,076 73,783 August 31, 2022 Trade and other payables 1,030,331 1,030,331 — Other financial liabilities 177,834 177,834 — Long-term debt 227,349 72,090 155,259 1,435,514 1,280,255 155,259 [c] Interest rate risk The Company is exposed to interest rate risk on its variable rate bank indebtedness and variable and fixed rate long-term debt. Fixed-rate borrowings expose the Company to fair value risk while variable rate borrowings expose the Company to cash flow risk. [d] Foreign exchange risk Foreign exchange risk is the risk that future cash flows or fair value of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to transactional foreign currency risk to the extent that there is a mismatch between the currencies in which sales, purchases, receivables and borrowings are denominated and the respective functional currencies of the Company and its subsidiaries. The Company has certain financial assets and liabilities denominated in United States dollars. The Canadian dollar equivalent carrying amounts of these assets and liabilities are as follows: 2023 2022 $ $ Cash 3,258,419 5,142,703 Trade and other receivables 188,001 103,116 Trade and other payables 800,149 172,871 Sensitivity A reasonably possible 5% strengthening (weakening) of the U.S. dollar against the Canadian Dollar at the reporting date would have increased (decreased) net loss and other comprehensive loss by the amounts shown below. This analysis assumes that all other variables remain constant. Net loss Other comprehensive income + 5% -5% + 5% -5% $ $ $ $ August 31, 2023 24,281 (24,281) 350,586 (350,586) |
Segment information
Segment information | 12 Months Ended |
Aug. 31, 2023 | |
Segment information | |
Segment information | 26. Segment information The Company operates in two reportable business segments. The two reportable business segments offer different products and services, require different processes and are based on how the financial information is produced internally for the purposes of monitoring operating results and making decisions about resource allocation and performance assessment by the Company’s Chief Operating Decision Maker. The following summary describes the operations of each of the Company’s reportable business segments: ● Sale of electric boats – manufacture of customized electric boats for consumer market and sale of boat parts maintenance, and ● Rental of electric boats – short-term rental operation and boat club membership. Sales between segments are accounted for at prices that approximate fair value. No business segments have been aggregated to form the above reportable business segments. Year ended August 31, 2023 Sale of Rental of Inter-segment electric boats electric boats eliminations Total $ $ $ $ Revenue from external customers 1,612,699 4,038,803 — 5,651,502 Revenue from other segments 867,097 336,683 (1,203,780) — Segment revenues 2,479,796 4,375,486 (1,203,780) 5,651,502 Segment gross profit (loss) (242,590) 1,966,466 (187,450) 1,536,426 Segment loss before tax (20,363,838) (623,856) (170,367) (21,158,061) Research and development 5,938,010 — (233,098) 5,704,912 Office salaries and benefits 2,769,196 1,237,246 7,739 4,014,181 Year ended August 31, 2022 Sale of Rental of Inter-segment electric boats electric boats eliminations Total $ $ $ $ Revenue from external customers 2,557,086 4,793,860 — 7,350,946 Revenue from other segments 820,383 80,842 (901,225) — Segment revenues 3,377,469 4,874,702 (901,225) 7,350,946 Segment gross profit (loss) 596,570 2,839,970 (150,975) 3,285,565 Segment (loss) profit before tax (13,632,377) 872,787 (93,852) (12,853,442) Research and development 2,242,794 — — 2,242,794 Office salaries and benefits 2,384,746 951,053 — 3,335,799 August 31, 2021 Sale of Rental of Sale of electric boats electric boats electric boats Total $ $ $ $ Revenue from external customers 2,158,240 1,355,548 — 3,513,788 Revenue from other segments 142,007 7,476 (149,483) — Segment revenues 2,300,247 1,363,024 (149,483) 3,513,788 Segment gross profit (loss) 640,228 1,003,596 (39,642) 1,604,182 Segment (loss) profit before tax Research and development (15,517,319) 541,257 (32,255) (15,008,317) Office salaries and benefits 1,489,953 — — 1,489,953 August 31, 2023 Sale of Rental of Sale of electric boats electric boats electric boats Total $ $ $ $ Segment assets 20,344,002 13,941,898 (10,239,388) 24,046,512 Cash 3,025,565 333,692 — 3,359,257 Additions to property and equipment 194,820 974,533 (185,744) 983,609 Segment liabilities 10,154,031 3,341,868 (1,013,824) 12,482,075 August 31, 2022 Sale of Rental of Sale of electric boats electric boats electric boats Total $ $ $ $ Segment assets 24,499,107 14,039,428 (9,438,326) 29,100,209 Cash 4,146,260 1,678,456 — 5,824,716 Additions to property and equipment 412,158 859,176 (162,446) 1,108,888 Segment liabilities 2,023,368 3,311,128 (262,883) 5,071,613 The Company has disclosed the above amounts for each reportable segment because they are regularly reviewed by the Chief Operating Decision Maker. |
Additional cash flows informati
Additional cash flows information | 12 Months Ended |
Aug. 31, 2023 | |
Additional cash flows information. | |
Additional cash flows information | 27. Additional cash flows information Financing and investing activities not involving cash: 2023 2022 2021 $ $ $ Advances to related parties converted to shares — — 898,489 Unpaid share subscription — — 39,200 Right-of-use assets transferred to intangibles, net of accumulated depreciation — — 5,981 Additions to right-of-use assets 921,498 234,608 852,467 Lease termination 101,471 273,652 37,033 Shares issued as consideration for the acquisition of intangible assets — — 573,936 Shares issued as consideration for business acquisition — — 3,474,232 Transaction costs for share issuance transferred from prepaid — — 213,019 |
Commitments
Commitments | 12 Months Ended |
Aug. 31, 2023 | |
Commitments | |
Commitments | 28. Commitments In addition to the obligations under leases [note 15] , the Company is subject to supply agreements with minimum spend commitments. The amount of the minimum fixed and determinable portion of the unconditional purchase obligations over the next years, is as follows: $ 2024 10,943,420 In October 2021, EB Rental Ltd. has entered into lease arrangement for premises, which have not commenced yet and therefore related right-of-use asset and lease liability are not recorded as at August 31, 2023. The lease offers EB Rental Ltd. a termination clause in case certain contractual requirements are not met by the lessor at the lease commencement date. The Company’s undiscounted lease commitments related to this lease are as follows as at August 31, 2023: $ 2024 67,675 2025 163,774 2026 167,049 2027 and thereafter 446,736 |
Subsequent events
Subsequent events | 12 Months Ended |
Aug. 31, 2023 | |
Subsequent events | |
Subsequent events | 29. Subsequent events During the months of September, October and November 2023, the Company issued a total of 103,650 Voting Common Shares to third parties in exchange of sub-contracting services provided to the Company related to marketing and investor relations. On September 20, 2023, the Company issued 372,870 Voting Common Shares and warrants to purchase Voting Common Shares, respectively as part of the financing rounds for a total cash consideration price of $1,695,388 , net of transaction costs of $334,672 . The warrants issued are to purchase 372,870 Voting Common Shares of the Company for a period of three years from the grant date at an exercise price at U.S. $4.05 . |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Aug. 31, 2023 | |
Significant accounting policies | |
Business combination | Business combination |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include cash on hand, cash held on trust, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less. |
Trade and other receivables | Trade and other receivables Trade receivables are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days. The Company has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit loss, trade receivables have been grouped based on days overdue. Other receivables are recognized at amortized cost, less any allowance for expected credit loss. |
Inventories | Inventories Inventories are stated at the lower of cost and net realizable value. Raw materials are valued on a first-in first-out basis. Cost of work in progress and finished goods comprises direct materials and delivery costs, direct labour, import duties and other taxes, and appropriate proportion of variable and fixed overhead expenditure based on normal operating capacity. Cost of purchased inventory is determined after deducting rebates and discounts received or receivable. Net realizable value is the estimated selling price in the ordinary course of business less estimated costs of completion and the estimated costs necessary to make the sale. |
Grants and investment tax credits | Grants and investment tax credits Government grants are recognized where there is reasonable assurance that the grant will be received, and all attached conditions will be complied with. When the grant relates to an expense item, it is recognized as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. Where retention of a government grant is dependent on the Company satisfying certain criteria, it is initially recognized as deferred income. When the criteria for retention have been satisfied, the deferred income balance is released to the statement of consolidated comprehensive loss or netted against the asset purchased. |
Leases | Leases Right-of-use assets The Company recognizes right-of-use assets at the commencement date of the lease [i.e., the date the underlying asset is available for use]. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Unless the Company is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognized right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term ranging from two to six years . Right-of-use assets are subject to impairment. Lease liabilities At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments [including in-substance fixed payments] less any lease incentives receivable and variable lease payments that depend on an index or a rate. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating a lease, if the lease term reflects the Company exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognized as expense in the period on which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Company uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. Interest accretion is recorded as interest expense in finance costs. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. Short-term leases and leases of low-value assets The Company applies the short-term lease recognition exemption to its short-term leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option. It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered of low value [i.e., below $5,000]. Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term. For the year-ended August 31, 2023, the expense for leases of low-value assets is insignificant. |
Property and equipment | Property and equipment Property and equipment is stated at cost less accumulated depreciation and accumulated impairment losses, if any. Cost includes expenditures that are directly attributable to the acquisition of the asset. Depreciation is recorded to recognize the cost of assets over their useful lives. The estimated useful lives and depreciation methods are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. Asset type Methods Rates Computer equipment Declining balance method 55% Machinery and equipment Declining balance method 20% Rolling stock Declining balance method 30% Leasehold improvements Straight-line method Over the term of the lease Boat rental fleet Straight-line method 15 years Moulds Straight-line method 25 years Any item of property and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales and proceeds and the carrying amount of the asset and is recognized in profit or loss. Repairs and maintenance costs that do not improve or extend productive life are recognized in profit or loss in the period in which the costs are incurred. |
Intangible assets and goodwill | Intangible assets and goodwill Expenditure on research activities is recognized in net earnings as incurred. Development expenditure is capitalized only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and the Company intends to and has sufficient resources to complete development and to use or sell the asset. Otherwise, it is recognized in net earnings as incurred. The Company has not capitalized any development costs. When awarded with government grants and income tax credits, the Company recognizes the income either in net loss, netted with the related expenses, or as a reduction of the cost, when related with capitalized development expenditure. Goodwill arising from business combinations is initially recognized when the fair value of the separately identifiable assets the Company acquired and liabilities the Company assumed is lower than the consideration paid [including the recognized amount of the non-controlling interest, if any]. If the fair value of the consideration transferred is lower than that of the separately identified assets and liabilities, the Company immediately recognizes the difference as a gain in the consolidated statement of comprehensive loss. Other intangible assets, including intellectual property, software, trade name, backlog and website that have finite useful lives are measured at cost less accumulated amortization and accumulated impairment losses. Amortization is calculated over the cost of the asset less its residual value. Amortization is recognized in net earnings on a straight-line basis over the estimated useful lives of intangible assets from the date that they are available for use. The estimated useful lives are as follows: Asset type Methods Rates Intellectual property Straight-line method 10 years Software Straight-line method 7 years Trade name Straight-line method 5 years Backlog Straight-line method 3 years Website Straight-line method 5 years Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. |
Impairment of non-financial assets | Impairment of non-financial assets Non-financial assets other than goodwill At the end of each reporting period, the Company reviews the carrying amounts of its non-financial assets, other than goodwill, to determine whether there is any indication of impairment. If any such indication exists, the recoverable amount of the asset is estimated. Where it is not possible to estimate the recoverable amount of an individual asset, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets [the “cash-generating unit”, or “CGU”]. Recoverable amount is the greater of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. If the recoverable amount of an asset or CGU is lower than its carrying amount, the carrying amount is reduced to its recoverable amount. An impairment loss is recognized immediately in the consolidated statement of comprehensive loss. Where an impairment loss subsequently reverses, the carrying amount of the asset or CGU is increased to the revised recoverable amount, to the extent that the carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized. A reversal of an impairment loss is recognized immediately in the consolidated statement of comprehensive loss. Goodwill After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For purposes of impairment testing, goodwill is allocated to each of the Company’s CGU [or groups of CGUs] that is expected to benefit from the synergies of the combination. A CGU to which goodwill has been allocated is tested for impairment annually, or more frequently when there is indication that the CGU may be impaired. If the recoverable amount of the CGU is less than its carrying amount, the impairment loss is allocated first to reduce the goodwill allocated to the CGU and then, to reduce the carrying amounts of the other assets in the CGU on a pro-rata basis. Any impairment loss is recognized in the consolidated statement of comprehensive loss. An impairment loss recognized for goodwill is not reversed in subsequent periods. |
Trade and other payables | Trade and other payables These amounts represent liabilities for goods and services provided to the entity prior to the end of the financial year and which are unpaid. Due to their short-term nature, they are measured at amortized cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition. |
Provisions | Provisions Provisions are recognized when the Company has a present obligation as a result of a past event, it is probable the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognized as a finance cost. |
Onerous contracts | Onerous contracts An onerous contract is a contract under which the unavoidable costs (i.e., the costs that the Company cannot avoid because it has the contract) of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The unavoidable costs under a contract reflect the least net cost of exiting from the contract, which is the lower of the cost of fulfilling it and any compensation or penalties arising from failure to fulfil it. The cost of fulfilling a contract comprises the costs that relate directly to the contract (i.e., both incremental costs and an allocation of costs directly related to contract activities). When the Company has a contract that is onerous, the present obligation under the contract is recognized and measured as a provision. However, before a separate provision for an onerous contract is established, the Company recognizes any impairment loss that has occurred on assets used in fulfilling the contract. |
Fair value measurement | Fair value measurement When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market. Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value measurement. |
Financial instruments | Financial instruments Classification and measurement of financial instruments The Company measures its financial assets and financial liabilities at fair value on initial recognition, which is typically the transaction price unless a financial instrument contains a significant financing component. Subsequent measurement is dependent on the financial instrument’s classification which in the case of financial assets, is determined by the context of the Company’s business model and the contractual cash flow characteristics of the financial asset. Financial assets are classified into two categories: [1] measured at amortized cost and [2] fair value through profit and loss [“FVTPL”]. Financial liabilities are subsequently measured at amortized cost at the effective interest rate, other than financial liabilities that are measured at FVTPL or designated as FVTPL where any change in fair value resulting from an entity’s own credit risk is recorded as other comprehensive income [“OCI”]. The Company assesses the classification of warrants to purchase common shares of the Company, whether the warrants issued meet the criteria of an equity instrument (i.e. the warrants would be settled by the issuance of fixed number of common shares of the Company at a fixed exercise price) or a financial liability. Since the exercise price of these warrants is denominated in U.S. dollars, while the functional currency of the Company is Canadian dollar, the value of the proceeds on exercise of the warrants is not fixed and will vary based on the foreign exchange rate movements. As such, the Company classified the warrants, other than warrants issued as compensation for goods and services, as derivative liabilities, measured at fair value at initial recognition and at each reporting period. Any changes in fair value are recorded as gain or loss in the consolidated statement of comprehensive loss. Refer to note 19 and 25 for details on the warrants issued and outstanding for the year ended August 31, 2023, the derivative liabilities recorded and the assumptions used to determine the fair value. Amortized cost The Company classifies trade and other receivables, other financial assets, trade and other payables, other financial liabilities, long-term debt and advances to/from related parties as financial instruments measured at amortized cost. The contractual cash flows received from the financial assets are solely payments of principal and interest and are held within a business model whose objective is to collect the contractual cash flows. Fair value through profit and loss The Company classifies debentures as financial instruments measured at fair value through profit and loss since the contractual cash flows received from the financial asset are not solely payments of principal and interest. Impairment of financial assets The Company recognizes a loss allowance for expected credit losses on financial assets measured at amortized cost. The measurement of the loss allowance depends upon the Company’s assessment at the end of each reporting period as to whether the financial instrument’s credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain. Where there has not been a significant increase in exposure to credit risk, a 12-month expected credit loss allowance is estimated. The amount of expected credit loss recognized is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate. Impairment provisions for current and non-current trade receivables are recognized based on the simplified approach within IFRS 9 using a provision matrix in the determination of the lifetime expected credit losses. Equity instruments Financial instruments issued by the Company are classified as equity only to the extent that they do not meet the definition of a financial liability or financial asset. An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recorded at the proceeds received, net of direct issuance costs. The Company’s shares are classified as equity instruments. |
Revenue recognition | Revenue recognition Revenue is recognized at an amount that reflects the consideration to which the Company is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the Company: ● identifies the contract with the customer; ● identifies the performance obligations in the contract; ● determines the transaction price which takes into account estimates of variable consideration and the time value of money; ● allocates the transaction price to separate performance obligations on the basis of relative stand-alone selling price of each distinct good or service to be delivered; and, ● recognizes revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised. The Company enters into contracts with customers, as well as distributor agreements with specific distributors for the sale of boats. Sale of boats Revenue from the sale of boats, including incidental shipping fees, is recognized at the point in time when the customer obtains control of the goods, which is generally at the shipping point. In the context of its distributor agreements, control is passed at the shipping point to the distributor as the Company has no further performance obligations at that point. The Company concluded that it is the principal in its revenue arrangements, because it typically controls the boats before transferring them to the customer. The amount of consideration the Company receives, and the revenue recognized varies with volume rebate programs offered to distributors. When the Company offers retrospective volume rebates, it estimates the expected volume rebates based on an analysis of historical experience, to the extent that it is highly probable that a significant reversal will not occur. The Company adjusts its estimate of revenue related to volume rebates at the earlier of when the most likely amount of consideration expected to be received changes or when the consideration becomes fixed. The Company recognizes customer deposits on the sale of boats as contract liabilities. Boat rental and boat club membership revenue Revenue from boat rentals is recognized at a point in time when the services are completed given the short term rental period. Boat club membership revenue is recognized over time as the service is provided. These services are typically provided, and thus revenue is typically recognized, on a monthly basis. The Company recognizes customer prepayments on boat rentals and boat club memberships as contract liabilities. Sale of parts and boat maintenance Revenue from the sale of parts and related maintenance services are recognized at the point in time when the customer obtains control of the parts and when services are completed. Other Other revenue is recognized when it is received or when the right to receive payment is established. Contract liabilities A contract liability is recognized if a payment is received, or a payment is due [whichever is earlier] from a customer before the Company transfers the related goods or services. Contract liabilities are recognized as revenue when the Company performs under the contract [i.e., transfers control of the related goods or services to the customer]. |
Share-based payments | Share-based payments The Company has a share option plan for key employees, consultants, advisors, officers and directors from which options to purchase common stock of the Company are issued. The Company also issues warrants to non-employees granting the right to purchase common stock of the Company at a determined exercise price . Share-based compensation costs are accounted for on a fair value basis, as measured at the grant date, using the Black-Scholes option pricing model taking into account the terms and conditions upon which the options were granted. An individual is classified as an employee when the individual is an employee for legal or tax purposes or provides services similar to those performed by an employee. In situations where options or warrants have been issued to non-employees and some or all of the services received by the Company can be specifically identified, the options or warrants are measured at the fair value of the services received. If the services cannot be specifically identified, the options or warrants are measured at the fair value of the options issued. All share-based remuneration is ultimately recognized as an expense in profit or loss with a corresponding credit to contributed surplus. If vesting periods or other vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate of the number of share options expected to vest. Any adjustment to cumulative share-based compensation resulting from a revision is recognized in the current period. The number of vested options ultimately exercised by holders does not impact the expense recorded in any period. |
Foreign currency translation | Foreign currency translation The Company’s consolidated financial statements are presented in Canadian dollars, which is also the parent company’s functional currency. The functional currencies of 7858078 Canada Inc. and EB Rental Ltd. are the Canadian dollar and the US dollar, respectively. The Company and its subsidiaries each determine their functional currency based on the currency of the primary economic environment in which they operate. Transactions denominated in a currency other than the functional currency of an entity are translated at the exchange rate in effect on the transaction date. The resulting exchange gains and losses are included in each entity’s net loss in the period in which they arise. The Company’s foreign operations are translated to the Company’s presentation currency, for inclusion in the consolidated financial statements. Foreign-denominated monetary and non-monetary assets and liabilities of foreign operations are translated at exchange rates in effect at the end of the reporting period and revenue and expenses are translated at exchange rates in effect at the transaction date. The resulting translation gains and losses are included in other comprehensive income with the cumulative gain or loss reported in accumulated other comprehensive income. On disposal of a foreign operation, the component of OCI relating to that particular foreign operation is reclassified to profit or loss. The exchange rates for the currencies used in the preparation of the consolidated financial statements were as follows: Exchange rate as at Average exchange rate for year ended August 31, August 31, August 31, August 31, 2023 2022 2023 2022 US dollar 1.3535 1.3076 1.3465 1.2717 |
Taxes | Taxes Tax expense comprises current and deferred tax. Tax is recognized in net loss except to the extent it relates to items recognized in other comprehensive income or directly in equity. Current tax Current tax expense is based on the results for the period as adjusted for items that are not taxable or not deductible. Current tax is calculated using tax rates and laws that were enacted or substantively enacted at the end of the reporting period. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. Deferred tax Deferred taxes are the taxes expected to be payable or recoverable on differences between the carrying amounts of assets in the statement of financial position and their corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences between the carrying amounts of assets and their corresponding tax bases. Deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized. Such assets and liabilities are not recognized if the temporary difference arises from the initial recognition of goodwill or from the initial recognition [other than in a business combination] of other assets in a transaction that affects neither the taxable profit nor the accounting profit. The Company offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered. |
Earnings per share | Earnings per share Basic earnings per share is calculated by dividing the profit or loss attributable to equity holders of the Company by the weighted average number of common stock outstanding during the year. Diluted income per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of common stock outstanding, adjusted for the effects of all dilutive potential common stock. For the purpose of calculating diluted earnings per share, the Company assumes the exercise of dilutive options and warrants of the entity. The assumed proceeds from these instruments are regarded as having been received from the issue of common stock at the average market price of common shares during the period. The difference between the number of common shares issued and the number of common shares that would have been issued at the average market price of common shares during the period is treated as an issue of common shares for no consideration. |
New and amended standards and interpretations | New and amended standards and interpretations The Company applied certain amendments to the accounting standards, which are effective for annual periods beginning on or after 1 January 2023. The Company has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective. Onerous Contracts – Costs of Fulfilling a Contract – Amendments to IAS 37 In May 2020, the IASB issued amendments to IAS 37 to specify which costs an entity needs to include when assessing whether a contract is onerous or loss-making. The amendments apply a “directly related cost approach”. The costs that relate directly to a contract to provide goods or services include both incremental costs and an allocation of costs directly related to contract activities. General and administrative costs do not relate directly to a contract and are excluded unless they are explicitly chargeable to the counterparty under the contract. The amendments were effective for annual reporting periods beginning on or after January 1, 2022. The amendments did not have a material impact on the Company’s consolidated financial statements. Property, Plant and Equipment: Proceeds before Intended Use – Amendments to IAS 16 Property, plant and equipment The amendment prohibits entities from deducting from the cost of an item of property, plant and equipment, any proceeds of the sale of items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling such items, and the costs of producing those items, in profit or loss. The amendment is effective for annual reporting periods beginning on or after January 1, 2022 and must be applied retrospectively to items of property, plant and equipment made available for use on or after the beginning of the earliest period presented when the entity first applies the amendment. The amendments are not expected to have a material impact on the Company’s consolidated financial statements. |
Standards issued but yet not effective | Standards issued but yet not effective The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company’s financial statements are disclosed below. The Company intends to adopt these new and amended standards and interpretations, if applicable, when they become effective. Definition of Accounting Estimates - Amendments to IAS 8 The amendments to IAS 8 clarify the distinction between changes in accounting estimates, changes in accounting policies and the correction of errors. They also clarify how entities use measurement techniques and inputs to develop accounting estimates. The amendments are not expected to have a material impact on the Company’s consolidated financial statements. Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2 The amendments to IAS 1 and IFRS Practice Statement 2 Making Materiality Judgements provide guidance and examples to help entities apply materiality judgements to accounting policy disclosures. The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ‘significant’ accounting policies with a requirement to disclose their ‘material’ accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures. The amendments are not expected to have a material impact on the disclosures in the Company’s consolidated financial statements. Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12 The amendments to IAS 12 Income Tax narrow the scope of the initial recognition exception, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases and decommissioning liabilities. The amendments are not expected to have a material impact on the Company’s consolidated financial statements. Amendments to IFRS 16: Lease Liability in a Sale and Leaseback In September 2022, the IASB issued amendments to IFRS 16, Leases, to specify the requirements that a seller- lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognize any amount of the gain or loss that relates to the right of use it retains. The amendments are effective for annual reporting periods beginning on or after 1 January 2024 and must applied retrospectively to sale and leaseback transactions entered into after the date of initial application of IFRS 16. The amendments are not expected to have a material impact on the Company’s consolidated financial statements. Amendments to IAS 1: Classification of Liabilities as Current or Non-current In January 2020 and October 2022, the IASB issued amendments to paragraphs 69 to 76 of IAS 1 to specify the requirements for classifying liabilities as current or non-current. The amendments clarify: ● What is meant by a right to defer settlement ● That a right to defer must exist at the end of the reporting period ● That classification is unaffected by the likelihood that an entity will exercise its deferral right ● That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not impact its classification In addition, a requirement has been introduced to require disclosure when a liability arising from a loan agreement is classified as non-current and the entity’s right to defer settlement is contingent on compliance with future covenants within twelve months. The amendments are effective for annual reporting periods beginning on or after 1 January 2024 and must be applied retrospectively. The amendments are not expected to have a material impact on the Company’s consolidated financial statements. |
Basis of preparation (Tables)
Basis of preparation (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Basis of preparation | |
Schedule of significant subsidiaries | Name of subsidiary Principal activity Country of incorporation and operation Proportion of ownership held by the Company 7858078 Canada Inc. Owns an electric boat rental center Canada 100% EB Rental Ltd. Operates an electric boat rental center United States 100% EB Rental Ventura Corp. Operates an electric boat rental center United States 100% Vision Marine Technologies Corp. Operates an electric boat service center United States 100% |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Significant accounting policies | |
Summary of estimated useful lives and depreciation methods | Asset type Methods Rates Computer equipment Declining balance method 55% Machinery and equipment Declining balance method 20% Rolling stock Declining balance method 30% Leasehold improvements Straight-line method Over the term of the lease Boat rental fleet Straight-line method 15 years Moulds Straight-line method 25 years |
Schedule of estimated useful lives of intangible assets | Asset type Methods Rates Intellectual property Straight-line method 10 years Software Straight-line method 7 years Trade name Straight-line method 5 years Backlog Straight-line method 3 years Website Straight-line method 5 years |
Schedule of exchange rates for the currencies used in the preparation of the consolidated financial statements | Exchange rate as at Average exchange rate for year ended August 31, August 31, August 31, August 31, 2023 2022 2023 2022 US dollar 1.3535 1.3076 1.3465 1.2717 |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Trade and other receivables | |
Schedule of trade and other receivables | 2023 2022 $ $ Trade receivables 59,364 108,716 Sales taxes receivable 159,114 194,523 Other receivables 332,358 169,309 550,836 472,548 |
Schedule of aging analysis of receivables | 2023 2022 $ $ 0 – 30 13,986 77,625 31 – 60 — — 61 – 90 — 14,212 91 and over 45,378 16,879 59,364 108,716 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Inventories | |
Schedule of inventories | 2023 2022 $ $ Raw materials 1,553,501 1,709,368 Work-in-process 369,753 75,170 Finished goods 522,300 309,238 2,445,554 2,093,776 |
Right-of-use assets (Tables)
Right-of-use assets (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Right-of-use assets | |
Schedule of right-of-use assets | Computer Boat rental Premises equipment Rolling stock fleet Total $ $ $ $ $ Cost Balance at August 31, 2021 2,746,118 3,646 202,536 326,868 3,279,168 Additions 93,565 — 141,043 — 234,608 Disposals — — (255,953) (115,409) (371,362) Currency translation 40,356 — 394 — 40,750 Balance at August 31, 2022 2,880,039 3,646 88,020 211,459 3,183,164 Additions 921,498 — — — 921,498 Disposals — — (46,200) (170,298) (216,498) Transferred to Property and equipment — (3,646) — (41,161) (44,807) Currency translation 38,255 — 2,099 — 40,354 Balance at August 31, 2023 3,839,792 — 43,919 — 3,883,711 Accumulated depreciation Balance at August 31, 2021 334,357 576 14,949 24,087 373,969 Depreciation 488,050 2,302 71,488 89,617 651,457 Disposal — — (66,122) (37,240) (103,362) Balance at August 31, 2022 822,407 2,878 20,315 76,464 922,064 Depreciation 615,937 768 23,934 21,442 662,081 Disposal — (3,646) (13,475) (97,906) (115,027) Balance at August 31, 2023 1,438,344 — 30,774 — 1,469,118 Net carrying amount As at August 31, 2022 2,057,632 768 67,705 134,995 2,261,100 As at August 31, 2023 2,401,448 — 13,145 — 2,414,593 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Property and equipment. | |
Schedule of property and equipment | Machinery and Rolling Computer Leasehold Boat equipment stock equipment Moulds improvements rental fleet Total $ $ $ $ $ $ $ Cost Balance at August 31, 2021 302,938 32,175 14,647 691,005 131,233 513,317 1,685,315 Additions 30,146 197,739 11,284 220,919 133,123 582,720 1,175,931 Disposals — (111,215) (4,899) — — (154,714) (270,828) Currency translation — (35) — — — 30,154 30,119 Balance at August 31, 2022 333,084 118,664 21,032 911,924 264,356 971,477 2,620,537 Additions 62,409 69,029 565 30,501 97,699 678,599 938,802 Transferred from Right-of-use assets — — 3,646 — — 41,161 44,807 Disposals — (136,072) — — — (499,770) (635,842) Currency translation — (2,347) — — — (70,115) (72,462) Balance at August 31, 2023 395,493 49,274 25,243 942,425 362,055 1,121,352 2,895,842 Accumulated depreciation Balance at August 31, 2021 167,604 24,362 8,398 50,420 11,579 8,443 270,806 Depreciation 30,200 23,938 5,079 22,608 32,926 43,196 157,947 Disposal — (18,301) (674) — — (8,223) (27,198) Balance at August 31, 2022 197,804 29,999 12,803 73,028 44,505 43,416 401,555 Depreciation 31,495 25,875 4,485 37,696 69,332 72,163 241,046 Disposal — (21,864) — — — (38,821) (60,685) Balance at August 31, 2023 229,299 34,010 17,288 110,724 113,837 76,758 581,916 Net carrying amount As at August 31, 2022 135,280 88,665 8,229 838,896 219,851 928,061 2,218,982 As at August 31, 2023 166,194 15,264 7,955 831,701 248,218 1,044,594 2,313,926 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Intangible assets | |
Summary of intangible assets | Intellectual Trade property Software name Backlog Website Total $ $ $ $ $ $ Cost Balance at August 31, 2021 1,035,070 73,573 93,856 79,220 18,771 1,300,490 Additions — 28,202 4,000 — — 32,202 Currency translation — — 438 330 87 855 Balance at August 31, 2022 1,035,070 101,775 98,294 79,550 18,858 1,333,547 Additions Currency translation — — 6,057 4,556 1,211 11,824 Balance at August 31, 2023 1,035,070 101,775 104,351 84,106 20,069 1,345,371 Accumulated depreciation Balance at August 31, 2021 55,581 7,107 4,633 6,520 927 74,768 Depreciation 103,508 17,593 9,806 13,310 1,892 146,109 Balance at August 31, 2022 159,089 24,700 14,439 19,830 2,819 220,877 Depreciation 103,508 12,920 20,426 16,911 4,005 157,770 Balance at August 31, 2023 262,597 37,620 34,865 36,741 6,824 378,647 Net carrying amount As at August 31, 2022 875,981 77,075 83,855 59,720 16,039 1,112,670 As at August 31, 2023 772,473 64,155 69,486 47,365 13,245 966,724 |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Trade and other payables. | |
Schedule of trade and other payables | 2023 2022 $ $ Trade payables 1,107,310 737,946 Sales taxes payable 62,398 21,547 Government remittances — 9,450 Salaries, vacation and other employee benefits payables 585,192 261,388 1,754,900 1,030,331 |
Contract liabilities (Tables)
Contract liabilities (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Contract liabilities | |
Schedule of contract liabilities | 2023 2022 $ $ Opening balance 1,029,318 898,713 Payments received in advance 3,330,235 2,502,080 Boat sale deposits 151,572 87,609 Payments reimbursed (8,131) (2,615) Transferred to revenues (2,718,943) (2,475,307) Currency translation 31,680 18,838 Closing balance 1,815,731 1,029,318 |
Lease liabilities (Tables)
Lease liabilities (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Lease liabilities | |
Summary of lease liabilities | 2023 2022 $ $ Opening balance 2,415,549 2,966,816 Additions 921,498 234,608 Repayment (726,893) (695,749) Interest on lease liability 139,132 141,994 Lease termination (151,800) (273,652) Currency translation 44,308 41,532 Closing balance 2,641,794 2,415,549 Current 647,638 561,168 Non-current 1,994,156 1,854,381 2,641,794 2,415,549 |
Future undiscounted lease payments | Future undiscounted lease payments as at August 31, 2023 are as follows: $ Less than one year 775,991 One to five years 2,221,910 2,997,901 |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Long-term debt. | |
Summary of long term debt | 2023 2022 $ $ The government assistance loan is non-interest bearing until December 31, 2022 at which time the loan bears interest at 5% per annum. The loan must be repaid by December 31, 2025. 40,000 39,342 Term loans, bearing interest at rates varying between 9.44% and 10.71% , repayable in monthly instalments of $23,337 , ending January 2025. 265,329 188,007 305,329 227,349 Current portion of long-term debt 271,546 72,090 33,783 155,259 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Related party transactions | |
Summarizes the related party transactions and the amounts due to and from related parties | 2023 2022 2021 $ $ $ Revenues Sales of boats EB Rental Ltd. [prior to June 3, 2021] — — 84,149 Patrick Bobby — — — Sale of parts and boat maintenance EB Rental Ltd. [prior to June 3, 2021] — — 40,310 Expenses Cost of sales EB Rental Ltd. [prior to June 3, 2021] — — 11,444 Research and Development 9335-1427 Quebec Inc. — — 75,020 Mac Engineering, SASU 545,892 666,178 176,500 Travel and entertainment EB Rental Ltd. [prior to June 3, 2021] — — 8,926 Advertising and promotion EB Rental Ltd. [prior to June 3, 2021] — — 11,245 Office salaries and benefits Montana Strategies Inc. 29,059 62,462 — 2023 2022 2021 $ $ $ Wages 2,447,827 2,324,770 1,299,402 Share-based payments – capital stock 433,263 — — Share-based payments – stock options 382,196 2,560,031 6,081,900 3,263,286 4,884,801 7,381,302 2023 2022 $ $ Share subscription receivable 9335-1427 Quebec Inc. 25,000 25,000 Alexandre Mongeon 14,200 14,200 39,200 39,200 Current advances to related party Alexandre Mongeon 20,135 16,736 Amounts due to related parties included in trade and other payable Alexandre Mongeon 19,384 16,000 Patrick Bobby 13,847 12,308 Kulwant Sandher 8,654 8,062 Xavier Montagne 10,454 8,292 Mac Engineering, SASU 9,935 — 62,274 44,662 |
Capital stock (Tables)
Capital stock (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Capital stock. | |
Summary of issued capital | 2023 2022 $ $ 11,171,800 voting common shares [2022 – 8,471,923 ] 50,395,717 43,441,591 |
Summary of the derivative liabilities related to the warrants | 2023 2022 $ $ Opening balance — — Additions 7,614,510 — Change in estimate (2,055,688) — Closing balance 5,558,822 — |
Share-based payments (Tables)
Share-based payments (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Share-based payments | |
Summary of share based payments | Exercise Market Expected Risk-free Expected Grant date price price volatility interest rate life $ $ % % [years] May 27, 2020 3.70 3.70 84 0.4 5 May 27, 2020 2.78 3.70 84 0.4 5 October 23, 2020 3.70 3.70 97 0.4 5 November 24, 2020 16.29 13.03 101 0.4 5 November 24, 2020 5.68 5.72 75 3.6 4 February 23, 2021 15.75 15.05 103 0.6 5 May 14, 2021 5.68 5.72 75 3.6 3 July 14, 2021 9.25 9.01 105 0.7 5 September 21, 2021 8.85 8.58 106 0.9 5 January 22, 2022 5.65 5.52 107 1.5 5 November 30, 2022 6.09 6.09 107 3.1 5 December 1, 2022 5.83 5.83 107 3.0 5 March 22, 2023 5.76 5.14 75 3.6 2 March 25, 2023 5.77 5.23 75 3.6 3 March 25, 2023 5.77 5.23 75 3.6 4 April 20, 2023 5.79 5.27 75 3.6 5 |
Summary of number options granted outstanding | Weighted Number of average options exercise price # $ Balance at August 31, 2021 1,659,121 9.95 Granted 152,500 6.70 Forfeited (102,500) 13.59 Exercised (2,703) 3.70 Balance at August 31, 2022 1,706,418 9.45 Granted 88,500 5.80 Forfeited (268,158) 9.65 Stock options modifications (370,000) 5.78 Exercised (57,219) 2.86 Balance at August 31, 2023 1,099,541 5.22 |
Summary of range of number of options outstanding and weighted average remaining contractual life | Number of Weighted average Weighted average Exercise price options grant date remaining Exercisable range outstanding fair value contractual life options $ # $ [years] # 2.78 – 3.70 454,041 2.48 2.13 497,869 5.65 – 5.83 580,500 2.94 4.51 498,300 6.09 – 8.85 30,000 6.26 7.83 25,000 16.29 35,000 9.33 7.50 35,000 |
Schedule of warrants | Risk-free Exercise Market Expected interest Expected price price volatility rate life Grant or Issuance date $ $ % % [years] August 5, 2022 10.30 7.20 100 2.9 3 January 19, 2023 5.63 5.63 100 3.4 3 February 17, 2023 5.67 6.05 100 4.0 3 April 19, 2023 5.64 5.55 75 3.9 3 June 16, 2023 5.35 5.50 75 4.1 3 August 2, 2023 5.37 5.10 75 4.8 3 Number of Weighted average warrants remaining Exercise price outstanding contractual life Grant or Issuance date $ # [years] November 23, 2020 16.53 151,800 2.23 August 5, 2022 10.30 50,000 1.93 January 19, 2023 5.63 554,253 2.39 February 17, 2023 5.67 475,059 2.47 April 19, 2023 5.64 381,293 2.64 June 16, 2023 5.35 493,828 2.79 August 2, 2023 5.37 493,832 2.92 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Revenues | |
Summary of revenues by product type and geographical distribution of revenues from external customers | 2023 2022 2021 $ $ $ Sales of boats 1,287,979 2,459,365 2,080,110 Sales of parts and boat maintenance 324,720 97,721 75,205 Boat rental and boat club membership revenue 4,038,803 4,793,860 1,355,548 Other — — 2,925 5,651,502 7,350,946 3,513,788 Sale of Rental of 2023 electric boats electric boats Total $ $ $ Canada 348,570 — 348,570 USA 1,078,124 4,038,803 5,116,927 Other 186,005 — 186,005 1,612,699 4,038,803 5,651,502 2022 2021 Sale of Rental of electric boats electric boats Total Total $ $ $ $ Canada 557,639 — 557,639 571,216 USA 1,292,666 4,793,861 6,086,527 2,692,599 Other 706,780 — 706,780 249,973 2,557,085 4,793,861 7,350,946 3,513,788 |
Net finance expense (income) (T
Net finance expense (income) (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Net finance expense (income) | |
Net finance expense | 2023 2022 2021 $ $ $ Interest and bank charges 142,117 184,895 123,100 Interest income (113,334) (379,288) — Foreign currency exchange (gain) loss (208,132) (251,947) 1,583,292 Transaction costs 719,167 — — Gain on derivative liabilities (2,055,688) — — Loss (gain) on Debentures [note 8] (88,666) 670,000 550,000 (1,604,536) 223,660 2,256,392 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Income taxes | |
Disclosure of income tax expense | 2023 2022 2021 $ $ $ Income taxes at the applicable tax rate of 26.5% [2022 – 26.5% ; 2021 – 26.5% ] (5,606,886) (3,406,162) (3,977,204) Change in tax status following the initial public offering — — (127,979) Adjustment in respect of current and deferred income tax of previous year (72,894) (4,396) (207,601) Permanent differences 70,418 823,119 2,100,615 Change in recognition of deferred income tax assets 5,328,487 2,816,417 2,317,759 Other — 29,365 — Total income tax expense (recovery) (280,875) 258,343 105,590 |
Disclosure of temporary differences | Balance as at Recognized Balance as at August 31, in net Recognized August 31, 2022 loss in equity Other 2023 $ $ $ $ $ Temporary differences Property and equipment (155,298) (20,228) — (8,650) (184,176) Intangibles (294,385) 39,009 — 98 (255,278) Net operating losses 4,790,012 4,564,752 — — 9,354,764 Financing fees 705,594 (107,450) 134,225 — 732,369 Research and development 430,835 557,162 — — 987,997 Difference in timing of recognition 259,118 493,379 — 3,403 755,900 Right-of-use asset (616,907) 19,531 — (6,613) (603,989) Lease liability 658,847 (7,400) — 12,861 664,308 Net capital losses 50,418 — — — 50,418 Unrecognized deferred tax assets (6,016,278) (5,328,487) (134,225) — (11,478,990) Deferred tax liability (188,044) 210,268 — 1,099 23,323 |
Financial risk management and_2
Financial risk management and fair value measurement (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Financial risk management and fair value measurement | |
Summary of maturity analysis for financial instruments, liquidity risk | Contractual Less than cash flows one year 1-5 years $ $ $ August 31, 2023 Trade and other payables 550,836 550,836 — Other financial liabilities 113,694 113,694 — Long-term debt 305,329 231,546 73,783 969,859 896,076 73,783 August 31, 2022 Trade and other payables 1,030,331 1,030,331 — Other financial liabilities 177,834 177,834 — Long-term debt 227,349 72,090 155,259 1,435,514 1,280,255 155,259 |
Summary of foreign exchange risk | 2023 2022 $ $ Cash 3,258,419 5,142,703 Trade and other receivables 188,001 103,116 Trade and other payables 800,149 172,871 |
Summary of reasonably possible 1% strengthening (weakening) of the U.S. dollar against the Canadian Dollar at the reporting date would have increased (decreased) net income (loss) and other comprehensive income | Net loss Other comprehensive income + 5% -5% + 5% -5% $ $ $ $ August 31, 2023 24,281 (24,281) 350,586 (350,586) |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Segment information | |
Summary of reportable business segments | Year ended August 31, 2023 Sale of Rental of Inter-segment electric boats electric boats eliminations Total $ $ $ $ Revenue from external customers 1,612,699 4,038,803 — 5,651,502 Revenue from other segments 867,097 336,683 (1,203,780) — Segment revenues 2,479,796 4,375,486 (1,203,780) 5,651,502 Segment gross profit (loss) (242,590) 1,966,466 (187,450) 1,536,426 Segment loss before tax (20,363,838) (623,856) (170,367) (21,158,061) Research and development 5,938,010 — (233,098) 5,704,912 Office salaries and benefits 2,769,196 1,237,246 7,739 4,014,181 Year ended August 31, 2022 Sale of Rental of Inter-segment electric boats electric boats eliminations Total $ $ $ $ Revenue from external customers 2,557,086 4,793,860 — 7,350,946 Revenue from other segments 820,383 80,842 (901,225) — Segment revenues 3,377,469 4,874,702 (901,225) 7,350,946 Segment gross profit (loss) 596,570 2,839,970 (150,975) 3,285,565 Segment (loss) profit before tax (13,632,377) 872,787 (93,852) (12,853,442) Research and development 2,242,794 — — 2,242,794 Office salaries and benefits 2,384,746 951,053 — 3,335,799 August 31, 2021 Sale of Rental of Sale of electric boats electric boats electric boats Total $ $ $ $ Revenue from external customers 2,158,240 1,355,548 — 3,513,788 Revenue from other segments 142,007 7,476 (149,483) — Segment revenues 2,300,247 1,363,024 (149,483) 3,513,788 Segment gross profit (loss) 640,228 1,003,596 (39,642) 1,604,182 Segment (loss) profit before tax Research and development (15,517,319) 541,257 (32,255) (15,008,317) Office salaries and benefits 1,489,953 — — 1,489,953 August 31, 2023 Sale of Rental of Sale of electric boats electric boats electric boats Total $ $ $ $ Segment assets 20,344,002 13,941,898 (10,239,388) 24,046,512 Cash 3,025,565 333,692 — 3,359,257 Additions to property and equipment 194,820 974,533 (185,744) 983,609 Segment liabilities 10,154,031 3,341,868 (1,013,824) 12,482,075 August 31, 2022 Sale of Rental of Sale of electric boats electric boats electric boats Total $ $ $ $ Segment assets 24,499,107 14,039,428 (9,438,326) 29,100,209 Cash 4,146,260 1,678,456 — 5,824,716 Additions to property and equipment 412,158 859,176 (162,446) 1,108,888 Segment liabilities 2,023,368 3,311,128 (262,883) 5,071,613 |
Additional cash flows informa_2
Additional cash flows information (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Additional cash flows information. | |
Summary of financing and investing activities not involving cash | 2023 2022 2021 $ $ $ Advances to related parties converted to shares — — 898,489 Unpaid share subscription — — 39,200 Right-of-use assets transferred to intangibles, net of accumulated depreciation — — 5,981 Additions to right-of-use assets 921,498 234,608 852,467 Lease termination 101,471 273,652 37,033 Shares issued as consideration for the acquisition of intangible assets — — 573,936 Shares issued as consideration for business acquisition — — 3,474,232 Transaction costs for share issuance transferred from prepaid — — 213,019 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Commitments | |
Summary of amount of the minimum fixed and determinable portion of the unconditional purchase obligations over the next years | $ 2024 10,943,420 |
Summary of undiscounted lease commitments | $ 2024 67,675 2025 163,774 2026 167,049 2027 and thereafter 446,736 |
Basis of preparation (Details)
Basis of preparation (Details) - CAD ($) | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2021 | Aug. 31, 2022 | |
Disclosure of subsidiaries [line items] | |||
Cash | $ 3,359,257 | $ 5,824,716 | |
Working capital | 3,676,936 | ||
Deficit | (51,548,737) | $ (30,671,552) | |
Issuance of shares and warrants, net of transaction costs paid | $ 12,437,523 | $ 2,025,000 | |
7858078 Canada Inc. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership held by the Company | 100% | ||
EB Rental Ltd. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership held by the Company | 100% | ||
EB Rental Ventura Corp. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership held by the Company | 100% | ||
Vision Marine Technologies Corp. | |||
Disclosure of subsidiaries [line items] | |||
Proportion of ownership held by the Company | 100% |
Significant accounting polici_4
Significant accounting policies - Property and equipment (Details) | 12 Months Ended |
Aug. 31, 2023 | |
Computer equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rate | 55% |
Machinery and equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rate | 20% |
Rolling stock | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rate | 30% |
Boat rental fleet | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of property, plant and equipment | 15 years |
Moulds | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of property, plant and equipment | 25 years |
Significant account policies -
Significant account policies - Amortization methods, useful lives and residual values (Details) | 12 Months Ended |
Aug. 31, 2023 | |
Intellectual property | |
Disclosure of detailed information about intangible assets | |
Estimated useful lives of intangible assets | 10 years |
Software | |
Disclosure of detailed information about intangible assets | |
Estimated useful lives of intangible assets | 7 years |
Trade name | |
Disclosure of detailed information about intangible assets | |
Estimated useful lives of intangible assets | 5 years |
Backlog | |
Disclosure of detailed information about intangible assets | |
Estimated useful lives of intangible assets | 3 years |
Website | |
Disclosure of detailed information about intangible assets | |
Estimated useful lives of intangible assets | 5 years |
Significant accounting polici_5
Significant accounting policies - Exchange rates for the currencies (Details) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Foreign exchange rates [abstract] | ||
Exchange rate as at end of year | 1.3535 | 1.3076 |
Average exchange rate for year ended | 1.3465 | 1.2717 |
Significant accounting polici_6
Significant accounting policies (Details) | 12 Months Ended |
Aug. 31, 2023 | |
Minimum | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Estimated useful life of leases | 2 years |
Maximum | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Estimated useful life of leases | 6 years |
Significant accounting estima_2
Significant accounting estimates and assumptions (Details) | 12 Months Ended |
Aug. 31, 2023 CAD ($) | |
Significant accounting estimates and assumptions | |
Period of projected cash inflows | 5 years |
Impairment of goodwill | $ 0 |
Post tax discount rate | 28% |
Long term growth rate | 2% |
Goodwill (Details)
Goodwill (Details) - EBR | 12 Months Ended | |||
Jun. 03, 2021 USD ($) item $ / shares shares | Aug. 31, 2023 CAD ($) | Aug. 31, 2022 CAD ($) | Jun. 03, 2021 CAD ($) $ / shares shares | |
Disclosure of detailed information about business combination [line items] | ||||
Shares Issued | 7,858,078 | 7,858,078 | ||
Shares outstanding | 7,858,078 | 7,858,078 | ||
Number of operating fleet over ships in California | item | 20 | |||
Cash consideration | $ 4,582,367 | $ 5,546,039 | ||
Equity consideration | $ | $ 3,474,232 | |||
Shares Issued | 284,495 | 284,495 | ||
Per Share Value | (per share) | $ 10.09 | $ 12.21 | ||
Share Issue Related Cost | $ | $ 9,680,941 | $ 9,352,640 |
Trade and other receivables (De
Trade and other receivables (Details) - CAD ($) | Aug. 31, 2023 | Aug. 31, 2022 |
Ifrs Trade And Other Receivables [Line items] | ||
Trade receivables | $ 59,364 | $ 108,716 |
Sales taxes receivable | 159,114 | 194,523 |
Other receivables | 332,358 | 169,309 |
Total trade and other current receivables | 550,836 | 472,548 |
Past Due But Not Impaired | ||
Ifrs Trade And Other Receivables [Line items] | ||
Trade receivables | $ 59,364 | $ 108,706 |
Trade and other receivables - A
Trade and other receivables - Aging analysis (Details) - CAD ($) | Aug. 31, 2023 | Aug. 31, 2022 |
Ifrs Financing Receivable, Past Due [Line Items] | ||
Trade receivables | $ 59,364 | $ 108,716 |
0 - 30 | ||
Ifrs Financing Receivable, Past Due [Line Items] | ||
Trade receivables | 13,986 | 77,625 |
61-90 | ||
Ifrs Financing Receivable, Past Due [Line Items] | ||
Trade receivables | 14,212 | |
91 and over | ||
Ifrs Financing Receivable, Past Due [Line Items] | ||
Trade receivables | $ 45,378 | $ 16,879 |
Trade and other receivables -_2
Trade and other receivables - Allowance for expected credit losses (Details) - CAD ($) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Trade and other receivables | ||
Change during the period | $ 0 | $ 0 |
Inventories (Details)
Inventories (Details) - CAD ($) | Aug. 31, 2023 | Aug. 31, 2022 |
Inventories | ||
Raw materials | $ 1,553,501 | $ 1,709,368 |
Work-in-process | 369,753 | 75,170 |
Finished goods | 522,300 | 309,238 |
Total current inventories | $ 2,445,554 | $ 2,093,776 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - CAD ($) | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Inventories | |||
Inventories recognized as an expense | $ 4,023,409 | $ 4,065,381 | $ 1,909,606 |
Cost of sales including depreciation | $ 471,940 | $ 687,023 | $ 232,195 |
Investment in Limestone- Additi
Investment in Limestone- Additional Information (Details) | 12 Months Ended | ||||
May 14, 2021 CAD ($) item | Aug. 31, 2023 CAD ($) $ / shares | Aug. 31, 2022 CAD ($) | Aug. 31, 2021 CAD ($) | Jul. 18, 2023 $ / shares | |
Investment in Limestone | |||||
Purchase of senior unsecured subordinated convertible debentures | item | 3,400 | ||||
Aggregate amount of debentures | $ 3,400,000 | $ 113,334 | $ 340,000 | $ 85,000 | |
Borrowings interest rate | 10% | ||||
Debt Term | 36 months | ||||
Conversion price | $ / shares | $ 0.36 | ||||
Closing date of issuance of debentures | 120 days | ||||
Days prior to end of term | 30 days | ||||
Share price | $ / shares | $ 0.50 | ||||
Common Share for consecutive trading days | 20 days | ||||
Period for conversion | 30 days | ||||
Impairment loss on debentures | $ 2,637,000 | 0 | 0 | ||
Net income (loss) for change in the fair value of the Debentures | 88,866 | $ 670,000 | $ 550,000 | ||
Conversion price of debenture into common shares | $ / shares | $ 0.071 | ||||
Fair value of investment | $ 0 |
Right-of-use assets (Details)
Right-of-use assets (Details) - CAD ($) | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Right-of-use assets | |||
Balance at beginning of the year | $ 2,261,100 | ||
Additions | 921,498 | $ 234,608 | $ 852,467 |
Balance at end of the year | 2,414,593 | 2,261,100 | |
Net book value | 44,807 | ||
Premises | |||
Right-of-use assets | |||
Balance at beginning of the year | 2,057,632 | ||
Balance at end of the year | 2,401,448 | 2,057,632 | |
Computer equipment | |||
Right-of-use assets | |||
Balance at beginning of the year | 768 | ||
Balance at end of the year | 768 | ||
Rolling stock | |||
Right-of-use assets | |||
Balance at beginning of the year | 67,705 | ||
Balance at end of the year | 13,145 | 67,705 | |
Boat rental fleet | |||
Right-of-use assets | |||
Balance at beginning of the year | 134,995 | ||
Balance at end of the year | 134,995 | ||
Cost | |||
Right-of-use assets | |||
Balance at beginning of the year | 3,183,164 | 3,279,168 | |
Additions | 921,498 | 234,608 | |
Disposals | (216,498) | (371,362) | |
Transferred to Property and equipment | (44,807) | ||
Currency translation | 40,354 | 40,750 | |
Balance at end of the year | 3,883,711 | 3,183,164 | 3,279,168 |
Cost | Premises | |||
Right-of-use assets | |||
Balance at beginning of the year | 2,880,039 | 2,746,118 | |
Additions | 921,498 | 93,565 | |
Currency translation | 38,255 | 40,356 | |
Balance at end of the year | 3,839,792 | 2,880,039 | 2,746,118 |
Cost | Computer equipment | |||
Right-of-use assets | |||
Balance at beginning of the year | 3,646 | 3,646 | |
Transferred to Property and equipment | (3,646) | ||
Balance at end of the year | 3,646 | 3,646 | |
Cost | Rolling stock | |||
Right-of-use assets | |||
Balance at beginning of the year | 88,020 | 202,536 | |
Additions | 141,043 | ||
Disposals | (46,200) | (255,953) | |
Currency translation | 2,099 | 394 | |
Balance at end of the year | 43,919 | 88,020 | 202,536 |
Cost | Boat rental fleet | |||
Right-of-use assets | |||
Balance at beginning of the year | 211,459 | 326,868 | |
Disposals | (170,298) | (115,409) | |
Transferred to Property and equipment | (41,161) | ||
Balance at end of the year | 211,459 | 326,868 | |
Accumulated depreciation | |||
Right-of-use assets | |||
Balance at beginning of the year | (922,064) | (373,969) | |
Depreciation | 662,081 | 651,457 | |
Disposals | (115,027) | (103,362) | |
Balance at end of the year | (1,469,118) | (922,064) | (373,969) |
Accumulated depreciation | Premises | |||
Right-of-use assets | |||
Balance at beginning of the year | (822,407) | (334,357) | |
Depreciation | 615,937 | 488,050 | |
Balance at end of the year | (1,438,344) | (822,407) | (334,357) |
Accumulated depreciation | Computer equipment | |||
Right-of-use assets | |||
Balance at beginning of the year | (2,878) | (576) | |
Depreciation | 768 | 2,302 | |
Disposals | (3,646) | ||
Balance at end of the year | (2,878) | (576) | |
Accumulated depreciation | Rolling stock | |||
Right-of-use assets | |||
Balance at beginning of the year | (20,315) | (14,949) | |
Depreciation | 23,934 | 71,488 | |
Disposals | (13,475) | (66,122) | |
Balance at end of the year | (30,774) | (20,315) | (14,949) |
Accumulated depreciation | Boat rental fleet | |||
Right-of-use assets | |||
Balance at beginning of the year | (76,464) | (24,087) | |
Depreciation | 21,442 | 89,617 | |
Disposals | $ (97,906) | (37,240) | |
Balance at end of the year | $ (76,464) | $ (24,087) |
Property and equipment (Details
Property and equipment (Details) - CAD ($) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Property and equipment | ||
Beginning balance | $ 2,218,982 | |
Ending balance | 2,313,926 | $ 2,218,982 |
Cost | ||
Property and equipment | ||
Beginning balance | 2,620,537 | 1,685,315 |
Additions | 938,802 | 1,175,931 |
Disposals | (635,842) | (270,828) |
Transferred from Right-of-use assets | 44,807 | |
Currency translation | (72,462) | 30,119 |
Ending balance | 2,895,842 | 2,620,537 |
Accumulated depreciation | ||
Property and equipment | ||
Beginning balance | (401,555) | (270,806) |
Depreciation | 241,046 | 157,947 |
Disposals | (60,685) | (27,198) |
Ending balance | (581,916) | (401,555) |
Machinery and equipment | ||
Property and equipment | ||
Beginning balance | 135,280 | |
Ending balance | 166,194 | 135,280 |
Machinery and equipment | Cost | ||
Property and equipment | ||
Beginning balance | 333,084 | 302,938 |
Additions | 62,409 | 30,146 |
Ending balance | 395,493 | 333,084 |
Machinery and equipment | Accumulated depreciation | ||
Property and equipment | ||
Beginning balance | (197,804) | (167,604) |
Depreciation | 31,495 | 30,200 |
Ending balance | (229,299) | (197,804) |
Rolling stock | ||
Property and equipment | ||
Beginning balance | 88,665 | |
Ending balance | 15,264 | 88,665 |
Rolling stock | Cost | ||
Property and equipment | ||
Beginning balance | 118,664 | 32,175 |
Additions | 69,029 | 197,739 |
Disposals | (136,072) | (111,215) |
Currency translation | (2,347) | (35) |
Ending balance | 49,274 | 118,664 |
Rolling stock | Accumulated depreciation | ||
Property and equipment | ||
Beginning balance | (29,999) | (24,362) |
Depreciation | 25,875 | 23,938 |
Disposals | (21,864) | (18,301) |
Ending balance | (34,010) | (29,999) |
Computer equipment | ||
Property and equipment | ||
Beginning balance | 8,229 | |
Ending balance | 7,955 | 8,229 |
Computer equipment | Cost | ||
Property and equipment | ||
Beginning balance | 21,032 | 14,647 |
Additions | 565 | 11,284 |
Disposals | (4,899) | |
Transferred from Right-of-use assets | 3,646 | |
Ending balance | 25,243 | 21,032 |
Computer equipment | Accumulated depreciation | ||
Property and equipment | ||
Beginning balance | (12,803) | (8,398) |
Depreciation | 4,485 | 5,079 |
Disposals | (674) | |
Ending balance | (17,288) | (12,803) |
Moulds | ||
Property and equipment | ||
Beginning balance | 838,896 | |
Ending balance | 831,701 | 838,896 |
Moulds | Cost | ||
Property and equipment | ||
Beginning balance | 911,924 | 691,005 |
Additions | 30,501 | 220,919 |
Ending balance | 942,425 | 911,924 |
Moulds | Accumulated depreciation | ||
Property and equipment | ||
Beginning balance | (73,028) | (50,420) |
Depreciation | 37,696 | 22,608 |
Ending balance | (110,724) | (73,028) |
Leasehold improvements | ||
Property and equipment | ||
Beginning balance | 219,851 | |
Ending balance | 248,218 | 219,851 |
Leasehold improvements | Cost | ||
Property and equipment | ||
Beginning balance | 264,356 | 131,233 |
Additions | 97,699 | 133,123 |
Ending balance | 362,055 | 264,356 |
Leasehold improvements | Accumulated depreciation | ||
Property and equipment | ||
Beginning balance | (44,505) | (11,579) |
Depreciation | 69,332 | 32,926 |
Ending balance | (113,837) | (44,505) |
Boat rental fleet | ||
Property and equipment | ||
Beginning balance | 928,061 | |
Ending balance | 1,044,594 | 928,061 |
Boat rental fleet | Cost | ||
Property and equipment | ||
Beginning balance | 971,477 | 513,317 |
Additions | 678,599 | 582,720 |
Disposals | (499,770) | (154,714) |
Transferred from Right-of-use assets | 41,161 | |
Currency translation | (70,115) | 30,154 |
Ending balance | 1,121,352 | 971,477 |
Boat rental fleet | Accumulated depreciation | ||
Property and equipment | ||
Beginning balance | (43,416) | (8,443) |
Depreciation | 72,163 | 43,196 |
Disposals | (38,821) | (8,223) |
Ending balance | $ (76,758) | $ (43,416) |
Property and equipment - Additi
Property and equipment - Additional Information (Details) - CAD ($) | Aug. 31, 2023 | Aug. 31, 2022 |
Moulds | ||
Property and equipment | ||
Asset not depreciated and not ready for use | $ 377,253 | $ 346,752 |
Intangible assets (Details)
Intangible assets (Details) - CAD ($) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | $ 1,112,670 | |
Balance at the end | 966,724 | $ 1,112,670 |
Intellectual property | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | 875,981 | |
Balance at the end | 772,473 | 875,981 |
Software | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | 77,075 | |
Balance at the end | 64,155 | 77,075 |
Trade name | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | 83,855 | |
Balance at the end | 69,486 | 83,855 |
Backlog | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | 59,720 | |
Balance at the end | 47,365 | 59,720 |
Website | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | 16,039 | |
Balance at the end | 13,245 | 16,039 |
Cost | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | 1,333,547 | 1,300,490 |
Additions | 32,202 | |
Currency translation | 11,824 | 855 |
Balance at the end | 1,345,371 | 1,333,547 |
Cost | Intellectual property | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | 1,035,070 | 1,035,070 |
Balance at the end | 1,035,070 | 1,035,070 |
Cost | Software | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | 101,775 | 73,573 |
Additions | 28,202 | |
Balance at the end | 101,775 | 101,775 |
Cost | Trade name | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | 98,294 | 93,856 |
Additions | 4,000 | |
Currency translation | 6,057 | 438 |
Balance at the end | 104,351 | 98,294 |
Cost | Backlog | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | 79,550 | 79,220 |
Currency translation | 4,556 | 330 |
Balance at the end | 84,106 | 79,550 |
Cost | Website | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | 18,858 | 18,771 |
Currency translation | 1,211 | 87 |
Balance at the end | 20,069 | 18,858 |
Accumulated depreciation | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | (220,877) | (74,768) |
Depreciation | 157,770 | 146,109 |
Balance at the end | (378,647) | (220,877) |
Accumulated depreciation | Intellectual property | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | (159,089) | (55,581) |
Depreciation | 103,508 | 103,508 |
Balance at the end | (262,597) | (159,089) |
Accumulated depreciation | Software | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | (24,700) | (7,107) |
Depreciation | 12,920 | 17,593 |
Balance at the end | (37,620) | (24,700) |
Accumulated depreciation | Trade name | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | (14,439) | (4,633) |
Depreciation | 20,426 | 9,806 |
Balance at the end | (34,865) | (14,439) |
Accumulated depreciation | Backlog | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | (19,830) | (6,520) |
Depreciation | 16,911 | 13,310 |
Balance at the end | (36,741) | (19,830) |
Accumulated depreciation | Website | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Balance at the beginning | (2,819) | (927) |
Depreciation | 4,005 | 1,892 |
Balance at the end | $ (6,824) | $ (2,819) |
Intangible assets - Additional
Intangible assets - Additional Information (Details) | 12 Months Ended | |||||
Feb. 16, 2021 CAD ($) $ / shares shares | Feb. 16, 2021 EUR (€) shares | Aug. 31, 2022 CAD ($) | Aug. 31, 2021 CAD ($) | Aug. 31, 2023 $ / shares | Feb. 16, 2021 $ / shares | |
Intangible assets | ||||||
Additions to intangible assets | $ 32,202 | $ 528,726 | ||||
Share price | $ / shares | $ 0.50 | |||||
Intellectual property | ||||||
Intangible assets | ||||||
Additions to intangible assets | $ 461,134 | € 300,000 | ||||
Shares issued for purchase of intangible assets | shares | 30,000 | 30,000 | ||||
Share price | (per share) | $ 19.13 | $ 15.07 | ||||
Total consideration | $ 1,035,070 |
Credit facility (Details)
Credit facility (Details) - CAD ($) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Credit facility | ||
Authorized line of credit | $ 250,000 | |
Amount drawn on line of credit | $ 155,000 | $ 0 |
Prime rate | ||
Credit facility | ||
Spread on variable interest rate | 1% | |
Secured First Ranking Movable Hypothec | ||
Credit facility | ||
Secured first ranking movable hypothec on accounts payable and inventory | $ 750,000 |
Trade and other payables (Detai
Trade and other payables (Details) - CAD ($) | Aug. 31, 2023 | Aug. 31, 2022 |
Trade and other payables. | ||
Trade payable | $ 1,107,310 | $ 737,946 |
Sales taxes payable | 62,398 | 21,547 |
Government remittances | 9,450 | |
Salaries, vacation and other employees benefits payables | 585,192 | 261,388 |
Trade and other payables | $ 1,754,900 | $ 1,030,331 |
Contract liabilities (Details)
Contract liabilities (Details) - CAD ($) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Contract liabilities | ||
Opening balance | $ 1,029,318 | $ 898,713 |
Payments received in advance | 3,330,235 | 2,502,080 |
Boat sale deposits | 151,572 | 87,609 |
Payments reimbursed | (8,131) | (2,615) |
Transferred to revenues | (2,718,943) | (2,475,307) |
Currency translation | 31,680 | 18,838 |
Closing balance | $ 1,815,731 | $ 1,029,318 |
Lease liabilities (Details)
Lease liabilities (Details) - CAD ($) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Lease liabilities | ||
Opening balance | $ 2,415,549 | $ 2,966,816 |
Additions | 921,498 | 234,608 |
Repayment | (726,893) | (695,749) |
Interest on lease liability | 139,132 | 141,994 |
Lease termination | (151,800) | (273,652) |
Currency translation | 44,308 | 41,532 |
Closing balance | 2,641,794 | 2,415,549 |
Current | 647,638 | 561,168 |
Non-current | $ 1,994,156 | $ 1,854,381 |
Lease liabilities - Undiscounte
Lease liabilities - Undiscounted lease payments (Details) - CAD ($) | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Lease liabilities | |||
Undiscounted lease payments | $ 2,997,901 | ||
Short-term lease expense | $ 127,511 | $ 58,663 | $ 50,186 |
Weighted average interest rate | 5.79% | 5.40% | 5.20% |
Less than one year | |||
Lease liabilities | |||
Undiscounted lease payments | $ 775,991 | ||
One year to five years | |||
Lease liabilities | |||
Undiscounted lease payments | $ 2,221,910 |
Long-term debt (Details)
Long-term debt (Details) - CAD ($) | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | May 14, 2021 | |
Long-term debt | |||
Total borrowings | $ 305,329 | $ 227,349 | |
Current portion of long-term debt | 271,546 | 72,090 | |
Long-term debt, noncurrent | 33,783 | 155,259 | |
Borrowings interest rate | 10% | ||
The government assistance loan maturing by December 31, 2025 | |||
Long-term debt | |||
Total borrowings | $ 40,000 | 39,342 | |
Borrowings interest rate | 5% | ||
Term loan maturing January 2025 | |||
Long-term debt | |||
Total borrowings | $ 265,329 | $ 188,007 | |
Monthly instalments | $ 23,337 | ||
Term loan maturing January 2025 | Minimum. | |||
Long-term debt | |||
Borrowings interest rate | 9.44% | ||
Term loan maturing January 2025 | Maximum. | |||
Long-term debt | |||
Borrowings interest rate | 10.71% |
Related party transactions (Det
Related party transactions (Details) - CAD ($) | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Disclosure of transactions between related parties [line items] | |||
Advertising and promotion | $ 11,245 | ||
Office salaries and benefits [note 17] | $ 4,014,181 | $ 3,335,799 | 1,754,613 |
Right-of-use assets | 2,414,593 | 2,261,100 | |
Lease liability | 2,641,794 | 2,415,549 | 2,966,816 |
EB Rental Ltd. | |||
Disclosure of transactions between related parties [line items] | |||
Sales of boats | 84,149 | ||
Sale of parts and boat maintenance | 40,310 | ||
Cost of sales | 11,444 | ||
Travel and entertainment | 8,926 | ||
9335-1427 Quebec Inc. | |||
Disclosure of transactions between related parties [line items] | |||
Research and Development | 75,020 | ||
Mac Engineering, SASU | |||
Disclosure of transactions between related parties [line items] | |||
Research and Development | 545,892 | 666,178 | 176,500 |
Montana Strategies Inc. | |||
Disclosure of transactions between related parties [line items] | |||
Office salaries and benefits [note 17] | 29,059 | $ 62,462 | |
California Electric Boat Company Inc. | |||
Disclosure of transactions between related parties [line items] | |||
Right-of-use assets | 1,270,955 | 889,866 | |
Lease liability | $ 1,395,732 | $ 971,399 |
Related party transactions - Re
Related party transactions - Remuneration of directors and key management of the Company (Details) - CAD ($) | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Related party transactions | |||
Wages | $ 2,447,827 | $ 2,324,770 | $ 1,299,402 |
Share-based payments - capital stock | 433,263 | ||
Share-based payments - stock options | 382,196 | 2,560,031 | 6,081,900 |
Remuneration of directors and key management of the Company | $ 3,263,286 | $ 4,884,801 | $ 7,381,302 |
Related party transactions - Am
Related party transactions - Amounts due to and from related parties (Details) - CAD ($) | Aug. 31, 2023 | Aug. 31, 2022 |
Disclosure of transactions between related parties [line items] | ||
Share subscription receivable | $ 39,200 | $ 39,200 |
Amounts due to related parties included in trade and other payable | 62,274 | 44,662 |
9335-1427 Quebec Inc | ||
Disclosure of transactions between related parties [line items] | ||
Share subscription receivable | 25,000 | 25,000 |
Alexandre Mongeon | ||
Disclosure of transactions between related parties [line items] | ||
Share subscription receivable | 14,200 | 14,200 |
Current advances to related party | 20,135 | 16,736 |
Amounts due to related parties included in trade and other payable | 19,384 | 16,000 |
Patrick Bobby | ||
Disclosure of transactions between related parties [line items] | ||
Amounts due to related parties included in trade and other payable | 13,847 | 12,308 |
Kulwant Sandher | ||
Disclosure of transactions between related parties [line items] | ||
Amounts due to related parties included in trade and other payable | 8,654 | 8,062 |
Xavier Montagne | ||
Disclosure of transactions between related parties [line items] | ||
Amounts due to related parties included in trade and other payable | 10,454 | $ 8,292 |
Mac Engineering, SASU | ||
Disclosure of transactions between related parties [line items] | ||
Amounts due to related parties included in trade and other payable | $ 9,935 |
Capital stock - Voting Common S
Capital stock - Voting Common Shares (Details) - CAD ($) | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 |
Disclosure of classes of share capital [line items] | ||||
Issued capital | $ 50,395,717 | $ 43,441,591 | ||
Capital stock | ||||
Disclosure of classes of share capital [line items] | ||||
Shares outstanding | 11,172,800 | 8,417,923 | 8,324,861 | 4,585,001 |
Capital stock - Additional Info
Capital stock - Additional Information (Details) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Aug. 02, 2023 $ / shares shares | Jun. 16, 2023 $ / shares shares | Apr. 19, 2023 $ / shares shares | Feb. 17, 2023 $ / shares shares | Jan. 19, 2023 $ / shares shares | Aug. 25, 2022 shares | Aug. 05, 2022 $ / shares shares | Feb. 01, 2022 shares | Jan. 31, 2022 shares | Jan. 12, 2022 shares | Nov. 23, 2020 $ / shares shares | Aug. 31, 2022 CAD ($) shares | Aug. 31, 2023 CAD ($) shares employee | Aug. 31, 2023 USD ($) shares employee | Aug. 31, 2022 CAD ($) shares | Aug. 31, 2021 CAD ($) | Aug. 31, 2023 $ / shares | Aug. 02, 2023 $ / shares | Jun. 16, 2023 $ / shares | Apr. 19, 2023 $ / shares | Feb. 17, 2023 $ / shares | Jan. 19, 2023 $ / shares | Aug. 05, 2022 $ / shares | Nov. 23, 2020 $ / shares | |
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||
Number of Voting Common Shares issued to third parties in exchange for services | shares | 53,445 | 299,393 | 299,393 | |||||||||||||||||||||
Number of Voting Common Shares issued upon exercises of stock options | shares | 2,703 | 57,219 | 57,219 | 2,703 | ||||||||||||||||||||
Number of former employees | employee | 2 | 2 | ||||||||||||||||||||||
Number of warrants to purchase voting common shares issued | shares | 493,832 | 493,828 | 381,293 | 475,059 | 554,253 | 50,000 | 151,800 | 2,398,265 | 2,398,265 | |||||||||||||||
Total cash consideration price, net of transaction costs | $ | $ 12,012,591 | |||||||||||||||||||||||
Transaction costs | $ | 800,744 | $ 0 | $ 0 | |||||||||||||||||||||
Net transaction costs | $ | $ 1,225,676 | |||||||||||||||||||||||
Warrants exercise term | 3 years | 3 years | 3 years | 3 years | 3 years | 4 years | 5 years | 3 years | 3 years | |||||||||||||||
Exercise price of warrants | (per share) | $ 4.21 | $ 4.21 | $ 4.21 | $ 4.21 | $ 4.21 | $ 8 | $ 12.50 | $ 4.21 | $ 5.37 | $ 5.35 | $ 5.64 | $ 5.67 | $ 5.63 | $ 10.30 | $ 16.53 | |||||||||
Derivative liabilities | $ | $ 0 | $ 5,558,822 | $ 0 | |||||||||||||||||||||
Allocated transaction costs | $ 719,167 | $ 718,546 | ||||||||||||||||||||||
Board of directors | ||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||||||
Number of Voting Common Shares issued to third parties in exchange for services | shares | 5,435 | 6,479 | 25,000 |
Capital stock - Derivative liab
Capital stock - Derivative liabilities (Details) | 12 Months Ended |
Aug. 31, 2023 CAD ($) | |
Capital stock. | |
Opening balance | $ 0 |
Additions | 7,614,510 |
Change in estimate | (2,055,688) |
Closing balance | $ 5,558,822 |
Share-based payments - Stock op
Share-based payments - Stock options (Details) | 12 Months Ended | ||||
Mar. 25, 2023 CAD ($) shares $ / shares | Mar. 25, 2023 shares $ / shares | Aug. 31, 2023 CAD ($) shares $ / shares | Aug. 31, 2022 CAD ($) | Aug. 31, 2021 CAD ($) | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||
Number of share options granted | 1,664,526 | ||||
Share-based compensation expense | $ | $ 1,136,182 | $ 2,699,481 | $ 7,121,444 | ||
Directors and officers of the company | |||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||
Number of share options granted | 255,000 | 255,000 | |||
Exercise price | (per share) | $ 5.78 | $ 4.21 | |||
Expiration period | 5 years | ||||
Number of stock options cancelled | 425,000 | ||||
Stock based compensation expense | $ | $ 129,800 | ||||
Minimum. | |||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||
Exercise price | $ / shares | $ 2.78 | ||||
Expiration period | 5 years | ||||
Minimum. | Directors and officers of the company | |||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||
Exercise price of stock cancelled | (per share) | $ 8.98 | 7.42 | |||
Maximum. | |||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||
Exercise price | $ / shares | $ 16.29 | ||||
Expiration period | 10 years | ||||
Maximum. | Directors and officers of the company | |||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||
Exercise price of stock cancelled | (per share) | $ 16.29 | $ 12.50 |
Share-based payments - Assumpti
Share-based payments - Assumptions used to determine the fair value of option grants (Details) | 12 Months Ended |
Aug. 31, 2023 Y $ / shares | |
May 27, 2020 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Exercise price | $ 3.70 |
Market Price | $ 3.70 |
Expected volatility | 84% |
Risk-free interest rate | 0.40% |
Expected life | Y | 5 |
May 27, 2020 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Exercise price | $ 2.78 |
Market Price | $ 3.70 |
Expected volatility | 84% |
Risk-free interest rate | 0.40% |
Expected life | Y | 5 |
October 23, 2020 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Exercise price | $ 3.70 |
Market Price | $ 3.70 |
Expected volatility | 97% |
Risk-free interest rate | 0.40% |
Expected life | Y | 5 |
November 24, 2020 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Exercise price | $ 16.29 |
Market Price | $ 13.03 |
Expected volatility | 101% |
Risk-free interest rate | 0.40% |
Expected life | Y | 5 |
November 24, 2020 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Exercise price | $ 5.68 |
Market Price | $ 5.72 |
Expected volatility | 75% |
Risk-free interest rate | 3.60% |
Expected life | Y | 4 |
February 23, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Exercise price | $ 15.75 |
Market Price | $ 15.05 |
Expected volatility | 103% |
Risk-free interest rate | 0.60% |
Expected life | Y | 5 |
May 14, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Exercise price | $ 5.68 |
Market Price | $ 5.72 |
Expected volatility | 75% |
Risk-free interest rate | 3.60% |
Expected life | Y | 3 |
July 14, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Exercise price | $ 9.25 |
Market Price | $ 9.01 |
Expected volatility | 105% |
Risk-free interest rate | 0.70% |
Expected life | Y | 5 |
September 21, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Exercise price | $ 8.85 |
Market Price | $ 8.58 |
Expected volatility | 106% |
Risk-free interest rate | 0.90% |
Expected life | Y | 5 |
January 22, 2022 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Exercise price | $ 5.65 |
Market Price | $ 5.52 |
Expected volatility | 107% |
Risk-free interest rate | 1.50% |
Expected life | Y | 5 |
November 30, 2022 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Exercise price | $ 6.09 |
Market Price | $ 6.09 |
Expected volatility | 107% |
Risk-free interest rate | 3.10% |
Expected life | Y | 5 |
December 1, 2022 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Exercise price | $ 5.83 |
Market Price | $ 5.83 |
Expected volatility | 107% |
Risk-free interest rate | 3% |
Expected life | Y | 5 |
March 22, 2023 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Exercise price | $ 5.76 |
Market Price | $ 5.14 |
Expected volatility | 75% |
Risk-free interest rate | 3.60% |
Expected life | Y | 2 |
March 25, 2023 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Exercise price | $ 5.77 |
Market Price | $ 5.23 |
Expected volatility | 75% |
Risk-free interest rate | 3.60% |
Expected life | Y | 3 |
March 25, 2023 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Exercise price | $ 5.77 |
Market Price | $ 5.23 |
Expected volatility | 75% |
Risk-free interest rate | 3.60% |
Expected life | Y | 4 |
April 20, 2023 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Exercise price | $ 5.79 |
Market Price | $ 5.27 |
Expected volatility | 75% |
Risk-free interest rate | 3.60% |
Expected life | Y | 5 |
Share-based payments - Option g
Share-based payments - Option grants outstanding (Details) | 12 Months Ended | ||
Aug. 25, 2022 shares | Aug. 31, 2023 shares $ / shares | Aug. 31, 2022 shares $ / shares | |
Share-based payments | |||
Number of options, Beginning balance | shares | 1,706,418 | 1,659,121 | |
Number of options, Granted | shares | 88,500 | 152,500 | |
Number of options, Forfeited | shares | (268,158) | (102,500) | |
Number of options, Stock options modifications | shares | (370,000) | ||
Number of options, Exercised | shares | (2,703) | (57,219) | (2,703) |
Number of options, Ending Balance | shares | 1,099,541 | 1,706,418 | |
Weighted average exercise price, Beginning balance (in dollars per share) | $ / shares | $ 9.45 | $ 9.95 | |
Weighted average exercise price, Granted (in dollars per share) | $ / shares | 5.80 | 6.70 | |
Weighted average exercise price, Forfeited (in dollars per share) | $ / shares | 9.65 | 13.59 | |
Weighted average exercise price, Stock options modifications (in dollars per share) | $ / shares | 5.78 | ||
Weighted average exercise price, Exercised (in dollars per share) | $ / shares | 2.86 | 3.70 | |
Weighted average exercise price, Ending balance (in dollars per share) | $ / shares | $ 5.22 | $ 9.45 |
Share-based payments - Warrants
Share-based payments - Warrants (Details) | 12 Months Ended | ||||||||||||||
Aug. 02, 2023 $ / shares shares | Jun. 16, 2023 $ / shares shares | Apr. 19, 2023 $ / shares shares | Feb. 17, 2023 $ / shares shares | Jan. 19, 2023 $ / shares shares | Aug. 05, 2022 $ / shares shares | Nov. 23, 2020 $ / shares shares | Aug. 31, 2023 $ / shares shares | Aug. 02, 2023 $ / shares | Jun. 16, 2023 $ / shares | Apr. 19, 2023 $ / shares | Feb. 17, 2023 $ / shares | Jan. 19, 2023 $ / shares | Aug. 05, 2022 $ / shares | Nov. 23, 2020 $ / shares | |
Share-based payments | |||||||||||||||
Number of warrants to purchase voting common shares issued | 493,832 | 493,828 | 381,293 | 475,059 | 554,253 | 50,000 | 151,800 | 2,398,265 | |||||||
Warrants term | 3 years | 3 years | 3 years | 3 years | 3 years | 4 years | 5 years | 3 years | |||||||
Exercise price of warrants | (per share) | $ 4.21 | $ 4.21 | $ 4.21 | $ 4.21 | $ 4.21 | $ 8 | $ 12.50 | $ 4.21 | $ 5.37 | $ 5.35 | $ 5.64 | $ 5.67 | $ 5.63 | $ 10.30 | $ 16.53 |
Share-based payments - Exercise
Share-based payments - Exercise price range of warrants (Details) | 12 Months Ended | ||
Aug. 31, 2023 shares $ / shares | Aug. 31, 2022 shares | Aug. 31, 2021 shares | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number of options outstanding | shares | 1,099,541 | 1,706,418 | 1,659,121 |
Exercise Price 2.78 - 3.70 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number of options outstanding | shares | 454,041 | ||
Weighted average grant date fair value | $ 2.48 | ||
Weighted average remaining contractual life (years) | 2 years 1 month 17 days | ||
Exercisable options | shares | 497,869 | ||
Exercise Price 2.78 - 3.70 | Minimum | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Exercise price | $ 2.78 | ||
Exercise Price 2.78 - 3.70 | Maximum | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Exercise price | $ 3.70 | ||
Exercise Price 5.65 - 5.83 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number of options outstanding | shares | 580,500 | ||
Weighted average grant date fair value | $ 2.94 | ||
Weighted average remaining contractual life (years) | 4 years 6 months 3 days | ||
Exercisable options | shares | 498,300 | ||
Exercise Price 5.65 - 5.83 | Minimum | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Exercise price | $ 5.65 | ||
Exercise Price 5.65 - 5.83 | Maximum | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Exercise price | $ 5.83 | ||
Exercise Price 6.09 - 8.85 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number of options outstanding | shares | 30,000 | ||
Weighted average grant date fair value | $ 6.26 | ||
Weighted average remaining contractual life (years) | 7 years 9 months 29 days | ||
Exercisable options | shares | 25,000 | ||
Exercise Price 6.09 - 8.85 | Minimum | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Exercise price | $ 6.09 | ||
Exercise Price 6.09 - 8.85 | Maximum | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Exercise price | 8.85 | ||
Exercise Price 16.29 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Exercise price | $ 16.29 | ||
Number of options outstanding | shares | 35,000 | ||
Weighted average grant date fair value | $ 9.33 | ||
Weighted average remaining contractual life (years) | 7 years 6 months | ||
Exercisable options | shares | 35,000 |
Share-based payments - Fair val
Share-based payments - Fair value of option grants relating to warrants (Details) | 12 Months Ended | |||||||||||||||
Aug. 31, 2023 Y $ / shares $ / shares shares | Aug. 31, 2023 $ / shares shares | Aug. 02, 2023 $ / shares | Aug. 02, 2023 $ / shares | Jun. 16, 2023 $ / shares | Jun. 16, 2023 $ / shares | Apr. 19, 2023 $ / shares | Apr. 19, 2023 $ / shares | Feb. 17, 2023 $ / shares | Feb. 17, 2023 $ / shares | Jan. 19, 2023 $ / shares | Jan. 19, 2023 $ / shares | Aug. 05, 2022 $ / shares | Aug. 05, 2022 $ / shares | Nov. 23, 2020 $ / shares | Nov. 23, 2020 $ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||||
Exercise price of warrants | (per share) | $ 4.21 | $ 4.21 | $ 5.37 | $ 4.21 | $ 5.35 | $ 4.21 | $ 5.64 | $ 4.21 | $ 5.67 | $ 4.21 | $ 5.63 | $ 8 | $ 10.30 | $ 12.50 | $ 16.53 | |
November 23, 2020 | ||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||||
Exercise price of warrants | $ 16.53 | |||||||||||||||
Number of warrants outstanding | shares | 151,800 | 151,800 | ||||||||||||||
Weighted average remaining contractual life (years) | 2 years 2 months 23 days | |||||||||||||||
August 5, 2022 | ||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||||
Exercise price of warrants | $ 10.30 | |||||||||||||||
Market price of warrant options | $ 7.20 | |||||||||||||||
Expected volatility (%) | 100% | |||||||||||||||
Risk-free interest rate (%) | 2.90% | |||||||||||||||
Expected life (years) | Y | 3 | |||||||||||||||
Number of warrants outstanding | shares | 50,000 | 50,000 | ||||||||||||||
Weighted average remaining contractual life (years) | 1 year 11 months 4 days | |||||||||||||||
January 19, 2023 | ||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||||
Exercise price of warrants | $ 5.63 | |||||||||||||||
Market price of warrant options | $ 5.63 | |||||||||||||||
Expected volatility (%) | 100% | |||||||||||||||
Risk-free interest rate (%) | 3.40% | |||||||||||||||
Expected life (years) | Y | 3 | |||||||||||||||
Number of warrants outstanding | shares | 554,253 | 554,253 | ||||||||||||||
Weighted average remaining contractual life (years) | 2 years 4 months 20 days | |||||||||||||||
February 17, 2023 | ||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||||
Exercise price of warrants | $ 5.67 | |||||||||||||||
Market price of warrant options | $ 6.05 | |||||||||||||||
Expected volatility (%) | 100% | |||||||||||||||
Risk-free interest rate (%) | 4% | |||||||||||||||
Expected life (years) | Y | 3 | |||||||||||||||
Number of warrants outstanding | shares | 475,059 | 475,059 | ||||||||||||||
Weighted average remaining contractual life (years) | 2 years 5 months 19 days | |||||||||||||||
April 19, 2023 | ||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||||
Exercise price of warrants | $ 5.64 | |||||||||||||||
Market price of warrant options | $ 5.55 | |||||||||||||||
Expected volatility (%) | 75% | |||||||||||||||
Risk-free interest rate (%) | 3.90% | |||||||||||||||
Expected life (years) | Y | 3 | |||||||||||||||
Number of warrants outstanding | shares | 381,293 | 381,293 | ||||||||||||||
Weighted average remaining contractual life (years) | 2 years 7 months 20 days | |||||||||||||||
June 16, 2023 | ||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||||
Exercise price of warrants | $ 5.35 | |||||||||||||||
Market price of warrant options | $ 5.50 | |||||||||||||||
Expected volatility (%) | 75% | |||||||||||||||
Risk-free interest rate (%) | 4.10% | |||||||||||||||
Expected life (years) | Y | 3 | |||||||||||||||
Number of warrants outstanding | shares | 493,828 | 493,828 | ||||||||||||||
Weighted average remaining contractual life (years) | 2 years 9 months 14 days | |||||||||||||||
August 2, 2023 | ||||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||||||||||||
Exercise price of warrants | $ 5.37 | |||||||||||||||
Market price of warrant options | $ 5.10 | |||||||||||||||
Expected volatility (%) | 75% | |||||||||||||||
Risk-free interest rate (%) | 4.80% | |||||||||||||||
Expected life (years) | Y | 3 | |||||||||||||||
Number of warrants outstanding | shares | 493,832 | 493,832 | ||||||||||||||
Weighted average remaining contractual life (years) | 2 years 11 months 1 day |
Revenues (Details)
Revenues (Details) - CAD ($) | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenues | $ 5,651,502 | $ 7,350,946 | $ 3,513,788 |
Sales of boats | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenues | 1,287,979 | 2,459,365 | 2,080,110 |
Sales of parts and boat maintenance | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenues | 324,720 | 97,721 | 75,205 |
Boat rental and boat club membership revenue | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenues | $ 4,038,803 | $ 4,793,860 | 1,355,548 |
Others | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenues | $ 2,925 |
Revenues - geographical distrib
Revenues - geographical distribution of revenues from external customers (Details) - CAD ($) | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenues | $ 5,651,502 | $ 7,350,946 | $ 3,513,788 |
Canada | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenues | 348,570 | 557,639 | 571,216 |
USA | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenues | 5,116,927 | 6,086,527 | 2,692,599 |
Other | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenues | 186,005 | 706,780 | $ 249,973 |
Sale of electric boats | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenues | 1,612,699 | 2,557,085 | |
Sale of electric boats | Canada | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenues | 348,570 | 557,639 | |
Sale of electric boats | USA | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenues | 1,078,124 | 1,292,666 | |
Sale of electric boats | Other | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenues | 186,005 | 706,780 | |
Rental of electric boats | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenues | 4,038,803 | 4,793,861 | |
Rental of electric boats | USA | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenues | $ 4,038,803 | $ 4,793,861 |
Grants and investment tax cre_2
Grants and investment tax credits (Details) - CAD ($) | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Grants and investment tax credits | |||
Grants and investment tax credits | $ 232,882 | $ 1,458,632 | $ 921,658 |
Grants and investment tax credits excluded from cost of sales | 8,535 | ||
Grants and investment tax credits excluded from research and development expense | 144,032 | 1,408,840 | 859,516 |
Grants and investment tax credits excluded from property and equipment and intangible asset | 40,584 | 44,939 | |
Grants Excluded From Office Salaries And Benefits | $ 88,850 | $ 0 | $ 17,203 |
Net finance expense (income) (D
Net finance expense (income) (Details) | 12 Months Ended | |||
Aug. 31, 2023 CAD ($) | Aug. 31, 2023 USD ($) | Aug. 31, 2022 CAD ($) | Aug. 31, 2021 CAD ($) | |
Net finance expense (income) | ||||
Interest and bank charges | $ 142,117 | $ 184,895 | $ 123,100 | |
Interest income | (113,334) | (379,288) | ||
Foreign currency exchange (gain) loss | (208,132) | (251,947) | 1,583,292 | |
Transaction costs | 719,167 | $ 718,546 | ||
Gain on derivative liabilities | 2,055,688 | |||
Loss (gain) on Debentures [note 8] | (88,666) | 670,000 | 550,000 | |
Net finance expense | $ (1,604,536) | $ 223,660 | $ 2,256,392 |
Income taxes - Income tax expen
Income taxes - Income tax expense (Details) - CAD ($) | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Income taxes at the applicable tax rate of 26.5% [2022 - 26.5%; 2021 - 26.5%] | $ (5,606,886) | $ (3,406,162) | $ (3,977,204) |
Change in tax status following the initial public offering | (127,979) | ||
Adjustment in respect of current and deferred income tax of previous year | (72,894) | (4,396) | (207,601) |
Permanent differences | 70,418 | 823,119 | 2,100,615 |
Change in recognition of deferred income tax assets | 5,328,487 | 2,816,417 | 2,317,759 |
Other | 29,365 | ||
Total income tax expense (recovery) | $ (280,875) | $ 258,343 | $ 105,590 |
Income taxes at the applicable tax rate (Percent) | 26.50% | 26.50% | 26.50% |
Research and development expenditures for income tax | $ 3,541,000 | $ 1,439,000 | |
Research and development | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Unused investment tax credit related to research and development expenditure carried for future payables | $ 642,000 | $ 240,000 |
Income taxes - Deferred tax ass
Income taxes - Deferred tax asset and liability (Details) - CAD ($) | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Income taxes | ||
Beginning Balance | $ (188,044) | |
Recognized in net loss | 210,268 | |
Others | 1,099 | |
Ending Balance | 23,323 | |
Net operating losses carried forward for income tax purposes | 35,333,000 | $ 18,194,000 |
Net operating losses carried forward and deductible temporary differences not been recognized | 45,415,000 | $ 23,849,000 |
Property and equipment | ||
Income taxes | ||
Beginning Balance | (155,298) | |
Recognized in net loss | (20,228) | |
Others | (8,650) | |
Ending Balance | (184,176) | |
Intangibles | ||
Income taxes | ||
Beginning Balance | (294,385) | |
Recognized in net loss | 39,009 | |
Others | 98 | |
Ending Balance | (255,278) | |
Net operating losses | ||
Income taxes | ||
Beginning Balance | 4,790,012 | |
Recognized in net loss | 4,564,752 | |
Ending Balance | 9,354,764 | |
Financing fees | ||
Income taxes | ||
Beginning Balance | 705,594 | |
Recognized in net loss | (107,450) | |
Recognized in equity | 134,225 | |
Ending Balance | 732,369 | |
Research and development | ||
Income taxes | ||
Beginning Balance | 430,835 | |
Recognized in net loss | 557,162 | |
Ending Balance | 987,997 | |
Difference in timing of recognition | ||
Income taxes | ||
Beginning Balance | 259,118 | |
Recognized in net loss | 493,379 | |
Others | 3,403 | |
Ending Balance | 755,900 | |
Right-of-use asset | ||
Income taxes | ||
Beginning Balance | (616,907) | |
Recognized in net loss | 19,531 | |
Others | (6,613) | |
Ending Balance | (603,989) | |
Lease liability | ||
Income taxes | ||
Beginning Balance | 658,847 | |
Recognized in net loss | (7,400) | |
Others | 12,861 | |
Ending Balance | 664,308 | |
Net capital losses | ||
Income taxes | ||
Beginning Balance | 50,418 | |
Ending Balance | 50,418 | |
Unrecognized deferred tax assets | ||
Income taxes | ||
Beginning Balance | (6,016,278) | |
Recognized in net loss | (5,328,487) | |
Recognized in equity | (134,225) | |
Ending Balance | $ (11,478,990) |
Financial risk management and_3
Financial risk management and fair value measurement - Fair value measurement and hierarchy (Details) - Derivatives - Volatility | 12 Months Ended |
Aug. 31, 2023 CAD ($) | |
Financial risk management and fair value measurement | |
Percentage of fair value of derivative liability to determine remaining contractual life | 75% |
Percentage of reasonably possible increase in unobservable input liabilities | 10% |
Change in fair value of derivatives by percentage of reasonably possible increase in unobservable input liabilities | $ 628,000 |
Financial risk management and_4
Financial risk management and fair value measurement - Maturity analysis of liquidity risk (Details) - CAD ($) | Aug. 31, 2023 | Aug. 31, 2022 |
Financial risk management and fair value measurement | ||
Contractual cash flows | $ 969,859 | $ 1,435,514 |
Less than one year | ||
Financial risk management and fair value measurement | ||
Contractual cash flows | 896,076 | 1,280,255 |
One year to five years | ||
Financial risk management and fair value measurement | ||
Contractual cash flows | 73,783 | 155,259 |
Trade and other payables | ||
Financial risk management and fair value measurement | ||
Contractual cash flows | 550,836 | 1,030,331 |
Trade and other payables | Less than one year | ||
Financial risk management and fair value measurement | ||
Contractual cash flows | 550,836 | 1,030,331 |
Other financial liabilities | ||
Financial risk management and fair value measurement | ||
Contractual cash flows | 113,694 | 177,834 |
Other financial liabilities | Less than one year | ||
Financial risk management and fair value measurement | ||
Contractual cash flows | 113,694 | 177,834 |
Long-term debt | ||
Financial risk management and fair value measurement | ||
Contractual cash flows | 305,329 | 227,349 |
Long-term debt | Less than one year | ||
Financial risk management and fair value measurement | ||
Contractual cash flows | 231,546 | 72,090 |
Long-term debt | One year to five years | ||
Financial risk management and fair value measurement | ||
Contractual cash flows | $ 73,783 | $ 155,259 |
Financial risk management and_5
Financial risk management and fair value measurement - Foreign exchange risk (Details) - CAD ($) | Aug. 31, 2023 | Aug. 31, 2022 |
Trade and other payables | ||
Financial risk management and fair value measurement | ||
Carrying amount of financial instruments | $ 800,149 | $ 172,871 |
Cash | ||
Financial risk management and fair value measurement | ||
Carrying amount of financial instruments | 3,258,419 | 5,142,703 |
Trade and other receivables | ||
Financial risk management and fair value measurement | ||
Carrying amount of financial instruments | $ 188,001 | $ 103,116 |
Financial risk management and_6
Financial risk management and fair value measurement - Sensitivity analysis (Details) - Currency risk | 12 Months Ended |
Aug. 31, 2023 CAD ($) | |
Financial risk management and fair value measurement | |
Percentage of reasonably possible increase in risk assumption | 5% |
Percentage of reasonably possible decrease in risk assumption | (5.00%) |
Increase in net income (loss) due to reasonably possible increase in risk assumption | $ 24,281 |
Decrease in net income (loss) due to reasonably possible decrease in risk assumption | (24,281) |
Increase in other comprehensive income due to reasonably possible increase in risk assumption | 350,586 |
Decrease in other comprehensive income due to reasonably possible decrease in risk assumption | $ (350,586) |
Segment information (Details)
Segment information (Details) | 12 Months Ended | ||
Aug. 31, 2023 CAD ($) segment | Aug. 31, 2022 CAD ($) | Aug. 31, 2021 CAD ($) | |
Segment information | |||
Number of reportable business segments | segment | 2 | ||
Segment revenues | $ 5,651,502 | $ 7,350,946 | $ 3,513,788 |
Segment gross profit (loss) | 1,536,426 | 3,285,565 | 1,604,182 |
Segment (loss) profit before tax | (21,158,061) | (12,853,442) | (15,008,317) |
Research and development | 5,704,912 | 2,242,794 | 1,489,953 |
Office salaries and benefits [note 17] | 4,014,181 | 3,335,799 | 1,754,613 |
Segment assets | 24,046,512 | 29,100,209 | |
Cash | 3,359,257 | 5,824,716 | |
Additions to property and equipment | 938,802 | 1,175,931 | 544,354 |
Segment liabilities | 12,482,075 | 5,071,613 | |
Operating segments | |||
Segment information | |||
Revenue from external customers | 5,651,502 | 7,350,946 | 3,513,788 |
Segment revenues | 5,651,502 | 7,350,946 | 3,513,788 |
Segment gross profit (loss) | 1,536,426 | 3,285,565 | 1,604,182 |
Segment (loss) profit before tax | (21,158,061) | (12,853,442) | |
Research and development | 5,704,912 | 2,242,794 | 15,008,317 |
Office salaries and benefits [note 17] | 4,014,181 | 3,335,799 | 1,489,953 |
Segment assets | 24,046,512 | 29,100,209 | |
Cash | 3,359,257 | 5,824,716 | |
Additions to property and equipment | 983,609 | 1,108,888 | |
Segment liabilities | 12,482,075 | 5,071,613 | |
Inter-segment eliminations | |||
Segment information | |||
Revenue from other segments | (1,203,780) | (901,225) | (149,483) |
Segment revenues | (1,203,780) | (901,225) | (149,483) |
Segment gross profit (loss) | (187,450) | (150,975) | (39,642) |
Segment (loss) profit before tax | (170,367) | (93,852) | |
Research and development | (233,098) | (32,255) | |
Office salaries and benefits [note 17] | (7,739) | ||
Segment assets | (10,239,388) | (9,438,326) | |
Additions to property and equipment | (185,744) | (162,446) | |
Segment liabilities | (1,013,824) | (262,883) | |
Sale of electric boats | Operating segments | |||
Segment information | |||
Revenue from external customers | 1,612,699 | 2,557,086 | 2,158,240 |
Revenue from other segments | 867,097 | 820,383 | 142,007 |
Segment revenues | 2,479,796 | 3,377,469 | 2,300,247 |
Segment gross profit (loss) | (242,590) | 596,570 | 640,228 |
Segment (loss) profit before tax | (20,363,838) | (13,632,377) | |
Research and development | 5,938,010 | 2,242,794 | (15,517,319) |
Office salaries and benefits [note 17] | 2,769,196 | 2,384,746 | 1,489,953 |
Segment assets | 20,344,002 | 24,499,107 | |
Cash | 3,025,565 | 4,146,260 | |
Additions to property and equipment | 194,820 | 412,158 | |
Segment liabilities | 10,154,031 | 2,023,368 | |
Rental of electric boats | Operating segments | |||
Segment information | |||
Revenue from external customers | 4,038,803 | 4,793,860 | 1,355,548 |
Revenue from other segments | 336,683 | 80,842 | 7,476 |
Segment revenues | 4,375,486 | 4,874,702 | 1,363,024 |
Segment gross profit (loss) | 1,966,466 | 2,839,970 | 1,003,596 |
Segment (loss) profit before tax | (623,856) | 872,787 | |
Research and development | $ 541,257 | ||
Office salaries and benefits [note 17] | 1,237,246 | 951,053 | |
Segment assets | 13,941,898 | 14,039,428 | |
Cash | 333,692 | 1,678,456 | |
Additions to property and equipment | 974,533 | 859,176 | |
Segment liabilities | $ 3,341,868 | $ 3,311,128 |
Additional cash flows informa_3
Additional cash flows information (Details) - CAD ($) | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Additional cash flows information. | |||
Advances to related parties converted to shares | $ 898,489 | ||
Unpaid share subscription | 39,200 | ||
Right-of-use assets transferred to intangibles, net of accumulated depreciation | 5,981 | ||
Additions to right-of-use assets | $ 921,498 | $ 234,608 | 852,467 |
Lease termination | $ 101,471 | $ 273,652 | 37,033 |
Shares issued as consideration for the acquisition of intangible assets | 573,936 | ||
Shares issued as consideration for business acquisition | 3,474,232 | ||
Transaction costs for share issuance transferred from prepaid | $ 213,019 |
Commitments (Details)
Commitments (Details) | Aug. 31, 2023 CAD ($) |
2024 | |
Commitments | |
Amount of the minimum fixed and determinable portion of the unconditional purchase obligations over the next years | $ 10,943,420 |
Commitments - Summary of undisc
Commitments - Summary of undiscounted lease commitments (Details) | Aug. 31, 2023 CAD ($) |
2024 | |
Commitments | |
Undiscounted lease commitments | $ 67,675 |
2025 | |
Commitments | |
Undiscounted lease commitments | 163,774 |
2026 | |
Commitments | |
Undiscounted lease commitments | 167,049 |
2027 and thereafter | |
Commitments | |
Undiscounted lease commitments | $ 446,736 |
Subsequent events (Details)
Subsequent events (Details) | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||
Sep. 20, 2023 CAD ($) $ / shares shares | Aug. 02, 2023 $ / shares shares | Jun. 16, 2023 $ / shares shares | Apr. 19, 2023 $ / shares shares | Feb. 17, 2023 $ / shares shares | Jan. 19, 2023 $ / shares shares | Aug. 05, 2022 $ / shares shares | Nov. 23, 2020 $ / shares shares | Nov. 30, 2023 shares | Oct. 31, 2023 shares | Sep. 30, 2023 shares | Aug. 31, 2023 CAD ($) shares | Aug. 31, 2022 CAD ($) | Aug. 31, 2021 CAD ($) | Aug. 31, 2023 $ / shares | Aug. 02, 2023 $ / shares | Jun. 16, 2023 $ / shares | Apr. 19, 2023 $ / shares | Feb. 17, 2023 $ / shares | Jan. 19, 2023 $ / shares | Aug. 05, 2022 $ / shares | Nov. 23, 2020 $ / shares | |
Subsequent events | ||||||||||||||||||||||
Transaction costs | $ | $ 800,744 | $ 0 | $ 0 | |||||||||||||||||||
Number of warrants to purchase voting common shares issued | 493,832 | 493,828 | 381,293 | 475,059 | 554,253 | 50,000 | 151,800 | 2,398,265 | ||||||||||||||
Warrants exercise term | 3 years | 3 years | 3 years | 3 years | 3 years | 4 years | 5 years | 3 years | ||||||||||||||
Exercise price of warrants | (per share) | $ 4.21 | $ 4.21 | $ 4.21 | $ 4.21 | $ 4.21 | $ 8 | $ 12.50 | $ 4.21 | $ 5.37 | $ 5.35 | $ 5.64 | $ 5.67 | $ 5.63 | $ 10.30 | $ 16.53 | |||||||
Issue of voting common shares | ||||||||||||||||||||||
Subsequent events | ||||||||||||||||||||||
Shares issued for services | 103,650 | 103,650 | 103,650 | |||||||||||||||||||
Number of shares and warrants issued | 372,870 | |||||||||||||||||||||
Proceeds from issuing shares and warrants | $ | $ 1,695,388 | |||||||||||||||||||||
Transaction costs | $ | $ 334,672 | |||||||||||||||||||||
Number of warrants to purchase voting common shares issued | 372,870 | |||||||||||||||||||||
Warrants exercise term | 3 years | |||||||||||||||||||||
Exercise price of warrants | $ / shares | $ 4.05 |