Document and Entity Information
Document and Entity Information | 9 Months Ended |
May 31, 2023 | |
Document and Entity Information | |
Document Type | F-1 |
Entity Registrant Name | VISION MARINE TECHNOLOGIES INC. |
Amendment Flag | false |
Entity Central Index Key | 0001813783 |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Consolidated statements of fina
Consolidated statements of financial position - CAD ($) | May 31, 2023 | Aug. 31, 2022 | May 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 |
Current | ||||||
Cash | $ 1,536,064 | $ 5,824,716 | $ 18,147,821 | |||
Trade and other receivables | 583,390 | 472,548 | 319,740 | |||
Inventories | 2,719,508 | 2,093,776 | 1,976,084 | |||
Prepaid expenses | 1,005,283 | 2,472,301 | 544,843 | |||
Grants and investment tax credits receivable | 681,663 | 108,302 | ||||
Share subscription receivable | 39,200 | 39,200 | 39,200 | |||
Advances to related parties | 20,262 | 16,736 | 185,407 | |||
Total current assets | 6,087,806 | 11,600,940 | 21,321,397 | |||
Debentures | 2,435,000 | 2,850,000 | ||||
Right-of-use assets | 2,613,667 | 2,261,100 | 2,905,199 | |||
Property and equipment | 2,354,863 | 2,218,982 | 1,414,509 | |||
Intangibles | 1,006,063 | 1,112,670 | 1,225,722 | |||
Deferred income taxes | 17,547 | |||||
Goodwill | 9,726,002 | 9,352,640 | 9,033,638 | |||
Other financial assets | 115,291 | 118,877 | 33,280 | |||
Total assets | 21,903,692 | 29,100,209 | 38,801,292 | |||
Current | ||||||
Trade and other payables | 1,777,861 | 1,030,331 | 848,054 | |||
Income tax payable | 3,188 | 138,308 | ||||
Contract liabilities | 850,042 | 1,029,318 | 898,713 | |||
Current portion of lease liabilities | 673,267 | 561,168 | 562,136 | |||
Current portion of long-term debt | 293,980 | 72,090 | 10,179 | |||
Other financial liabilities | 130,540 | 177,834 | 237,444 | |||
Total current liabilities | 3,960,690 | 2,873,929 | 2,694,834 | |||
Lease liabilities | 2,151,685 | 1,854,381 | 2,404,680 | |||
Long-term debt | 96,714 | 155,259 | 53,936 | |||
Deferred income taxes | 151,112 | 188,044 | 122,655 | |||
Total liabilities | 9,613,225 | 5,071,613 | 5,276,105 | |||
Shareholders' equity | ||||||
Capital stock | 46,851,134 | 43,441,591 | 42,834,982 | |||
Contributed surplus | 11,600,738 | 10,560,886 | 7,861,405 | |||
Accumulated other comprehensive income | 1,093,086 | 697,671 | 388,566 | |||
Deficit | (47,254,491) | (30,671,552) | (17,559,766) | |||
Total shareholders' equity | 12,290,467 | 24,028,596 | $ 27,451,318 | 33,525,187 | $ 791,915 | $ (132,302) |
Total shareholders' equity and liabilities | $ 21,903,692 | $ 29,100,209 | $ 38,801,292 |
Consolidated statements of chan
Consolidated statements of changes in shareholders' equity (deficit) - CAD ($) | Issued Capital [Member] Ipo [Member] | Issued Capital [Member] | Capital Stock to be issued | Reserve Of Share based Payments [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Ipo [Member] | Total |
Shareholders' equity beginning at Aug. 31, 2019 | $ 525 | $ 37,500 | $ (170,327) | $ (132,302) | ||||
Shareholders' equity beginning (in shares) at Aug. 31, 2019 | 3,275,555 | |||||||
Net and comprehensive loss | (2,275,532) | (2,275,532) | ||||||
Net of transactions cost | $ 2,497,288 | $ 37,500 | 2,459,788 | |||||
Net of transactions costs (in shares) | 1,309,446 | |||||||
Share-based compensation | $ 739,961 | 739,961 | ||||||
Shareholders' equity ending at Aug. 31, 2020 | $ 2,497,813 | 739,961 | (2,445,859) | 791,915 | ||||
Shareholders' equity ending (in shares) at Aug. 31, 2020 | 4,585,001 | |||||||
Net and comprehensive loss | (15,113,907) | $ 388,566 | (14,725,341) | |||||
Net of transactions cost | $ 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 | $ 898,489 | 898,489 | ||||||
Conversion of related party loans into shares (in shares) | 69,650 | |||||||
Shares issued as consideration for the acquisition of intangible assets | $ 573,936 | 573,936 | ||||||
Shares issued as consideration for the acquisition of intangible assets (in shares) | 30,000 | |||||||
Shares issued as consideration in a business combination | $ 3,474,232 | 3,474,232 | ||||||
Shares issued as consideration in a business combination (in shares) | 284,495 | |||||||
Share-based compensation | 7,121,444 | 7,121,444 | ||||||
Shareholders' equity ending at Aug. 31, 2021 | $ 42,834,982 | 7,861,405 | (17,559,766) | 388,566 | 33,525,187 | |||
Shareholders' equity ending (in shares) at Aug. 31, 2021 | 8,324,861 | |||||||
Net and comprehensive loss | (9,065,927) | 3,782 | (9,062,145) | |||||
Net of transactions cost | $ 442,556 | 442,556 | ||||||
Net of transactions costs (in shares) | 65,720 | |||||||
Share-based compensation | 2,545,720 | 2,545,720 | ||||||
Shareholders' equity ending at May. 31, 2022 | $ 43,277,538 | 10,407,125 | (26,625,693) | 392,348 | 27,451,318 | |||
Shareholders' equity ending (in shares) at May. 31, 2022 | 8,390,581 | |||||||
Shareholders' equity beginning at Aug. 31, 2021 | $ 42,834,982 | 7,861,405 | (17,559,766) | 388,566 | 33,525,187 | |||
Shareholders' equity beginning (in shares) at Aug. 31, 2021 | 8,324,861 | |||||||
Net and comprehensive loss | (13,111,785) | 309,105 | (12,802,680) | |||||
Net of transactions cost | $ 606,609 | 606,609 | ||||||
Net of transactions costs (in shares) | 93,062 | |||||||
Share-based compensation | 2,699,481 | 2,699,481 | ||||||
Shareholders' equity ending at Aug. 31, 2022 | $ 43,441,591 | 10,560,886 | (30,671,552) | 697,671 | 24,028,596 | |||
Shareholders' equity ending (in shares) at Aug. 31, 2022 | 8,417,923 | |||||||
Net and comprehensive loss | (16,582,939) | 395,415 | (16,187,524) | |||||
Net of transactions cost | $ 3,378,594 | 3,378,594 | ||||||
Net of transactions costs (in shares) | 1,509,005 | |||||||
Share-based compensation | 1,052,090 | 1,052,090 | ||||||
Shareholders' equity ending at May. 31, 2023 | $ 46,851,134 | $ 11,600,738 | $ (47,254,491) | $ 1,093,086 | $ 12,290,467 | |||
Shareholders' equity ending (in shares) at May. 31, 2023 | 9,931,985 |
Consolidated statements of ch_2
Consolidated statements of changes in shareholders' equity (deficit) (Parenthetical) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
May 31, 2023 USD ($) | May 31, 2023 CAD ($) | May 31, 2023 USD ($) | May 31, 2022 CAD ($) | Aug. 31, 2022 CAD ($) | Aug. 31, 2021 CAD ($) | Aug. 31, 2020 CAD ($) | |
Transaction costs | $ 101,942 | $ 285,832 | $ 774,759 | $ 0 | $ 0 | $ 0 | $ 320,230 |
Ipo [Member] | |||||||
Transaction costs | $ 3,328,687 |
Consolidated statements of comp
Consolidated statements of comprehensive loss - CAD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Consolidated statement of comprehensive loss | |||||||
Revenues | $ 1,300,100 | $ 2,014,769 | $ 3,531,055 | $ 3,975,140 | $ 7,350,946 | $ 3,513,788 | $ 2,417,173 |
Cost of sales | 927,749 | 890,649 | 2,785,104 | 2,079,821 | 4,065,381 | 1,909,606 | 1,812,783 |
Gross profit | 372,351 | 1,124,120 | 525,951 | 1,895,319 | 3,285,565 | 1,604,182 | 604,390 |
Expenses | |||||||
Research and development | 751,674 | 32,670 | 5,072,428 | 50,179 | 2,242,794 | 1,489,953 | |
Office salaries and benefits | 899,864 | 968,126 | 2,725,049 | 2,571,948 | 3,335,799 | 1,754,613 | 315,138 |
Selling and marketing expenses | 620,015 | 356,660 | 1,760,596 | 1,496,935 | 1,972,306 | 1,086,057 | 238,389 |
Professional fees | 1,234,357 | 571,452 | 2,814,576 | 2,452,900 | 3,590,816 | 1,633,477 | 671,788 |
Office and general | 734,996 | 551,633 | 2,132,247 | 1,485,823 | 1,949,583 | 1,239,457 | 194,932 |
Share-based compensation | 628,923 | 367,054 | 1,052,090 | 2,545,720 | 2,699,481 | 7,121,444 | 1,312,071 |
Depreciation | 205,690 | 52,758 | 421,533 | 178,217 | 268,490 | 184,855 | 27,895 |
Net finance expense | (1,413,084) | 99,608 | (1,230,217) | 213,419 | 223,660 | 2,256,392 | 108,400 |
Other income | (143,922) | (153,749) | (10,000) | ||||
Operating expense | 3,669,418 | 2,978,074 | 17,317,875 | 10,908,265 | 16,139,007 | 16,612,499 | 2,858,613 |
Loss before tax | (3,297,067) | (1,853,954) | (16,791,924) | (9,012,946) | (12,853,442) | (15,008,317) | (2,254,223) |
Income taxes | |||||||
Current tax expense | (201,848) | 86,078 | (171,848) | 52,257 | 182,854 | 131,403 | |
Deferred tax expense (recovery) | 7 | (37,137) | 724 | 75,489 | (25,813) | 21,309 | |
Total income tax expense | (201,848) | 86,085 | (208,985) | 52,981 | 258,343 | 105,590 | 21,309 |
Net loss for the period | (3,095,219) | (1,940,039) | (16,582,939) | (9,065,927) | (13,111,785) | (15,113,907) | (2,275,532) |
Items of comprehensive income that will be subsequently reclassified to earnings: | |||||||
Foreign currency translation differences for foreign operations, net of tax | 38,580 | (40,044) | 395,415 | 3,782 | 309,105 | 388,566 | |
Other comprehensive income (loss), net of tax | 38,580 | (40,044) | 395,415 | 3,782 | 309,105 | 388,566 | |
Total comprehensive loss for the period, net of tax | $ (3,056,639) | $ (1,980,083) | $ (16,187,524) | $ (9,062,145) | $ (12,802,680) | $ (14,725,341) | $ (2,275,532) |
Weighted average shares outstanding, Basic | 9,709,759 | 8,380,461 | 8,860,666 | 8,318,525 | 8,318,121 | 7,412,899 | 4,179,017 |
Weighted average shares outstanding, Diluted | 9,709,759 | 8,380,461 | 8,860,666 | 8,318,525 | 8,318,121 | 7,412,899 | 4,179,017 |
Basic loss per share | $ (0.32) | $ (0.23) | $ (1.87) | $ (1.09) | $ (1.58) | $ (2.04) | $ (0.56) |
Diluted loss per share | $ (0.32) | $ (0.23) | $ (1.87) | $ (1.09) | $ (1.58) | $ (2.04) | $ (0.56) |
Consolidated statements of cash
Consolidated statements of cash flows - CAD ($) | 9 Months Ended | 12 Months Ended | |||
May 31, 2023 | May 31, 2022 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Operating activities | |||||
Net loss | $ (16,582,939) | $ (9,065,927) | $ (13,111,785) | $ (15,113,907) | $ (2,275,532) |
Depreciation | 792,625 | 722,679 | 955,513 | 417,050 | 170,182 |
Accretion on long-term debt and lease liability | 119,639 | 110,380 | 157,270 | 70,379 | 5,905 |
Share-based compensation - capital stock | 572,110 | ||||
Share-based compensation - options | 1,052,090 | 2,545,720 | 2,699,481 | 7,121,444 | 739,961 |
Shares issued for services | 590,303 | 442,556 | 596,608 | 109,069 | 26,533 |
Net loss on debentures | 2,435,000 | 436,500 | 330,000 | 550,000 | |
Government grant | (3,666) | ||||
Interest income received | 85,000 | ||||
Income tax expense | (208,985) | 52,981 | 258,343 | 105,590 | 21,310 |
Income tax received | 13,415 | ||||
Income tax paid | (14,040) | (295,025) | (373,196) | ||
Non-cash lease | 19,137 | ||||
Gain on lease termination | (50,991) | (3,668) | (5,652) | (7,230) | |
Effect of exchange rate fluctuation | 79,761 | (17,463) | 17,398 | (6,542) | |
Operating activities before working capital items | (13,312,365) | (5,071,267) | (8,391,020) | (6,740,732) | (724,060) |
Net change in non-cash working capital items | |||||
Trade and other receivables | (110,842) | (205,369) | (152,808) | (232,715) | 22,757 |
Inventories | (625,732) | (1,266,366) | (117,692) | (1,471,693) | 327,284 |
Grants and investment tax credits receivable | 681,663 | (737,613) | (573,361) | 293,937 | (2,160) |
Other financial assets | 3,586 | (81,769) | (85,597) | (25,595) | |
Prepaid expenses | 1,467,019 | (2,778,820) | (1,927,459) | (552,196) | (162,384) |
Trade and other payables | 747,530 | 22,235 | 182,277 | 96,615 | 263,534 |
Contract liabilities | (179,276) | 654,818 | 130,605 | 396,097 | (159,629) |
Other financial liabilities | (47,293) | (49,773) | (61,764) | (15,156) | |
Cash used in operating activities | (11,375,710) | (9,513,924) | (10,996,819) | (8,251,438) | (434,658) |
Investing activities | |||||
Subscription to debentures | (3,400,000) | ||||
Business acquisition, net of cash acquired | (5,029,416) | ||||
Additions to property and equipment | (834,296) | (680,536) | (1,108,888) | (544,354) | (77,966) |
Advances to related parties | 40,310 | ||||
Proceeds from the disposal of property and equipment | 401,782 | 46,346 | 243,630 | 34,101 | |
Additions to intangible assets | (32,202) | (32,202) | (528,726) | ||
Cash used in investing activities | (432,514) | (666,392) | (964,503) | (9,468,395) | (37,656) |
Financing activities | |||||
Change in bank indebtedness | (170,000) | (113,813) | |||
Addition in Long-term debts | 258,000 | 282,424 | 282,424 | 280,000 | |
Repayment of long-term debt | (113,242) | (54,455) | (135,230) | (419,090) | (13,992) |
Advances to related parties | 176,771 | 176,771 | (151,575) | ||
Initial public offering, net of transaction costs paid | 33,430,239 | ||||
Issuance of shares, net of transaction costs paid | 2,025,000 | 1,898,645 | |||
Shares issued upon options conversion | 10,001 | ||||
Subscriptions to capital stock received in advance of issuance | (37,500) | ||||
Repayment of lease liabilities | (533,270) | (516,393) | (695,749) | (295,316) | (130,130) |
Cash provided (used) by financing activities | 7,519,572 | (111,653) | (361,783) | 34,570,833 | 1,731,635 |
Net decrease in cash during the period | (4,288,652) | (10,291,969) | (12,323,105) | 16,851,000 | 1,259,321 |
Cash, beginning of year | 5,824,716 | 18,147,821 | 18,147,821 | 1,296,821 | 37,500 |
Cash, end of year | $ 1,536,064 | $ 7,855,852 | $ 5,824,716 | $ 18,147,821 | $ 1,296,821 |
Incorporation and nature of bus
Incorporation and nature of business | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
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 fluctuates 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. | 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 | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Basis of preparation | ||
Basis of preparation | 2. Basis of preparation Compliance with IFRS These condensed interim consolidated financial statements are for the three and nine months ended May 31, 2023 and have been prepared in accordance with IAS 34: Interim Financial Reporting. They do not include all of the information required in annual financial statements in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and should be read in conjunction with the consolidated financial statements for the year ended August 31, 2022. The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Company’s annual consolidated financial statements for the year ended August 31, 2022. The condensed interim consolidated financial statements were authorized for issuance by the Board of Directors on July 12, 2023. Basis of measurement These condensed interim consolidated financial statements are presented in Canadian dollars and were prepared on a historical cost basis. Basis of consolidation The condensed interim 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 % Foreign currency translation The Company’s condensed interim consolidated financial statements are presented in Canadian dollars, which is also the parent company’s functional currency. The functional currencies of 7858078 Canada Inc. is the Canadian dollar and EB Rental Ltd., EB Rental Ventura Corp. and Vision Marine Technologies Corp. is the US dollar. The exchange rates for the currencies used in the preparation of the interim condensed consolidated financial statements were as follows: Average exchange Exchange rate as at rate for May 31, August 31, Nine months ended 2023 2022 May 31, 2023 US dollar 1.3598 1.3076 1.3511 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 judgments, estimates and assumptions are considered significant to the condensed interim consolidated financial statements remain unchanged to the 2022 annual financial statements. | 2. Basis of preparation 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, 2022. The consolidated financial statements were authorized for issue by the Board of Directors on November 22, 2022. Basis of measurement These consolidated financial statements are presented in Canadian dollars and were prepared on a historical cost basis. 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% 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, 2022 | |
Significant accounting policies | |
Significant accounting policies | 3. Significant accounting policies Business combination Business combinations are accounted for using the acquisition method when the acquired set of activities and assets meets the definition of a business and control is transferred to the Company. In determining whether a particular set of activities and assets is a business, the Company assesses whether the set of assets and activities acquired includes, at a minimum, an input and substantive process and whether the acquired set has the ability to produce outputs. The Company has an option to apply a ‘concentration test’ that permits a simplified assessment of whether an acquired set of activities and assets is not a business. The optional concentration test is met if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. The consideration transferred in the acquisition is measured at fair value at the acquisition date, as are the identifiable net assets acquired. The Company assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. Subsequent adjustments to the fair values of identifiable net assets acquired are adjusted against the consideration transferred when they qualify as measurement period adjustments. Transaction costs are expensed as incurred. Cash and cash equivalents Cash and cash equivalents include cash in hand, cash held in trust, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less, and – for the purpose of the statement of cash flows – bank overdrafts. Bank overdrafts are shown within bank indebtedness in current liabilities on the consolidated statement of financial position. 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 are determined after deducted 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 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, 2022, 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 income (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 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. 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”]. 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. 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 . 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 income (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 loss 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, 2022 2021 2022 2021 US dollar 1.3076 1.2630 1.2717 1.2688 Taxes Tax expense comprises current and deferred tax. Tax is recognized in net income (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. The weighted average number of common stock outstanding is increased by the number of additional common stock that would have been issued by the Company assuming exercise of all options with exercise prices below the average market price for the year. 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. 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 are effective for annual reporting periods beginning on or after January 1, 2022. The amendments are not expected to 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. |
Significant accounting estimate
Significant accounting estimates and assumptions | 12 Months Ended |
Aug. 31, 2022 | |
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. Business acquisition fair value The Company makes a number of estimates when determining the acquisition date fair values of consideration transferred, assets acquired, and liabilities assumed in a business acquisition. Fair values are estimated using valuation techniques based on discounted future cash flows. Future cash flows may be influenced by a number of assumptions such as forecasted revenues, royalty rate, selling prices, costs to operate, capital expenditures, growth rate and the discount rate. 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, 2021, 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, 2022, 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 27% 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. 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. |
Business combination
Business combination | 12 Months Ended |
Aug. 31, 2022 | |
Business combination | |
Business combination | 5. Business combination On June 3, 2021, the Company completed the acquisition of EB Rental Ltd. [“EBR”] by acquiring all the issued and outstanding 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 [note 18] The acquisition gave rise to transaction costs of $13,170 which were expensed as incurred in the consolidated statements of comprehensive loss. The investment was accounted for as a business combination and the results have been included in the consolidated statements of comprehensive loss since the date of the acquisition. The revenues and net earnings included in the consolidated statements of comprehensive loss are approximately $1,360,000 and $530,000 respectively for the 90-day period ended August 31, 2021. The following table reflects the recognized amounts of assets acquired and liabilities assumed, on a fair value basis, at the acquisition date: June 3, 2021 $ Fair value at acquisition Cash 516,623 Trade and other receivables 7,998 Income tax receivable 9,963 Inventories 12,864 Prepaids 34,687 Advances to related parties 177,671 Other financial assets 7,685 Right-of-use asset 1,651,746 Property and equipment 417,554 Intangible assets 184,000 Deferred tax asset 18,467 Goodwill 8,656,700 Trade and other payables (111,602) Income tax payable (1,952) Contract liabilities (482,173) Other financial liabilities (242,060) Long-term debt, including current portion (66,204) Lease liability, including current portion (1,651,746) Deferred tax liability (119,950) Net assets acquired 9,020,271 The Company measured the acquired lease liabilities using the present value of the remaining lease payments at the date of acquisition. The right-of-use assets were measured at an amount equal to the lease liabilities and adjusted to reflect the favorable terms of the lease relative to market terms, if any. The fair value of the intangible assets, which consist in trade name, backlog and website, was calculated using a discounted cash flow approach. The fair value of property and equipment was established using a market value approach. The goodwill related to the acquisition of EBR arises from the benefits of increasing our strategic position by expanding our market presence, expected synergies and integrating an assembled workforce that does not qualify for separate recognition. The goodwill is not deductible for tax purposes. The balance of goodwill is at $9,352,640 at August 31, 2022 [2021 – $9,033,638], with the change since acquisition date due to foreign exchange translation. |
Trade and other receivables
Trade and other receivables | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Trade and other receivables | ||
Trade and other receivables | 3. Trade and other receivables As at As at May 31, August 31, 2023 2022 $ $ Trade receivables 396,367 108,716 Sales taxes receivable 183,272 194,523 Interest and other receivables 3,751 169,309 583,390 472,548 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 May 31, 2023, trade receivables of $396,367 [August 31, 2022 – $31,091] were past due but not impaired. They relate to customers with no default history. The aging analysis of these receivables is as follows: As at As at May 31, August 31, 2023 2022 $ $ 0 – 30 — 77,625 31 – 60 101,047 — 61 – 90 5,006 14,212 91 and over 290,314 16,879 396,367 108,716 There were no movements in the allowance for expected credit losses for the three and nine months ended May 31, 2023 and the year ended August 31, 2022. | 6. Trade and other receivables 2022 2021 $ $ Trade receivables 108,716 27,388 Sales taxes receivable 194,523 166,749 Other receivables 169,309 125,603 472,548 319,740 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, 2022, trade receivables of $31,091 [2021 – $27,388] were past due but not impaired. They relate to customers with no default history. The aging analysis of these receivables is as follows: 2022 2021 $ $ 0 – 30 77,625 — 31 – 60 — 2,008 61 – 90 14,212 25,380 91 and over 16,879 — 108,716 27,388 There were no movements in the allowance for expected credit losses for years ended August 31, 2022 and August 31, 2021. |
Inventories
Inventories | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Inventories | ||
Inventories | 4. Inventories As at As at May 31, August 31, 2023 2022 $ $ Raw materials 1,926,581 1,709,368 Work-in-process 125,172 75,170 Finished goods 667,755 309,238 2,719,508 2,093,776 For the three and nine months ended May 31, 2023, inventories recognized as an expense amounted to $401,021 and $2,258,376 respectively [May 31, 2022 – $890,649 and $2,079,821 respectively]. For the three and nine months ended May 31, 2023, cost of sales includes depreciation of $4,273 and $318,398 respectively [May 31, 2022 – $188,152 and $544,462 respectively]. | 7. Inventories 2022 2021 $ $ Raw materials 1,709,368 1,549,125 Work-in-process 75,170 327,757 Finished goods 309,238 99,202 2,093,776 1,976,084 For the year ended August 31, 2022, inventories recognized as an expense amounted to $4,065,381 [2021 – $1,909,606; 2020 – $812,783]. For the year ended August 31, 2022, cost of sales includes depreciation of $687,023 [2021 – $232,195; 2020 - $142,336]. |
Debentures
Debentures | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Debentures. | ||
Debentures | 5. Debentures 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 a Chapter 7 of the Bankruptcy Code in the U.S. As a result, the Company recorded an impairment on the entire value of the Debentures at the amount of nil and $2,637,000 in the three and nine months ended May 31, 2023 [May 31, 2022 – nil]. For the three and nine months ended May 31, 2023, the Company recorded a loss of nil and $109,667 respectively [May 31, 2022 – $115,000 and $436,500 respectively] in net finance expense for change in the fair value of the Debentures [ note 19 | 8. Debentures 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 The Debentures are carried at fair value through profit and loss and are considered as Level 2 financial instruments in the fair value hierarchy. For the year ended August 31, 2022, the Company recorded a loss of $670,000 [2021 - $550,000; 2020 - Nil] for the change in fair value of the Debentures and interest income of $340,000 [2021 - $85,000; 2020 - Nil] in net income (loss) as a net financial expense. Subsequent to year end, Limestone announced that it has implemented significant cost savings measures, as well as the withdrawal of its previously proposed debt financings. As Limestone continues to pursue alternative liquidity and financing proposals, these factors may have a negative impact on the key assumptions described in Note 25 used by the Company to determine the fair value of the Debentures subsequent to the reporting date. Although the estimates of the fair value of the Debentures as at August 31, 2022 are based on management’s best knowledge and estimates of the amount, events or actions at that time, the valuation in future periods ultimately may differ from those estimates. |
Right-of-use assets
Right-of-use assets | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Right-of-use assets | ||
Right-of-use assets | 6. Right-of-use assets Computer Rolling Boat rental Premises equipment 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 922,479 — — — 922,479 Disposals — — (46,200) (127,868) (174,068) Transferred to property and equipment — (3,646) — (41,161) (44,807) Currency translation 44,154 — 2,100 — 46,254 Balance at May 31, 2023 3,846,672 — 43,920 42,430 3,933,022 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 448,738 768 20,155 21,442 491,103 Disposal — (3,646) (13,475) (76,691) (93,812) Balance at May 31, 2023 1,271,145 — 26,995 21,215 1,319,355 Net carrying amount As at August 31, 2022 2,057,632 768 67,705 134,995 2,261,100 As at May 31, 2023 2,575,527 — 16,925 21,215 2,613,667 | 9. Right-of-use assets Computer Boat rental Premises equipment Rolling stock fleet Total $ $ $ $ $ Cost Balance at August 31, 2020 737,066 11,333 38,699 — 787,098 Business acquisition 1,281,308 3,646 39,924 326,868 1,651,746 Additions 672,731 — 179,736 — 852,467 Disposals — — (57,475) — (57,475) Transfer to intangible assets — (11,333) — — (11,333) Currency translation 55,013 — 1,652 — 56,665 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 Accumulated depreciation Balance at August 31, 2020 117,806 4,231 12,094 — 134,131 Depreciation 216,551 1,697 30,527 24,087 272,862 Disposal — — (27,672) — (27,672) Transfer to intangible assets — (5,352) — — (5,352) 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 Net carrying amount As at August 31, 2021 2,411,761 3,070 187,587 302,781 2,905,199 As at August 31, 2022 2,057,632 768 67,705 134,995 2,261,100 During the year ended August 31, 2021, the Company paid in full a lease liability related with a computer software that was previously included in the right-of-use assets. As a result, the Company transferred the asset to intangible assets at its net book value of $5,981 [note 11] |
Property and equipment
Property and equipment | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Property and equipment. | ||
Property and equipment | 7. Property and equipment Machinery Boat and Rolling Computer Leasehold rental equipment stock equipment Moulds improvements 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 41,209 69,350 565 30,501 87,959 604,712 834,296 Transferred from right-of-use assets — — 3,646 — — 41,161 44,807 Disposals — (67,043) — — — (467,151) (534,194) Currency translation — (2,347) — — — (67,771) (70,118) Balance at May 31, 2023 374,293 118,624 25,243 942,425 352,315 1,082,428 2,895,328 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 23,305 24,483 3,431 28,273 52,282 51,318 183,092 Disposal — (7,542) — — — (36,640) (44,182) Balance at May 31, 2023 221,109 46,940 16,234 101,301 96,787 58,094 540,465 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 May 31, 2023 153,184 71,684 9,009 841,124 255,528 1,024,334 2,354,863 | 10. Property and equipment Machinery and Rolling Computer Leasehold Boat equipment stock equipment Moulds improvements rental fleet Total $ $ $ $ $ $ $ Cost Balance at August 31, 2020 187,850 32,175 8,436 506,172 34,818 — 769,451 Business acquisition — — — — — 417,554 417,554 Additions 115,088 — 6,211 214,833 96,415 111,807 544,354 Disposals — — — (30,000) — (34,101) (64,101) Currency translation — — — — — 18,057 18,057 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 Accumulated depreciation Balance at August 31, 2020 148,156 21,014 4,556 57,660 — — 231,386 Depreciation 19,448 3,348 3,842 22,760 11,579 8,443 69,420 Disposal — — — (30,000) — — (30,000) 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 Net carrying amount As at August 31, 2021 135,334 7,813 6,249 640,585 119,654 504,874 1,414,509 As at August 31, 2022 135,280 88,665 8,229 838,896 219,851 928,061 2,218,982 As at August 31, 2022, moulds of $346,752 [August 31, 2021 – $125,833] are not depreciated because they are not ready for use. |
Intangible assets
Intangible assets | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Intangible assets and goodwill | ||
Intangible assets | 8. Intangible assets and goodwill 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 May 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 77,631 9,690 15,370 12,726 3,014 118,431 Balance at May 31, 2023 236,720 34,390 29,809 32,556 5,833 339,308 Net carrying amount As at August 31, 2022 875,981 77,075 83,855 59,720 16,039 1,112,670 As at May 31, 2023 798,350 67,385 74,542 51,550 14,236 1,006,063 The balance of goodwill is at $9,726,002 at May 31, 2023 [August 31, 2022 – $9,352,640], with the change since acquisition date due to foreign exchange translation. | 11. Intangible assets Intellectual Trade property Software name Backlog Website Total $ $ $ $ $ $ Cost Balance at August 31, 2020 — — — — — — Business acquisition — — 90,000 76,000 18,000 184,000 Transfer from Right-of-use assets — 5,981 — — — 5,981 Additions 1,035,070 67,592 — — — 1,102,662 Currency translation — — 3,856 3,220 771 7,847 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 Accumulated depreciation Balance at August 31, 2020 — — — — — — Depreciation 55,581 7,107 4,633 6,520 927 74,768 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 Net carrying amount As at August 31, 2021 979,489 66,466 89,223 72,700 17,844 1,225,722 As at August 31, 2022 875,981 77,075 83,855 59,720 16,039 1,112,670 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] As at August 31, 2022, software of $Nil [August 31, 2021 – $42,677] are not depreciated because they are not ready for use. |
Credit facility
Credit facility | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Credit facility | ||
Credit facility | 9. Credit facility The Company has an authorized line of credit of $250,000 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 May 31, 2023, the Company has drawn an amount of $235,000 [August 31, 2022 – Nil] on the line of credit. | 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, 2022, the Company has drawn an amount of Nil [2021 – Nil] on the line of credit. |
Trade and other payables
Trade and other payables | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Trade and other payables. | ||
Trade and other payables | 10. Trade and other payables As at As at May 31, August 31, 2023 2022 $ $ Trade payable 1,473,770 737,946 Sales taxes payable 53,762 21,547 Government remittances — 9,450 Salaries and vacation payable 250,329 261,388 1,777,861 1,030,331 | 13. Trade and other payables 2022 2021 $ $ Trade payable 737,946 560,870 Sales taxes payable 21,547 34,076 Government remittances 9,450 46,030 Salaries and vacation payable 261,388 207,078 1,030,331 848,054 |
Contract liabilities
Contract liabilities | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Contract liabilities | ||
Contract liabilities | 11. Contract liabilities $ $ Opening balance as at August 31, 2022 and 2021 1,029,318 898,713 Payments received in advance 917,935 2,502,080 Boat sales deposits 152,277 87,609 Payments reimbursed (8,159) (2,615) Transferred to revenues (1,277,728) (2,475,307) Currency translation 36,399 18,838 Closing balance as at May 31, 2023 and August 31, 2022 850,042 1,029,318 | 14. Contract liabilities 2022 2021 $ $ Opening balance 898,713 20,443 Business acquisition — 482,173 Payments received in advance 2,502,080 1,199,958 Boat sale deposits 87,609 — Payments reimbursed (2,615) (37,842) Transferred to revenues (2,475,307) (766,019) Currency translation 18,838 — Closing balance 1,029,318 898,713 |
Lease liabilities
Lease liabilities | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Lease liabilities | ||
Lease liabilities | 12. Lease liabilities $ $ Opening balance as at August 31, 2022 and 2021 2,415,549 2,966,816 Additions 1,023,090 234,608 Repayment (533,270) (695,749) Interest on lease liability 101,052 141,994 Lease termination (131,247) (273,652) Currency translation (50,222) 41,532 Closing balance as at May 31, 2023 and August 31, 2022 2,824,952 2,415,549 Current 673,267 561,168 Non-current 2,151,685 1,854,381 2,824,952 2,415,549 Future undiscounted lease payments as at May 31, 2023 are as follows: $ Less than one year 742,792 One to five years 2,356,711 3,099,503 | 15. Lease liabilities 2022 2021 $ $ Opening balance 2,966,816 672,988 Business acquisition [note 5] — 1,651,746 Additions 234,608 852,467 Repayment (695,749) (295,316) Interest on lease liability 141,994 65,115 Lease termination (273,652) (37,033) Currency translation 41,532 56,849 Closing balance 2,415,549 2,966,816 Current 561,168 562,136 Non-current 1,854,381 2,404,680 2,415,549 2,966,816 Future undiscounted lease payments as at August 31, 2022 are as follows: $ Less than one year 670,125 One to five years 2,006,295 2,676,420 Included in rent expense is $58,663 of short-term lease expense [2021 – $50,186, 2020 - $65,934]. The lease liabilities have a weighted average interest rate of 5.4% [2021 – 5.2%, 2020 – 5.4%]. |
Long-term debt
Long-term debt | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Long-term debt. | ||
Long-term debt | 13. Long-term debt As at As at May 31, August 31, 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 9.44% and 12.90% per annum payable in monthly installments of $23,337 ending January 2025. 350,694 188,007 390,694 227,349 Current portion of long-term debt 293,980 72,090 96,714 155,259 | 16. Long-term debt 2022 2021 $ $ 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. 39,342 36,972 Term loan bearing interest at a rate of 5.80% per annum payable in monthly installments of $848 until April 2024. — 27,143 Term loans, bearing interest at rates varying between 9.44% and 10.71%, repayable in monthly instalments of $7,372, ending January 2025. 188,007 — 227,349 64,115 Current portion of long-term debt 72,090 10,179 155,259 53,936 |
Related party transactions
Related party transactions | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Related party transactions | ||
Related party transactions | 14. Related party transactions Companies related through common ownership 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 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 period: Three Three Nine Nine months months months months ended ended ended ended May 31, May 31, May 31, May 31, 2023 2022 2023 2022 $ $ $ $ Research and Development Mac Engineering, SASU 22,418 134,962 150,113 455,331 Office salaries and benefits Montana Strategies Inc. — 14,488 23,733 48,616 The Company leases its Boisbriand premises from California Electric Boat Company Inc. As at May 31, 2023, the right-of-use assets and lease liabilities related to those leases amount to $2,120,495 and $1,523,233 respectively [August 31, 2022 – $889,866 and $971,399 respectively] [notes 6 and 12]. Remuneration of directors and key management of the Company Three Three Nine Nine months months months months ended ended ended ended May 31, May 31, May 31, May 31, 2023 2022 2023 2022 $ $ $ $ Wages 731,195 664,573 1,880,567 1,905,467 Share-based payments 580,239 328,994 647,965 2,426,874 1,311,434 993,567 2,528,532 4,332,341 The amounts due to and from related parties are as follows: As at As at May 31, August 31, 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 17,404 16,736 Amounts due to related parties included in trade and other payable Alexandre Mongeon 6,375 16,000 Patrick Bobby 4,616 12,308 Kulwant Sandher 3,022 8,062 Xavier Montagne 3,110 8,292 17,123 44,662 Advances from related parties are non-interest bearing and have no specified terms of repayment. | 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. Founder shareholders Gestion Toyma Inc. Entreprises Claude Beaulac Inc. [former shareholder] Gestion Moka Inc. [former shareholder] The following table summarizes the Company’s related party transactions for the year: 2022 2021 2020 $ $ $ Revenues Sales of boats EB Rental Ltd. [prior to June 3, 2021] — 84,149 101,684 Patrick Bobby — 11,000 Sale of parts and boat maintenance EB Rental Ltd. [prior to June 3, 2021] — 40,310 79,696 Other EB Rental Ltd. [prior to June 3, 2021] — — 2,500 7858078 Canada Inc. [prior to June 3, 2021] — — 6,074 Expenses Cost of sales EB Rental Ltd. [prior to June 3, 2021] — 11,444 16,865 Research and Development 9335-1427 Quebec Inc. — 75,020 — Mac Engineering, SASU 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 — Rent expense EB Rental Ltd. [prior to June 3, 2021] — — 65,934 Office salaries and benefits Montana Strategies Inc. 62,462 — — The Company leases its Boisbriand premises from California Electric Boat Company Inc. with a right-of-use assets as at August 31, 2022 of $889,866 [August 31, 2021 – $1,132,556] and lease liability of $971,399 [August 31, 2021 – $1,177,867] [notes 9 and 15]. Remuneration of directors and key management of the Company 2022 2021 2020 $ $ $ Wages 2,324,770 1,299,402 308,868 Share-based payments – capital stock — — 572,110 Share-based payments – stock options 2,560,031 6,081,900 259,410 4,884,801 7,381,302 1,140,388 At the end of the year, the amounts due to and from related parties are as follows: 2022 2021 $ $ 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 16,736 185,407 Amounts due to related parties included in trade and other payable Alexandre Mongeon 16,000 74,157 Patrick Bobby 12,308 11,092 Kulwant Sandher 8,062 7,054 Xavier Montagne 8,292 — Mac Engineering, SASU — 29,957 44,662 122,260 In December 2020, the holders of the advances from related parties and the Company have agreed that the advances shall automatically convert into Voting Common Shares of the Company at a conversion price equal to the per Voting Common Share offering price in the Initial Public Offering [note 18]. |
Capital stock
Capital stock | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Capital stock. | ||
Capital stock | 15. Capital stock Authorized Voting Common Shares, voting and participating Issued As at As at May 31, August 2023 31, 2022 $ $ 9,931,985 voting common shares [August 31, 2022 – 8,417,923] 46,851,134 43,441,591 Subscription and issuance of Voting Common Shares During the three and nine months ended May 31, 2023, the Company issued a total of 65,790 and 98,400 Voting Common Shares, respectively, to third parties in exchange for marketing services provided to the Company. During the three and nine months ended May 31, 2023, the Company issued nil and 5,057 Voting Common Shares upon the exercises of two former employees’ stock options. During the three and nine months ended May 31, 2023, the Company issued 381,293 and 1,410,605 Voting Common Shares and warrants to purchase Voting Common Shares, respectively [note 16] nine months ended May 31, 2023, the warrants issued are to purchase 381,293 and 1,410,605 Voting Common Shares of the Company, respectively for a period of three years from the grant date at an exercise price of U.S. $4.21. The Company assessed the classification of the compound financial instrument issued, 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. dollar, 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. Refer to note 16 for details on the assumptions used to determine the fair value. Any changes in fair value are recorded as gain or loss in the consolidated statement of comprehensive loss. At issuance and as at May 31, 2023, the derivative liabilities amounted to $4,866,082 and $3,253,024, respectively [August 31, 2022 – Nil], with the allocated transaction costs of $489,096 recorded in net finance expense [note 19] | 18. Capital stock Authorized Voting Common Shares, voting and participating Preferred shares, without par value, non-cumulative annual dividend, redeemable at their issue price, non-participating, non-voting. Issued 2022 2021 $ $ 8,417,923 voting common shares [2021 – 8,324,861] 43,441,591 42,834,982 Subscription and issuance of Class A common shares, share exchange and share consolidation On September 3, 2020, the Board of Directors authorized the consolidation of all the issued and outstanding Voting Common Shares on the basis on 1 post-consolidation Voting Common Shares for every 3.7 pre-consolidation Voting Common Shares. The impact of this adjustment has been reflected in the Company’s share capital and earnings (loss) per share. Subscription and issuance of Voting Common Shares On September 2, 2020, the Board of Directors authorized the issuance of 547,297 Voting Common shares, for a total consideration of $2,025,000. On September 18, 2020, the Board of Directors authorized the issuance of 45,351 Voting Common Shares, for services provided to the Company. The services were valued at $167,799 of which $58,730 is in connection with transaction costs directly attributable to the issuance of Voting Common Shares and $109,069 is included in professional fees. On November 27, 2020, the Company completed its initial public offering [the “Offering”] of an aggregate of 2,760,000 common shares of the Company at a price of U.S.$10.00 ($13.22) per share for proceeds of U.S.$25,287,624 ($33,430,239) net of a U.S.$1,932,000 ($2,554,104) cash commission paid to the underwriter and professional fees in connection with the Offering amounting to U.S.$380,376 ($502,857). Netted against the proceeds from the Offering are also included professional fees amounting to $271,726 that were previously recorded in prepaids. On December 22, 2020, the Board of Directors authorized the issuance of 69,650 Voting Common Shares, being the conversion of the advances from related parties of $898,489. On the same day, the Board of Directors authorized the issuance of 3,067 Voting Common Shares for a total consideration of $39,200 which remains receivable on August 31, 2022 and is presented in the advances to related parties [note 17] On February 16, 2021, the Company issued 30,000 Voting Common Shares at a price of U.S. $15.07 [approximately $19.13] as part of the consideration paid for the acquisition of intellectual property [note 11] On June 3, 2021, the Company issued 284,495 Voting Common Shares at a price of U.S. $10.09 [approximately $12.21] as part of the consideration paid in a business acquisition [note 5]. 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. |
Share-based payments
Share-based payments | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Share-based payments | ||
Share-based payments | 16. 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 1,917,526 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 three and nine months ended May 31, 2023 amounts to $628,923,139 and $1,052,090 respectively [May 31, 2022 – $367,054 and $2,545,720 respectively]. The table below lists the assumptions used to determine the fair value of these option grants. Volatility is based on public companies with characteristics similar to the Company. Risk-free Exercise Market Expected interest Expected price price volatility rate life Grant date $ $ % % [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 May 31, 2023: Weighted average Number of exercise options 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 160,500 5.84 Forfeited /cancelled (372,253) 13.09 Stock options modifications (322,000) 11.75 Exercised (5,057) 3.70 Balance at May 31, 2023 1,167,608 5.11 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 stock options at the date of modification of $129,800, recorded as stock base compensation expense for the three and nine months ended May 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 - 3.70 511,608 2.48 2.16 497,869 5.65 – 5.83 586,000 2.85 4.51 498,300 6.09 – 8.85 35,000 6.05 7.35 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 [note 15], On February 17, 2023, as part of a share subscription [note 15], On April 19, 2023, as part of a share subscription [note 15], The table below lists the assumptions used to determine the fair value of these option grants. Volatility is based on public companies with characteristics similar to the Company. Risk-free Exercise Market Expected interest Expected price price volatility rate life Grant 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 Number of warrants Weighted average remaining Exercise price outstanding contractual life Grant date $ # [years] November 23, 2020 16.53 151,800 2.25 August 5, 2022 10.30 50,000 2.92 January 19, 2023 5.63 554,253 2.63 February 17, 2023 5.67 475,059 2.72 April 19, 2023 5.64 381,293 2.88 | 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, 2022 amounts to $2,699,481 [2021 – $7,121,444; 2020 - $1,312,071]. The table below lists the assumptions used to determine the fair value of these option grants. Volatility is based on public companies with characteristics similar to the Company. Expected Risk-free Grant date Exercise price Market price volatility interest rate Expected 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 February 23, 2021 15.75 15.05 103 0.6 5 May 14, 2021 8.98 9.06 105 0.8 5 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 The following tables summarize information regarding the option grants outstanding as at August 31, 2022: Weighted Number of average options exercise price # $ Balance at August 31, 2020 516,216 3.41 Granted 1,148,310 12.86 Forfeited (5,405) 3.70 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 Number of Weighted average Weighted average options grant date remaining Exercise price outstanding fair value contractual life Exercisable $ # $ [years] options 3.70 345,946 2.42 2.75 325,253 2.78 162,162 2.59 2.75 162,162 3.70 10,810 2.69 3.00 7,883 16.29 440,000 9.33 8.25 440,000 15.75 120,000 11.28 3.50 45,000 8.98 500,000 6.91 3.75 500,000 8.85 25,000 6.55 9.25 25,000 5.65 102,500 4.28 4.50 102,500 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). Number of Weighted average warrants remaining Grant date Exercise price outstanding contractual life $ # [years] November 23, 2020 16.53 151,800 3.25 |
Revenues
Revenues | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Revenues | ||
Revenues | 17. Revenues Three Three Nine Nine months months months months ended ended ended ended May 31, May 31, May 31, May 31, 2023 2022 2023 2022 $ $ $ $ Sale of electric boats 341,397 613,354 692,638 873,158 Sale of parts and boat maintenance 80,443 32,878 255,299 56,968 Boat rental and boat club membership revenue 878,260 1,368,537 2,583,118 3,045,014 1,300,100 2,014,769 3,531,055 3,975,140 During November 2022, the Company entered into a contract with a customer for the sale of powertrain systems, which was determined to be onerous since 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. As a result, the Company recorded the present obligation under the onerous contract as a provision of $220,000 presented in trade and other payables as at November 30, 2022, February 28, 2023 and May 31, 2023. The geographical distribution of revenues from external customers is as follows: Three months ended Sale of Rental of May 31, electric electric 2023 boats boats Total $ $ $ Canada 184,199 — 184,199 USA 140,041 878,260 1,018,301 Other 97,600 — 97,600 421,840 878,260 1,300,100 Three months ended Sale of Rental of May 31, electric electric 2022 boats boats Total $ $ $ Canada 229,972 — 229,972 USA 416,260 1,368,537 1,784,797 646,232 1,368,537 2,014,769 Nine months ended Sale of Rental of May 31, electric electric 2023 boats boats Total $ $ $ Canada 184,199 — 184,199 USA 666,138 2,583,118 3,249,256 Other 97,600 — 97,600 947,937 2,583,118 3,531,055 Nine months ended Sale of May 31, electric Rental of 2022 boats electric boats Total $ $ $ Canada 370,448 — 370,448 USA 559,678 3,045,014 3,604,692 930,126 3,045,014 3,975,140 | 20. Revenues 2022 2021 2020 $ $ $ Sales of boats 2,459,365 2,080,110 2,249,107 Sales of parts and boat maintenance 97,721 75,205 167,263 Boat rental and boat club membership revenue 4,793,860 1,355,548 — Other — 2,925 803 7,350,946 3,513,788 2,417,173 The geographical distribution of revenues from external customers is as follows: Sale of Rental of 2022 electric boats electric boats Total $ $ $ Canada 557,639 — 557,639 USA 1,292,666 4,793,861 6,086,527 Other 706,780 — 706,780 2,557,085 4,793,861 7,350,946 Sale of Rental of 2021 2020 electric boats electric boats Total Total $ $ $ $ Canada 571,216 — 571,216 827,057 USA 1,329,575 1,363,024 2,692,599 1,407,063 Other 249,973 — 249,973 183,053 2,150,764 1,363,024 3,513,788 2,417,173 |
Grants and investment tax credi
Grants and investment tax credits | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Grants and investment tax credits | ||
Grants and investment tax credits | 18. Grants and investment tax credits During the three and nine months ended May 31, 2023, the Company recognized grants and investment tax credits amounting to $39,940 and $39,940 respectively [May 31, 2022 – $607,256 and $1,410,605], of which $39,940 and $39,940 respectively are presented against research and development expenses [May 31, 2022 – $607,256 and $1,384,516 respectively]. | 21. Grants and investment tax credits During the year ended August 31, 2022, the Company recognized grants and investment tax credits amounting to $1,458,632 [August 31, 2021 –$921,658], of which $1,408,840 are presented against research and development expenses [August 31, 2021 –$859,516], $8,535 against cost of sales [August 31 2021 –$Nil] and $40,584 as a reduction of property and equipment and intangible assets [August 31, 2021 – $44,939]. Office salaries and benefits are presented net $Nil [August 31, 2021 –$17,203] of grants. |
Net finance expense
Net finance expense | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Net finance expense | ||
Net finance expense | 19. Net finance expense (income) Three Three Nine Nine months months months months ended ended ended ended May 31, May 31, May 31, May 31, 2023 2022 2023 2022 $ $ $ $ Interest and bank charges 73,789 42,274 200,924 123,972 Interest income — (85,000) (311,667) (257,891) Foreign currency exchange (gain) loss 13,544 27,334 (105,179) (89,162) Transaction costs [note 15] 51,199 — 489,096 — Gain on derivative liabilities [note 15] (1,551,616) — (1,613,058) — Loss on Debentures [note 5] — 115,000 109,667 436,500 (1,413,084) 99,608 (1,230,217) 213,419 | 22. Net finance expense 2022 2021 2020 $ $ $ Interest and bank charges 184,895 123,100 107,105 Interest income (379,288) — — Foreign currency exchange (gain) loss (251,947) 1,583,292 1,295 Loss on Debentures [note 8] 670,000 550,000 — 223,660 2,256,392 108,400 |
Income taxes
Income taxes | 12 Months Ended |
Aug. 31, 2022 | |
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: 2022 2021 2020 $ $ $ Income taxes at the applicable tax rate of 26.5% [2021 – 26.5%; 2020 – 15%] (3,406,162) (3,977,204) (338,133) Change in tax status following the initial public offering — (127,979) — Adjustment in respect of current and deferred income tax of previous year (4,396) (207,601) Permanent differences 823,119 2,100,615 198,475 Temporary difference — — 160,967 Change in recognition of deferred income tax assets 2,816,417 2,317,759 — Other 29,365 — — Total income tax expense 258,343 105,590 21,309 On November 27, 2020, the Company conducted an initial public offering [note 18] 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: Recognized in net Balance as at income Recognized Business Balance as at August 31, 2021 (loss) in equity combination August 31, 2022 $ $ $ $ $ Temporary differences Property and equipment (262,778) 115,282 — (7,802) (155,298) Intangibles (42,887) (251,498) — — (294,385) Net operating losses 2,054,789 2,735,223 — — 4,790,012 Financing fees 940,948 (235,354) — — 705,594 Research and development 174,884 255,951 — — 430,835 Difference in timing of recognition 148,850 110,463 — (195) 259,118 Right-of-use asset (789,968) 184,851 — (11,790) (616,907) Lease liability 813,691 (167,184) — 12,340 658,847 Net capital losses 57,224 (6,806) — — 50,418 Valuation allowance (3,199,861) (2,816,417) — — (6,016,278) Deferred tax liability (105,108) (75,489) — (7,447) (188,044) As of August 31, 2022, the Company had net operating losses carried forward for income tax purposes of $18,194,000 [2021 - $8,143,000] available to reduce future taxable income, that will expire between 2040 and 2042. As of August 31, 2022, the Company had research and development expenditures of $1,439,000 [2021 - $471,000] for Canadian federal income tax purposes. These expenditures are available to reduce future taxable income and have unlimited carryforward period. |
Capital disclosures
Capital disclosures | 12 Months Ended |
Aug. 31, 2022 | |
Capital disclosures | |
Capital disclosures | 24. Capital disclosures The Company’s objectives in managing capital are: ● ● 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, 2022. |
Financial risk management and f
Financial risk management and fair value measurement | 12 Months Ended |
Aug. 31, 2022 | |
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 is 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 is based on actual trading data, difference in volatility since initial issuance of the instrument and similar instruments on the market, and credit spread, which is based on corporate bond yield spreads in the market and credit spread data for similar public companies. The model includes a fair value adjustment based on an initial calibration exercise. Below is a sensitivity analysis based on variations in the key assumptions used in the model. The table presents the fair value of the Debentures would have been had the key assumptions varied as indicated: Volatility Credit spread + 5 % -5% + 2 % -2% $ $ $ $ Fair value of debentures 2,441,000 2,431,500 2,382,000 2,490,500 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. The Company believes that its recurring financial resources are adequate to cover all its expenditures. Contractual Less than cash flows one year 1-5 years $ $ $ 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 August 31, 2021 Trade and other payables 848,054 848,054 — Other financial liabilities 237,444 237,444 — Long-term debt 64,115 10,179 53,936 1,149,613 1,095,677 53,936 [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: 2022 2021 $ $ Cash 5,142,703 11,219,143 Trade and other receivables 103,116 — Trade and other payables 172,871 294,637 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 income (loss) and other comprehensive income by the amounts shown below. This analysis assumes that all other variables remain constant. Net income (loss) Other comprehensive income + 5 % - 5 % + 5 % - 5 % $ $ $ $ August 31, 2022 253,000 (253,000) 358,000 (358,000) |
Segment information
Segment information | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Segment information | ||
Segment information | 21. 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 boat – 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. Three months ended May 31, 2023 Sale of Rental of Inter- electric electric segment boats boats eliminations Total $ $ $ $ Revenue from external customers 421,840 878,260 — 1,300,100 Revenue from other segments 346,954 54,619 (401,573) — Segment revenues 768,794 932,879 (401,573) 1,300,100 Segment gross profit 157,321 247,188 (32,158) 372,351 Segment loss before tax (2,850,077) (359,047) (87,943) (3,297,067) Research and development 794,528 — (42,854) 751,674 Office salaries and benefits 664,300 235,564 — 899,864 Three months ended May 31, 2022 Sale of Rental of Inter- electric electric segment boats boats eliminations Total $ $ $ $ Revenue from external customers 646,232 1,368,537 — 2,014,769 Revenue from other segments 105,272 16,512 (121,784) — Segment revenues 751,504 1,385,049 (121,784) 2,014,769 Segment gross profit 271,869 854,620 (2,369) 1,124,120 Segment profit (loss) before tax (2,188,967) 319,593 15,420 (1,853,954) Research and development 32,670 — — 32,670 Office salaries and benefits 749,455 218,671 — 968,126 Nine months ended May 31, 2023 Sale of Rental of Inter- electric electric segment boats boats eliminations Total $ $ $ $ Revenue from external customers 947,937 2,583,118 — 3,531,055 Revenue from other segments 826,869 331,839 (1,158,708) — Segment revenues 1,774,806 2,914,957 (1,158,708) 3,531,055 Segment gross profit (421,138) 1,227,288 (280,199) 525,951 Segment loss before tax (16,120,375) (485,100) (186,449) (16,791,924) Research and development 5,300,530 — (228,102) 5,072,428 Office salaries and benefits 2,014,875 710,174 — 2,725,049 Nine months ended May 31, 2022 Sale of Rental of Inter- electric electric segment boats boats eliminations Total $ $ $ $ Revenue from external customers 930,126 3,045,014 — 3,975,140 Revenue from other segments 433,898 64,281 (498,179) — Segment revenues 1,364,024 3,109,295 (498,179) 3,975,140 Segment gross profit 237,024 1,745,821 (87,526) 1,895,319 Segment profit (loss) before tax (9,199,678) 229,267 (42,535) (9,012,946) Research and development 50,179 — — 50,179 Office salaries and benefits 1,869,128 702,820 — 2,571,948 As at May 31, 2023 Sale of Rental of Inter- electric electric segment boats boats eliminations Total $ $ $ $ Segment assets 18,451,237 13,864,952 (10,412,497) 21,903,692 Cash 1,372,769 163,295 — 1,536,064 Additions to property and equipment 163,880 890,777 (175,554) 879,103 Additions to intangible assets — — — — Segment liabilities 7,427,977 3,509,640 (1,324,391) 9,613,226 As at August 31, 2022 Sale of Rental of Inter- electric electric segment boats boats eliminations 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 Additions to intangible assets 32,202 — — 32,202 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. | 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, 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 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 Year ended August 31, 2021 Sale of Rental of Inter-segment electric boats electric boats eliminations 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 640,228 1,003,596 (39,642) 1,604,182 Segment (loss) profit before tax (15,517,319) 541,257 (32,255) (15,008,317) Research and development 1,489,953 — — 1,489,953 Office salaries and benefits 1,555,014 199,599 — 1,754,613 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 Additions to intangible assets 32,202 — — 32,202 Segment liabilities 2,023,368 3,311,128 (262,883) 5,071,613 August 31, 2021 Sale of Rental of Sale of electric boats electric boats electric boats Total $ $ $ $ Segment assets 35,175,599 12,734,296 (9,108,603) 38,801,292 Cash 17,210,266 937,555 — 18,147,821 Additions to property and equipment 432,547 145,275 (33,468) 544,354 Additions to intangible assets 1,102,662 — — 1,102,662 Segment liabilities 2,400,829 2,938,746 (63,470) 5,276,105 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 | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Additional cash flows information. | ||
Additional cash flows information | 22. Additional cash flows information Financing and investing activities not involving cash: Nine Nine months months ended ended May 31, May 31, 2023 2022 $ $ Additions to right-of-use assets 922,479 208,534 Lease termination 131,247 148,002 | 27. Additional cash flows information Financing and investing activities not involving cash: 2022 2021 2020 $ $ $ 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 234,608 852,467 — Lease termination 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 | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Commitments | ||
Commitments | 23. Commitments In addition to the obligations under leases [note 12] $ 2023 1,222,198 2024 4,052,051 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 May 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 May 31, 2023: $ 2024 67,990 2025 164,536 2026 167,827 2027 and thereafter 448,815 | 28. Commitments In addition to the obligations under leases [note 15] $ 2023 4,350,104 2024 2,253,394 In October 2021, EB Rental Ltd. has entered into a lease arrangement for premises, which has not commenced yet and therefore related right-of-use asset and lease liability are not recorded as at August 31, 2022. 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, 2022: $ 2023 105,000 2024 159,000 2025 162,000 2026 165,000 2027 and thereafter 225,000 |
Subsequent events
Subsequent events | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Subsequent events | ||
Subsequent events | 24. Subsequent events During the months of June and July 2023, the Company issued a total of 10,870 Voting Common Shares to third parties in exchange of sub-contracting services provided to the Company related to investor relations. On June 16, 2023, the Company issued 493,828 Voting Common Shares and warrants to purchase Voting Common Shares as part of the financing rounds for total cash consideration of $2,485,740, net of transaction costs of $158,664. The warrants issued are 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. $4.05. | 29. Subsequent events During the months of September, October and November 2022, the Company issued a total of 19,457 Voting Common Shares to third parties in exchange of sub-contracting services provided to the Company related to investor relations. |
Comparative figures
Comparative figures | 12 Months Ended |
Aug. 31, 2022 | |
Comparative figures | |
Comparative figures | 30. Comparative figures Certain comparative figures have been reclassified to conform to current period’s presentation. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Aug. 31, 2022 | |
Significant accounting policies | |
Business combination | Business combination Business combinations are accounted for using the acquisition method when the acquired set of activities and assets meets the definition of a business and control is transferred to the Company. In determining whether a particular set of activities and assets is a business, the Company assesses whether the set of assets and activities acquired includes, at a minimum, an input and substantive process and whether the acquired set has the ability to produce outputs. The Company has an option to apply a ‘concentration test’ that permits a simplified assessment of whether an acquired set of activities and assets is not a business. The optional concentration test is met if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. The consideration transferred in the acquisition is measured at fair value at the acquisition date, as are the identifiable net assets acquired. The Company assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. Subsequent adjustments to the fair values of identifiable net assets acquired are adjusted against the consideration transferred when they qualify as measurement period adjustments. Transaction costs are expensed as incurred. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include cash in hand, cash held in trust, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less, and – for the purpose of the statement of cash flows – bank overdrafts. Bank overdrafts are shown within bank indebtedness in current liabilities on the consolidated statement of financial position. |
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 are determined after deducted 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 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, 2022, 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 income (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 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. |
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”]. 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. 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 . 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 income (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 loss 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, 2022 2021 2022 2021 US dollar 1.3076 1.2630 1.2717 1.2688 |
Taxes | Taxes Tax expense comprises current and deferred tax. Tax is recognized in net income (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. The weighted average number of common stock outstanding is increased by the number of additional common stock that would have been issued by the Company assuming exercise of all options with exercise prices below the average market price for the year. |
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. 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 are effective for annual reporting periods beginning on or after January 1, 2022. The amendments are not expected to 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. |
Basis of preparation (Tables)
Basis of preparation (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
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 % | 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% |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
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, 2022 2021 2022 2021 US dollar 1.3076 1.2630 1.2717 1.2688 |
Business combination (Tables)
Business combination (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Business combination | |
Summary of recognized amounts of assets acquired and liabilities assumed | June 3, 2021 $ Fair value at acquisition Cash 516,623 Trade and other receivables 7,998 Income tax receivable 9,963 Inventories 12,864 Prepaids 34,687 Advances to related parties 177,671 Other financial assets 7,685 Right-of-use asset 1,651,746 Property and equipment 417,554 Intangible assets 184,000 Deferred tax asset 18,467 Goodwill 8,656,700 Trade and other payables (111,602) Income tax payable (1,952) Contract liabilities (482,173) Other financial liabilities (242,060) Long-term debt, including current portion (66,204) Lease liability, including current portion (1,651,746) Deferred tax liability (119,950) Net assets acquired 9,020,271 |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Trade and other receivables | ||
Schedule of trade and other receivables | As at As at May 31, August 31, 2023 2022 $ $ Trade receivables 396,367 108,716 Sales taxes receivable 183,272 194,523 Interest and other receivables 3,751 169,309 583,390 472,548 | 2022 2021 $ $ Trade receivables 108,716 27,388 Sales taxes receivable 194,523 166,749 Other receivables 169,309 125,603 472,548 319,740 |
Schedule of aging analysis of receivables | As at As at May 31, August 31, 2023 2022 $ $ 0 – 30 — 77,625 31 – 60 101,047 — 61 – 90 5,006 14,212 91 and over 290,314 16,879 396,367 108,716 | 2022 2021 $ $ 0 – 30 77,625 — 31 – 60 — 2,008 61 – 90 14,212 25,380 91 and over 16,879 — 108,716 27,388 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Inventories | ||
Schedule of inventories | As at As at May 31, August 31, 2023 2022 $ $ Raw materials 1,926,581 1,709,368 Work-in-process 125,172 75,170 Finished goods 667,755 309,238 2,719,508 2,093,776 | 2022 2021 $ $ Raw materials 1,709,368 1,549,125 Work-in-process 75,170 327,757 Finished goods 309,238 99,202 2,093,776 1,976,084 |
Right-of-use assets (Tables)
Right-of-use assets (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Right-of-use assets | ||
Schedule of right-of-use assets | Computer Rolling Boat rental Premises equipment 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 922,479 — — — 922,479 Disposals — — (46,200) (127,868) (174,068) Transferred to property and equipment — (3,646) — (41,161) (44,807) Currency translation 44,154 — 2,100 — 46,254 Balance at May 31, 2023 3,846,672 — 43,920 42,430 3,933,022 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 448,738 768 20,155 21,442 491,103 Disposal — (3,646) (13,475) (76,691) (93,812) Balance at May 31, 2023 1,271,145 — 26,995 21,215 1,319,355 Net carrying amount As at August 31, 2022 2,057,632 768 67,705 134,995 2,261,100 As at May 31, 2023 2,575,527 — 16,925 21,215 2,613,667 | Computer Boat rental Premises equipment Rolling stock fleet Total $ $ $ $ $ Cost Balance at August 31, 2020 737,066 11,333 38,699 — 787,098 Business acquisition 1,281,308 3,646 39,924 326,868 1,651,746 Additions 672,731 — 179,736 — 852,467 Disposals — — (57,475) — (57,475) Transfer to intangible assets — (11,333) — — (11,333) Currency translation 55,013 — 1,652 — 56,665 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 Accumulated depreciation Balance at August 31, 2020 117,806 4,231 12,094 — 134,131 Depreciation 216,551 1,697 30,527 24,087 272,862 Disposal — — (27,672) — (27,672) Transfer to intangible assets — (5,352) — — (5,352) 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 Net carrying amount As at August 31, 2021 2,411,761 3,070 187,587 302,781 2,905,199 As at August 31, 2022 2,057,632 768 67,705 134,995 2,261,100 |
Property and equipment (Tables)
Property and equipment (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Property and equipment. | ||
Schedule of property and equipment | Machinery Boat and Rolling Computer Leasehold rental equipment stock equipment Moulds improvements 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 41,209 69,350 565 30,501 87,959 604,712 834,296 Transferred from right-of-use assets — — 3,646 — — 41,161 44,807 Disposals — (67,043) — — — (467,151) (534,194) Currency translation — (2,347) — — — (67,771) (70,118) Balance at May 31, 2023 374,293 118,624 25,243 942,425 352,315 1,082,428 2,895,328 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 23,305 24,483 3,431 28,273 52,282 51,318 183,092 Disposal — (7,542) — — — (36,640) (44,182) Balance at May 31, 2023 221,109 46,940 16,234 101,301 96,787 58,094 540,465 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 May 31, 2023 153,184 71,684 9,009 841,124 255,528 1,024,334 2,354,863 | Machinery and Rolling Computer Leasehold Boat equipment stock equipment Moulds improvements rental fleet Total $ $ $ $ $ $ $ Cost Balance at August 31, 2020 187,850 32,175 8,436 506,172 34,818 — 769,451 Business acquisition — — — — — 417,554 417,554 Additions 115,088 — 6,211 214,833 96,415 111,807 544,354 Disposals — — — (30,000) — (34,101) (64,101) Currency translation — — — — — 18,057 18,057 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 Accumulated depreciation Balance at August 31, 2020 148,156 21,014 4,556 57,660 — — 231,386 Depreciation 19,448 3,348 3,842 22,760 11,579 8,443 69,420 Disposal — — — (30,000) — — (30,000) 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 Net carrying amount As at August 31, 2021 135,334 7,813 6,249 640,585 119,654 504,874 1,414,509 As at August 31, 2022 135,280 88,665 8,229 838,896 219,851 928,061 2,218,982 |
Intangible assets (Tables)
Intangible assets (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Intangible assets and goodwill | ||
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 May 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 77,631 9,690 15,370 12,726 3,014 118,431 Balance at May 31, 2023 236,720 34,390 29,809 32,556 5,833 339,308 Net carrying amount As at August 31, 2022 875,981 77,075 83,855 59,720 16,039 1,112,670 As at May 31, 2023 798,350 67,385 74,542 51,550 14,236 1,006,063 | Intellectual Trade property Software name Backlog Website Total $ $ $ $ $ $ Cost Balance at August 31, 2020 — — — — — — Business acquisition — — 90,000 76,000 18,000 184,000 Transfer from Right-of-use assets — 5,981 — — — 5,981 Additions 1,035,070 67,592 — — — 1,102,662 Currency translation — — 3,856 3,220 771 7,847 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 Accumulated depreciation Balance at August 31, 2020 — — — — — — Depreciation 55,581 7,107 4,633 6,520 927 74,768 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 Net carrying amount As at August 31, 2021 979,489 66,466 89,223 72,700 17,844 1,225,722 As at August 31, 2022 875,981 77,075 83,855 59,720 16,039 1,112,670 |
Trade and other payables (Table
Trade and other payables (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Trade and other payables. | ||
Schedule of trade and other payables | As at As at May 31, August 31, 2023 2022 $ $ Trade payable 1,473,770 737,946 Sales taxes payable 53,762 21,547 Government remittances — 9,450 Salaries and vacation payable 250,329 261,388 1,777,861 1,030,331 | 2022 2021 $ $ Trade payable 737,946 560,870 Sales taxes payable 21,547 34,076 Government remittances 9,450 46,030 Salaries and vacation payable 261,388 207,078 1,030,331 848,054 |
Contract liabilities (Tables)
Contract liabilities (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Contract liabilities | ||
Schedule of contract liabilities | $ $ Opening balance as at August 31, 2022 and 2021 1,029,318 898,713 Payments received in advance 917,935 2,502,080 Boat sales deposits 152,277 87,609 Payments reimbursed (8,159) (2,615) Transferred to revenues (1,277,728) (2,475,307) Currency translation 36,399 18,838 Closing balance as at May 31, 2023 and August 31, 2022 850,042 1,029,318 | 2022 2021 $ $ Opening balance 898,713 20,443 Business acquisition — 482,173 Payments received in advance 2,502,080 1,199,958 Boat sale deposits 87,609 — Payments reimbursed (2,615) (37,842) Transferred to revenues (2,475,307) (766,019) Currency translation 18,838 — Closing balance 1,029,318 898,713 |
Lease liabilities (Tables)
Lease liabilities (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Lease liabilities | ||
Summary of lease liabilities | $ $ Opening balance as at August 31, 2022 and 2021 2,415,549 2,966,816 Additions 1,023,090 234,608 Repayment (533,270) (695,749) Interest on lease liability 101,052 141,994 Lease termination (131,247) (273,652) Currency translation (50,222) 41,532 Closing balance as at May 31, 2023 and August 31, 2022 2,824,952 2,415,549 Current 673,267 561,168 Non-current 2,151,685 1,854,381 2,824,952 2,415,549 | 2022 2021 $ $ Opening balance 2,966,816 672,988 Business acquisition [note 5] — 1,651,746 Additions 234,608 852,467 Repayment (695,749) (295,316) Interest on lease liability 141,994 65,115 Lease termination (273,652) (37,033) Currency translation 41,532 56,849 Closing balance 2,415,549 2,966,816 Current 561,168 562,136 Non-current 1,854,381 2,404,680 2,415,549 2,966,816 |
Future undiscounted lease payments | Future undiscounted lease payments as at May 31, 2023 are as follows: $ Less than one year 742,792 One to five years 2,356,711 3,099,503 | Future undiscounted lease payments as at August 31, 2022 are as follows: $ Less than one year 670,125 One to five years 2,006,295 2,676,420 |
Long-term debt (Tables)
Long-term debt (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Long-term debt. | ||
Summary of long term debt | As at As at May 31, August 31, 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 9.44% and 12.90% per annum payable in monthly installments of $23,337 ending January 2025. 350,694 188,007 390,694 227,349 Current portion of long-term debt 293,980 72,090 96,714 155,259 | 2022 2021 $ $ 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. 39,342 36,972 Term loan bearing interest at a rate of 5.80% per annum payable in monthly installments of $848 until April 2024. — 27,143 Term loans, bearing interest at rates varying between 9.44% and 10.71%, repayable in monthly instalments of $7,372, ending January 2025. 188,007 — 227,349 64,115 Current portion of long-term debt 72,090 10,179 155,259 53,936 |
Related party transactions (Tab
Related party transactions (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Related party transactions | ||
Summarizes the related party transactions and the amounts due to and from related parties | The following table summarizes the Company’s related party transactions for the period: Three Three Nine Nine months months months months ended ended ended ended May 31, May 31, May 31, May 31, 2023 2022 2023 2022 $ $ $ $ Research and Development Mac Engineering, SASU 22,418 134,962 150,113 455,331 Office salaries and benefits Montana Strategies Inc. — 14,488 23,733 48,616 The Company leases its Boisbriand premises from California Electric Boat Company Inc. As at May 31, 2023, the right-of-use assets and lease liabilities related to those leases amount to $2,120,495 and $1,523,233 respectively [August 31, 2022 – $889,866 and $971,399 respectively] [notes 6 and 12]. Remuneration of directors and key management of the Company Three Three Nine Nine months months months months ended ended ended ended May 31, May 31, May 31, May 31, 2023 2022 2023 2022 $ $ $ $ Wages 731,195 664,573 1,880,567 1,905,467 Share-based payments 580,239 328,994 647,965 2,426,874 1,311,434 993,567 2,528,532 4,332,341 The amounts due to and from related parties are as follows: As at As at May 31, August 31, 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 17,404 16,736 Amounts due to related parties included in trade and other payable Alexandre Mongeon 6,375 16,000 Patrick Bobby 4,616 12,308 Kulwant Sandher 3,022 8,062 Xavier Montagne 3,110 8,292 17,123 44,662 | The following table summarizes the Company’s related party transactions for the year: 2022 2021 2020 $ $ $ Revenues Sales of boats EB Rental Ltd. [prior to June 3, 2021] — 84,149 101,684 Patrick Bobby — 11,000 Sale of parts and boat maintenance EB Rental Ltd. [prior to June 3, 2021] — 40,310 79,696 Other EB Rental Ltd. [prior to June 3, 2021] — — 2,500 7858078 Canada Inc. [prior to June 3, 2021] — — 6,074 Expenses Cost of sales EB Rental Ltd. [prior to June 3, 2021] — 11,444 16,865 Research and Development 9335-1427 Quebec Inc. — 75,020 — Mac Engineering, SASU 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 — Rent expense EB Rental Ltd. [prior to June 3, 2021] — — 65,934 Office salaries and benefits Montana Strategies Inc. 62,462 — — The Company leases its Boisbriand premises from California Electric Boat Company Inc. with a right-of-use assets as at August 31, 2022 of $889,866 [August 31, 2021 – $1,132,556] and lease liability of $971,399 [August 31, 2021 – $1,177,867] [notes 9 and 15]. Remuneration of directors and key management of the Company 2022 2021 2020 $ $ $ Wages 2,324,770 1,299,402 308,868 Share-based payments – capital stock — — 572,110 Share-based payments – stock options 2,560,031 6,081,900 259,410 4,884,801 7,381,302 1,140,388 At the end of the year, the amounts due to and from related parties are as follows: 2022 2021 $ $ 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 16,736 185,407 Amounts due to related parties included in trade and other payable Alexandre Mongeon 16,000 74,157 Patrick Bobby 12,308 11,092 Kulwant Sandher 8,062 7,054 Xavier Montagne 8,292 — Mac Engineering, SASU — 29,957 44,662 122,260 |
Capital stock (Tables)
Capital stock (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Capital stock. | ||
Summary of issued capital | As at As at May 31, August 2023 31, 2022 $ $ 9,931,985 voting common shares [August 31, 2022 – 8,417,923] 46,851,134 43,441,591 | 2022 2021 $ $ 8,417,923 voting common shares [2021 – 8,324,861] 43,441,591 42,834,982 |
Share-based payments (Tables)
Share-based payments (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Share-based payments | ||
Summary of share based payments | Risk-free Exercise Market Expected interest Expected price price volatility rate life Grant date $ $ % % [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 | Expected Risk-free Grant date Exercise price Market price volatility interest rate Expected 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 February 23, 2021 15.75 15.05 103 0.6 5 May 14, 2021 8.98 9.06 105 0.8 5 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 |
Summary of number options granted outstanding | Weighted average Number of exercise options 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 160,500 5.84 Forfeited /cancelled (372,253) 13.09 Stock options modifications (322,000) 11.75 Exercised (5,057) 3.70 Balance at May 31, 2023 1,167,608 5.11 | Weighted Number of average options exercise price # $ Balance at August 31, 2020 516,216 3.41 Granted 1,148,310 12.86 Forfeited (5,405) 3.70 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 |
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 - 3.70 511,608 2.48 2.16 497,869 5.65 – 5.83 586,000 2.85 4.51 498,300 6.09 – 8.85 35,000 6.05 7.35 25,000 16.29 35,000 9.33 7.50 35,000 | Number of Weighted average Weighted average options grant date remaining Exercise price outstanding fair value contractual life Exercisable $ # $ [years] options 3.70 345,946 2.42 2.75 325,253 2.78 162,162 2.59 2.75 162,162 3.70 10,810 2.69 3.00 7,883 16.29 440,000 9.33 8.25 440,000 15.75 120,000 11.28 3.50 45,000 8.98 500,000 6.91 3.75 500,000 8.85 25,000 6.55 9.25 25,000 5.65 102,500 4.28 4.50 102,500 |
Schedule of warrants | Number of warrants Weighted average remaining Exercise price outstanding contractual life Grant date $ # [years] November 23, 2020 16.53 151,800 2.25 August 5, 2022 10.30 50,000 2.92 January 19, 2023 5.63 554,253 2.63 February 17, 2023 5.67 475,059 2.72 April 19, 2023 5.64 381,293 2.88 | Number of Weighted average warrants remaining Grant date Exercise price outstanding contractual life $ # [years] November 23, 2020 16.53 151,800 3.25 |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Revenues | ||
Summary of revenues by product type and geographical distribution of revenues from external customers | Three Three Nine Nine months months months months ended ended ended ended May 31, May 31, May 31, May 31, 2023 2022 2023 2022 $ $ $ $ Sale of electric boats 341,397 613,354 692,638 873,158 Sale of parts and boat maintenance 80,443 32,878 255,299 56,968 Boat rental and boat club membership revenue 878,260 1,368,537 2,583,118 3,045,014 1,300,100 2,014,769 3,531,055 3,975,140 Three months ended Sale of Rental of May 31, electric electric 2023 boats boats Total $ $ $ Canada 184,199 — 184,199 USA 140,041 878,260 1,018,301 Other 97,600 — 97,600 421,840 878,260 1,300,100 Three months ended Sale of Rental of May 31, electric electric 2022 boats boats Total $ $ $ Canada 229,972 — 229,972 USA 416,260 1,368,537 1,784,797 646,232 1,368,537 2,014,769 Nine months ended Sale of Rental of May 31, electric electric 2023 boats boats Total $ $ $ Canada 184,199 — 184,199 USA 666,138 2,583,118 3,249,256 Other 97,600 — 97,600 947,937 2,583,118 3,531,055 Nine months ended Sale of May 31, electric Rental of 2022 boats electric boats Total $ $ $ Canada 370,448 — 370,448 USA 559,678 3,045,014 3,604,692 930,126 3,045,014 3,975,140 | 2022 2021 2020 $ $ $ Sales of boats 2,459,365 2,080,110 2,249,107 Sales of parts and boat maintenance 97,721 75,205 167,263 Boat rental and boat club membership revenue 4,793,860 1,355,548 — Other — 2,925 803 7,350,946 3,513,788 2,417,173 Sale of Rental of 2022 electric boats electric boats Total $ $ $ Canada 557,639 — 557,639 USA 1,292,666 4,793,861 6,086,527 Other 706,780 — 706,780 2,557,085 4,793,861 7,350,946 Sale of Rental of 2021 2020 electric boats electric boats Total Total $ $ $ $ Canada 571,216 — 571,216 827,057 USA 1,329,575 1,363,024 2,692,599 1,407,063 Other 249,973 — 249,973 183,053 2,150,764 1,363,024 3,513,788 2,417,173 |
Net finance expense (Tables)
Net finance expense (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Net finance expense | ||
Net finance expense | Three Three Nine Nine months months months months ended ended ended ended May 31, May 31, May 31, May 31, 2023 2022 2023 2022 $ $ $ $ Interest and bank charges 73,789 42,274 200,924 123,972 Interest income — (85,000) (311,667) (257,891) Foreign currency exchange (gain) loss 13,544 27,334 (105,179) (89,162) Transaction costs [note 15] 51,199 — 489,096 — Gain on derivative liabilities [note 15] (1,551,616) — (1,613,058) — Loss on Debentures [note 5] — 115,000 109,667 436,500 (1,413,084) 99,608 (1,230,217) 213,419 | 2022 2021 2020 $ $ $ Interest and bank charges 184,895 123,100 107,105 Interest income (379,288) — — Foreign currency exchange (gain) loss (251,947) 1,583,292 1,295 Loss on Debentures [note 8] 670,000 550,000 — 223,660 2,256,392 108,400 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Income taxes | |
Disclosure of income tax expense | 2022 2021 2020 $ $ $ Income taxes at the applicable tax rate of 26.5% [2021 – 26.5%; 2020 – 15%] (3,406,162) (3,977,204) (338,133) Change in tax status following the initial public offering — (127,979) — Adjustment in respect of current and deferred income tax of previous year (4,396) (207,601) Permanent differences 823,119 2,100,615 198,475 Temporary difference — — 160,967 Change in recognition of deferred income tax assets 2,816,417 2,317,759 — Other 29,365 — — Total income tax expense 258,343 105,590 21,309 |
Disclosure of temporary differences | Recognized in net Balance as at income Recognized Business Balance as at August 31, 2021 (loss) in equity combination August 31, 2022 $ $ $ $ $ Temporary differences Property and equipment (262,778) 115,282 — (7,802) (155,298) Intangibles (42,887) (251,498) — — (294,385) Net operating losses 2,054,789 2,735,223 — — 4,790,012 Financing fees 940,948 (235,354) — — 705,594 Research and development 174,884 255,951 — — 430,835 Difference in timing of recognition 148,850 110,463 — (195) 259,118 Right-of-use asset (789,968) 184,851 — (11,790) (616,907) Lease liability 813,691 (167,184) — 12,340 658,847 Net capital losses 57,224 (6,806) — — 50,418 Valuation allowance (3,199,861) (2,816,417) — — (6,016,278) Deferred tax liability (105,108) (75,489) — (7,447) (188,044) |
Financial risk management and_2
Financial risk management and fair value measurement (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Financial risk management and fair value measurement | |
Summary of fair value of debentures | Volatility Credit spread + 5 % -5% + 2 % -2% $ $ $ $ Fair value of debentures 2,441,000 2,431,500 2,382,000 2,490,500 |
Summary of maturity analysis for financial instruments, liquidity risk | Contractual Less than cash flows one year 1-5 years $ $ $ 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 August 31, 2021 Trade and other payables 848,054 848,054 — Other financial liabilities 237,444 237,444 — Long-term debt 64,115 10,179 53,936 1,149,613 1,095,677 53,936 |
Summary of foreign exchange risk | 2022 2021 $ $ Cash 5,142,703 11,219,143 Trade and other receivables 103,116 — Trade and other payables 172,871 294,637 |
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 income (loss) Other comprehensive income + 5 % - 5 % + 5 % - 5 % $ $ $ $ August 31, 2022 253,000 (253,000) 358,000 (358,000) |
Segment information (Tables)
Segment information (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Segment information | ||
Summary of reportable business segments | Three months ended May 31, 2023 Sale of Rental of Inter- electric electric segment boats boats eliminations Total $ $ $ $ Revenue from external customers 421,840 878,260 — 1,300,100 Revenue from other segments 346,954 54,619 (401,573) — Segment revenues 768,794 932,879 (401,573) 1,300,100 Segment gross profit 157,321 247,188 (32,158) 372,351 Segment loss before tax (2,850,077) (359,047) (87,943) (3,297,067) Research and development 794,528 — (42,854) 751,674 Office salaries and benefits 664,300 235,564 — 899,864 Three months ended May 31, 2022 Sale of Rental of Inter- electric electric segment boats boats eliminations Total $ $ $ $ Revenue from external customers 646,232 1,368,537 — 2,014,769 Revenue from other segments 105,272 16,512 (121,784) — Segment revenues 751,504 1,385,049 (121,784) 2,014,769 Segment gross profit 271,869 854,620 (2,369) 1,124,120 Segment profit (loss) before tax (2,188,967) 319,593 15,420 (1,853,954) Research and development 32,670 — — 32,670 Office salaries and benefits 749,455 218,671 — 968,126 Nine months ended May 31, 2023 Sale of Rental of Inter- electric electric segment boats boats eliminations Total $ $ $ $ Revenue from external customers 947,937 2,583,118 — 3,531,055 Revenue from other segments 826,869 331,839 (1,158,708) — Segment revenues 1,774,806 2,914,957 (1,158,708) 3,531,055 Segment gross profit (421,138) 1,227,288 (280,199) 525,951 Segment loss before tax (16,120,375) (485,100) (186,449) (16,791,924) Research and development 5,300,530 — (228,102) 5,072,428 Office salaries and benefits 2,014,875 710,174 — 2,725,049 Nine months ended May 31, 2022 Sale of Rental of Inter- electric electric segment boats boats eliminations Total $ $ $ $ Revenue from external customers 930,126 3,045,014 — 3,975,140 Revenue from other segments 433,898 64,281 (498,179) — Segment revenues 1,364,024 3,109,295 (498,179) 3,975,140 Segment gross profit 237,024 1,745,821 (87,526) 1,895,319 Segment profit (loss) before tax (9,199,678) 229,267 (42,535) (9,012,946) Research and development 50,179 — — 50,179 Office salaries and benefits 1,869,128 702,820 — 2,571,948 As at May 31, 2023 Sale of Rental of Inter- electric electric segment boats boats eliminations Total $ $ $ $ Segment assets 18,451,237 13,864,952 (10,412,497) 21,903,692 Cash 1,372,769 163,295 — 1,536,064 Additions to property and equipment 163,880 890,777 (175,554) 879,103 Additions to intangible assets — — — — Segment liabilities 7,427,977 3,509,640 (1,324,391) 9,613,226 As at August 31, 2022 Sale of Rental of Inter- electric electric segment boats boats eliminations 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 Additions to intangible assets 32,202 — — 32,202 Segment liabilities 2,023,368 3,311,128 (262,883) 5,071,613 | 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 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 Year ended August 31, 2021 Sale of Rental of Inter-segment electric boats electric boats eliminations 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 640,228 1,003,596 (39,642) 1,604,182 Segment (loss) profit before tax (15,517,319) 541,257 (32,255) (15,008,317) Research and development 1,489,953 — — 1,489,953 Office salaries and benefits 1,555,014 199,599 — 1,754,613 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 Additions to intangible assets 32,202 — — 32,202 Segment liabilities 2,023,368 3,311,128 (262,883) 5,071,613 August 31, 2021 Sale of Rental of Sale of electric boats electric boats electric boats Total $ $ $ $ Segment assets 35,175,599 12,734,296 (9,108,603) 38,801,292 Cash 17,210,266 937,555 — 18,147,821 Additions to property and equipment 432,547 145,275 (33,468) 544,354 Additions to intangible assets 1,102,662 — — 1,102,662 Segment liabilities 2,400,829 2,938,746 (63,470) 5,276,105 |
Additional cash flows informa_2
Additional cash flows information (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Additional cash flows information. | ||
Summary of financing and investing activities not involving cash | Nine Nine months months ended ended May 31, May 31, 2023 2022 $ $ Additions to right-of-use assets 922,479 208,534 Lease termination 131,247 148,002 | 2022 2021 2020 $ $ $ 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 234,608 852,467 — Lease termination 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) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Commitments | ||
Summary of amount of the minimum fixed and determinable portion of the unconditional purchase obligations over the next years | $ 2023 1,222,198 2024 4,052,051 | $ 2023 4,350,104 2024 2,253,394 |
Summary of undiscounted lease commitments | The Company’s undiscounted lease commitments related to this lease are as follows as at May 31, 2023: $ 2024 67,990 2025 164,536 2026 167,827 2027 and thereafter 448,815 | $ 2023 105,000 2024 159,000 2025 162,000 2026 165,000 2027 and thereafter 225,000 |
Basis of preparation (Details)
Basis of preparation (Details) | 9 Months Ended |
May 31, 2023 | |
7858078 Canada Inc. | |
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, 2022 | |
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, 2022 | |
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) | 9 Months Ended | 12 Months Ended | ||
May 31, 2023 $ / shares | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2022 $ / shares | |
Foreign exchange rates [abstract] | ||||
Exchange rate as at end of year | 1.3598 | 1.3076 | 1.2630 | 1.3076 |
Average exchange rate for year ended | 1.3511 | 1.2717 | 1.2688 |
Significant accounting polici_6
Significant accounting policies (Details) | 12 Months Ended |
Aug. 31, 2022 | |
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, 2022 CAD ($) | |
Significant accounting estimates and assumptions | |
Period of projected cash inflows | 5 years |
Impairment of goodwill | $ 0 |
Post tax discount rate | 27% |
Long term growth rate | 2% |
Business combination - Addition
Business combination - Additional Information (Details) | 9 Months Ended | 12 Months Ended | |||||
Jun. 03, 2021 USD ($) item $ / shares shares | May 31, 2023 CAD ($) | Aug. 31, 2022 CAD ($) shares | Aug. 31, 2021 CAD ($) | Aug. 25, 2022 shares | Jun. 03, 2021 CAD ($) $ / shares shares | Feb. 16, 2021 shares | |
Disclosure of detailed information about business combination [line items] | |||||||
Shares Issued | shares | 284,495 | 53,445 | 2,703 | 284,495 | 30,000 | ||
Revenues | $ 1,360,000 | ||||||
Net earnings | 530,000 | ||||||
Goodwill | $ 9,726,002 | $ 9,352,640 | |||||
EBR | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Shares Issued | shares | 7,858,078 | 7,858,078 | |||||
Shares outstanding | shares | 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 | shares | 284,495 | 284,495 | |||||
Per Share Value | (per share) | $ 10.09 | $ 12.21 | |||||
Share Issue Related Cost | $ 13,170 | ||||||
Goodwill | $ 9,033,638 |
Business combination - Recogniz
Business combination - Recognized amounts of assets acquired and liabilities assumed (Details) - EBR | Jun. 03, 2021 CAD ($) |
Fair value at acquisition | |
Cash | $ 516,623 |
Trade and other receivables | 7,998 |
Income tax receivable | 9,963 |
Inventories | 12,864 |
Prepaids | 34,687 |
Advances to related parties | 177,671 |
Other financial assets | 7,685 |
Right-of-use asset | 1,651,746 |
Property and equipment | 417,554 |
Intangible assets | 184,000 |
Deferred tax asset | 18,467 |
Goodwill | 8,656,700 |
Trade and other payables | (111,602) |
Income tax payable | (1,952) |
Contract liabilities | (482,173) |
Other financial liabilities | (242,060) |
Long-term debt, including current portion | (66,204) |
Lease liability, including current portion | (1,651,746) |
Deferred tax liability | (119,950) |
Net assets acquired | $ 9,020,271 |
Trade and other receivables (De
Trade and other receivables (Details) - CAD ($) | May 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 |
Ifrs Trade And Other Receivables [Line items] | |||
Trade receivables | $ 396,367 | $ 108,716 | $ 27,388 |
Sales taxes receivable | 183,272 | 194,523 | 166,749 |
Other receivables | 169,309 | 125,603 | |
Total trade and other current receivables | 583,390 | 472,548 | 319,740 |
Past Due But Not Impaired | |||
Ifrs Trade And Other Receivables [Line items] | |||
Trade receivables | $ 396,367 | $ 31,091 | $ 27,388 |
Trade and other receivables - A
Trade and other receivables - Aging analysis (Details) - CAD ($) | May 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 |
Ifrs Financing Receivable, Past Due [Line Items] | |||
Trade receivables | $ 396,367 | $ 108,716 | $ 27,388 |
0 - 30 | |||
Ifrs Financing Receivable, Past Due [Line Items] | |||
Trade receivables | 77,625 | ||
31-60 | |||
Ifrs Financing Receivable, Past Due [Line Items] | |||
Trade receivables | 101,047 | 2,008 | |
61-90 | |||
Ifrs Financing Receivable, Past Due [Line Items] | |||
Trade receivables | 5,006 | 14,212 | $ 25,380 |
91 and over | |||
Ifrs Financing Receivable, Past Due [Line Items] | |||
Trade receivables | $ 290,314 | $ 16,879 |
Trade and other receivables -_2
Trade and other receivables - Allowance for expected credit losses (Details) - CAD ($) | May 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 |
Trade and other receivables | |||
Movements in the allowance for expected credit losses | $ 0 | $ 0 | $ 0 |
Inventories (Details)
Inventories (Details) - CAD ($) | May 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 |
Inventories | |||
Raw materials | $ 1,926,581 | $ 1,709,368 | $ 1,549,125 |
Work-in-process | 125,172 | 75,170 | 327,757 |
Finished goods | 667,755 | 309,238 | 99,202 |
Total current inventories | $ 2,719,508 | $ 2,093,776 | $ 1,976,084 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Inventories | |||||||
Inventories recognized as an expense | $ 401,021 | $ 890,649 | $ 2,258,376 | $ 2,079,821 | $ 4,065,381 | $ 1,909,606 | $ 812,783 |
Cost of sales including depreciation | $ 4,273 | $ 188,152 | $ 318,398 | $ 544,462 | $ 687,023 | $ 232,195 | $ 142,336 |
Debentures - Additional Informa
Debentures - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
May 14, 2023 CAD ($) item $ / shares | May 14, 2021 CAD ($) item | May 31, 2023 CAD ($) | May 31, 2022 CAD ($) | May 31, 2023 CAD ($) | May 31, 2022 CAD ($) | Aug. 31, 2022 CAD ($) $ / shares | Aug. 31, 2021 CAD ($) | Aug. 31, 2020 CAD ($) | |
Debentures. | |||||||||
Purchase of senior unsecured subordinated convertible debentures | item | 3,400 | 3,400 | |||||||
Aggregate amount of debentures | $ | $ 3,400,000 | $ 3,400,000 | $ 340,000 | $ 85,000 | $ 0 | ||||
Borrowings interest rate | 10% | 10% | |||||||
Debt Term | 36 years | 36 months | |||||||
Conversion price | $ / shares | $ 0.36 | $ 0.36 | |||||||
Closing date of issuance of debentures | 120 days | 120 days | |||||||
Days prior to end of term | 30 days | 30 days | |||||||
Share price | $ / shares | $ 0.50 | $ 0.50 | |||||||
Common Share for consecutive trading days | 20 days | 20 days | |||||||
Period for conversion | 30 days | 30 days | |||||||
Net income (loss) for change in the fair value of the Debentures | $ | $ 0 | $ 115,000 | $ 109,667 | $ 436,500 | $ 670,000 | $ 550,000 | $ 0 |
Right-of-use assets (Details)
Right-of-use assets (Details) - CAD ($) | 9 Months Ended | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | Aug. 31, 2022 | Aug. 31, 2021 | |
Right-of-use assets | ||||
Balance at beginning of the year | $ 2,261,100 | $ 2,905,199 | $ 2,905,199 | |
Additions | 922,479 | 208,534 | 234,608 | $ 852,467 |
Balance at end of the year | 2,613,667 | 2,261,100 | 2,905,199 | |
Premises | ||||
Right-of-use assets | ||||
Balance at beginning of the year | 2,057,632 | 2,411,761 | 2,411,761 | |
Balance at end of the year | 2,575,527 | 2,057,632 | 2,411,761 | |
Computer equipment | ||||
Right-of-use assets | ||||
Balance at beginning of the year | 768 | 3,070 | 3,070 | |
Balance at end of the year | 768 | 3,070 | ||
Rolling stock | ||||
Right-of-use assets | ||||
Balance at beginning of the year | 67,705 | 187,587 | 187,587 | |
Balance at end of the year | 16,925 | 67,705 | 187,587 | |
Boat rental fleet | ||||
Right-of-use assets | ||||
Balance at beginning of the year | 134,995 | 302,781 | 302,781 | |
Balance at end of the year | 21,215 | 134,995 | 302,781 | |
Software | ||||
Right-of-use assets | ||||
Balance at beginning of the year | 5,981 | 5,981 | ||
Balance at end of the year | 5,981 | |||
Cost | ||||
Right-of-use assets | ||||
Balance at beginning of the year | 3,183,164 | 3,279,168 | 3,279,168 | 787,098 |
Business acquisition | 1,651,746 | |||
Additions | 922,479 | 234,608 | 852,467 | |
Disposals | (174,068) | (371,362) | (57,475) | |
Transfer to intangible assets | (11,333) | |||
Currency translation | 46,254 | 40,750 | 56,665 | |
Balance at end of the year | 3,933,022 | 3,183,164 | 3,279,168 | |
Cost | Premises | ||||
Right-of-use assets | ||||
Balance at beginning of the year | 2,880,039 | 2,746,118 | 2,746,118 | 737,066 |
Business acquisition | 1,281,308 | |||
Additions | 922,479 | 93,565 | 672,731 | |
Currency translation | 44,154 | 40,356 | 55,013 | |
Balance at end of the year | 3,846,672 | 2,880,039 | 2,746,118 | |
Cost | Computer equipment | ||||
Right-of-use assets | ||||
Balance at beginning of the year | 3,646 | 3,646 | 3,646 | 11,333 |
Business acquisition | 3,646 | |||
Transfer to intangible assets | (11,333) | |||
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 | 202,536 | 38,699 |
Business acquisition | 39,924 | |||
Additions | 141,043 | 179,736 | ||
Disposals | (46,200) | (255,953) | (57,475) | |
Currency translation | 2,100 | 394 | 1,652 | |
Balance at end of the year | 43,920 | 88,020 | 202,536 | |
Cost | Boat rental fleet | ||||
Right-of-use assets | ||||
Balance at beginning of the year | 211,459 | 326,868 | 326,868 | |
Business acquisition | 326,868 | |||
Disposals | (127,868) | (115,409) | ||
Balance at end of the year | 42,430 | 211,459 | 326,868 | |
Accumulated depreciation | ||||
Right-of-use assets | ||||
Balance at beginning of the year | (922,064) | (373,969) | (373,969) | (134,131) |
Depreciation | 491,103 | 651,457 | 272,862 | |
Disposals | (93,812) | (103,362) | (27,672) | |
Transfer to intangible assets | (5,352) | |||
Balance at end of the year | (1,319,355) | (922,064) | (373,969) | |
Accumulated depreciation | Premises | ||||
Right-of-use assets | ||||
Balance at beginning of the year | (822,407) | (334,357) | (334,357) | (117,806) |
Depreciation | 448,738 | 488,050 | 216,551 | |
Balance at end of the year | (1,271,145) | (822,407) | (334,357) | |
Accumulated depreciation | Computer equipment | ||||
Right-of-use assets | ||||
Balance at beginning of the year | (2,878) | (576) | (576) | (4,231) |
Depreciation | 768 | 2,302 | 1,697 | |
Disposals | (3,646) | |||
Transfer to intangible assets | (5,352) | |||
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) | (14,949) | (12,094) |
Depreciation | 20,155 | 71,488 | 30,527 | |
Disposals | (13,475) | (66,122) | (27,672) | |
Balance at end of the year | (26,995) | (20,315) | (14,949) | |
Accumulated depreciation | Boat rental fleet | ||||
Right-of-use assets | ||||
Balance at beginning of the year | (76,464) | $ (24,087) | (24,087) | |
Depreciation | 21,442 | 89,617 | 24,087 | |
Disposals | (76,691) | (37,240) | ||
Balance at end of the year | $ (21,215) | $ (76,464) | $ (24,087) |
Property and equipment (Details
Property and equipment (Details) - CAD ($) | 9 Months Ended | 12 Months Ended | |
May 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Property and equipment | |||
Beginning balance | $ 2,218,982 | $ 1,414,509 | |
Ending balance | 2,354,863 | 2,218,982 | $ 1,414,509 |
Cost | |||
Property and equipment | |||
Beginning balance | 2,620,537 | 1,685,315 | 769,451 |
Business acquisition | 417,554 | ||
Additions | 834,296 | 1,175,931 | 544,354 |
Disposals | (534,194) | (270,828) | (64,101) |
Currency translation | (70,118) | 30,119 | 18,057 |
Ending balance | 2,895,328 | 2,620,537 | 1,685,315 |
Accumulated depreciation | |||
Property and equipment | |||
Beginning balance | (401,555) | (270,806) | (231,386) |
Depreciation | 183,092 | 157,947 | 69,420 |
Disposals | (44,182) | (27,198) | (30,000) |
Ending balance | (540,465) | (401,555) | (270,806) |
Machinery and equipment | |||
Property and equipment | |||
Beginning balance | 135,280 | 135,334 | |
Ending balance | 153,184 | 135,280 | 135,334 |
Machinery and equipment | Cost | |||
Property and equipment | |||
Beginning balance | 333,084 | 302,938 | 187,850 |
Additions | 41,209 | 30,146 | 115,088 |
Ending balance | 374,293 | 333,084 | 302,938 |
Machinery and equipment | Accumulated depreciation | |||
Property and equipment | |||
Beginning balance | (197,804) | (167,604) | (148,156) |
Depreciation | 23,305 | 30,200 | 19,448 |
Ending balance | (221,109) | (197,804) | (167,604) |
Rolling stock | |||
Property and equipment | |||
Beginning balance | 88,665 | 7,813 | |
Ending balance | 71,684 | 88,665 | 7,813 |
Rolling stock | Cost | |||
Property and equipment | |||
Beginning balance | 118,664 | 32,175 | 32,175 |
Additions | 69,350 | 197,739 | |
Disposals | (67,043) | (111,215) | |
Currency translation | (2,347) | (35) | |
Ending balance | 118,624 | 118,664 | 32,175 |
Rolling stock | Accumulated depreciation | |||
Property and equipment | |||
Beginning balance | (29,999) | (24,362) | (21,014) |
Depreciation | 24,483 | 23,938 | 3,348 |
Disposals | (7,542) | (18,301) | |
Ending balance | (46,940) | (29,999) | (24,362) |
Computer equipment | |||
Property and equipment | |||
Beginning balance | 8,229 | 6,249 | |
Ending balance | 9,009 | 8,229 | 6,249 |
Computer equipment | Cost | |||
Property and equipment | |||
Beginning balance | 21,032 | 14,647 | 8,436 |
Additions | 565 | 11,284 | 6,211 |
Disposals | (4,899) | ||
Ending balance | 25,243 | 21,032 | 14,647 |
Computer equipment | Accumulated depreciation | |||
Property and equipment | |||
Beginning balance | (12,803) | (8,398) | (4,556) |
Depreciation | 3,431 | 5,079 | 3,842 |
Disposals | (674) | ||
Ending balance | (16,234) | (12,803) | (8,398) |
Moulds | |||
Property and equipment | |||
Beginning balance | 838,896 | 640,585 | |
Ending balance | 841,124 | 838,896 | 640,585 |
Moulds | Cost | |||
Property and equipment | |||
Beginning balance | 911,924 | 691,005 | 506,172 |
Additions | 30,501 | 220,919 | 214,833 |
Disposals | (30,000) | ||
Ending balance | 942,425 | 911,924 | 691,005 |
Moulds | Accumulated depreciation | |||
Property and equipment | |||
Beginning balance | (73,028) | (50,420) | (57,660) |
Depreciation | 28,273 | 22,608 | 22,760 |
Disposals | (30,000) | ||
Ending balance | (101,301) | (73,028) | (50,420) |
Leasehold improvements | |||
Property and equipment | |||
Beginning balance | 219,851 | 119,654 | |
Ending balance | 255,528 | 219,851 | 119,654 |
Leasehold improvements | Cost | |||
Property and equipment | |||
Beginning balance | 264,356 | 131,233 | 34,818 |
Additions | 87,959 | 133,123 | 96,415 |
Ending balance | 352,315 | 264,356 | 131,233 |
Leasehold improvements | Accumulated depreciation | |||
Property and equipment | |||
Beginning balance | (44,505) | (11,579) | |
Depreciation | 52,282 | 32,926 | 11,579 |
Ending balance | (96,787) | (44,505) | (11,579) |
Boat rental fleet | |||
Property and equipment | |||
Beginning balance | 928,061 | 504,874 | |
Ending balance | 1,024,334 | 928,061 | 504,874 |
Boat rental fleet | Cost | |||
Property and equipment | |||
Beginning balance | 971,477 | 513,317 | |
Business acquisition | 417,554 | ||
Additions | 604,712 | 582,720 | 111,807 |
Disposals | (467,151) | (154,714) | (34,101) |
Currency translation | (67,771) | 30,154 | 18,057 |
Ending balance | 1,082,428 | 971,477 | 513,317 |
Boat rental fleet | Accumulated depreciation | |||
Property and equipment | |||
Beginning balance | (43,416) | (8,443) | |
Depreciation | 51,318 | 43,196 | 8,443 |
Disposals | (36,640) | (8,223) | |
Ending balance | $ (58,094) | $ (43,416) | $ (8,443) |
Property and equipment - Additi
Property and equipment - Additional Information (Details) - CAD ($) | Aug. 31, 2022 | Aug. 31, 2021 |
Moulds | ||
Property and equipment | ||
Asset not depreciated and not ready for use | $ 346,752 | $ 125,833 |
Intangible assets (Details)
Intangible assets (Details) - CAD ($) | 9 Months Ended | 12 Months Ended | |
May 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | $ 1,112,670 | $ 1,225,722 | |
Balance at the end | 1,006,063 | 1,112,670 | $ 1,225,722 |
Intellectual property | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | 875,981 | 979,489 | |
Balance at the end | 798,350 | 875,981 | 979,489 |
Software | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | 77,075 | 66,466 | |
Balance at the end | 67,385 | 77,075 | 66,466 |
Trade name | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | 83,855 | 89,223 | |
Balance at the end | 74,542 | 83,855 | 89,223 |
Backlog | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | 59,720 | 72,700 | |
Balance at the end | 51,550 | 59,720 | 72,700 |
Website | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | 16,039 | 17,844 | |
Balance at the end | 14,236 | 16,039 | 17,844 |
Cost | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | 1,333,547 | 1,300,490 | 0 |
Business acquisition | 184,000 | ||
Transfer from Right-of-use assets | 5,981 | ||
Additions | 32,202 | 1,102,662 | |
Currency translation | 11,824 | 855 | 7,847 |
Balance at the end | 1,345,371 | 1,333,547 | 1,300,490 |
Cost | Intellectual property | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | 1,035,070 | 1,035,070 | 0 |
Additions | 1,035,070 | ||
Balance at the end | 1,035,070 | 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 | 0 |
Transfer from Right-of-use assets | 5,981 | ||
Additions | 28,202 | 67,592 | |
Balance at the end | 101,775 | 101,775 | 73,573 |
Cost | Trade name | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | 98,294 | 93,856 | 0 |
Business acquisition | 90,000 | ||
Additions | 4,000 | ||
Currency translation | 6,057 | 438 | 3,856 |
Balance at the end | 104,351 | 98,294 | 93,856 |
Cost | Backlog | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | 79,550 | 79,220 | 0 |
Business acquisition | 76,000 | ||
Currency translation | 4,556 | 330 | 3,220 |
Balance at the end | 84,106 | 79,550 | 79,220 |
Cost | Website | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | 18,858 | 18,771 | 0 |
Business acquisition | 18,000 | ||
Currency translation | 1,211 | 87 | 771 |
Balance at the end | 20,069 | 18,858 | 18,771 |
Accumulated depreciation | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | (220,877) | (74,768) | 0 |
Depreciation | 118,431 | 146,109 | 74,768 |
Balance at the end | (339,308) | (220,877) | (74,768) |
Accumulated depreciation | Intellectual property | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | (159,089) | (55,581) | 0 |
Depreciation | 77,631 | 103,508 | 55,581 |
Balance at the end | (236,720) | (159,089) | (55,581) |
Accumulated depreciation | Software | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | (24,700) | (7,107) | 0 |
Depreciation | 9,690 | 17,593 | 7,107 |
Balance at the end | (34,390) | (24,700) | (7,107) |
Accumulated depreciation | Trade name | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | (14,439) | (4,633) | 0 |
Depreciation | 15,370 | 9,806 | 4,633 |
Balance at the end | (29,809) | (14,439) | (4,633) |
Accumulated depreciation | Backlog | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | (19,830) | (6,520) | 0 |
Depreciation | 12,726 | 13,310 | 6,520 |
Balance at the end | (32,556) | (19,830) | (6,520) |
Accumulated depreciation | Website | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | (2,819) | (927) | 0 |
Depreciation | 3,014 | 1,892 | 927 |
Balance at the end | $ (5,833) | $ (2,819) | $ (927) |
Intangible assets - Additional
Intangible assets - Additional Information (Details) | 9 Months Ended | 12 Months Ended | |||||
Feb. 16, 2021 CAD ($) $ / shares shares | Feb. 16, 2021 EUR (€) shares | May 31, 2022 CAD ($) | Aug. 31, 2022 CAD ($) $ / shares | Aug. 31, 2021 CAD ($) | May 14, 2023 $ / shares | Feb. 16, 2021 $ / shares | |
Intangible assets | |||||||
Additions to intangible assets | $ 32,202 | $ 32,202 | $ 528,726 | ||||
Share price | $ / shares | $ 0.50 | $ 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 | ||||||
Software | |||||||
Intangible assets | |||||||
Intangible assets not depreciated because they are not ready for use | $ 42,677 |
Credit facility (Details)
Credit facility (Details) - CAD ($) | 9 Months Ended | 12 Months Ended | |
May 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Credit facility | |||
Authorized line of credit | $ 250,000 | $ 250,000 | |
Amount drawn on line of credit | $ 235,000 | $ 0 | $ 0 |
Prime rate | |||
Credit facility | |||
Spread on variable interest rate | 1% | 1% | |
Secured First Ranking Movable Hypothec | |||
Credit facility | |||
Secured first ranking movable hypothec on accounts payable and inventory | $ 750,000 | $ 750,000 |
Trade and other payables (Detai
Trade and other payables (Details) - CAD ($) | May 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 |
Trade and other payables. | |||
Trade payable | $ 1,473,770 | $ 737,946 | $ 560,870 |
Sales taxes payable | 53,762 | 21,547 | 34,076 |
Government remittances | 9,450 | 46,030 | |
Salaries and vacation payable | 250,329 | 261,388 | 207,078 |
Trade and other payables | $ 1,777,861 | $ 1,030,331 | $ 848,054 |
Contract liabilities (Details)
Contract liabilities (Details) - CAD ($) | 9 Months Ended | 12 Months Ended | |
May 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Contract liabilities | |||
Opening balance | $ 1,029,318 | $ 898,713 | $ 20,443 |
Business acquisition | 482,173 | ||
Payments received in advance | 917,935 | 2,502,080 | 1,199,958 |
Boat sale deposits | 152,277 | 87,609 | |
Payments reimbursed | (8,159) | (2,615) | (37,842) |
Transferred to revenues | (1,277,728) | (2,475,307) | (766,019) |
Currency translation | 36,399 | 18,838 | |
Closing balance | $ 850,042 | $ 1,029,318 | $ 898,713 |
Lease liabilities (Details)
Lease liabilities (Details) - CAD ($) | 9 Months Ended | 12 Months Ended | |
May 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Lease liabilities | |||
Opening balance | $ 2,415,549 | $ 2,966,816 | $ 672,988 |
Business acquisition | 1,651,746 | ||
Additions | 1,023,090 | 234,608 | 852,467 |
Repayment | (533,270) | (695,749) | (295,316) |
Interest on lease liability | 101,052 | 141,994 | 65,115 |
Lease termination | (131,247) | (273,652) | (37,033) |
Currency translation | (50,222) | 41,532 | 56,849 |
Closing balance | 2,824,952 | 2,415,549 | 2,966,816 |
Current | 673,267 | 561,168 | 562,136 |
Non-current | $ 2,151,685 | $ 1,854,381 | $ 2,404,680 |
Lease liabilities - Undiscounte
Lease liabilities - Undiscounted lease payments (Details) - CAD ($) | 12 Months Ended | |||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | May 31, 2023 | |
Lease liabilities | ||||
Undiscounted lease payments | $ 2,676,420 | $ 3,099,503 | ||
Short-term lease expense | $ 58,663 | $ 50,186 | $ 65,934 | |
Weighted average interest rate | 5.40% | 5.20% | 5.40% | |
Less than one year | ||||
Lease liabilities | ||||
Undiscounted lease payments | $ 670,125 | 742,792 | ||
One year to five years | ||||
Lease liabilities | ||||
Undiscounted lease payments | $ 2,006,295 | $ 2,356,711 |
Long-term debt (Details)
Long-term debt (Details) - CAD ($) | 9 Months Ended | 12 Months Ended | |||
May 31, 2023 | Aug. 31, 2022 | May 14, 2023 | Aug. 31, 2021 | May 14, 2021 | |
Long-term debt | |||||
Total borrowings | $ 390,694 | $ 227,349 | $ 64,115 | ||
Current portion of long-term debt | 293,980 | 72,090 | 10,179 | ||
Long-term debt, noncurrent | 96,714 | 155,259 | 53,936 | ||
Borrowings interest rate | 10% | 10% | |||
The government assistance loan maturing by December 31, 2025 | |||||
Long-term debt | |||||
Total borrowings | $ 40,000 | $ 39,342 | 36,972 | ||
Borrowings interest rate | 5% | 5% | |||
Term loan maturing April 2024 | |||||
Long-term debt | |||||
Total borrowings | $ 27,143 | ||||
Borrowings interest rate | 5.80% | ||||
Monthly instalments | $ 848 | ||||
Term loan maturing January 2025 | |||||
Long-term debt | |||||
Total borrowings | $ 350,694 | 188,007 | |||
Monthly instalments | $ 23,337 | $ 7,372 | |||
Term loan maturing January 2025 | Minimum. | |||||
Long-term debt | |||||
Borrowings interest rate | 9.44% | 9.44% | |||
Term loan maturing January 2025 | Maximum. | |||||
Long-term debt | |||||
Borrowings interest rate | 12.90% | 10.71% |
Related party transactions (Det
Related party transactions (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Disclosure of transactions between related parties [line items] | |||||||
Office salaries and benefits | $ 899,864 | $ 968,126 | $ 2,725,049 | $ 2,571,948 | $ 3,335,799 | $ 1,754,613 | $ 315,138 |
Right-of-use assets | 2,613,667 | 2,613,667 | 2,261,100 | 2,905,199 | |||
Lease liability | 2,824,952 | 2,824,952 | 2,415,549 | 2,966,816 | 672,988 | ||
Electric Boat Rental Ltd. | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Sales of boats | 84,149 | 101,684 | |||||
Sale of parts and boat maintenance | 40,310 | 79,696 | |||||
Other | 2,500 | ||||||
Cost of sales | 11,444 | 16,865 | |||||
Travel and entertainment | 8,926 | ||||||
Advertising and promotion | 11,245 | ||||||
Rent expense | 65,934 | ||||||
Patrick Bobby | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Sales of boats | 11,000 | ||||||
7858078 Canada Inc | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Other | $ 6,074 | ||||||
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 | 22,418 | 134,962 | 150,113 | 455,331 | 666,178 | 176,500 | |
California Electric Boat Company Inc. | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Right-of-use assets | 2,120,495 | 2,120,495 | 889,866 | 1,132,556 | |||
Lease liability | $ 1,523,233 | 1,523,233 | 971,399 | $ 1,177,867 | |||
Montana Strategies Inc. | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Office salaries and benefits | $ 14,488 | $ 23,733 | $ 48,616 | $ 62,462 |
Related party transactions - Re
Related party transactions - Remuneration of directors and key management of the Company (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Related party transactions | |||||||
Wages | $ 731,195 | $ 664,573 | $ 1,880,567 | $ 1,905,467 | $ 2,324,770 | $ 1,299,402 | $ 308,868 |
Share-based payments - capital stock | 572,110 | ||||||
Share-based payments - stock options | 580,239 | 328,994 | 647,965 | 2,426,874 | 2,560,031 | 6,081,900 | 259,410 |
Remuneration of directors and key management of the Company | $ 1,311,434 | $ 993,567 | $ 2,528,532 | $ 4,332,341 | $ 4,884,801 | $ 7,381,302 | $ 1,140,388 |
Related party transactions - Th
Related party transactions - The amounts due to and from related parties (Details) - CAD ($) | May 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 |
Disclosure of transactions between related parties [line items] | |||
Share subscription receivable | $ 39,200 | $ 39,200 | $ 39,200 |
Advances to related parties | 20,262 | 16,736 | 185,407 |
Amounts due to related parties included in trade and other payable | 17,123 | 44,662 | 122,260 |
Alexandre Mongeon | |||
Disclosure of transactions between related parties [line items] | |||
Share subscription receivable | 14,200 | 14,200 | 14,200 |
Current advances from related parties | 17,404 | 16,736 | 185,407 |
Amounts due to related parties included in trade and other payable | 6,375 | 16,000 | 74,157 |
Patrick Bobby | |||
Disclosure of transactions between related parties [line items] | |||
Amounts due to related parties included in trade and other payable | 4,616 | 12,308 | 11,092 |
Kulwant Sandher | |||
Disclosure of transactions between related parties [line items] | |||
Amounts due to related parties included in trade and other payable | 3,022 | 8,062 | 7,054 |
Xavier Montagne | |||
Disclosure of transactions between related parties [line items] | |||
Amounts due to related parties included in trade and other payable | 3,110 | 8,292 | |
Mac Engineering, SASU | |||
Disclosure of transactions between related parties [line items] | |||
Amounts due to related parties included in trade and other payable | 29,957 | ||
9335-1427 Quebec Inc | |||
Disclosure of transactions between related parties [line items] | |||
Share subscription receivable | $ 25,000 | $ 25,000 | $ 25,000 |
Capital stock - Voting Common S
Capital stock - Voting Common Shares (Details) - CAD ($) | May 31, 2023 | Aug. 31, 2022 | May 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 |
Disclosure of classes of share capital [line items] | ||||||
Issued capital | $ 46,851,134 | $ 43,441,591 | $ 42,834,982 | |||
Issued Capital [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Shares outstanding | 9,931,985 | 8,417,923 | 8,390,581 | 8,324,861 | 4,585,001 | 3,275,555 |
Capital stock - Additional Info
Capital stock - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Sep. 18, 2020 CAD ($) | Sep. 02, 2020 CAD ($) | Aug. 27, 2020 CAD ($) shares | Aug. 27, 2020 USD ($) $ / shares shares | Aug. 18, 2020 CAD ($) shares | May 31, 2023 CAD ($) | May 31, 2023 USD ($) | May 31, 2022 CAD ($) | May 31, 2023 CAD ($) | May 31, 2023 USD ($) | May 31, 2022 CAD ($) | Aug. 31, 2022 CAD ($) shares | Aug. 31, 2021 CAD ($) | Aug. 31, 2020 CAD ($) shares | Aug. 25, 2022 shares | Feb. 01, 2022 shares | Jan. 31, 2022 shares | Jan. 12, 2022 shares | Jun. 03, 2021 $ / shares shares | Jun. 03, 2021 $ / shares shares | Feb. 16, 2021 $ / shares shares | Feb. 16, 2021 $ / shares shares | Dec. 22, 2020 CAD ($) shares | Aug. 27, 2020 $ / shares | Aug. 02, 2020 shares | |
Disclosure of classes of share capital [line items] | |||||||||||||||||||||||||
Shares Issued | shares | 53,445 | 2,703 | 284,495 | 284,495 | 30,000 | 30,000 | |||||||||||||||||||
Total consideration | $ 2,025,000 | $ 1,898,645 | |||||||||||||||||||||||
Transaction costs | $ 101,942 | $ 285,832 | $ 774,759 | $ 0 | $ 0 | 0 | 320,230 | ||||||||||||||||||
Professional fees | $ 1,234,357 | $ 571,452 | $ 2,814,576 | $ 2,452,900 | $ 3,590,816 | 1,633,477 | 671,788 | ||||||||||||||||||
Price per share | (per share) | $ 10.09 | $ 12.21 | $ 15.07 | $ 19.13 | |||||||||||||||||||||
Issuance of shares, net of transaction costs paid | 2,025,000 | $ 1,898,645 | |||||||||||||||||||||||
Ipo [Member] | |||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||||||||||||
Total consideration | $ 33,430,239 | $ 25,287,624 | |||||||||||||||||||||||
Transaction costs | $ 3,328,687 | ||||||||||||||||||||||||
Professional fees | $ 502,857 | $ 380,376 | |||||||||||||||||||||||
Number of shares issued during the period | shares | 2,760,000 | 2,760,000 | |||||||||||||||||||||||
Price per share | (per share) | $ 10 | $ 13.22 | |||||||||||||||||||||||
Issuance of shares, net of transaction costs paid | $ 33,430,239 | $ 25,287,624 | |||||||||||||||||||||||
Cash commission paid to the underwriter | 2,554,104 | $ 1,932,000 | |||||||||||||||||||||||
Professional fees previously recorded in prepaids | $ 271,726 | ||||||||||||||||||||||||
Board of directors | |||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||||||||||||
Shares Issued | shares | 45,351 | 3,067 | 5,435 | 6,479 | 25,000 | 69,650 | 547,297 | ||||||||||||||||||
Total consideration | $ 167,799 | $ 2,025,000 | |||||||||||||||||||||||
Transaction costs | $ 58,730 | ||||||||||||||||||||||||
Professional fees | $ 109,069 | ||||||||||||||||||||||||
Issuance of shares, net of transaction costs paid | $ 167,799 | $ 2,025,000 | |||||||||||||||||||||||
Amount of conversion of advances from related parties | $ 39,200 | $ 898,489 | |||||||||||||||||||||||
Class A common stock | |||||||||||||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||||||||||||
Pre Consolidation Of Voting Common Shares | shares | 3.7 | ||||||||||||||||||||||||
Post Consolidation Of Voting Common Shares | shares | 1 |
Share-based payments - Assumpti
Share-based payments - Assumptions used to determine the fair value of option grants (Details) | 9 Months Ended | ||||||||
Jan. 22, 2022 Y $ / shares | Sep. 21, 2021 Y $ / shares | Jul. 14, 2021 Y $ / shares | May 14, 2021 Y $ / shares | Feb. 23, 2021 Y $ / shares | Nov. 24, 2020 Y $ / shares | Oct. 23, 2020 Y $ / shares | May 27, 2020 Y $ / shares | May 31, 2023 Y $ / shares | |
May 27,2020 | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Exercise price | $ 3.70 | $ 3.70 | |||||||
Market Price | $ 3.70 | $ 3.70 | |||||||
Expected volatility | 84% | 0.84% | |||||||
Risk-free interest rate | 0.40% | 0.004% | |||||||
Expected life | Y | 5 | 5 | |||||||
May 27,2020 | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Exercise price | $ 2.78 | $ 2.78 | |||||||
Market Price | $ 3.70 | $ 3.70 | |||||||
Expected volatility | 84% | 0.84% | |||||||
Risk-free interest rate | 0.40% | 0.004% | |||||||
Expected life | Y | 5 | 5 | |||||||
October 23, 2020 | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Exercise price | $ 3.70 | $ 3.70 | |||||||
Market Price | $ 3.70 | $ 3.70 | |||||||
Expected volatility | 97% | 0.97% | |||||||
Risk-free interest rate | 0.40% | 0.004% | |||||||
Expected life | Y | 5 | 5 | |||||||
November 24, 2020 | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Exercise price | $ 16.29 | $ 16.29 | |||||||
Market Price | $ 13.03 | $ 13.03 | |||||||
Expected volatility | 101% | 1.01% | |||||||
Risk-free interest rate | 0.40% | 0.004% | |||||||
Expected life | Y | 5 | 5 | |||||||
February 23, 2021 | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Exercise price | $ 15.75 | $ 15.75 | |||||||
Market Price | $ 15.05 | $ 15.05 | |||||||
Expected volatility | 103% | 1.03% | |||||||
Risk-free interest rate | 0.60% | 0.006% | |||||||
Expected life | Y | 5 | 5 | |||||||
May 14, 2021 | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Exercise price | $ 8.98 | $ 5.68 | |||||||
Market Price | $ 9.06 | $ 5.72 | |||||||
Expected volatility | 105% | 0.75% | |||||||
Risk-free interest rate | 0.80% | 0.036% | |||||||
Expected life | Y | 5 | 3 | |||||||
July 14, 2021 | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Exercise price | $ 9.25 | $ 9.25 | |||||||
Market Price | $ 9.01 | $ 9.01 | |||||||
Expected volatility | 105% | 1.05% | |||||||
Risk-free interest rate | 0.70% | 0.007% | |||||||
Expected life | Y | 5 | 5 | |||||||
September 21, 2021 | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Exercise price | $ 8.85 | $ 8.85 | |||||||
Market Price | $ 8.58 | $ 8.58 | |||||||
Expected volatility | 106% | 1.06% | |||||||
Risk-free interest rate | 0.90% | 0.009% | |||||||
Expected life | Y | 5 | 5 | |||||||
January 22, 2022 | |||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||
Exercise price | $ 5.65 | $ 5.65 | |||||||
Market Price | $ 5.52 | $ 5.52 | |||||||
Expected volatility | 107% | 1.07% | |||||||
Risk-free interest rate | 1.50% | 0.015% | |||||||
Expected life | Y | 5 | 5 |
Share-based payments - Option g
Share-based payments - Option grants (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
May 31, 2023 shares $ / shares | May 31, 2023 shares $ / shares | Aug. 31, 2022 shares $ / shares | Aug. 31, 2021 shares $ / shares | |
Share-based payments | ||||
Number of options, Beginning balance | shares | 1,706,418 | 1,659,121 | 516,216 | |
Number options, Granted | shares | 160,500 | 152,500 | 1,148,310 | |
Number options, Forfeited | shares | (372,253) | (102,500) | (5,405) | |
Number options, Exercised | shares | 0 | (5,057) | (2,703) | |
Number of options, Ending Balance | shares | 1,167,608 | 1,167,608 | 1,706,418 | 1,659,121 |
Weighted average exercise, Beginning balance | $ / shares | $ 9.45 | $ 9.95 | $ 3.41 | |
Weighted average exercise, Granted | $ / shares | 5.84 | 6.70 | 12.86 | |
Weighted average exercise, Forfeited (in dollars per share) | $ / shares | 13.09 | 13.59 | 3.70 | |
Weighted average exercise, Exercised (in dollars per share) | $ / shares | 3.70 | 3.70 | ||
Weighted average exercise, Ending balance | $ / shares | $ 5.11 | $ 5.11 | $ 9.45 | $ 9.95 |
Share-based payments (Details)
Share-based payments (Details) | 9 Months Ended | 12 Months Ended | ||
May 31, 2023 shares $ / shares | Aug. 31, 2022 shares $ / shares | Aug. 31, 2021 shares | Aug. 31, 2020 shares | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Number of options outstanding | 1,167,608 | 1,706,418 | 1,659,121 | 516,216 |
Exercise Price 2.78 | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise price | $ / shares | $ 2.78 | |||
Number of options outstanding | 162,162 | |||
Weighted average grant date fair value | $ / shares | $ 2.59 | |||
Weighted average remaining contractual life (years) | 2 years 9 months | |||
Exercisable options | 162,162 | |||
Exercise Price 3.70 | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise price | $ / shares | $ 3.70 | |||
Number of options outstanding | 345,946 | |||
Weighted average grant date fair value | $ / shares | $ 2.42 | |||
Weighted average remaining contractual life (years) | 2 years 9 months | |||
Exercisable options | 325,253 | |||
Exercise Price 3.7 | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise price | $ / shares | $ 3.70 | |||
Number of options outstanding | 10,810 | |||
Weighted average grant date fair value | $ / shares | $ 2.69 | |||
Weighted average remaining contractual life (years) | 3 years | |||
Exercisable options | 7,883 | |||
Exercise Price 16.29 | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise price | $ / shares | $ 16.29 | $ 16.29 | ||
Number of options outstanding | 35,000 | 440,000 | ||
Weighted average grant date fair value | $ / shares | $ 9.33 | $ 9.33 | ||
Weighted average remaining contractual life (years) | 7 years 6 months | 8 years 3 months | ||
Exercisable options | 35,000 | 440,000 | ||
Exercise Price 15.75 | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise price | $ / shares | $ 15.75 | |||
Number of options outstanding | 120,000 | |||
Weighted average grant date fair value | $ / shares | $ 11.28 | |||
Weighted average remaining contractual life (years) | 3 years 6 months | |||
Exercisable options | 45,000 | |||
Exercise Price 8.98 | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise price | $ / shares | $ 8.98 | |||
Number of options outstanding | 500,000 | |||
Weighted average grant date fair value | $ / shares | $ 6.91 | |||
Weighted average remaining contractual life (years) | 3 years 9 months | |||
Exercisable options | 500,000 | |||
Exercise Price 8.85 | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise price | $ / shares | $ 8.85 | |||
Number of options outstanding | 25,000 | |||
Weighted average grant date fair value | $ / shares | $ 6.55 | |||
Weighted average remaining contractual life (years) | 9 years 3 months | |||
Exercisable options | 25,000 | |||
Exercise Price 5.65 | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise price | $ / shares | $ 5.65 | |||
Number of options outstanding | 102,500 | |||
Weighted average grant date fair value | $ / shares | $ 4.28 | |||
Weighted average remaining contractual life (years) | 4 years 6 months | |||
Exercisable options | 102,500 |
Share-based payments - Warrants
Share-based payments - Warrants (Details) | 9 Months Ended | ||||||||||
Apr. 19, 2023 $ / shares | Feb. 17, 2023 $ / shares | Jan. 19, 2023 $ / shares | Aug. 05, 2022 $ / shares | Nov. 23, 2020 $ / shares shares | May 31, 2023 $ / shares | Apr. 19, 2023 $ / shares | Feb. 17, 2023 $ / shares | Jan. 19, 2023 $ / shares | Aug. 05, 2022 $ / shares | Nov. 23, 2020 $ / shares shares | |
Share-based payments | |||||||||||
Exercise price of warrants | (per share) | $ 4.21 | $ 4.21 | $ 4.21 | $ 8 | $ 12.50 | $ 4.21 | $ 5.64 | $ 5.67 | $ 5.63 | $ 10.30 | $ 16.53 |
Number of warrants outstanding | 151,800 | 151,800 | |||||||||
Weighted average remaining contractual life (years) | 3 years 3 months | ||||||||||
Warrants term | 3 years | 3 years | 3 years | 4 years | 5 years | 3 years |
Share-based payments - Addition
Share-based payments - Additional information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
May 31, 2023 CAD ($) shares | May 31, 2022 CAD ($) | May 31, 2023 CAD ($) shares $ / shares | May 31, 2022 CAD ($) | Aug. 31, 2022 CAD ($) shares $ / shares | Aug. 31, 2021 CAD ($) | Aug. 31, 2020 CAD ($) | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||||
Number of share options granted | shares | 1,917,526 | 1,917,526 | 1,664,526 | ||||
Share-based compensation expense | $ | $ 628,923,139 | $ 367,054 | $ 1,052,090 | $ 2,545,720 | $ 2,699,481 | $ 7,121,444 | $ 1,312,071 |
Exercise Price 2.78 | |||||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||||
Exercise price | $ 2.78 | ||||||
Exercise Price 3.70 | |||||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||||
Exercise price | 3.70 | ||||||
Minimum. | |||||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||||
Exercise price | $ 2.78 | $ 2.78 | |||||
Expiration period | 5 years | 5 years | |||||
Maximum. | |||||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||||||
Exercise price | $ 16.29 | $ 16.29 | |||||
Expiration period | 10 years | 10 years |
Revenues (Details)
Revenues (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Revenues | $ 1,300,100 | $ 2,014,769 | $ 3,531,055 | $ 3,975,140 | $ 7,350,946 | $ 3,513,788 | $ 2,417,173 |
Sales of boats | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Revenues | 2,459,365 | 2,080,110 | 2,249,107 | ||||
Sales of parts and boat maintenance | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Revenues | 80,443 | 32,878 | 255,299 | 56,968 | 97,721 | 75,205 | 167,263 |
Boat rental and boat club membership revenue | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Revenues | $ 878,260 | $ 1,368,537 | $ 2,583,118 | $ 3,045,014 | $ 4,793,860 | 1,355,548 | |
Others | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Revenues | $ 2,925 | $ 803 |
Revenues - geographical distrib
Revenues - geographical distribution of revenues from external customers (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Revenues | $ 1,300,100 | $ 2,014,769 | $ 3,531,055 | $ 3,975,140 | $ 7,350,946 | $ 3,513,788 | $ 2,417,173 |
Canada | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Revenues | 184,199 | 229,972 | 184,199 | 370,448 | 557,639 | 571,216 | 827,057 |
USA | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Revenues | 1,018,301 | 1,784,797 | 3,249,256 | 3,604,692 | 6,086,527 | 2,692,599 | 1,407,063 |
Other | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Revenues | 97,600 | 97,600 | 706,780 | 249,973 | $ 183,053 | ||
Sale of electric boats | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Revenues | 421,840 | 646,232 | 947,937 | 930,126 | 2,557,085 | 2,150,764 | |
Sale of electric boats | Canada | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Revenues | 184,199 | 229,972 | 184,199 | 370,448 | 557,639 | 571,216 | |
Sale of electric boats | USA | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Revenues | 140,041 | 416,260 | 666,138 | 559,678 | 1,292,666 | 1,329,575 | |
Sale of electric boats | Other | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Revenues | 97,600 | 97,600 | 706,780 | 249,973 | |||
Rental of electric boats | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Revenues | 878,260 | 1,368,537 | 2,583,118 | 3,045,014 | 4,793,861 | 1,363,024 | |
Rental of electric boats | USA | |||||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||||||
Revenues | $ 878,260 | $ 1,368,537 | $ 2,583,118 | $ 3,045,014 | $ 4,793,861 | $ 1,363,024 |
Grants and investment tax cre_2
Grants and investment tax credits (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | Aug. 31, 2022 | Aug. 31, 2021 | |
Grants and investment tax credits | ||||||
Grants and investment tax credits | $ 39,940 | $ 607,256 | $ 39,940 | $ 1,410,605 | $ 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 | $ 39,940 | $ 607,256 | $ 39,940 | $ 1,384,516 | 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 | $ 17,203 |
Net finance expense (Details)
Net finance expense (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Net finance expense | |||||||
Interest and bank charges | $ 73,789 | $ 42,274 | $ 200,924 | $ 123,972 | $ 184,895 | $ 123,100 | $ 107,105 |
Interest income | (85,000) | (311,667) | (257,891) | (379,288) | |||
Foreign currency exchange (gain) loss | 13,544 | 27,334 | (105,179) | (89,162) | (251,947) | 1,583,292 | 1,295 |
Loss on Debentures | 115,000 | 109,667 | 436,500 | 670,000 | 550,000 | ||
Net finance expense | $ (1,413,084) | $ 99,608 | $ (1,230,217) | $ 213,419 | $ 223,660 | $ 2,256,392 | $ 108,400 |
Income taxes - Income tax expen
Income taxes - Income tax expense (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Nov. 27, 2020 USD ($) | Nov. 26, 2020 USD ($) | May 31, 2023 CAD ($) | May 31, 2022 CAD ($) | May 31, 2023 CAD ($) | May 31, 2022 CAD ($) | Aug. 31, 2022 CAD ($) | Aug. 31, 2022 USD ($) | Aug. 31, 2021 CAD ($) | Aug. 31, 2021 USD ($) | Aug. 31, 2020 CAD ($) | Aug. 31, 2020 USD ($) | |
Income taxes | ||||||||||||
Income taxes at the applicable tax rate of 26.5% [2021 - 26.5%; 2020 - 15%] | $ (3,406,162) | $ (3,977,204) | $ (338,133) | |||||||||
Change in tax status following the initial public offering | (127,979) | |||||||||||
Adjustment in respect of current and deferred income tax of previous year | (4,396) | (207,601) | ||||||||||
Permanent differences | 823,119 | 2,100,615 | 198,475 | |||||||||
Temporary difference | 160,967 | |||||||||||
Change in recognition of deferred income tax assets | 2,816,417 | 2,317,759 | ||||||||||
Other | 29,365 | |||||||||||
Total income tax expense | $ (201,848) | $ 86,085 | $ (208,985) | $ 52,981 | 258,343 | 105,590 | $ 21,309 | |||||
Income taxes at the applicable tax rate (as a percent) | $ 26.5 | $ 15 | $ 26.5 | $ 26.5 | $ 15 | |||||||
Research and development expenditures for income tax | $ 1,439,000 | $ 471,000 |
Income taxes - Deferred tax ass
Income taxes - Deferred tax asset and liability (Details) - CAD ($) | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Income taxes | ||
Beginning Balance | $ (105,108) | |
Recognized in net income (loss) | (75,489) | |
Business combination | (7,447) | |
Ending Balance | (188,044) | |
Net operating losses carried forward for income tax purposes | 18,194,000 | $ 8,143,000 |
Property and equipment | ||
Income taxes | ||
Beginning Balance | (262,778) | |
Recognized in net income (loss) | 115,282 | |
Business combination | (7,802) | |
Ending Balance | (155,298) | |
Intangibles | ||
Income taxes | ||
Beginning Balance | (42,887) | |
Recognized in net income (loss) | (251,498) | |
Ending Balance | (294,385) | |
Net operating losses | ||
Income taxes | ||
Beginning Balance | 2,054,789 | |
Recognized in net income (loss) | 2,735,223 | |
Ending Balance | 4,790,012 | |
Financing fees | ||
Income taxes | ||
Beginning Balance | 940,948 | |
Recognized in net income (loss) | (235,354) | |
Ending Balance | 705,594 | |
Research and development | ||
Income taxes | ||
Beginning Balance | 174,884 | |
Recognized in net income (loss) | 255,951 | |
Ending Balance | 430,835 | |
Difference in timing of recognition | ||
Income taxes | ||
Beginning Balance | 148,850 | |
Recognized in net income (loss) | 110,463 | |
Business combination | (195) | |
Ending Balance | 259,118 | |
Right-of-use asset | ||
Income taxes | ||
Beginning Balance | (789,968) | |
Recognized in net income (loss) | 184,851 | |
Business combination | (11,790) | |
Ending Balance | (616,907) | |
Lease liability | ||
Income taxes | ||
Beginning Balance | 813,691 | |
Recognized in net income (loss) | (167,184) | |
Business combination | 12,340 | |
Ending Balance | 658,847 | |
Net capital losses | ||
Income taxes | ||
Beginning Balance | 57,224 | |
Recognized in net income (loss) | (6,806) | |
Ending Balance | 50,418 | |
Valuation allowance | ||
Income taxes | ||
Beginning Balance | (3,199,861) | |
Recognized in net income (loss) | (2,816,417) | |
Ending Balance | $ (6,016,278) |
Financial risk management and_3
Financial risk management and fair value measurement - Fair value measurement and hierarchy (Details) - Debentures | 12 Months Ended |
Aug. 31, 2022 CAD ($) | |
Volatility | |
Financial risk management and fair value measurement | |
Percentage of reasonably possible increase in unobservable input liabilities | 5% |
Percentage of reasonably possible decrease in unobservable input liabilities | (5.00%) |
Change in fair value of debentures by percentage of reasonably possible increase in unobservable input liabilities | $ 2,441,000 |
Change in fair value of debentures by percentage of reasonably possible decrease in unobservable input liabilities | $ 2,431,500 |
Credit spread | |
Financial risk management and fair value measurement | |
Percentage of reasonably possible increase in unobservable input liabilities | 2% |
Percentage of reasonably possible decrease in unobservable input liabilities | (2.00%) |
Change in fair value of debentures by percentage of reasonably possible increase in unobservable input liabilities | $ 2,382,000 |
Change in fair value of debentures by percentage of reasonably possible decrease in unobservable input liabilities | $ 2,490,500 |
Financial risk management and_4
Financial risk management and fair value measurement - Maturity analysis of liquidity risk (Details) - CAD ($) | Aug. 31, 2022 | Aug. 31, 2021 |
Financial risk management and fair value measurement | ||
Contractual cash flows | $ 1,435,514 | $ 1,149,613 |
Less than one year | ||
Financial risk management and fair value measurement | ||
Contractual cash flows | 1,280,255 | 1,095,677 |
One year to five years | ||
Financial risk management and fair value measurement | ||
Contractual cash flows | 155,259 | 53,936 |
Trade and other payables | ||
Financial risk management and fair value measurement | ||
Contractual cash flows | 1,030,331 | 848,054 |
Trade and other payables | Less than one year | ||
Financial risk management and fair value measurement | ||
Contractual cash flows | 1,030,331 | 848,054 |
Other financial liabilities | ||
Financial risk management and fair value measurement | ||
Contractual cash flows | 177,834 | 237,444 |
Other financial liabilities | Less than one year | ||
Financial risk management and fair value measurement | ||
Contractual cash flows | 177,834 | 237,444 |
Long-term debt | ||
Financial risk management and fair value measurement | ||
Contractual cash flows | 227,349 | 64,115 |
Long-term debt | Less than one year | ||
Financial risk management and fair value measurement | ||
Contractual cash flows | 72,090 | 10,179 |
Long-term debt | One year to five years | ||
Financial risk management and fair value measurement | ||
Contractual cash flows | $ 155,259 | $ 53,936 |
Financial risk management and_5
Financial risk management and fair value measurement - Foreign exchange risk (Details) - CAD ($) | Aug. 31, 2022 | Aug. 31, 2021 |
Trade and other payables | ||
Financial risk management and fair value measurement | ||
Carrying amount of financial instruments | $ 172,871 | $ 294,637 |
Cash | ||
Financial risk management and fair value measurement | ||
Carrying amount of financial instruments | 5,142,703 | $ 11,219,143 |
Trade and other receivables | ||
Financial risk management and fair value measurement | ||
Carrying amount of financial instruments | $ 103,116 |
Financial risk management and_6
Financial risk management and fair value measurement - Sensitivity analysis (Details) - Currency risk | 12 Months Ended |
Aug. 31, 2022 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% |
Increase in net income (loss) due to reasonably possible increase in risk assumption | $ 253,000 |
Decrease in net income (loss) due to reasonably possible decrease in risk assumption | (253,000) |
Increase in other comprehensive income due to reasonably possible increase in risk assumption | 358,000 |
Decrease in other comprehensive income due to reasonably possible decrease in risk assumption | $ (358,000) |
Segment information (Details)
Segment information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
May 31, 2023 CAD ($) | May 31, 2022 CAD ($) | May 31, 2023 CAD ($) segment | May 31, 2022 CAD ($) | Aug. 31, 2022 CAD ($) segment | Aug. 31, 2022 USD ($) segment | Aug. 31, 2021 CAD ($) | Aug. 31, 2021 USD ($) | Aug. 31, 2020 CAD ($) | Aug. 31, 2022 USD ($) | Aug. 31, 2021 USD ($) | |
Segment information | |||||||||||
Number of reportable business segments | segment | 2 | 2 | 2 | ||||||||
Revenue from external customers | $ 1,300,100 | $ 2,014,769 | $ 3,531,055 | $ 3,975,140 | |||||||
Segment revenues | 1,300,100 | 2,014,769 | 3,531,055 | 3,975,140 | $ 7,350,946 | $ 3,513,788 | $ 2,417,173 | ||||
Segment gross profit | 372,351 | 1,124,120 | 525,951 | 1,895,319 | 3,285,565 | 1,604,182 | 604,390 | ||||
Segment (loss) profit before tax | (3,297,067) | (1,853,954) | (16,791,924) | (9,012,946) | (12,853,442) | (15,008,317) | (2,254,223) | ||||
Research and development | 751,674 | 32,670 | 5,072,428 | 50,179 | 2,242,794 | 1,489,953 | |||||
Office salaries and benefits | 899,864 | 968,126 | 2,725,049 | 2,571,948 | 3,335,799 | 1,754,613 | 315,138 | ||||
Segment assets | 21,903,692 | 21,903,692 | 29,100,209 | 38,801,292 | |||||||
Cash | 1,536,064 | 1,536,064 | 5,824,716 | 18,147,821 | |||||||
Additions to property and equipment | 834,296 | 680,536 | 1,108,888 | 544,354 | $ 77,966 | ||||||
Additions to intangible assets | 32,202 | 32,202 | 528,726 | ||||||||
Segment liabilities | 9,613,225 | 9,613,225 | 5,071,613 | $ 5,276,105 | |||||||
Operating segments | |||||||||||
Segment information | |||||||||||
Revenue from external customers | $ 7,350,946 | $ 3,513,788 | |||||||||
Segment revenues | 7,350,946 | 3,513,788 | |||||||||
Segment gross profit | 3,285,565 | 1,604,182 | |||||||||
Segment (loss) profit before tax | (12,853,442) | (15,008,317) | |||||||||
Research and development | 2,242,794 | 1,489,953 | |||||||||
Office salaries and benefits | 3,335,799 | 1,754,613 | |||||||||
Segment assets | $ 29,100,209 | $ 38,801,292 | |||||||||
Cash | 5,824,716 | 18,147,821 | |||||||||
Additions to property and equipment | 1,108,888 | 544,354 | |||||||||
Additions to intangible assets | 32,202 | 1,102,662 | |||||||||
Segment liabilities | 5,071,613 | 5,276,105 | |||||||||
Inter-segment eliminations | |||||||||||
Segment information | |||||||||||
Revenue from other segments | (401,573) | (121,784) | (1,158,708) | (498,179) | (901,225) | (149,483) | |||||
Segment revenues | (401,573) | (121,784) | (1,158,708) | (498,179) | (901,225) | (149,483) | |||||
Segment gross profit | (32,158) | (2,369) | (280,199) | (87,526) | (150,975) | (39,642) | |||||
Segment (loss) profit before tax | (87,943) | 15,420 | (186,449) | (42,535) | (93,852) | (32,255) | |||||
Research and development | (42,854) | (228,102) | |||||||||
Segment assets | (10,412,497) | (10,412,497) | (9,438,326) | (9,438,326) | (9,108,603) | ||||||
Additions to property and equipment | (175,554) | (162,446) | (162,446) | (33,468) | |||||||
Segment liabilities | (1,324,391) | (1,324,391) | (262,883) | (262,883) | (63,470) | ||||||
Sale of electric boats | Operating segments | |||||||||||
Segment information | |||||||||||
Revenue from external customers | 421,840 | 646,232 | 947,937 | 930,126 | 2,557,086 | 2,158,240 | |||||
Revenue from other segments | 346,954 | 105,272 | 826,869 | 433,898 | 820,383 | 142,007 | |||||
Segment revenues | 768,794 | 751,504 | 1,774,806 | 1,364,024 | 3,377,469 | 2,300,247 | |||||
Segment gross profit | 157,321 | 271,869 | (421,138) | 237,024 | 596,570 | 640,228 | |||||
Segment (loss) profit before tax | (2,850,077) | (2,188,967) | (16,120,375) | (9,199,678) | (13,632,377) | (15,517,319) | |||||
Research and development | 794,528 | 32,670 | 5,300,530 | 50,179 | 2,242,794 | 1,489,953 | |||||
Office salaries and benefits | 664,300 | 749,455 | 2,014,875 | 1,869,128 | 2,384,746 | 1,555,014 | |||||
Segment assets | 18,451,237 | 18,451,237 | 24,499,107 | 24,499,107 | 35,175,599 | ||||||
Cash | 1,372,769 | 1,372,769 | 4,146,260 | 4,146,260 | 17,210,266 | ||||||
Additions to property and equipment | 163,880 | 412,158 | 412,158 | 432,547 | |||||||
Additions to intangible assets | 32,202 | 32,202 | 1,102,662 | ||||||||
Segment liabilities | 7,427,977 | 7,427,977 | 2,023,368 | 2,023,368 | 2,400,829 | ||||||
Rental of electric boats | Operating segments | |||||||||||
Segment information | |||||||||||
Revenue from external customers | 878,260 | 1,368,537 | 2,583,118 | 3,045,014 | 4,793,860 | 1,355,548 | |||||
Revenue from other segments | 54,619 | 16,512 | 331,839 | 64,281 | 80,842 | 7,476 | |||||
Segment revenues | 932,879 | 1,385,049 | 2,914,957 | 3,109,295 | 4,874,702 | 1,363,024 | |||||
Segment gross profit | 247,188 | 854,620 | 1,227,288 | 1,745,821 | 2,839,970 | 1,003,596 | |||||
Segment (loss) profit before tax | (359,047) | 319,593 | (485,100) | 229,267 | 872,787 | 541,257 | |||||
Office salaries and benefits | 235,564 | $ 218,671 | 710,174 | $ 702,820 | 951,053 | 199,599 | |||||
Segment assets | 13,864,952 | 13,864,952 | 14,039,428 | 14,039,428 | 12,734,296 | ||||||
Cash | 163,295 | 163,295 | 1,678,456 | 1,678,456 | 937,555 | ||||||
Additions to property and equipment | 890,777 | 859,176 | $ 859,176 | $ 145,275 | |||||||
Segment liabilities | $ 3,509,640 | $ 3,509,640 | $ 3,311,128 | $ 3,311,128 | $ 2,938,746 |
Additional cash flows informa_3
Additional cash flows information (Details) - CAD ($) | 9 Months Ended | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | 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 | $ 922,479 | $ 208,534 | $ 234,608 | 852,467 |
Lease termination | $ 131,247 | $ 148,002 | $ 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) | May 31, 2023 CAD ($) | Aug. 31, 2022 USD ($) |
2023 | ||
Commitments | ||
Amount of the minimum fixed and determinable portion of the unconditional purchase obligations over the next years | $ 1,222,198 | $ 4,350,104 |
Later than two years and not later than three years [member] | ||
Commitments | ||
Amount of the minimum fixed and determinable portion of the unconditional purchase obligations over the next years | $ 4,052,051 | $ 2,253,394 |
Commitments - Summary Of Undisc
Commitments - Summary Of Undiscounted Lease Commitments (Details) | May 31, 2023 CAD ($) | Aug. 31, 2022 USD ($) |
2023 | ||
Commitments | ||
Undiscounted lease commitments | $ 105,000 | |
2024 | ||
Commitments | ||
Undiscounted lease commitments | $ 67,990 | 159,000 |
2025 | ||
Commitments | ||
Undiscounted lease commitments | 164,536 | 162,000 |
2026 | ||
Commitments | ||
Undiscounted lease commitments | 167,827 | 165,000 |
2027 and thereafter | ||
Commitments | ||
Undiscounted lease commitments | $ 448,815 | $ 225,000 |
Subsequent events (Details)
Subsequent events (Details) - shares | 1 Months Ended | 3 Months Ended | |
Jul. 31, 2023 | Jun. 30, 2023 | Nov. 30, 2022 | |
Issue of voting common shares | |||
Subsequent events | |||
Shares issued for services | 10,870 | 10,870 | 19,457 |
Consolidated statements of fi_2
Consolidated statements of financial position | May 31, 2023 CAD ($) |
Current | |
Cash | $ 1,536,064 |
Trade and other receivables | 583,390 |
Inventories | 2,719,508 |
Prepaid expenses | 1,005,283 |
Income tax receivable | 184,099 |
Share subscription receivable | 39,200 |
Advances to related parties | 20,262 |
Total current assets | 6,087,806 |
Right-of-use assets | 2,613,667 |
Property and equipment | 2,354,863 |
Intangible assets | 1,006,063 |
Goodwill | 9,726,002 |
Other financial assets | 115,291 |
Total assets | 21,903,692 |
Current | |
Credit facility | 235,000 |
Trade and other payables | 1,777,861 |
Contract liabilities | 850,042 |
Current portion of lease liabilities | 673,267 |
Current portion of long-term debt | 293,980 |
Other financial liabilities | 130,540 |
Total current liabilities | 3,960,690 |
Lease liabilities | 2,151,685 |
Long-term debt | 96,714 |
Derivative liabilities | 3,253,024 |
Deferred income taxes | 151,112 |
Total liabilities | 9,613,225 |
Shareholders' equity | |
Capital stock | 46,851,134 |
Contributed surplus | 11,600,738 |
Accumulated other comprehensive income | 1,093,086 |
Deficit | (47,254,491) |
Total shareholders' equity | 12,290,467 |
Total shareholders' equity and liabilities | $ 21,903,692 |
Consolidated statement of chang
Consolidated statement of changes in equity (deficit) | Capital stock Initial Public Offering CAD ($) shares | Capital stock CAD ($) shares | Capital Stock to be issued CAD ($) | Contributed surplus CAD ($) | Deficit CAD ($) | Accumulated other comprehensive income CAD ($) | Initial Public Offering CAD ($) | CAD ($) shares |
Shareholders' equity beginning at Aug. 31, 2019 | $ 525 | $ 37,500 | $ (170,327) | $ (132,302) | ||||
Shareholders' equity beginning (in shares) at Aug. 31, 2019 | shares | 3,275,555 | |||||||
Total comprehensive loss | (2,275,532) | (2,275,532) | ||||||
Share issuance, net of transactions costs | $ 2,497,288 | $ 37,500 | 2,459,788 | |||||
Share issuance, net of transactions costs (in shares) | shares | 1,309,446 | |||||||
Share-based compensation | $ 739,961 | 739,961 | ||||||
Shareholders' equity ending at Aug. 31, 2020 | $ 2,497,813 | 739,961 | (2,445,859) | 791,915 | ||||
Shareholders' equity ending (in shares) at Aug. 31, 2020 | shares | 4,585,001 | |||||||
Net and comprehensive loss | (2,275,532) | (2,275,532) | ||||||
Total comprehensive loss | (15,113,907) | $ 388,566 | (14,725,341) | |||||
Share issuance, net of transactions costs | $ 33,158,513 | $ 2,231,999 | $ 33,158,513 | 2,231,999 | ||||
Share issuance, net of transactions costs (in shares) | shares | 2,760,000 | 595,715 | ||||||
Share-based compensation | 7,121,444 | 7,121,444 | ||||||
Shareholders' equity ending at Aug. 31, 2021 | $ 42,834,982 | 7,861,405 | (17,559,766) | 388,566 | 33,525,187 | |||
Shareholders' equity ending (in shares) at Aug. 31, 2021 | shares | 8,324,861 | |||||||
Net and comprehensive loss | (15,113,907) | 388,566 | (14,725,341) | |||||
Conversion of related party loans into shares | $ 898,489 | 898,489 | ||||||
Conversion of related party loans into shares (in shares) | shares | 69,650 | |||||||
Shares issued as consideration for the acquisition of intangible assets | $ 573,936 | 573,936 | ||||||
Shares issued as consideration for the acquisition of intangible assets (in shares) | shares | 30,000 | |||||||
Shares issued as consideration in a business combination | $ 3,474,232 | 3,474,232 | ||||||
Shares issued as consideration in a business combination (in shares) | shares | 284,495 | |||||||
Total comprehensive loss | (9,065,927) | 3,782 | (9,062,145) | |||||
Share issuance, net of transactions costs | $ 442,556 | 442,556 | ||||||
Share issuance, net of transactions costs (in shares) | shares | 65,720 | |||||||
Share-based compensation | 2,545,720 | 2,545,720 | ||||||
Shareholders' equity ending at May. 31, 2022 | $ 43,277,538 | 10,407,125 | (26,625,693) | 392,348 | 27,451,318 | |||
Shareholders' equity ending (in shares) at May. 31, 2022 | shares | 8,390,581 | |||||||
Net and comprehensive loss | (9,065,927) | 3,782 | (9,062,145) | |||||
Shareholders' equity beginning at Aug. 31, 2021 | $ 42,834,982 | 7,861,405 | (17,559,766) | 388,566 | 33,525,187 | |||
Shareholders' equity beginning (in shares) at Aug. 31, 2021 | shares | 8,324,861 | |||||||
Total comprehensive loss | (13,111,785) | 309,105 | $ (12,802,680) | |||||
Options exercised (in shares) | shares | 2,703 | |||||||
Share issuance, net of transactions costs | $ 606,609 | $ 606,609 | ||||||
Share issuance, net of transactions costs (in shares) | shares | 93,062 | |||||||
Share-based compensation | 2,699,481 | 2,699,481 | ||||||
Shareholders' equity ending at Aug. 31, 2022 | $ 43,441,591 | 10,560,886 | (30,671,552) | 697,671 | 24,028,596 | |||
Shareholders' equity ending (in shares) at Aug. 31, 2022 | shares | 8,417,923 | |||||||
Net and comprehensive loss | (13,111,785) | 309,105 | (12,802,680) | |||||
Total comprehensive loss | (16,582,939) | 395,415 | (16,187,524) | |||||
Options exercised | $ 30,949 | (12,238) | $ 18,711 | |||||
Options exercised (in shares) | shares | 5,057 | 5,057 | ||||||
Share issuance, net of transactions costs | $ 3,378,594 | $ 3,378,594 | ||||||
Share issuance, net of transactions costs (in shares) | shares | 1,509,005 | |||||||
Share-based compensation | 1,052,090 | 1,052,090 | ||||||
Shareholders' equity ending at May. 31, 2023 | $ 46,851,134 | $ 11,600,738 | (47,254,491) | 1,093,086 | 12,290,467 | |||
Shareholders' equity ending (in shares) at May. 31, 2023 | shares | 9,931,985 | |||||||
Net and comprehensive loss | $ (16,582,939) | $ 395,415 | $ (16,187,524) |
Consolidated statement of cha_2
Consolidated statement of changes in equity (deficit) (Parenthetical) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
May 31, 2023 USD ($) | May 31, 2023 CAD ($) | May 31, 2023 USD ($) | May 31, 2022 CAD ($) | Aug. 31, 2022 CAD ($) | Aug. 31, 2021 CAD ($) | Aug. 31, 2020 CAD ($) | |
Transaction costs | $ 101,942 | $ 285,832 | $ 774,759 | $ 0 | $ 0 | $ 0 | $ 320,230 |
Initial Public Offering | |||||||
Transaction costs | $ 3,328,687 |
Consolidated statements of co_2
Consolidated statements of comprehensive loss - CAD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | |
Consolidated statement of comprehensive loss | ||||
Revenues | $ 1,300,100 | $ 2,014,769 | $ 3,531,055 | $ 3,975,140 |
Cost of sales | 927,749 | 890,649 | 2,785,104 | 2,079,821 |
Cost of sales E-Motion | 220,000 | |||
Gross profit | 372,351 | 1,124,120 | 525,951 | 1,895,319 |
Expenses | ||||
Research and development | 751,674 | 32,670 | 5,072,428 | 50,179 |
Office salaries and benefits | 899,864 | 968,126 | 2,725,049 | 2,571,948 |
Selling and marketing expenses | 620,015 | 356,660 | 1,760,596 | 1,496,935 |
Professional fees | 1,234,357 | 571,452 | 2,814,576 | 2,452,900 |
Office and general | 734,996 | 551,633 | 2,132,247 | 1,485,823 |
Share-based compensation | 628,923 | 367,054 | 1,052,090 | 2,545,720 |
Depreciation | 205,690 | 52,758 | 421,533 | 178,217 |
Net financial expense (income) | (1,413,084) | 99,608 | (1,230,217) | 213,419 |
Impairment loss on Debentures | 0 | 2,637,000 | ||
Other expense (income) | 6,983 | (21,887) | (67,427) | (86,876) |
Operating expense | 3,669,418 | 2,978,074 | 17,317,875 | 10,908,265 |
Loss before tax | (3,297,067) | (1,853,954) | (16,791,924) | (9,012,946) |
Income taxes | ||||
Current tax expense (recovery) | (201,848) | 86,078 | (171,848) | 52,257 |
Deferred tax expense (recovery) | 7 | (37,137) | 724 | |
Total income tax expense | (201,848) | 86,085 | (208,985) | 52,981 |
Net loss for the period | (3,095,219) | (1,940,039) | (16,582,939) | (9,065,927) |
Items of comprehensive income that will be subsequently reclassified to earnings: | ||||
Foreign currency translation differences for foreign operations, net of tax | 38,580 | (40,044) | 395,415 | 3,782 |
Other comprehensive income (loss), net of tax | 38,580 | (40,044) | 395,415 | 3,782 |
Total comprehensive loss for the period, net of tax | $ (3,056,639) | $ (1,980,083) | $ (16,187,524) | $ (9,062,145) |
Weighted average shares outstanding, Basic | 9,709,759 | 8,380,461 | 8,860,666 | 8,318,525 |
Weighted average shares outstanding, Diluted | 9,709,759 | 8,380,461 | 8,860,666 | 8,318,525 |
Basic loss per share | $ (0.32) | $ (0.23) | $ (1.87) | $ (1.09) |
Diluted loss per share | $ (0.32) | $ (0.23) | $ (1.87) | $ (1.09) |
Consolidated statements of ca_2
Consolidated statements of cash flows | 9 Months Ended |
May 31, 2023 CAD ($) | |
Operating activities | |
Net loss | $ (16,582,939) |
Depreciation | 792,625 |
Accretion on long-term debt and lease liability | 119,639 |
Share-based compensation - options | 1,052,090 |
Shares issued for services | 590,303 |
loss on debentures | 2,435,000 |
Gain on derivative liabilities | (1,613,058) |
Income tax expense (recovery) | (208,985) |
Income tax paid | (14,040) |
Gain on disposal of property and equipment | 88,230 |
Gain on lease termination | (50,991) |
Effect of exchange rate fluctuation | 79,761 |
Operating activities before working capital items | (13,312,365) |
Net change in non-cash working capital items | |
Trade and other receivables | (110,842) |
Inventories | (625,732) |
Grants and investment tax credits receivable | 681,663 |
Other financial assets | 3,586 |
Prepaid expenses | 1,467,019 |
Trade and other payables | 747,530 |
Contract liabilities | (179,276) |
Other financial liabilities | (47,293) |
Cash used in operating activities | (11,375,710) |
Investing activities | |
Additions to property and equipment | (834,296) |
Proceeds from the disposal of property and equipment | 401,782 |
Cash used in investing activities | (432,514) |
Financing activities | |
Increase in long-term debt | 258,000 |
Repayment of long-term debt | (113,242) |
Shares issued for options exercised | 18,711 |
Increase in credit facility | 235,000 |
Issuance of shares and warrants, net of transaction costs | 7,654,373 |
Repayment of lease liabilities | (533,270) |
Cash provided (used) by financing activities | 7,519,572 |
Net decrease in cash during the period | (4,288,652) |
Cash, beginning of year | 5,824,716 |
Cash, end of year | $ 1,536,064 |
Incorporation and nature of b_2
Incorporation and nature of business | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
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 fluctuates 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. | 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_2
Basis of preparation | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Basis of preparation | ||
Basis of preparation | 2. Basis of preparation Compliance with IFRS These condensed interim consolidated financial statements are for the three and nine months ended May 31, 2023 and have been prepared in accordance with IAS 34: Interim Financial Reporting. They do not include all of the information required in annual financial statements in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and should be read in conjunction with the consolidated financial statements for the year ended August 31, 2022. The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Company’s annual consolidated financial statements for the year ended August 31, 2022. The condensed interim consolidated financial statements were authorized for issuance by the Board of Directors on July 12, 2023. Basis of measurement These condensed interim consolidated financial statements are presented in Canadian dollars and were prepared on a historical cost basis. Basis of consolidation The condensed interim 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 % Foreign currency translation The Company’s condensed interim consolidated financial statements are presented in Canadian dollars, which is also the parent company’s functional currency. The functional currencies of 7858078 Canada Inc. is the Canadian dollar and EB Rental Ltd., EB Rental Ventura Corp. and Vision Marine Technologies Corp. is the US dollar. The exchange rates for the currencies used in the preparation of the interim condensed consolidated financial statements were as follows: Average exchange Exchange rate as at rate for May 31, August 31, Nine months ended 2023 2022 May 31, 2023 US dollar 1.3598 1.3076 1.3511 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 judgments, estimates and assumptions are considered significant to the condensed interim consolidated financial statements remain unchanged to the 2022 annual financial statements. | 2. Basis of preparation 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, 2022. The consolidated financial statements were authorized for issue by the Board of Directors on November 22, 2022. Basis of measurement These consolidated financial statements are presented in Canadian dollars and were prepared on a historical cost basis. 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% 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. |
Trade and other receivables_2
Trade and other receivables | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Trade and other receivables | ||
Trade and other receivables | 3. Trade and other receivables As at As at May 31, August 31, 2023 2022 $ $ Trade receivables 396,367 108,716 Sales taxes receivable 183,272 194,523 Interest and other receivables 3,751 169,309 583,390 472,548 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 May 31, 2023, trade receivables of $396,367 [August 31, 2022 – $31,091] were past due but not impaired. They relate to customers with no default history. The aging analysis of these receivables is as follows: As at As at May 31, August 31, 2023 2022 $ $ 0 – 30 — 77,625 31 – 60 101,047 — 61 – 90 5,006 14,212 91 and over 290,314 16,879 396,367 108,716 There were no movements in the allowance for expected credit losses for the three and nine months ended May 31, 2023 and the year ended August 31, 2022. | 6. Trade and other receivables 2022 2021 $ $ Trade receivables 108,716 27,388 Sales taxes receivable 194,523 166,749 Other receivables 169,309 125,603 472,548 319,740 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, 2022, trade receivables of $31,091 [2021 – $27,388] were past due but not impaired. They relate to customers with no default history. The aging analysis of these receivables is as follows: 2022 2021 $ $ 0 – 30 77,625 — 31 – 60 — 2,008 61 – 90 14,212 25,380 91 and over 16,879 — 108,716 27,388 There were no movements in the allowance for expected credit losses for years ended August 31, 2022 and August 31, 2021. |
Inventories_2
Inventories | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Inventories | ||
Inventories | 4. Inventories As at As at May 31, August 31, 2023 2022 $ $ Raw materials 1,926,581 1,709,368 Work-in-process 125,172 75,170 Finished goods 667,755 309,238 2,719,508 2,093,776 For the three and nine months ended May 31, 2023, inventories recognized as an expense amounted to $401,021 and $2,258,376 respectively [May 31, 2022 – $890,649 and $2,079,821 respectively]. For the three and nine months ended May 31, 2023, cost of sales includes depreciation of $4,273 and $318,398 respectively [May 31, 2022 – $188,152 and $544,462 respectively]. | 7. Inventories 2022 2021 $ $ Raw materials 1,709,368 1,549,125 Work-in-process 75,170 327,757 Finished goods 309,238 99,202 2,093,776 1,976,084 For the year ended August 31, 2022, inventories recognized as an expense amounted to $4,065,381 [2021 – $1,909,606; 2020 – $812,783]. For the year ended August 31, 2022, cost of sales includes depreciation of $687,023 [2021 – $232,195; 2020 - $142,336]. |
Debentures_2
Debentures | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Debentures. | ||
Debentures | 5. Debentures 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 a Chapter 7 of the Bankruptcy Code in the U.S. As a result, the Company recorded an impairment on the entire value of the Debentures at the amount of nil and $2,637,000 in the three and nine months ended May 31, 2023 [May 31, 2022 – nil]. For the three and nine months ended May 31, 2023, the Company recorded a loss of nil and $109,667 respectively [May 31, 2022 – $115,000 and $436,500 respectively] in net finance expense for change in the fair value of the Debentures [ note 19 | 8. Debentures 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 The Debentures are carried at fair value through profit and loss and are considered as Level 2 financial instruments in the fair value hierarchy. For the year ended August 31, 2022, the Company recorded a loss of $670,000 [2021 - $550,000; 2020 - Nil] for the change in fair value of the Debentures and interest income of $340,000 [2021 - $85,000; 2020 - Nil] in net income (loss) as a net financial expense. Subsequent to year end, Limestone announced that it has implemented significant cost savings measures, as well as the withdrawal of its previously proposed debt financings. As Limestone continues to pursue alternative liquidity and financing proposals, these factors may have a negative impact on the key assumptions described in Note 25 used by the Company to determine the fair value of the Debentures subsequent to the reporting date. Although the estimates of the fair value of the Debentures as at August 31, 2022 are based on management’s best knowledge and estimates of the amount, events or actions at that time, the valuation in future periods ultimately may differ from those estimates. |
Right-of-use assets_2
Right-of-use assets | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Right-of-use assets | ||
Right-of-use assets | 6. Right-of-use assets Computer Rolling Boat rental Premises equipment 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 922,479 — — — 922,479 Disposals — — (46,200) (127,868) (174,068) Transferred to property and equipment — (3,646) — (41,161) (44,807) Currency translation 44,154 — 2,100 — 46,254 Balance at May 31, 2023 3,846,672 — 43,920 42,430 3,933,022 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 448,738 768 20,155 21,442 491,103 Disposal — (3,646) (13,475) (76,691) (93,812) Balance at May 31, 2023 1,271,145 — 26,995 21,215 1,319,355 Net carrying amount As at August 31, 2022 2,057,632 768 67,705 134,995 2,261,100 As at May 31, 2023 2,575,527 — 16,925 21,215 2,613,667 | 9. Right-of-use assets Computer Boat rental Premises equipment Rolling stock fleet Total $ $ $ $ $ Cost Balance at August 31, 2020 737,066 11,333 38,699 — 787,098 Business acquisition 1,281,308 3,646 39,924 326,868 1,651,746 Additions 672,731 — 179,736 — 852,467 Disposals — — (57,475) — (57,475) Transfer to intangible assets — (11,333) — — (11,333) Currency translation 55,013 — 1,652 — 56,665 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 Accumulated depreciation Balance at August 31, 2020 117,806 4,231 12,094 — 134,131 Depreciation 216,551 1,697 30,527 24,087 272,862 Disposal — — (27,672) — (27,672) Transfer to intangible assets — (5,352) — — (5,352) 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 Net carrying amount As at August 31, 2021 2,411,761 3,070 187,587 302,781 2,905,199 As at August 31, 2022 2,057,632 768 67,705 134,995 2,261,100 During the year ended August 31, 2021, the Company paid in full a lease liability related with a computer software that was previously included in the right-of-use assets. As a result, the Company transferred the asset to intangible assets at its net book value of $5,981 [note 11] |
Property and equipment_2
Property and equipment | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Property and equipment. | ||
Property and equipment | 7. Property and equipment Machinery Boat and Rolling Computer Leasehold rental equipment stock equipment Moulds improvements 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 41,209 69,350 565 30,501 87,959 604,712 834,296 Transferred from right-of-use assets — — 3,646 — — 41,161 44,807 Disposals — (67,043) — — — (467,151) (534,194) Currency translation — (2,347) — — — (67,771) (70,118) Balance at May 31, 2023 374,293 118,624 25,243 942,425 352,315 1,082,428 2,895,328 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 23,305 24,483 3,431 28,273 52,282 51,318 183,092 Disposal — (7,542) — — — (36,640) (44,182) Balance at May 31, 2023 221,109 46,940 16,234 101,301 96,787 58,094 540,465 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 May 31, 2023 153,184 71,684 9,009 841,124 255,528 1,024,334 2,354,863 | 10. Property and equipment Machinery and Rolling Computer Leasehold Boat equipment stock equipment Moulds improvements rental fleet Total $ $ $ $ $ $ $ Cost Balance at August 31, 2020 187,850 32,175 8,436 506,172 34,818 — 769,451 Business acquisition — — — — — 417,554 417,554 Additions 115,088 — 6,211 214,833 96,415 111,807 544,354 Disposals — — — (30,000) — (34,101) (64,101) Currency translation — — — — — 18,057 18,057 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 Accumulated depreciation Balance at August 31, 2020 148,156 21,014 4,556 57,660 — — 231,386 Depreciation 19,448 3,348 3,842 22,760 11,579 8,443 69,420 Disposal — — — (30,000) — — (30,000) 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 Net carrying amount As at August 31, 2021 135,334 7,813 6,249 640,585 119,654 504,874 1,414,509 As at August 31, 2022 135,280 88,665 8,229 838,896 219,851 928,061 2,218,982 As at August 31, 2022, moulds of $346,752 [August 31, 2021 – $125,833] are not depreciated because they are not ready for use. |
Intangible assets and goodwill
Intangible assets and goodwill | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Intangible assets and goodwill | ||
Intangible assets and goodwill | 8. Intangible assets and goodwill 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 May 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 77,631 9,690 15,370 12,726 3,014 118,431 Balance at May 31, 2023 236,720 34,390 29,809 32,556 5,833 339,308 Net carrying amount As at August 31, 2022 875,981 77,075 83,855 59,720 16,039 1,112,670 As at May 31, 2023 798,350 67,385 74,542 51,550 14,236 1,006,063 The balance of goodwill is at $9,726,002 at May 31, 2023 [August 31, 2022 – $9,352,640], with the change since acquisition date due to foreign exchange translation. | 11. Intangible assets Intellectual Trade property Software name Backlog Website Total $ $ $ $ $ $ Cost Balance at August 31, 2020 — — — — — — Business acquisition — — 90,000 76,000 18,000 184,000 Transfer from Right-of-use assets — 5,981 — — — 5,981 Additions 1,035,070 67,592 — — — 1,102,662 Currency translation — — 3,856 3,220 771 7,847 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 Accumulated depreciation Balance at August 31, 2020 — — — — — — Depreciation 55,581 7,107 4,633 6,520 927 74,768 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 Net carrying amount As at August 31, 2021 979,489 66,466 89,223 72,700 17,844 1,225,722 As at August 31, 2022 875,981 77,075 83,855 59,720 16,039 1,112,670 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] As at August 31, 2022, software of $Nil [August 31, 2021 – $42,677] are not depreciated because they are not ready for use. |
Credit facility_2
Credit facility | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Credit facility | ||
Credit facility | 9. Credit facility The Company has an authorized line of credit of $250,000 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 May 31, 2023, the Company has drawn an amount of $235,000 [August 31, 2022 – Nil] on the line of credit. | 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, 2022, the Company has drawn an amount of Nil [2021 – Nil] on the line of credit. |
Trade and other payables_2
Trade and other payables | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Trade and other payables. | ||
Trade and other payables | 10. Trade and other payables As at As at May 31, August 31, 2023 2022 $ $ Trade payable 1,473,770 737,946 Sales taxes payable 53,762 21,547 Government remittances — 9,450 Salaries and vacation payable 250,329 261,388 1,777,861 1,030,331 | 13. Trade and other payables 2022 2021 $ $ Trade payable 737,946 560,870 Sales taxes payable 21,547 34,076 Government remittances 9,450 46,030 Salaries and vacation payable 261,388 207,078 1,030,331 848,054 |
Contract liabilities_2
Contract liabilities | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Contract liabilities | ||
Contract liabilities | 11. Contract liabilities $ $ Opening balance as at August 31, 2022 and 2021 1,029,318 898,713 Payments received in advance 917,935 2,502,080 Boat sales deposits 152,277 87,609 Payments reimbursed (8,159) (2,615) Transferred to revenues (1,277,728) (2,475,307) Currency translation 36,399 18,838 Closing balance as at May 31, 2023 and August 31, 2022 850,042 1,029,318 | 14. Contract liabilities 2022 2021 $ $ Opening balance 898,713 20,443 Business acquisition — 482,173 Payments received in advance 2,502,080 1,199,958 Boat sale deposits 87,609 — Payments reimbursed (2,615) (37,842) Transferred to revenues (2,475,307) (766,019) Currency translation 18,838 — Closing balance 1,029,318 898,713 |
Lease liabilities_2
Lease liabilities | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Lease liabilities | ||
Lease liabilities | 12. Lease liabilities $ $ Opening balance as at August 31, 2022 and 2021 2,415,549 2,966,816 Additions 1,023,090 234,608 Repayment (533,270) (695,749) Interest on lease liability 101,052 141,994 Lease termination (131,247) (273,652) Currency translation (50,222) 41,532 Closing balance as at May 31, 2023 and August 31, 2022 2,824,952 2,415,549 Current 673,267 561,168 Non-current 2,151,685 1,854,381 2,824,952 2,415,549 Future undiscounted lease payments as at May 31, 2023 are as follows: $ Less than one year 742,792 One to five years 2,356,711 3,099,503 | 15. Lease liabilities 2022 2021 $ $ Opening balance 2,966,816 672,988 Business acquisition [note 5] — 1,651,746 Additions 234,608 852,467 Repayment (695,749) (295,316) Interest on lease liability 141,994 65,115 Lease termination (273,652) (37,033) Currency translation 41,532 56,849 Closing balance 2,415,549 2,966,816 Current 561,168 562,136 Non-current 1,854,381 2,404,680 2,415,549 2,966,816 Future undiscounted lease payments as at August 31, 2022 are as follows: $ Less than one year 670,125 One to five years 2,006,295 2,676,420 Included in rent expense is $58,663 of short-term lease expense [2021 – $50,186, 2020 - $65,934]. The lease liabilities have a weighted average interest rate of 5.4% [2021 – 5.2%, 2020 – 5.4%]. |
Long-term debt_2
Long-term debt | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Long-term debt. | ||
Long-term debt | 13. Long-term debt As at As at May 31, August 31, 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 9.44% and 12.90% per annum payable in monthly installments of $23,337 ending January 2025. 350,694 188,007 390,694 227,349 Current portion of long-term debt 293,980 72,090 96,714 155,259 | 16. Long-term debt 2022 2021 $ $ 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. 39,342 36,972 Term loan bearing interest at a rate of 5.80% per annum payable in monthly installments of $848 until April 2024. — 27,143 Term loans, bearing interest at rates varying between 9.44% and 10.71%, repayable in monthly instalments of $7,372, ending January 2025. 188,007 — 227,349 64,115 Current portion of long-term debt 72,090 10,179 155,259 53,936 |
Related party transactions_2
Related party transactions | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Related party transactions | ||
Related party transactions | 14. Related party transactions Companies related through common ownership 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 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 period: Three Three Nine Nine months months months months ended ended ended ended May 31, May 31, May 31, May 31, 2023 2022 2023 2022 $ $ $ $ Research and Development Mac Engineering, SASU 22,418 134,962 150,113 455,331 Office salaries and benefits Montana Strategies Inc. — 14,488 23,733 48,616 The Company leases its Boisbriand premises from California Electric Boat Company Inc. As at May 31, 2023, the right-of-use assets and lease liabilities related to those leases amount to $2,120,495 and $1,523,233 respectively [August 31, 2022 – $889,866 and $971,399 respectively] [notes 6 and 12]. Remuneration of directors and key management of the Company Three Three Nine Nine months months months months ended ended ended ended May 31, May 31, May 31, May 31, 2023 2022 2023 2022 $ $ $ $ Wages 731,195 664,573 1,880,567 1,905,467 Share-based payments 580,239 328,994 647,965 2,426,874 1,311,434 993,567 2,528,532 4,332,341 The amounts due to and from related parties are as follows: As at As at May 31, August 31, 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 17,404 16,736 Amounts due to related parties included in trade and other payable Alexandre Mongeon 6,375 16,000 Patrick Bobby 4,616 12,308 Kulwant Sandher 3,022 8,062 Xavier Montagne 3,110 8,292 17,123 44,662 Advances from related parties are non-interest bearing and have no specified terms of repayment. | 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. Founder shareholders Gestion Toyma Inc. Entreprises Claude Beaulac Inc. [former shareholder] Gestion Moka Inc. [former shareholder] The following table summarizes the Company’s related party transactions for the year: 2022 2021 2020 $ $ $ Revenues Sales of boats EB Rental Ltd. [prior to June 3, 2021] — 84,149 101,684 Patrick Bobby — 11,000 Sale of parts and boat maintenance EB Rental Ltd. [prior to June 3, 2021] — 40,310 79,696 Other EB Rental Ltd. [prior to June 3, 2021] — — 2,500 7858078 Canada Inc. [prior to June 3, 2021] — — 6,074 Expenses Cost of sales EB Rental Ltd. [prior to June 3, 2021] — 11,444 16,865 Research and Development 9335-1427 Quebec Inc. — 75,020 — Mac Engineering, SASU 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 — Rent expense EB Rental Ltd. [prior to June 3, 2021] — — 65,934 Office salaries and benefits Montana Strategies Inc. 62,462 — — The Company leases its Boisbriand premises from California Electric Boat Company Inc. with a right-of-use assets as at August 31, 2022 of $889,866 [August 31, 2021 – $1,132,556] and lease liability of $971,399 [August 31, 2021 – $1,177,867] [notes 9 and 15]. Remuneration of directors and key management of the Company 2022 2021 2020 $ $ $ Wages 2,324,770 1,299,402 308,868 Share-based payments – capital stock — — 572,110 Share-based payments – stock options 2,560,031 6,081,900 259,410 4,884,801 7,381,302 1,140,388 At the end of the year, the amounts due to and from related parties are as follows: 2022 2021 $ $ 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 16,736 185,407 Amounts due to related parties included in trade and other payable Alexandre Mongeon 16,000 74,157 Patrick Bobby 12,308 11,092 Kulwant Sandher 8,062 7,054 Xavier Montagne 8,292 — Mac Engineering, SASU — 29,957 44,662 122,260 In December 2020, the holders of the advances from related parties and the Company have agreed that the advances shall automatically convert into Voting Common Shares of the Company at a conversion price equal to the per Voting Common Share offering price in the Initial Public Offering [note 18]. |
Capital stock_2
Capital stock | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Capital stock. | ||
Capital stock | 15. Capital stock Authorized Voting Common Shares, voting and participating Issued As at As at May 31, August 2023 31, 2022 $ $ 9,931,985 voting common shares [August 31, 2022 – 8,417,923] 46,851,134 43,441,591 Subscription and issuance of Voting Common Shares During the three and nine months ended May 31, 2023, the Company issued a total of 65,790 and 98,400 Voting Common Shares, respectively, to third parties in exchange for marketing services provided to the Company. During the three and nine months ended May 31, 2023, the Company issued nil and 5,057 Voting Common Shares upon the exercises of two former employees’ stock options. During the three and nine months ended May 31, 2023, the Company issued 381,293 and 1,410,605 Voting Common Shares and warrants to purchase Voting Common Shares, respectively [note 16] nine months ended May 31, 2023, the warrants issued are to purchase 381,293 and 1,410,605 Voting Common Shares of the Company, respectively for a period of three years from the grant date at an exercise price of U.S. $4.21. The Company assessed the classification of the compound financial instrument issued, 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. dollar, 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. Refer to note 16 for details on the assumptions used to determine the fair value. Any changes in fair value are recorded as gain or loss in the consolidated statement of comprehensive loss. At issuance and as at May 31, 2023, the derivative liabilities amounted to $4,866,082 and $3,253,024, respectively [August 31, 2022 – Nil], with the allocated transaction costs of $489,096 recorded in net finance expense [note 19] | 18. Capital stock Authorized Voting Common Shares, voting and participating Preferred shares, without par value, non-cumulative annual dividend, redeemable at their issue price, non-participating, non-voting. Issued 2022 2021 $ $ 8,417,923 voting common shares [2021 – 8,324,861] 43,441,591 42,834,982 Subscription and issuance of Class A common shares, share exchange and share consolidation On September 3, 2020, the Board of Directors authorized the consolidation of all the issued and outstanding Voting Common Shares on the basis on 1 post-consolidation Voting Common Shares for every 3.7 pre-consolidation Voting Common Shares. The impact of this adjustment has been reflected in the Company’s share capital and earnings (loss) per share. Subscription and issuance of Voting Common Shares On September 2, 2020, the Board of Directors authorized the issuance of 547,297 Voting Common shares, for a total consideration of $2,025,000. On September 18, 2020, the Board of Directors authorized the issuance of 45,351 Voting Common Shares, for services provided to the Company. The services were valued at $167,799 of which $58,730 is in connection with transaction costs directly attributable to the issuance of Voting Common Shares and $109,069 is included in professional fees. On November 27, 2020, the Company completed its initial public offering [the “Offering”] of an aggregate of 2,760,000 common shares of the Company at a price of U.S.$10.00 ($13.22) per share for proceeds of U.S.$25,287,624 ($33,430,239) net of a U.S.$1,932,000 ($2,554,104) cash commission paid to the underwriter and professional fees in connection with the Offering amounting to U.S.$380,376 ($502,857). Netted against the proceeds from the Offering are also included professional fees amounting to $271,726 that were previously recorded in prepaids. On December 22, 2020, the Board of Directors authorized the issuance of 69,650 Voting Common Shares, being the conversion of the advances from related parties of $898,489. On the same day, the Board of Directors authorized the issuance of 3,067 Voting Common Shares for a total consideration of $39,200 which remains receivable on August 31, 2022 and is presented in the advances to related parties [note 17] On February 16, 2021, the Company issued 30,000 Voting Common Shares at a price of U.S. $15.07 [approximately $19.13] as part of the consideration paid for the acquisition of intellectual property [note 11] On June 3, 2021, the Company issued 284,495 Voting Common Shares at a price of U.S. $10.09 [approximately $12.21] as part of the consideration paid in a business acquisition [note 5]. 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. |
Share-based payments_2
Share-based payments | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Share-based payments | ||
Share-based payments | 16. 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 1,917,526 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 three and nine months ended May 31, 2023 amounts to $628,923,139 and $1,052,090 respectively [May 31, 2022 – $367,054 and $2,545,720 respectively]. The table below lists the assumptions used to determine the fair value of these option grants. Volatility is based on public companies with characteristics similar to the Company. Risk-free Exercise Market Expected interest Expected price price volatility rate life Grant date $ $ % % [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 May 31, 2023: Weighted average Number of exercise options 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 160,500 5.84 Forfeited /cancelled (372,253) 13.09 Stock options modifications (322,000) 11.75 Exercised (5,057) 3.70 Balance at May 31, 2023 1,167,608 5.11 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 stock options at the date of modification of $129,800, recorded as stock base compensation expense for the three and nine months ended May 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 - 3.70 511,608 2.48 2.16 497,869 5.65 – 5.83 586,000 2.85 4.51 498,300 6.09 – 8.85 35,000 6.05 7.35 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 [note 15], On February 17, 2023, as part of a share subscription [note 15], On April 19, 2023, as part of a share subscription [note 15], The table below lists the assumptions used to determine the fair value of these option grants. Volatility is based on public companies with characteristics similar to the Company. Risk-free Exercise Market Expected interest Expected price price volatility rate life Grant 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 Number of warrants Weighted average remaining Exercise price outstanding contractual life Grant date $ # [years] November 23, 2020 16.53 151,800 2.25 August 5, 2022 10.30 50,000 2.92 January 19, 2023 5.63 554,253 2.63 February 17, 2023 5.67 475,059 2.72 April 19, 2023 5.64 381,293 2.88 | 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, 2022 amounts to $2,699,481 [2021 – $7,121,444; 2020 - $1,312,071]. The table below lists the assumptions used to determine the fair value of these option grants. Volatility is based on public companies with characteristics similar to the Company. Expected Risk-free Grant date Exercise price Market price volatility interest rate Expected 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 February 23, 2021 15.75 15.05 103 0.6 5 May 14, 2021 8.98 9.06 105 0.8 5 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 The following tables summarize information regarding the option grants outstanding as at August 31, 2022: Weighted Number of average options exercise price # $ Balance at August 31, 2020 516,216 3.41 Granted 1,148,310 12.86 Forfeited (5,405) 3.70 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 Number of Weighted average Weighted average options grant date remaining Exercise price outstanding fair value contractual life Exercisable $ # $ [years] options 3.70 345,946 2.42 2.75 325,253 2.78 162,162 2.59 2.75 162,162 3.70 10,810 2.69 3.00 7,883 16.29 440,000 9.33 8.25 440,000 15.75 120,000 11.28 3.50 45,000 8.98 500,000 6.91 3.75 500,000 8.85 25,000 6.55 9.25 25,000 5.65 102,500 4.28 4.50 102,500 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). Number of Weighted average warrants remaining Grant date Exercise price outstanding contractual life $ # [years] November 23, 2020 16.53 151,800 3.25 |
Revenues_2
Revenues | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Revenues | ||
Revenues | 17. Revenues Three Three Nine Nine months months months months ended ended ended ended May 31, May 31, May 31, May 31, 2023 2022 2023 2022 $ $ $ $ Sale of electric boats 341,397 613,354 692,638 873,158 Sale of parts and boat maintenance 80,443 32,878 255,299 56,968 Boat rental and boat club membership revenue 878,260 1,368,537 2,583,118 3,045,014 1,300,100 2,014,769 3,531,055 3,975,140 During November 2022, the Company entered into a contract with a customer for the sale of powertrain systems, which was determined to be onerous since 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. As a result, the Company recorded the present obligation under the onerous contract as a provision of $220,000 presented in trade and other payables as at November 30, 2022, February 28, 2023 and May 31, 2023. The geographical distribution of revenues from external customers is as follows: Three months ended Sale of Rental of May 31, electric electric 2023 boats boats Total $ $ $ Canada 184,199 — 184,199 USA 140,041 878,260 1,018,301 Other 97,600 — 97,600 421,840 878,260 1,300,100 Three months ended Sale of Rental of May 31, electric electric 2022 boats boats Total $ $ $ Canada 229,972 — 229,972 USA 416,260 1,368,537 1,784,797 646,232 1,368,537 2,014,769 Nine months ended Sale of Rental of May 31, electric electric 2023 boats boats Total $ $ $ Canada 184,199 — 184,199 USA 666,138 2,583,118 3,249,256 Other 97,600 — 97,600 947,937 2,583,118 3,531,055 Nine months ended Sale of May 31, electric Rental of 2022 boats electric boats Total $ $ $ Canada 370,448 — 370,448 USA 559,678 3,045,014 3,604,692 930,126 3,045,014 3,975,140 | 20. Revenues 2022 2021 2020 $ $ $ Sales of boats 2,459,365 2,080,110 2,249,107 Sales of parts and boat maintenance 97,721 75,205 167,263 Boat rental and boat club membership revenue 4,793,860 1,355,548 — Other — 2,925 803 7,350,946 3,513,788 2,417,173 The geographical distribution of revenues from external customers is as follows: Sale of Rental of 2022 electric boats electric boats Total $ $ $ Canada 557,639 — 557,639 USA 1,292,666 4,793,861 6,086,527 Other 706,780 — 706,780 2,557,085 4,793,861 7,350,946 Sale of Rental of 2021 2020 electric boats electric boats Total Total $ $ $ $ Canada 571,216 — 571,216 827,057 USA 1,329,575 1,363,024 2,692,599 1,407,063 Other 249,973 — 249,973 183,053 2,150,764 1,363,024 3,513,788 2,417,173 |
Grants and investment tax cre_3
Grants and investment tax credits | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Grants and investment tax credits | ||
Grants and investment tax credits | 18. Grants and investment tax credits During the three and nine months ended May 31, 2023, the Company recognized grants and investment tax credits amounting to $39,940 and $39,940 respectively [May 31, 2022 – $607,256 and $1,410,605], of which $39,940 and $39,940 respectively are presented against research and development expenses [May 31, 2022 – $607,256 and $1,384,516 respectively]. | 21. Grants and investment tax credits During the year ended August 31, 2022, the Company recognized grants and investment tax credits amounting to $1,458,632 [August 31, 2021 –$921,658], of which $1,408,840 are presented against research and development expenses [August 31, 2021 –$859,516], $8,535 against cost of sales [August 31 2021 –$Nil] and $40,584 as a reduction of property and equipment and intangible assets [August 31, 2021 – $44,939]. Office salaries and benefits are presented net $Nil [August 31, 2021 –$17,203] of grants. |
Net finance expense (income)
Net finance expense (income) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Net finance expense | ||
Net finance expense | 19. Net finance expense (income) Three Three Nine Nine months months months months ended ended ended ended May 31, May 31, May 31, May 31, 2023 2022 2023 2022 $ $ $ $ Interest and bank charges 73,789 42,274 200,924 123,972 Interest income — (85,000) (311,667) (257,891) Foreign currency exchange (gain) loss 13,544 27,334 (105,179) (89,162) Transaction costs [note 15] 51,199 — 489,096 — Gain on derivative liabilities [note 15] (1,551,616) — (1,613,058) — Loss on Debentures [note 5] — 115,000 109,667 436,500 (1,413,084) 99,608 (1,230,217) 213,419 | 22. Net finance expense 2022 2021 2020 $ $ $ Interest and bank charges 184,895 123,100 107,105 Interest income (379,288) — — Foreign currency exchange (gain) loss (251,947) 1,583,292 1,295 Loss on Debentures [note 8] 670,000 550,000 — 223,660 2,256,392 108,400 |
Fair value measurement and hier
Fair value measurement and hierarchy | 9 Months Ended |
May 31, 2023 | |
Fair value measurement and hierarchy | |
Fair value measurement and hierarchy | 20. 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 to/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 is based on actual trading data, difference in volatility since initial issuance of the instrument and similar instruments on the market, and credit spread, which is 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 5] 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 May 31, 2023, if the volatility used was increased by 10% the impact would be an increase of $378,000 to the derivative liabilities with corresponding increase in total comprehensive loss. |
Segment information_2
Segment information | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Segment information | ||
Segment information | 21. 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 boat – 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. Three months ended May 31, 2023 Sale of Rental of Inter- electric electric segment boats boats eliminations Total $ $ $ $ Revenue from external customers 421,840 878,260 — 1,300,100 Revenue from other segments 346,954 54,619 (401,573) — Segment revenues 768,794 932,879 (401,573) 1,300,100 Segment gross profit 157,321 247,188 (32,158) 372,351 Segment loss before tax (2,850,077) (359,047) (87,943) (3,297,067) Research and development 794,528 — (42,854) 751,674 Office salaries and benefits 664,300 235,564 — 899,864 Three months ended May 31, 2022 Sale of Rental of Inter- electric electric segment boats boats eliminations Total $ $ $ $ Revenue from external customers 646,232 1,368,537 — 2,014,769 Revenue from other segments 105,272 16,512 (121,784) — Segment revenues 751,504 1,385,049 (121,784) 2,014,769 Segment gross profit 271,869 854,620 (2,369) 1,124,120 Segment profit (loss) before tax (2,188,967) 319,593 15,420 (1,853,954) Research and development 32,670 — — 32,670 Office salaries and benefits 749,455 218,671 — 968,126 Nine months ended May 31, 2023 Sale of Rental of Inter- electric electric segment boats boats eliminations Total $ $ $ $ Revenue from external customers 947,937 2,583,118 — 3,531,055 Revenue from other segments 826,869 331,839 (1,158,708) — Segment revenues 1,774,806 2,914,957 (1,158,708) 3,531,055 Segment gross profit (421,138) 1,227,288 (280,199) 525,951 Segment loss before tax (16,120,375) (485,100) (186,449) (16,791,924) Research and development 5,300,530 — (228,102) 5,072,428 Office salaries and benefits 2,014,875 710,174 — 2,725,049 Nine months ended May 31, 2022 Sale of Rental of Inter- electric electric segment boats boats eliminations Total $ $ $ $ Revenue from external customers 930,126 3,045,014 — 3,975,140 Revenue from other segments 433,898 64,281 (498,179) — Segment revenues 1,364,024 3,109,295 (498,179) 3,975,140 Segment gross profit 237,024 1,745,821 (87,526) 1,895,319 Segment profit (loss) before tax (9,199,678) 229,267 (42,535) (9,012,946) Research and development 50,179 — — 50,179 Office salaries and benefits 1,869,128 702,820 — 2,571,948 As at May 31, 2023 Sale of Rental of Inter- electric electric segment boats boats eliminations Total $ $ $ $ Segment assets 18,451,237 13,864,952 (10,412,497) 21,903,692 Cash 1,372,769 163,295 — 1,536,064 Additions to property and equipment 163,880 890,777 (175,554) 879,103 Additions to intangible assets — — — — Segment liabilities 7,427,977 3,509,640 (1,324,391) 9,613,226 As at August 31, 2022 Sale of Rental of Inter- electric electric segment boats boats eliminations 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 Additions to intangible assets 32,202 — — 32,202 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. | 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, 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 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 Year ended August 31, 2021 Sale of Rental of Inter-segment electric boats electric boats eliminations 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 640,228 1,003,596 (39,642) 1,604,182 Segment (loss) profit before tax (15,517,319) 541,257 (32,255) (15,008,317) Research and development 1,489,953 — — 1,489,953 Office salaries and benefits 1,555,014 199,599 — 1,754,613 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 Additions to intangible assets 32,202 — — 32,202 Segment liabilities 2,023,368 3,311,128 (262,883) 5,071,613 August 31, 2021 Sale of Rental of Sale of electric boats electric boats electric boats Total $ $ $ $ Segment assets 35,175,599 12,734,296 (9,108,603) 38,801,292 Cash 17,210,266 937,555 — 18,147,821 Additions to property and equipment 432,547 145,275 (33,468) 544,354 Additions to intangible assets 1,102,662 — — 1,102,662 Segment liabilities 2,400,829 2,938,746 (63,470) 5,276,105 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 informa_4
Additional cash flows information | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Additional cash flows information. | ||
Additional cash flows information | 22. Additional cash flows information Financing and investing activities not involving cash: Nine Nine months months ended ended May 31, May 31, 2023 2022 $ $ Additions to right-of-use assets 922,479 208,534 Lease termination 131,247 148,002 | 27. Additional cash flows information Financing and investing activities not involving cash: 2022 2021 2020 $ $ $ 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 234,608 852,467 — Lease termination 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_2
Commitments | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Commitments | ||
Commitments | 23. Commitments In addition to the obligations under leases [note 12] $ 2023 1,222,198 2024 4,052,051 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 May 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 May 31, 2023: $ 2024 67,990 2025 164,536 2026 167,827 2027 and thereafter 448,815 | 28. Commitments In addition to the obligations under leases [note 15] $ 2023 4,350,104 2024 2,253,394 In October 2021, EB Rental Ltd. has entered into a lease arrangement for premises, which has not commenced yet and therefore related right-of-use asset and lease liability are not recorded as at August 31, 2022. 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, 2022: $ 2023 105,000 2024 159,000 2025 162,000 2026 165,000 2027 and thereafter 225,000 |
Subsequent events_2
Subsequent events | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Subsequent events | ||
Subsequent events | 24. Subsequent events During the months of June and July 2023, the Company issued a total of 10,870 Voting Common Shares to third parties in exchange of sub-contracting services provided to the Company related to investor relations. On June 16, 2023, the Company issued 493,828 Voting Common Shares and warrants to purchase Voting Common Shares as part of the financing rounds for total cash consideration of $2,485,740, net of transaction costs of $158,664. The warrants issued are 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. $4.05. | 29. Subsequent events During the months of September, October and November 2022, the Company issued a total of 19,457 Voting Common Shares to third parties in exchange of sub-contracting services provided to the Company related to investor relations. |
Basis of preparation (Tables)_2
Basis of preparation (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
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 % | 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% |
Schedule of exchange rates for the currencies used in the preparation of the interim condensed consolidated financial statements | Average exchange Exchange rate as at rate for May 31, August 31, Nine months ended 2023 2022 May 31, 2023 US dollar 1.3598 1.3076 1.3511 |
Trade and other receivables (_2
Trade and other receivables (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Trade and other receivables | ||
Schedule of trade and other receivables | As at As at May 31, August 31, 2023 2022 $ $ Trade receivables 396,367 108,716 Sales taxes receivable 183,272 194,523 Interest and other receivables 3,751 169,309 583,390 472,548 | 2022 2021 $ $ Trade receivables 108,716 27,388 Sales taxes receivable 194,523 166,749 Other receivables 169,309 125,603 472,548 319,740 |
Schedule of aging analysis of receivables | As at As at May 31, August 31, 2023 2022 $ $ 0 – 30 — 77,625 31 – 60 101,047 — 61 – 90 5,006 14,212 91 and over 290,314 16,879 396,367 108,716 | 2022 2021 $ $ 0 – 30 77,625 — 31 – 60 — 2,008 61 – 90 14,212 25,380 91 and over 16,879 — 108,716 27,388 |
Inventories (Tables)_2
Inventories (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Inventories | ||
Schedule of inventories | As at As at May 31, August 31, 2023 2022 $ $ Raw materials 1,926,581 1,709,368 Work-in-process 125,172 75,170 Finished goods 667,755 309,238 2,719,508 2,093,776 | 2022 2021 $ $ Raw materials 1,709,368 1,549,125 Work-in-process 75,170 327,757 Finished goods 309,238 99,202 2,093,776 1,976,084 |
Right-of-use assets (Tables)_2
Right-of-use assets (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Right-of-use assets | ||
Schedule of right-of-use assets | Computer Rolling Boat rental Premises equipment 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 922,479 — — — 922,479 Disposals — — (46,200) (127,868) (174,068) Transferred to property and equipment — (3,646) — (41,161) (44,807) Currency translation 44,154 — 2,100 — 46,254 Balance at May 31, 2023 3,846,672 — 43,920 42,430 3,933,022 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 448,738 768 20,155 21,442 491,103 Disposal — (3,646) (13,475) (76,691) (93,812) Balance at May 31, 2023 1,271,145 — 26,995 21,215 1,319,355 Net carrying amount As at August 31, 2022 2,057,632 768 67,705 134,995 2,261,100 As at May 31, 2023 2,575,527 — 16,925 21,215 2,613,667 | Computer Boat rental Premises equipment Rolling stock fleet Total $ $ $ $ $ Cost Balance at August 31, 2020 737,066 11,333 38,699 — 787,098 Business acquisition 1,281,308 3,646 39,924 326,868 1,651,746 Additions 672,731 — 179,736 — 852,467 Disposals — — (57,475) — (57,475) Transfer to intangible assets — (11,333) — — (11,333) Currency translation 55,013 — 1,652 — 56,665 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 Accumulated depreciation Balance at August 31, 2020 117,806 4,231 12,094 — 134,131 Depreciation 216,551 1,697 30,527 24,087 272,862 Disposal — — (27,672) — (27,672) Transfer to intangible assets — (5,352) — — (5,352) 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 Net carrying amount As at August 31, 2021 2,411,761 3,070 187,587 302,781 2,905,199 As at August 31, 2022 2,057,632 768 67,705 134,995 2,261,100 |
Property and equipment (Table_2
Property and equipment (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Property and equipment. | ||
Schedule of property and equipment | Machinery Boat and Rolling Computer Leasehold rental equipment stock equipment Moulds improvements 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 41,209 69,350 565 30,501 87,959 604,712 834,296 Transferred from right-of-use assets — — 3,646 — — 41,161 44,807 Disposals — (67,043) — — — (467,151) (534,194) Currency translation — (2,347) — — — (67,771) (70,118) Balance at May 31, 2023 374,293 118,624 25,243 942,425 352,315 1,082,428 2,895,328 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 23,305 24,483 3,431 28,273 52,282 51,318 183,092 Disposal — (7,542) — — — (36,640) (44,182) Balance at May 31, 2023 221,109 46,940 16,234 101,301 96,787 58,094 540,465 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 May 31, 2023 153,184 71,684 9,009 841,124 255,528 1,024,334 2,354,863 | Machinery and Rolling Computer Leasehold Boat equipment stock equipment Moulds improvements rental fleet Total $ $ $ $ $ $ $ Cost Balance at August 31, 2020 187,850 32,175 8,436 506,172 34,818 — 769,451 Business acquisition — — — — — 417,554 417,554 Additions 115,088 — 6,211 214,833 96,415 111,807 544,354 Disposals — — — (30,000) — (34,101) (64,101) Currency translation — — — — — 18,057 18,057 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 Accumulated depreciation Balance at August 31, 2020 148,156 21,014 4,556 57,660 — — 231,386 Depreciation 19,448 3,348 3,842 22,760 11,579 8,443 69,420 Disposal — — — (30,000) — — (30,000) 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 Net carrying amount As at August 31, 2021 135,334 7,813 6,249 640,585 119,654 504,874 1,414,509 As at August 31, 2022 135,280 88,665 8,229 838,896 219,851 928,061 2,218,982 |
Intangible assets and goodwill
Intangible assets and goodwill (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Intangible assets and goodwill | ||
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 May 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 77,631 9,690 15,370 12,726 3,014 118,431 Balance at May 31, 2023 236,720 34,390 29,809 32,556 5,833 339,308 Net carrying amount As at August 31, 2022 875,981 77,075 83,855 59,720 16,039 1,112,670 As at May 31, 2023 798,350 67,385 74,542 51,550 14,236 1,006,063 | Intellectual Trade property Software name Backlog Website Total $ $ $ $ $ $ Cost Balance at August 31, 2020 — — — — — — Business acquisition — — 90,000 76,000 18,000 184,000 Transfer from Right-of-use assets — 5,981 — — — 5,981 Additions 1,035,070 67,592 — — — 1,102,662 Currency translation — — 3,856 3,220 771 7,847 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 Accumulated depreciation Balance at August 31, 2020 — — — — — — Depreciation 55,581 7,107 4,633 6,520 927 74,768 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 Net carrying amount As at August 31, 2021 979,489 66,466 89,223 72,700 17,844 1,225,722 As at August 31, 2022 875,981 77,075 83,855 59,720 16,039 1,112,670 |
Trade and other payables (Tab_2
Trade and other payables (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Trade and other payables. | ||
Schedule of trade and other payables | As at As at May 31, August 31, 2023 2022 $ $ Trade payable 1,473,770 737,946 Sales taxes payable 53,762 21,547 Government remittances — 9,450 Salaries and vacation payable 250,329 261,388 1,777,861 1,030,331 | 2022 2021 $ $ Trade payable 737,946 560,870 Sales taxes payable 21,547 34,076 Government remittances 9,450 46,030 Salaries and vacation payable 261,388 207,078 1,030,331 848,054 |
Contract liabilities (Tables)_2
Contract liabilities (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Contract liabilities | ||
Schedule of contract liabilities | $ $ Opening balance as at August 31, 2022 and 2021 1,029,318 898,713 Payments received in advance 917,935 2,502,080 Boat sales deposits 152,277 87,609 Payments reimbursed (8,159) (2,615) Transferred to revenues (1,277,728) (2,475,307) Currency translation 36,399 18,838 Closing balance as at May 31, 2023 and August 31, 2022 850,042 1,029,318 | 2022 2021 $ $ Opening balance 898,713 20,443 Business acquisition — 482,173 Payments received in advance 2,502,080 1,199,958 Boat sale deposits 87,609 — Payments reimbursed (2,615) (37,842) Transferred to revenues (2,475,307) (766,019) Currency translation 18,838 — Closing balance 1,029,318 898,713 |
Lease liabilities (Tables)_2
Lease liabilities (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Lease liabilities | ||
Summary of lease liabilities | $ $ Opening balance as at August 31, 2022 and 2021 2,415,549 2,966,816 Additions 1,023,090 234,608 Repayment (533,270) (695,749) Interest on lease liability 101,052 141,994 Lease termination (131,247) (273,652) Currency translation (50,222) 41,532 Closing balance as at May 31, 2023 and August 31, 2022 2,824,952 2,415,549 Current 673,267 561,168 Non-current 2,151,685 1,854,381 2,824,952 2,415,549 | 2022 2021 $ $ Opening balance 2,966,816 672,988 Business acquisition [note 5] — 1,651,746 Additions 234,608 852,467 Repayment (695,749) (295,316) Interest on lease liability 141,994 65,115 Lease termination (273,652) (37,033) Currency translation 41,532 56,849 Closing balance 2,415,549 2,966,816 Current 561,168 562,136 Non-current 1,854,381 2,404,680 2,415,549 2,966,816 |
Future undiscounted lease payments | Future undiscounted lease payments as at May 31, 2023 are as follows: $ Less than one year 742,792 One to five years 2,356,711 3,099,503 | Future undiscounted lease payments as at August 31, 2022 are as follows: $ Less than one year 670,125 One to five years 2,006,295 2,676,420 |
Long-term debt (Tables)_2
Long-term debt (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Long-term debt. | ||
Summary of long term debt | As at As at May 31, August 31, 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 9.44% and 12.90% per annum payable in monthly installments of $23,337 ending January 2025. 350,694 188,007 390,694 227,349 Current portion of long-term debt 293,980 72,090 96,714 155,259 | 2022 2021 $ $ 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. 39,342 36,972 Term loan bearing interest at a rate of 5.80% per annum payable in monthly installments of $848 until April 2024. — 27,143 Term loans, bearing interest at rates varying between 9.44% and 10.71%, repayable in monthly instalments of $7,372, ending January 2025. 188,007 — 227,349 64,115 Current portion of long-term debt 72,090 10,179 155,259 53,936 |
Related party transactions (T_2
Related party transactions (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Related party transactions | ||
Summarizes the related party transactions and the amounts due to and from related parties | The following table summarizes the Company’s related party transactions for the period: Three Three Nine Nine months months months months ended ended ended ended May 31, May 31, May 31, May 31, 2023 2022 2023 2022 $ $ $ $ Research and Development Mac Engineering, SASU 22,418 134,962 150,113 455,331 Office salaries and benefits Montana Strategies Inc. — 14,488 23,733 48,616 The Company leases its Boisbriand premises from California Electric Boat Company Inc. As at May 31, 2023, the right-of-use assets and lease liabilities related to those leases amount to $2,120,495 and $1,523,233 respectively [August 31, 2022 – $889,866 and $971,399 respectively] [notes 6 and 12]. Remuneration of directors and key management of the Company Three Three Nine Nine months months months months ended ended ended ended May 31, May 31, May 31, May 31, 2023 2022 2023 2022 $ $ $ $ Wages 731,195 664,573 1,880,567 1,905,467 Share-based payments 580,239 328,994 647,965 2,426,874 1,311,434 993,567 2,528,532 4,332,341 The amounts due to and from related parties are as follows: As at As at May 31, August 31, 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 17,404 16,736 Amounts due to related parties included in trade and other payable Alexandre Mongeon 6,375 16,000 Patrick Bobby 4,616 12,308 Kulwant Sandher 3,022 8,062 Xavier Montagne 3,110 8,292 17,123 44,662 | The following table summarizes the Company’s related party transactions for the year: 2022 2021 2020 $ $ $ Revenues Sales of boats EB Rental Ltd. [prior to June 3, 2021] — 84,149 101,684 Patrick Bobby — 11,000 Sale of parts and boat maintenance EB Rental Ltd. [prior to June 3, 2021] — 40,310 79,696 Other EB Rental Ltd. [prior to June 3, 2021] — — 2,500 7858078 Canada Inc. [prior to June 3, 2021] — — 6,074 Expenses Cost of sales EB Rental Ltd. [prior to June 3, 2021] — 11,444 16,865 Research and Development 9335-1427 Quebec Inc. — 75,020 — Mac Engineering, SASU 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 — Rent expense EB Rental Ltd. [prior to June 3, 2021] — — 65,934 Office salaries and benefits Montana Strategies Inc. 62,462 — — The Company leases its Boisbriand premises from California Electric Boat Company Inc. with a right-of-use assets as at August 31, 2022 of $889,866 [August 31, 2021 – $1,132,556] and lease liability of $971,399 [August 31, 2021 – $1,177,867] [notes 9 and 15]. Remuneration of directors and key management of the Company 2022 2021 2020 $ $ $ Wages 2,324,770 1,299,402 308,868 Share-based payments – capital stock — — 572,110 Share-based payments – stock options 2,560,031 6,081,900 259,410 4,884,801 7,381,302 1,140,388 At the end of the year, the amounts due to and from related parties are as follows: 2022 2021 $ $ 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 16,736 185,407 Amounts due to related parties included in trade and other payable Alexandre Mongeon 16,000 74,157 Patrick Bobby 12,308 11,092 Kulwant Sandher 8,062 7,054 Xavier Montagne 8,292 — Mac Engineering, SASU — 29,957 44,662 122,260 |
Capital stock (Tables)_2
Capital stock (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Capital stock. | ||
Summary of issued capital | As at As at May 31, August 2023 31, 2022 $ $ 9,931,985 voting common shares [August 31, 2022 – 8,417,923] 46,851,134 43,441,591 | 2022 2021 $ $ 8,417,923 voting common shares [2021 – 8,324,861] 43,441,591 42,834,982 |
Share-based payments (Tables)_2
Share-based payments (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Share-based payments | ||
Summary of share based payments | Risk-free Exercise Market Expected interest Expected price price volatility rate life Grant date $ $ % % [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 | Expected Risk-free Grant date Exercise price Market price volatility interest rate Expected 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 February 23, 2021 15.75 15.05 103 0.6 5 May 14, 2021 8.98 9.06 105 0.8 5 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 |
Summary of number options granted outstanding | Weighted average Number of exercise options 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 160,500 5.84 Forfeited /cancelled (372,253) 13.09 Stock options modifications (322,000) 11.75 Exercised (5,057) 3.70 Balance at May 31, 2023 1,167,608 5.11 | Weighted Number of average options exercise price # $ Balance at August 31, 2020 516,216 3.41 Granted 1,148,310 12.86 Forfeited (5,405) 3.70 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 |
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 - 3.70 511,608 2.48 2.16 497,869 5.65 – 5.83 586,000 2.85 4.51 498,300 6.09 – 8.85 35,000 6.05 7.35 25,000 16.29 35,000 9.33 7.50 35,000 | Number of Weighted average Weighted average options grant date remaining Exercise price outstanding fair value contractual life Exercisable $ # $ [years] options 3.70 345,946 2.42 2.75 325,253 2.78 162,162 2.59 2.75 162,162 3.70 10,810 2.69 3.00 7,883 16.29 440,000 9.33 8.25 440,000 15.75 120,000 11.28 3.50 45,000 8.98 500,000 6.91 3.75 500,000 8.85 25,000 6.55 9.25 25,000 5.65 102,500 4.28 4.50 102,500 |
Schedule of warrant options payment arrangements | Risk-free Exercise Market Expected interest Expected price price volatility rate life Grant 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 | |
Schedule of warrants | Number of warrants Weighted average remaining Exercise price outstanding contractual life Grant date $ # [years] November 23, 2020 16.53 151,800 2.25 August 5, 2022 10.30 50,000 2.92 January 19, 2023 5.63 554,253 2.63 February 17, 2023 5.67 475,059 2.72 April 19, 2023 5.64 381,293 2.88 | Number of Weighted average warrants remaining Grant date Exercise price outstanding contractual life $ # [years] November 23, 2020 16.53 151,800 3.25 |
Revenues (Tables)_2
Revenues (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Revenues | ||
Summary of revenues by product type and geographical distribution of revenues from external customers | Three Three Nine Nine months months months months ended ended ended ended May 31, May 31, May 31, May 31, 2023 2022 2023 2022 $ $ $ $ Sale of electric boats 341,397 613,354 692,638 873,158 Sale of parts and boat maintenance 80,443 32,878 255,299 56,968 Boat rental and boat club membership revenue 878,260 1,368,537 2,583,118 3,045,014 1,300,100 2,014,769 3,531,055 3,975,140 Three months ended Sale of Rental of May 31, electric electric 2023 boats boats Total $ $ $ Canada 184,199 — 184,199 USA 140,041 878,260 1,018,301 Other 97,600 — 97,600 421,840 878,260 1,300,100 Three months ended Sale of Rental of May 31, electric electric 2022 boats boats Total $ $ $ Canada 229,972 — 229,972 USA 416,260 1,368,537 1,784,797 646,232 1,368,537 2,014,769 Nine months ended Sale of Rental of May 31, electric electric 2023 boats boats Total $ $ $ Canada 184,199 — 184,199 USA 666,138 2,583,118 3,249,256 Other 97,600 — 97,600 947,937 2,583,118 3,531,055 Nine months ended Sale of May 31, electric Rental of 2022 boats electric boats Total $ $ $ Canada 370,448 — 370,448 USA 559,678 3,045,014 3,604,692 930,126 3,045,014 3,975,140 | 2022 2021 2020 $ $ $ Sales of boats 2,459,365 2,080,110 2,249,107 Sales of parts and boat maintenance 97,721 75,205 167,263 Boat rental and boat club membership revenue 4,793,860 1,355,548 — Other — 2,925 803 7,350,946 3,513,788 2,417,173 Sale of Rental of 2022 electric boats electric boats Total $ $ $ Canada 557,639 — 557,639 USA 1,292,666 4,793,861 6,086,527 Other 706,780 — 706,780 2,557,085 4,793,861 7,350,946 Sale of Rental of 2021 2020 electric boats electric boats Total Total $ $ $ $ Canada 571,216 — 571,216 827,057 USA 1,329,575 1,363,024 2,692,599 1,407,063 Other 249,973 — 249,973 183,053 2,150,764 1,363,024 3,513,788 2,417,173 |
Net finance expense (income) (T
Net finance expense (income) (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Net finance expense | ||
Net finance expense | Three Three Nine Nine months months months months ended ended ended ended May 31, May 31, May 31, May 31, 2023 2022 2023 2022 $ $ $ $ Interest and bank charges 73,789 42,274 200,924 123,972 Interest income — (85,000) (311,667) (257,891) Foreign currency exchange (gain) loss 13,544 27,334 (105,179) (89,162) Transaction costs [note 15] 51,199 — 489,096 — Gain on derivative liabilities [note 15] (1,551,616) — (1,613,058) — Loss on Debentures [note 5] — 115,000 109,667 436,500 (1,413,084) 99,608 (1,230,217) 213,419 | 2022 2021 2020 $ $ $ Interest and bank charges 184,895 123,100 107,105 Interest income (379,288) — — Foreign currency exchange (gain) loss (251,947) 1,583,292 1,295 Loss on Debentures [note 8] 670,000 550,000 — 223,660 2,256,392 108,400 |
Segment information (Tables)_2
Segment information (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Segment information | ||
Summary of reportable business segments | Three months ended May 31, 2023 Sale of Rental of Inter- electric electric segment boats boats eliminations Total $ $ $ $ Revenue from external customers 421,840 878,260 — 1,300,100 Revenue from other segments 346,954 54,619 (401,573) — Segment revenues 768,794 932,879 (401,573) 1,300,100 Segment gross profit 157,321 247,188 (32,158) 372,351 Segment loss before tax (2,850,077) (359,047) (87,943) (3,297,067) Research and development 794,528 — (42,854) 751,674 Office salaries and benefits 664,300 235,564 — 899,864 Three months ended May 31, 2022 Sale of Rental of Inter- electric electric segment boats boats eliminations Total $ $ $ $ Revenue from external customers 646,232 1,368,537 — 2,014,769 Revenue from other segments 105,272 16,512 (121,784) — Segment revenues 751,504 1,385,049 (121,784) 2,014,769 Segment gross profit 271,869 854,620 (2,369) 1,124,120 Segment profit (loss) before tax (2,188,967) 319,593 15,420 (1,853,954) Research and development 32,670 — — 32,670 Office salaries and benefits 749,455 218,671 — 968,126 Nine months ended May 31, 2023 Sale of Rental of Inter- electric electric segment boats boats eliminations Total $ $ $ $ Revenue from external customers 947,937 2,583,118 — 3,531,055 Revenue from other segments 826,869 331,839 (1,158,708) — Segment revenues 1,774,806 2,914,957 (1,158,708) 3,531,055 Segment gross profit (421,138) 1,227,288 (280,199) 525,951 Segment loss before tax (16,120,375) (485,100) (186,449) (16,791,924) Research and development 5,300,530 — (228,102) 5,072,428 Office salaries and benefits 2,014,875 710,174 — 2,725,049 Nine months ended May 31, 2022 Sale of Rental of Inter- electric electric segment boats boats eliminations Total $ $ $ $ Revenue from external customers 930,126 3,045,014 — 3,975,140 Revenue from other segments 433,898 64,281 (498,179) — Segment revenues 1,364,024 3,109,295 (498,179) 3,975,140 Segment gross profit 237,024 1,745,821 (87,526) 1,895,319 Segment profit (loss) before tax (9,199,678) 229,267 (42,535) (9,012,946) Research and development 50,179 — — 50,179 Office salaries and benefits 1,869,128 702,820 — 2,571,948 As at May 31, 2023 Sale of Rental of Inter- electric electric segment boats boats eliminations Total $ $ $ $ Segment assets 18,451,237 13,864,952 (10,412,497) 21,903,692 Cash 1,372,769 163,295 — 1,536,064 Additions to property and equipment 163,880 890,777 (175,554) 879,103 Additions to intangible assets — — — — Segment liabilities 7,427,977 3,509,640 (1,324,391) 9,613,226 As at August 31, 2022 Sale of Rental of Inter- electric electric segment boats boats eliminations 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 Additions to intangible assets 32,202 — — 32,202 Segment liabilities 2,023,368 3,311,128 (262,883) 5,071,613 | 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 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 Year ended August 31, 2021 Sale of Rental of Inter-segment electric boats electric boats eliminations 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 640,228 1,003,596 (39,642) 1,604,182 Segment (loss) profit before tax (15,517,319) 541,257 (32,255) (15,008,317) Research and development 1,489,953 — — 1,489,953 Office salaries and benefits 1,555,014 199,599 — 1,754,613 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 Additions to intangible assets 32,202 — — 32,202 Segment liabilities 2,023,368 3,311,128 (262,883) 5,071,613 August 31, 2021 Sale of Rental of Sale of electric boats electric boats electric boats Total $ $ $ $ Segment assets 35,175,599 12,734,296 (9,108,603) 38,801,292 Cash 17,210,266 937,555 — 18,147,821 Additions to property and equipment 432,547 145,275 (33,468) 544,354 Additions to intangible assets 1,102,662 — — 1,102,662 Segment liabilities 2,400,829 2,938,746 (63,470) 5,276,105 |
Additional cash flows informa_5
Additional cash flows information (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Additional cash flows information. | ||
Summary of financing and investing activities not involving cash | Nine Nine months months ended ended May 31, May 31, 2023 2022 $ $ Additions to right-of-use assets 922,479 208,534 Lease termination 131,247 148,002 | 2022 2021 2020 $ $ $ 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 234,608 852,467 — Lease termination 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)_2
Commitments (Tables) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Commitments | ||
Summary of amount of the minimum fixed and determinable portion of the unconditional purchase obligations over the next years | $ 2023 1,222,198 2024 4,052,051 | $ 2023 4,350,104 2024 2,253,394 |
Summary of undiscounted lease commitments | The Company’s undiscounted lease commitments related to this lease are as follows as at May 31, 2023: $ 2024 67,990 2025 164,536 2026 167,827 2027 and thereafter 448,815 | $ 2023 105,000 2024 159,000 2025 162,000 2026 165,000 2027 and thereafter 225,000 |
Basis of preparation (Details_2
Basis of preparation (Details) | 9 Months Ended |
May 31, 2023 | |
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% |
Basis of preparation - Exchange
Basis of preparation - Exchange rates for the currencies used in the preparation of the interim condensed consolidated financial statements (Details) | 9 Months Ended | 12 Months Ended | ||
May 31, 2023 $ / shares | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2022 $ / shares | |
Basis of preparation | ||||
US dollar, Exchange rate as at ending | 1.3598 | 1.3076 | 1.2630 | 1.3076 |
US dollar, Average exchange rate for period | 1.3511 | 1.2717 | 1.2688 |
Trade and other receivables (_3
Trade and other receivables (Details) - CAD ($) | May 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 |
Ifrs Trade And Other Receivables [Line items] | |||
Trade receivables | $ 396,367 | $ 108,716 | $ 27,388 |
Sales taxes receivable | 183,272 | 194,523 | 166,749 |
Interest and other receivables | 3,751 | 169,309 | |
Total trade and other current receivables | 583,390 | 472,548 | 319,740 |
Past Due But Not Impaired | |||
Ifrs Trade And Other Receivables [Line items] | |||
Trade receivables | $ 396,367 | $ 31,091 | $ 27,388 |
Trade and other receivables -_3
Trade and other receivables - Aging analysis (Details) - CAD ($) | May 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 |
Ifrs Financing Receivable, Past Due [Line Items] | |||
Trade receivables | $ 396,367 | $ 108,716 | $ 27,388 |
0 - 30 | |||
Ifrs Financing Receivable, Past Due [Line Items] | |||
Trade receivables | 77,625 | ||
31-60 | |||
Ifrs Financing Receivable, Past Due [Line Items] | |||
Trade receivables | 101,047 | 2,008 | |
61-90 | |||
Ifrs Financing Receivable, Past Due [Line Items] | |||
Trade receivables | 5,006 | 14,212 | $ 25,380 |
91 and over | |||
Ifrs Financing Receivable, Past Due [Line Items] | |||
Trade receivables | $ 290,314 | $ 16,879 |
Trade and other receivables -_4
Trade and other receivables - Allowance for expected credit losses (Details) - CAD ($) | May 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 |
Trade and other receivables | |||
Movements in the allowance for expected credit losses | $ 0 | $ 0 | $ 0 |
Inventories (Details)_2
Inventories (Details) - CAD ($) | May 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 |
Inventories | |||
Raw materials | $ 1,926,581 | $ 1,709,368 | $ 1,549,125 |
Work-in-process | 125,172 | 75,170 | 327,757 |
Finished goods | 667,755 | 309,238 | 99,202 |
Total current inventories | $ 2,719,508 | $ 2,093,776 | $ 1,976,084 |
Inventories - Additional Info_2
Inventories - Additional Information (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Inventories | |||||||
Inventories recognized as an expense | $ 401,021 | $ 890,649 | $ 2,258,376 | $ 2,079,821 | $ 4,065,381 | $ 1,909,606 | $ 812,783 |
Cost of sales including depreciation | $ 4,273 | $ 188,152 | $ 318,398 | $ 544,462 | $ 687,023 | $ 232,195 | $ 142,336 |
Debentures - Additional Infor_2
Debentures - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
May 14, 2023 CAD ($) item $ / shares | May 14, 2021 CAD ($) item | May 31, 2023 CAD ($) | May 31, 2022 CAD ($) | May 31, 2023 CAD ($) | May 31, 2022 CAD ($) | Aug. 31, 2022 CAD ($) $ / shares | Aug. 31, 2021 CAD ($) | Aug. 31, 2020 CAD ($) | |
Debentures. | |||||||||
Purchase of senior unsecured subordinated convertible debentures | item | 3,400 | 3,400 | |||||||
Aggregate amount of debentures | $ 3,400,000 | $ 3,400,000 | $ 340,000 | $ 85,000 | $ 0 | ||||
Borrowings interest rate | 10% | 10% | |||||||
Debt Term | 36 years | 36 months | |||||||
Conversion price | $ / shares | $ 0.36 | $ 0.36 | |||||||
Closing date of issuance of debentures | 120 days | 120 days | |||||||
Days prior to end of term | 30 days | 30 days | |||||||
Share price | $ / shares | $ 0.50 | $ 0.50 | |||||||
Common Share for consecutive trading days | 20 days | 20 days | |||||||
Period for conversion | 30 days | 30 days | |||||||
Net income (loss) for change in the fair value of the Debentures | $ 0 | $ 115,000 | $ 109,667 | $ 436,500 | $ 670,000 | $ 550,000 | $ 0 | ||
Impairment on debentures | $ 0 | $ 2,637,000 |
Right-of-use assets (Details)_2
Right-of-use assets (Details) - CAD ($) | 9 Months Ended | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | Aug. 31, 2022 | Aug. 31, 2021 | |
Right-of-use assets | ||||
Balance at beginning of the year | $ 2,261,100 | $ 2,905,199 | $ 2,905,199 | |
Additions | 922,479 | 208,534 | 234,608 | $ 852,467 |
Balance at end of the year | 2,613,667 | 2,261,100 | 2,905,199 | |
Premises | ||||
Right-of-use assets | ||||
Balance at beginning of the year | 2,057,632 | 2,411,761 | 2,411,761 | |
Balance at end of the year | 2,575,527 | 2,057,632 | 2,411,761 | |
Computer equipment | ||||
Right-of-use assets | ||||
Balance at beginning of the year | 768 | 3,070 | 3,070 | |
Balance at end of the year | 768 | 3,070 | ||
Rolling stock | ||||
Right-of-use assets | ||||
Balance at beginning of the year | 67,705 | 187,587 | 187,587 | |
Balance at end of the year | 16,925 | 67,705 | 187,587 | |
Boat rental fleet | ||||
Right-of-use assets | ||||
Balance at beginning of the year | 134,995 | 302,781 | 302,781 | |
Balance at end of the year | 21,215 | 134,995 | 302,781 | |
Software | ||||
Right-of-use assets | ||||
Balance at beginning of the year | 5,981 | 5,981 | ||
Balance at end of the year | 5,981 | |||
Cost | ||||
Right-of-use assets | ||||
Balance at beginning of the year | 3,183,164 | 3,279,168 | 3,279,168 | 787,098 |
Business acquisition | 1,651,746 | |||
Additions | 922,479 | 234,608 | 852,467 | |
Disposals | (174,068) | (371,362) | (57,475) | |
Transferred to property and equipment | (44,807) | |||
Transfer to intangible assets | (11,333) | |||
Currency translation | 46,254 | 40,750 | 56,665 | |
Balance at end of the year | 3,933,022 | 3,183,164 | 3,279,168 | |
Cost | Premises | ||||
Right-of-use assets | ||||
Balance at beginning of the year | 2,880,039 | 2,746,118 | 2,746,118 | 737,066 |
Business acquisition | 1,281,308 | |||
Additions | 922,479 | 93,565 | 672,731 | |
Currency translation | 44,154 | 40,356 | 55,013 | |
Balance at end of the year | 3,846,672 | 2,880,039 | 2,746,118 | |
Cost | Computer equipment | ||||
Right-of-use assets | ||||
Balance at beginning of the year | 3,646 | 3,646 | 3,646 | 11,333 |
Business acquisition | 3,646 | |||
Transferred to property and equipment | (3,646) | |||
Transfer to intangible assets | (11,333) | |||
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 | 202,536 | 38,699 |
Business acquisition | 39,924 | |||
Additions | 141,043 | 179,736 | ||
Disposals | (46,200) | (255,953) | (57,475) | |
Currency translation | 2,100 | 394 | 1,652 | |
Balance at end of the year | 43,920 | 88,020 | 202,536 | |
Cost | Boat rental fleet | ||||
Right-of-use assets | ||||
Balance at beginning of the year | 211,459 | 326,868 | 326,868 | |
Business acquisition | 326,868 | |||
Disposals | (127,868) | (115,409) | ||
Transferred to property and equipment | (41,161) | |||
Balance at end of the year | 42,430 | 211,459 | 326,868 | |
Accumulated depreciation | ||||
Right-of-use assets | ||||
Balance at beginning of the year | (922,064) | (373,969) | (373,969) | (134,131) |
Depreciation | 491,103 | 651,457 | 272,862 | |
Disposals | (93,812) | (103,362) | (27,672) | |
Transfer to intangible assets | (5,352) | |||
Balance at end of the year | (1,319,355) | (922,064) | (373,969) | |
Accumulated depreciation | Premises | ||||
Right-of-use assets | ||||
Balance at beginning of the year | (822,407) | (334,357) | (334,357) | (117,806) |
Depreciation | 448,738 | 488,050 | 216,551 | |
Balance at end of the year | (1,271,145) | (822,407) | (334,357) | |
Accumulated depreciation | Computer equipment | ||||
Right-of-use assets | ||||
Balance at beginning of the year | (2,878) | (576) | (576) | (4,231) |
Depreciation | 768 | 2,302 | 1,697 | |
Disposals | (3,646) | |||
Transfer to intangible assets | (5,352) | |||
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) | (14,949) | (12,094) |
Depreciation | 20,155 | 71,488 | 30,527 | |
Disposals | (13,475) | (66,122) | (27,672) | |
Balance at end of the year | (26,995) | (20,315) | (14,949) | |
Accumulated depreciation | Boat rental fleet | ||||
Right-of-use assets | ||||
Balance at beginning of the year | (76,464) | $ (24,087) | (24,087) | |
Depreciation | 21,442 | 89,617 | 24,087 | |
Disposals | (76,691) | (37,240) | ||
Balance at end of the year | $ (21,215) | $ (76,464) | $ (24,087) |
Property and equipment (Detai_2
Property and equipment (Details) - CAD ($) | 9 Months Ended | 12 Months Ended | |
May 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Property and equipment | |||
Beginning balance | $ 2,218,982 | $ 1,414,509 | |
Ending balance | 2,354,863 | 2,218,982 | $ 1,414,509 |
Cost | |||
Property and equipment | |||
Beginning balance | 2,620,537 | 1,685,315 | 769,451 |
Business acquisition | 417,554 | ||
Additions | 834,296 | 1,175,931 | 544,354 |
Transferred from right-of-use assets | 44,807 | ||
Disposals | (534,194) | (270,828) | (64,101) |
Currency translation | (70,118) | 30,119 | 18,057 |
Ending balance | 2,895,328 | 2,620,537 | 1,685,315 |
Accumulated depreciation | |||
Property and equipment | |||
Beginning balance | (401,555) | (270,806) | (231,386) |
Depreciation | 183,092 | 157,947 | 69,420 |
Disposals | (44,182) | (27,198) | (30,000) |
Ending balance | (540,465) | (401,555) | (270,806) |
Machinery and equipment | |||
Property and equipment | |||
Beginning balance | 135,280 | 135,334 | |
Ending balance | 153,184 | 135,280 | 135,334 |
Machinery and equipment | Cost | |||
Property and equipment | |||
Beginning balance | 333,084 | 302,938 | 187,850 |
Additions | 41,209 | 30,146 | 115,088 |
Ending balance | 374,293 | 333,084 | 302,938 |
Machinery and equipment | Accumulated depreciation | |||
Property and equipment | |||
Beginning balance | (197,804) | (167,604) | (148,156) |
Depreciation | 23,305 | 30,200 | 19,448 |
Ending balance | (221,109) | (197,804) | (167,604) |
Rolling stock | |||
Property and equipment | |||
Beginning balance | 88,665 | 7,813 | |
Ending balance | 71,684 | 88,665 | 7,813 |
Rolling stock | Cost | |||
Property and equipment | |||
Beginning balance | 118,664 | 32,175 | 32,175 |
Additions | 69,350 | 197,739 | |
Disposals | (67,043) | (111,215) | |
Currency translation | (2,347) | (35) | |
Ending balance | 118,624 | 118,664 | 32,175 |
Rolling stock | Accumulated depreciation | |||
Property and equipment | |||
Beginning balance | (29,999) | (24,362) | (21,014) |
Depreciation | 24,483 | 23,938 | 3,348 |
Disposals | (7,542) | (18,301) | |
Ending balance | (46,940) | (29,999) | (24,362) |
Computer equipment | |||
Property and equipment | |||
Beginning balance | 8,229 | 6,249 | |
Ending balance | 9,009 | 8,229 | 6,249 |
Computer equipment | Cost | |||
Property and equipment | |||
Beginning balance | 21,032 | 14,647 | 8,436 |
Additions | 565 | 11,284 | 6,211 |
Transferred from right-of-use assets | 3,646 | ||
Disposals | (4,899) | ||
Ending balance | 25,243 | 21,032 | 14,647 |
Computer equipment | Accumulated depreciation | |||
Property and equipment | |||
Beginning balance | (12,803) | (8,398) | (4,556) |
Depreciation | 3,431 | 5,079 | 3,842 |
Disposals | (674) | ||
Ending balance | (16,234) | (12,803) | (8,398) |
Moulds | |||
Property and equipment | |||
Beginning balance | 838,896 | 640,585 | |
Ending balance | 841,124 | 838,896 | 640,585 |
Moulds | Cost | |||
Property and equipment | |||
Beginning balance | 911,924 | 691,005 | 506,172 |
Additions | 30,501 | 220,919 | 214,833 |
Disposals | (30,000) | ||
Ending balance | 942,425 | 911,924 | 691,005 |
Moulds | Accumulated depreciation | |||
Property and equipment | |||
Beginning balance | (73,028) | (50,420) | (57,660) |
Depreciation | 28,273 | 22,608 | 22,760 |
Disposals | (30,000) | ||
Ending balance | (101,301) | (73,028) | (50,420) |
Leasehold improvements | |||
Property and equipment | |||
Beginning balance | 219,851 | 119,654 | |
Ending balance | 255,528 | 219,851 | 119,654 |
Leasehold improvements | Cost | |||
Property and equipment | |||
Beginning balance | 264,356 | 131,233 | 34,818 |
Additions | 87,959 | 133,123 | 96,415 |
Ending balance | 352,315 | 264,356 | 131,233 |
Leasehold improvements | Accumulated depreciation | |||
Property and equipment | |||
Beginning balance | (44,505) | (11,579) | |
Depreciation | 52,282 | 32,926 | 11,579 |
Ending balance | (96,787) | (44,505) | (11,579) |
Boat rental fleet | |||
Property and equipment | |||
Beginning balance | 928,061 | 504,874 | |
Ending balance | 1,024,334 | 928,061 | 504,874 |
Boat rental fleet | Cost | |||
Property and equipment | |||
Beginning balance | 971,477 | 513,317 | |
Business acquisition | 417,554 | ||
Additions | 604,712 | 582,720 | 111,807 |
Transferred from right-of-use assets | 41,161 | ||
Disposals | (467,151) | (154,714) | (34,101) |
Currency translation | (67,771) | 30,154 | 18,057 |
Ending balance | 1,082,428 | 971,477 | 513,317 |
Boat rental fleet | Accumulated depreciation | |||
Property and equipment | |||
Beginning balance | (43,416) | (8,443) | |
Depreciation | 51,318 | 43,196 | 8,443 |
Disposals | (36,640) | (8,223) | |
Ending balance | $ (58,094) | $ (43,416) | $ (8,443) |
Property and equipment - Addi_2
Property and equipment - Additional Information (Details) - CAD ($) | Aug. 31, 2022 | Aug. 31, 2021 |
Moulds | ||
Property and equipment | ||
Asset not depreciated and not ready for use | $ 346,752 | $ 125,833 |
Intangible assets and goodwil_2
Intangible assets and goodwill (Details) - CAD ($) | 9 Months Ended | 12 Months Ended | |
May 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | $ 1,112,670 | $ 1,225,722 | |
Balance at the end | 1,006,063 | 1,112,670 | $ 1,225,722 |
Intellectual property | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | 875,981 | 979,489 | |
Balance at the end | 798,350 | 875,981 | 979,489 |
Software | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | 77,075 | 66,466 | |
Balance at the end | 67,385 | 77,075 | 66,466 |
Trade name | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | 83,855 | 89,223 | |
Balance at the end | 74,542 | 83,855 | 89,223 |
Backlog | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | 59,720 | 72,700 | |
Balance at the end | 51,550 | 59,720 | 72,700 |
Website | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | 16,039 | 17,844 | |
Balance at the end | 14,236 | 16,039 | 17,844 |
Cost | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | 1,333,547 | 1,300,490 | 0 |
Business acquisition | 184,000 | ||
Transfer from Right-of-use assets | 5,981 | ||
Additions | 32,202 | 1,102,662 | |
Currency translation | 11,824 | 855 | 7,847 |
Balance at the end | 1,345,371 | 1,333,547 | 1,300,490 |
Cost | Intellectual property | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | 1,035,070 | 1,035,070 | 0 |
Additions | 1,035,070 | ||
Balance at the end | 1,035,070 | 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 | 0 |
Transfer from Right-of-use assets | 5,981 | ||
Additions | 28,202 | 67,592 | |
Balance at the end | 101,775 | 101,775 | 73,573 |
Cost | Trade name | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | 98,294 | 93,856 | 0 |
Business acquisition | 90,000 | ||
Additions | 4,000 | ||
Currency translation | 6,057 | 438 | 3,856 |
Balance at the end | 104,351 | 98,294 | 93,856 |
Cost | Backlog | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | 79,550 | 79,220 | 0 |
Business acquisition | 76,000 | ||
Currency translation | 4,556 | 330 | 3,220 |
Balance at the end | 84,106 | 79,550 | 79,220 |
Cost | Website | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | 18,858 | 18,771 | 0 |
Business acquisition | 18,000 | ||
Currency translation | 1,211 | 87 | 771 |
Balance at the end | 20,069 | 18,858 | 18,771 |
Accumulated depreciation | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | (220,877) | (74,768) | 0 |
Depreciation | 118,431 | 146,109 | 74,768 |
Balance at the end | (339,308) | (220,877) | (74,768) |
Accumulated depreciation | Intellectual property | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | (159,089) | (55,581) | 0 |
Depreciation | 77,631 | 103,508 | 55,581 |
Balance at the end | (236,720) | (159,089) | (55,581) |
Accumulated depreciation | Software | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | (24,700) | (7,107) | 0 |
Depreciation | 9,690 | 17,593 | 7,107 |
Balance at the end | (34,390) | (24,700) | (7,107) |
Accumulated depreciation | Trade name | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | (14,439) | (4,633) | 0 |
Depreciation | 15,370 | 9,806 | 4,633 |
Balance at the end | (29,809) | (14,439) | (4,633) |
Accumulated depreciation | Backlog | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | (19,830) | (6,520) | 0 |
Depreciation | 12,726 | 13,310 | 6,520 |
Balance at the end | (32,556) | (19,830) | (6,520) |
Accumulated depreciation | Website | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Balance at the beginning | (2,819) | (927) | 0 |
Depreciation | 3,014 | 1,892 | 927 |
Balance at the end | $ (5,833) | $ (2,819) | $ (927) |
Intangible assets and goodwil_3
Intangible assets and goodwill - Additional Information (Details) - CAD ($) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Intangible assets and goodwill | ||
Goodwill | $ 9,726,002 | $ 9,352,640 |
Credit facility (Details)_2
Credit facility (Details) - CAD ($) | 9 Months Ended | 12 Months Ended | |
May 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Credit facility | |||
Authorized line of credit | $ 250,000 | $ 250,000 | |
Amount drawn on line of credit | $ 235,000 | $ 0 | $ 0 |
Prime rate | |||
Credit facility | |||
Spread on variable interest rate | 1% | 1% | |
Secured first ranking movable hypothec | |||
Credit facility | |||
Secured first ranking movable hypothec on accounts payable and inventory | $ 750,000 | $ 750,000 |
Trade and other payables (Det_2
Trade and other payables (Details) - CAD ($) | May 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 |
Trade and other payables. | |||
Trade payable | $ 1,473,770 | $ 737,946 | $ 560,870 |
Sales taxes payable | 53,762 | 21,547 | 34,076 |
Government remittances | 9,450 | 46,030 | |
Salaries and vacation payable | 250,329 | 261,388 | 207,078 |
Trade and other payables | $ 1,777,861 | $ 1,030,331 | $ 848,054 |
Contract liabilities (Details_2
Contract liabilities (Details) - CAD ($) | 9 Months Ended | 12 Months Ended | |
May 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Contract liabilities | |||
Opening balance | $ 1,029,318 | $ 898,713 | $ 20,443 |
Business acquisition | 482,173 | ||
Payments received in advance | 917,935 | 2,502,080 | 1,199,958 |
Boat sales deposits | 152,277 | 87,609 | |
Payments reimbursed | (8,159) | (2,615) | (37,842) |
Transferred to revenues | (1,277,728) | (2,475,307) | (766,019) |
Currency translation | 36,399 | 18,838 | |
Closing balance | $ 850,042 | $ 1,029,318 | $ 898,713 |
Lease liabilities (Details)_2
Lease liabilities (Details) - CAD ($) | 9 Months Ended | 12 Months Ended | |
May 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Lease liabilities | |||
Opening balance | $ 2,415,549 | $ 2,966,816 | $ 672,988 |
Business acquisition | 1,651,746 | ||
Additions | 1,023,090 | 234,608 | 852,467 |
Repayment | (533,270) | (695,749) | (295,316) |
Interest on lease liability | 101,052 | 141,994 | 65,115 |
Lease termination | (131,247) | (273,652) | (37,033) |
Currency translation | (50,222) | 41,532 | 56,849 |
Closing balance | 2,824,952 | 2,415,549 | 2,966,816 |
Current | 673,267 | 561,168 | 562,136 |
Non-current | $ 2,151,685 | $ 1,854,381 | $ 2,404,680 |
Lease liabilities - Undiscoun_2
Lease liabilities - Undiscounted lease payments (Details) - CAD ($) | 12 Months Ended | |||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | May 31, 2023 | |
Lease liabilities | ||||
Undiscounted lease payments | $ 2,676,420 | $ 3,099,503 | ||
Short-term lease expense | $ 58,663 | $ 50,186 | $ 65,934 | |
Weighted average interest rate | 5.40% | 5.20% | 5.40% | |
Less than one year | ||||
Lease liabilities | ||||
Undiscounted lease payments | $ 670,125 | 742,792 | ||
One year to five years | ||||
Lease liabilities | ||||
Undiscounted lease payments | $ 2,006,295 | $ 2,356,711 |
Long-term debt (Details)_2
Long-term debt (Details) - CAD ($) | 9 Months Ended | 12 Months Ended | |||
May 31, 2023 | Aug. 31, 2022 | May 14, 2023 | Aug. 31, 2021 | May 14, 2021 | |
Long-term debt | |||||
Total borrowings | $ 390,694 | $ 227,349 | $ 64,115 | ||
Current portion of long-term debt | 293,980 | 72,090 | 10,179 | ||
Long-term debt, noncurrent | 96,714 | 155,259 | 53,936 | ||
Borrowings interest rate | 10% | 10% | |||
The government assistance loan maturing by December 31, 2025 | |||||
Long-term debt | |||||
Total borrowings | $ 40,000 | $ 39,342 | 36,972 | ||
Borrowings interest rate | 5% | 5% | |||
Term loan maturing April 2024 | |||||
Long-term debt | |||||
Total borrowings | $ 27,143 | ||||
Borrowings interest rate | 5.80% | ||||
Monthly instalments | $ 848 | ||||
Term loan maturing January 2025 | |||||
Long-term debt | |||||
Total borrowings | $ 350,694 | 188,007 | |||
Monthly instalments | $ 23,337 | $ 7,372 | |||
Term loan maturing January 2025 | Minimum. | |||||
Long-term debt | |||||
Borrowings interest rate | 9.44% | 9.44% | |||
Term loan maturing January 2025 | Maximum. | |||||
Long-term debt | |||||
Borrowings interest rate | 12.90% | 10.71% |
Related party transactions (D_2
Related party transactions (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Related party transactions | |||||||
Office salaries and benefits | $ 899,864 | $ 968,126 | $ 2,725,049 | $ 2,571,948 | $ 3,335,799 | $ 1,754,613 | $ 315,138 |
Right-of-use assets | 2,613,667 | 2,613,667 | 2,261,100 | 2,905,199 | |||
Lease liability | 2,824,952 | 2,824,952 | 2,415,549 | 2,966,816 | 672,988 | ||
Electric Boat Rental Ltd. | |||||||
Related party transactions | |||||||
Sales of boats | 84,149 | 101,684 | |||||
Sale of parts and boat maintenance | 40,310 | 79,696 | |||||
Other | 2,500 | ||||||
Cost of sales | 11,444 | 16,865 | |||||
Travel and entertainment | 8,926 | ||||||
Advertising and promotion | 11,245 | ||||||
Rent expense | 65,934 | ||||||
Patrick Bobby | |||||||
Related party transactions | |||||||
Sales of boats | 11,000 | ||||||
7858078 Canada Inc | |||||||
Related party transactions | |||||||
Other | $ 6,074 | ||||||
9335-1427 Quebec Inc. | |||||||
Related party transactions | |||||||
Research and Development | 75,020 | ||||||
Mac Engineering, SASU | |||||||
Related party transactions | |||||||
Research and Development | 22,418 | 134,962 | 150,113 | 455,331 | 666,178 | 176,500 | |
California Electric Boat Company Inc. | |||||||
Related party transactions | |||||||
Right-of-use assets | 2,120,495 | 2,120,495 | 889,866 | 1,132,556 | |||
Lease liability | $ 1,523,233 | 1,523,233 | 971,399 | $ 1,177,867 | |||
Montana Strategies Inc. | |||||||
Related party transactions | |||||||
Office salaries and benefits | $ 14,488 | $ 23,733 | $ 48,616 | $ 62,462 |
Related party transactions - _2
Related party transactions - Remuneration of directors and key management of the Company (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Related party transactions | |||||||
Wages | $ 731,195 | $ 664,573 | $ 1,880,567 | $ 1,905,467 | $ 2,324,770 | $ 1,299,402 | $ 308,868 |
Share-based payments - capital stock | 572,110 | ||||||
Share-based payments | 580,239 | 328,994 | 647,965 | 2,426,874 | 2,560,031 | 6,081,900 | 259,410 |
Remuneration of directors and key management of the Company | $ 1,311,434 | $ 993,567 | $ 2,528,532 | $ 4,332,341 | $ 4,884,801 | $ 7,381,302 | $ 1,140,388 |
Related party transactions - _3
Related party transactions - The amounts due to and from related parties (Details) - CAD ($) | May 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 |
Related party transactions | |||
Share subscription receivable | $ 39,200 | $ 39,200 | $ 39,200 |
Advances to related parties | 20,262 | 16,736 | 185,407 |
Amounts due to related parties included in trade and other payable | 17,123 | 44,662 | 122,260 |
Alexandre Mongeon | |||
Related party transactions | |||
Share subscription receivable | 14,200 | 14,200 | 14,200 |
Current advances to related parties | 17,404 | 16,736 | 185,407 |
Amounts due to related parties included in trade and other payable | 6,375 | 16,000 | 74,157 |
Patrick Bobby | |||
Related party transactions | |||
Amounts due to related parties included in trade and other payable | 4,616 | 12,308 | 11,092 |
Kulwant Sandher | |||
Related party transactions | |||
Amounts due to related parties included in trade and other payable | 3,022 | 8,062 | 7,054 |
Xavier Montagne | |||
Related party transactions | |||
Amounts due to related parties included in trade and other payable | 3,110 | 8,292 | |
Mac Engineering, SASU | |||
Related party transactions | |||
Amounts due to related parties included in trade and other payable | 29,957 | ||
9335-1427 Quebec Inc | |||
Related party transactions | |||
Share subscription receivable | $ 25,000 | $ 25,000 | $ 25,000 |
Capital stock - Voting Common_2
Capital stock - Voting Common Shares (Details) - CAD ($) | May 31, 2023 | Aug. 31, 2022 | May 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 |
Capital stock | ||||||
Issued capital | $ 46,851,134 | $ 43,441,591 | $ 42,834,982 | |||
Capital stock | ||||||
Capital stock | ||||||
Shares outstanding | 9,931,985 | 8,417,923 | 8,390,581 | 8,324,861 | 4,585,001 | 3,275,555 |
Capital stock - Additional In_2
Capital stock - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||
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 | Sep. 18, 2020 CAD ($) | Sep. 02, 2020 CAD ($) | Aug. 27, 2020 CAD ($) shares | Aug. 27, 2020 USD ($) $ / shares shares | Aug. 18, 2020 CAD ($) shares | May 31, 2023 CAD ($) shares | May 31, 2023 USD ($) shares | May 31, 2022 CAD ($) | May 31, 2023 CAD ($) shares item | May 31, 2023 USD ($) shares item | May 31, 2022 CAD ($) | Aug. 31, 2022 CAD ($) shares | Aug. 31, 2021 CAD ($) | Aug. 31, 2020 CAD ($) shares | Jul. 12, 2023 USD ($) | May 31, 2023 USD ($) $ / shares | Apr. 19, 2023 $ / shares | Feb. 17, 2023 $ / shares | Jan. 19, 2023 $ / shares | Aug. 31, 2022 USD ($) shares | Aug. 25, 2022 shares | Aug. 05, 2022 $ / shares | Feb. 01, 2022 shares | Jan. 31, 2022 shares | Jan. 12, 2022 shares | Jun. 03, 2021 $ / shares shares | Jun. 03, 2021 $ / shares shares | Feb. 16, 2021 $ / shares shares | Feb. 16, 2021 $ / shares shares | Dec. 22, 2020 CAD ($) shares | Nov. 23, 2020 $ / shares | Aug. 27, 2020 $ / shares | Aug. 02, 2020 shares | |
Capital stock | ||||||||||||||||||||||||||||||||||||||
Shares Issued | shares | 53,445 | 53,445 | 2,703 | 284,495 | 284,495 | 30,000 | 30,000 | |||||||||||||||||||||||||||||||
Number of Voting Common Shares issued to third parties in exchange for marketing services | shares | 65,790 | 65,790 | 98,400 | 98,400 | ||||||||||||||||||||||||||||||||||
Number of Voting Common Shares issued upon exercises of stock options | shares | 0 | 0 | 5,057 | 5,057 | 2,703 | |||||||||||||||||||||||||||||||||
Number of former employees | item | 2 | 2 | ||||||||||||||||||||||||||||||||||||
Number of warrants to purchase Voting Common Shares issued | shares | 381,293 | 475,059 | 554,253 | 50,000 | 151,800 | 381,293 | 381,293 | 1,410,605 | 1,410,605 | |||||||||||||||||||||||||||||
Total cash consideration price, net of transaction costs | $ 2,047,648 | $ 7,654,373 | $ 7,165,280 | |||||||||||||||||||||||||||||||||||
Total consideration | $ 2,025,000 | $ 1,898,645 | ||||||||||||||||||||||||||||||||||||
Warrants term | 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 | $ 8 | $ 12.50 | $ 4.21 | $ 5.64 | $ 5.67 | $ 5.63 | $ 10.30 | $ 16.53 | |||||||||||||||||||||||||||
Derivative liabilities | $ 3,253,024 | $ 3,253,024 | $ 4,866,082 | $ 3,253,024 | $ 0 | |||||||||||||||||||||||||||||||||
Allocated transaction costs | 51,199 | 489,096 | $ 489,096 | |||||||||||||||||||||||||||||||||||
Transaction costs | $ 101,942 | 285,832 | $ 774,759 | $ 0 | $ 0 | 0 | 320,230 | |||||||||||||||||||||||||||||||
Professional fees | $ 1,234,357 | $ 571,452 | $ 2,814,576 | $ 2,452,900 | $ 3,590,816 | 1,633,477 | 671,788 | |||||||||||||||||||||||||||||||
Price per share | (per share) | $ 10.09 | $ 12.21 | $ 15.07 | $ 19.13 | ||||||||||||||||||||||||||||||||||
Issuance of shares, net of transaction costs paid | 2,025,000 | $ 1,898,645 | ||||||||||||||||||||||||||||||||||||
Ipo [Member] | ||||||||||||||||||||||||||||||||||||||
Capital stock | ||||||||||||||||||||||||||||||||||||||
Number of Voting Common Shares issued | shares | 2,760,000 | 2,760,000 | ||||||||||||||||||||||||||||||||||||
Total consideration | $ 33,430,239 | $ 25,287,624 | ||||||||||||||||||||||||||||||||||||
Transaction costs | $ 3,328,687 | |||||||||||||||||||||||||||||||||||||
Professional fees | $ 502,857 | $ 380,376 | ||||||||||||||||||||||||||||||||||||
Number of shares issued during the period | shares | 2,760,000 | 2,760,000 | ||||||||||||||||||||||||||||||||||||
Price per share | (per share) | $ 10 | $ 13.22 | ||||||||||||||||||||||||||||||||||||
Issuance of shares, net of transaction costs paid | $ 33,430,239 | $ 25,287,624 | ||||||||||||||||||||||||||||||||||||
Cash commission paid to the underwriter | 2,554,104 | $ 1,932,000 | ||||||||||||||||||||||||||||||||||||
Professional fees previously recorded in prepaids | $ 271,726 | |||||||||||||||||||||||||||||||||||||
Board of directors | ||||||||||||||||||||||||||||||||||||||
Capital stock | ||||||||||||||||||||||||||||||||||||||
Shares Issued | shares | 45,351 | 3,067 | 3,067 | 5,435 | 6,479 | 25,000 | 69,650 | 547,297 | ||||||||||||||||||||||||||||||
Total consideration | $ 167,799 | $ 2,025,000 | ||||||||||||||||||||||||||||||||||||
Transaction costs | $ 58,730 | |||||||||||||||||||||||||||||||||||||
Professional fees | $ 109,069 | |||||||||||||||||||||||||||||||||||||
Issuance of shares, net of transaction costs paid | $ 167,799 | $ 2,025,000 | ||||||||||||||||||||||||||||||||||||
Amount of conversion of advances from related parties | $ 39,200 | $ 898,489 | ||||||||||||||||||||||||||||||||||||
Class A common stock | ||||||||||||||||||||||||||||||||||||||
Capital stock | ||||||||||||||||||||||||||||||||||||||
Pre Consolidation Of Voting Common Shares | shares | 3.7 | |||||||||||||||||||||||||||||||||||||
Post Consolidation Of Voting Common Shares | shares | 1 |
Share-based payments - Assump_2
Share-based payments - Assumptions used to determine the fair value of option grants (Details) | 9 Months Ended | ||||||||
Jan. 22, 2022 Y $ / shares | Sep. 21, 2021 Y $ / shares | Jul. 14, 2021 Y $ / shares | May 14, 2021 Y $ / shares | Feb. 23, 2021 Y $ / shares | Nov. 24, 2020 Y $ / shares | Oct. 23, 2020 Y $ / shares | May 27, 2020 Y $ / shares | May 31, 2023 Y $ / shares | |
May 27,2020 | |||||||||
Share-based payments | |||||||||
Exercise price | $ 3.70 | $ 3.70 | |||||||
Market Price | $ 3.70 | $ 3.70 | |||||||
Expected volatility | 84% | 0.84% | |||||||
Risk-free interest rate | 0.40% | 0.004% | |||||||
Expected life | Y | 5 | 5 | |||||||
May 27,2020 | |||||||||
Share-based payments | |||||||||
Exercise price | $ 2.78 | $ 2.78 | |||||||
Market Price | $ 3.70 | $ 3.70 | |||||||
Expected volatility | 84% | 0.84% | |||||||
Risk-free interest rate | 0.40% | 0.004% | |||||||
Expected life | Y | 5 | 5 | |||||||
October 23, 2020 | |||||||||
Share-based payments | |||||||||
Exercise price | $ 3.70 | $ 3.70 | |||||||
Market Price | $ 3.70 | $ 3.70 | |||||||
Expected volatility | 97% | 0.97% | |||||||
Risk-free interest rate | 0.40% | 0.004% | |||||||
Expected life | Y | 5 | 5 | |||||||
November 24, 2020 | |||||||||
Share-based payments | |||||||||
Exercise price | $ 16.29 | $ 16.29 | |||||||
Market Price | $ 13.03 | $ 13.03 | |||||||
Expected volatility | 101% | 1.01% | |||||||
Risk-free interest rate | 0.40% | 0.004% | |||||||
Expected life | Y | 5 | 5 | |||||||
November 24, 2020 | |||||||||
Share-based payments | |||||||||
Exercise price | $ 5.68 | ||||||||
Market Price | $ 5.72 | ||||||||
Expected volatility | 0.75% | ||||||||
Risk-free interest rate | 0.036% | ||||||||
Expected life | Y | 4 | ||||||||
February 23, 2021 | |||||||||
Share-based payments | |||||||||
Exercise price | $ 15.75 | $ 15.75 | |||||||
Market Price | $ 15.05 | $ 15.05 | |||||||
Expected volatility | 103% | 1.03% | |||||||
Risk-free interest rate | 0.60% | 0.006% | |||||||
Expected life | Y | 5 | 5 | |||||||
May 14, 2021 | |||||||||
Share-based payments | |||||||||
Exercise price | $ 8.98 | $ 5.68 | |||||||
Market Price | $ 9.06 | $ 5.72 | |||||||
Expected volatility | 105% | 0.75% | |||||||
Risk-free interest rate | 0.80% | 0.036% | |||||||
Expected life | Y | 5 | 3 | |||||||
July 14, 2021 | |||||||||
Share-based payments | |||||||||
Exercise price | $ 9.25 | $ 9.25 | |||||||
Market Price | $ 9.01 | $ 9.01 | |||||||
Expected volatility | 105% | 1.05% | |||||||
Risk-free interest rate | 0.70% | 0.007% | |||||||
Expected life | Y | 5 | 5 | |||||||
September 21, 2021 | |||||||||
Share-based payments | |||||||||
Exercise price | $ 8.85 | $ 8.85 | |||||||
Market Price | $ 8.58 | $ 8.58 | |||||||
Expected volatility | 106% | 1.06% | |||||||
Risk-free interest rate | 0.90% | 0.009% | |||||||
Expected life | Y | 5 | 5 | |||||||
January 22, 2022 | |||||||||
Share-based payments | |||||||||
Exercise price | $ 5.65 | $ 5.65 | |||||||
Market Price | $ 5.52 | $ 5.52 | |||||||
Expected volatility | 107% | 1.07% | |||||||
Risk-free interest rate | 1.50% | 0.015% | |||||||
Expected life | Y | 5 | 5 | |||||||
November 30, 2022 | |||||||||
Share-based payments | |||||||||
Exercise price | $ 6.09 | ||||||||
Market Price | $ 6.09 | ||||||||
Expected volatility | 1.07% | ||||||||
Risk-free interest rate | 0.031% | ||||||||
Expected life | Y | 5 | ||||||||
December 1, 2022 | |||||||||
Share-based payments | |||||||||
Exercise price | $ 5.83 | ||||||||
Market Price | $ 5.83 | ||||||||
Expected volatility | 1.07% | ||||||||
Risk-free interest rate | 0.03% | ||||||||
Expected life | Y | 5 | ||||||||
March 22, 2023 | |||||||||
Share-based payments | |||||||||
Exercise price | $ 5.76 | ||||||||
Market Price | $ 5.14 | ||||||||
Expected volatility | 0.75% | ||||||||
Risk-free interest rate | 0.036% | ||||||||
Expected life | Y | 2 | ||||||||
March 25, 2023 | |||||||||
Share-based payments | |||||||||
Exercise price | $ 5.77 | ||||||||
Market Price | $ 5.23 | ||||||||
Expected volatility | 0.75% | ||||||||
Risk-free interest rate | 0.036% | ||||||||
Expected life | Y | 3 | ||||||||
March 25, 2023 | |||||||||
Share-based payments | |||||||||
Exercise price | $ 5.77 | ||||||||
Market Price | $ 5.23 | ||||||||
Expected volatility | 0.75% | ||||||||
Risk-free interest rate | 0.036% | ||||||||
Expected life | Y | 4 | ||||||||
April 20, 2023 | |||||||||
Share-based payments | |||||||||
Exercise price | $ 5.79 | ||||||||
Market Price | $ 5.27 | ||||||||
Expected volatility | 0.75% | ||||||||
Risk-free interest rate | 0.036% | ||||||||
Expected life | Y | 5 |
Share-based payments - Option_2
Share-based payments - Option grants (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
May 31, 2023 shares $ / shares | May 31, 2023 shares $ / shares | Aug. 31, 2022 shares $ / shares | Aug. 31, 2021 shares $ / shares | |
Share-based payments | ||||
Number of options, Beginning balance | shares | 1,706,418 | 1,659,121 | 516,216 | |
Number of options, Granted | shares | 160,500 | 152,500 | 1,148,310 | |
Number of options, Forfeited /cancelled | shares | (372,253) | (102,500) | (5,405) | |
Number of options, Stock options modifications | shares | (322,000) | |||
Number options, Exercised | shares | 0 | (5,057) | (2,703) | |
Number of options, Ending Balance | shares | 1,167,608 | 1,167,608 | 1,706,418 | 1,659,121 |
Weighted average exercise, Beginning balance | $ / shares | $ 9.45 | $ 9.95 | $ 3.41 | |
Weighted average exercise, Granted | $ / shares | 5.84 | 6.70 | 12.86 | |
Weighted average exercise, Forfeited /cancelled (in dollars per share) | $ / shares | 13.09 | 13.59 | 3.70 | |
Weighted average exercise, Stock options modifications | $ / shares | 11.75 | |||
Weighted average exercise, Exercised (in dollars per share) | $ / shares | 3.70 | 3.70 | ||
Weighted average exercise, Ending balance | $ / shares | $ 5.11 | $ 5.11 | $ 9.45 | $ 9.95 |
Share-based payments (Details_2
Share-based payments (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Mar. 25, 2023 shares $ / shares | Mar. 25, 2023 shares $ / shares | Mar. 24, 2023 $ / shares | Mar. 24, 2023 $ / shares | May 31, 2023 CAD ($) shares | May 31, 2023 CAD ($) shares $ / shares | Aug. 31, 2022 shares $ / shares | Aug. 31, 2021 shares | Aug. 31, 2020 shares | |
Share-based payments | |||||||||
Number of options outstanding | shares | 1,167,608 | 1,167,608 | 1,706,418 | 1,659,121 | 516,216 | ||||
Number of share options granted | shares | 1,917,526 | 1,917,526 | 1,664,526 | ||||||
Directors and officers of the company | |||||||||
Share-based payments | |||||||||
Exercise price | (per share) | $ 5.78 | $ 4.21 | |||||||
Number of stock options cancelled | shares | 425,000 | 425,000 | |||||||
Stock options term | 5 years | 5 years | |||||||
Number of share options granted | shares | 255,000 | 255,000 | |||||||
Exercise price of shares granted | (per share) | $ 5.78 | $ 4.21 | |||||||
Stock based compensation expense | $ | $ 129,800 | $ 129,800 | |||||||
Minimum. | |||||||||
Share-based payments | |||||||||
Exercise price | $ 2.78 | $ 2.78 | |||||||
Stock options term | 5 years | 5 years | |||||||
Exercise price of shares granted | $ 2.78 | $ 2.78 | |||||||
Minimum. | Directors and officers of the company | |||||||||
Share-based payments | |||||||||
Exercise price of stock cancelled | $ 12.50 | $ 7.42 | |||||||
Maximum. | |||||||||
Share-based payments | |||||||||
Exercise price | $ 16.29 | $ 16.29 | |||||||
Stock options term | 10 years | 10 years | |||||||
Exercise price of shares granted | $ 16.29 | $ 16.29 | |||||||
Maximum. | Directors and officers of the company | |||||||||
Share-based payments | |||||||||
Exercise price of stock cancelled | $ 16.29 | $ 8.98 | |||||||
Exercise Price 2.78 - 3.70 | |||||||||
Share-based payments | |||||||||
Number of options outstanding | shares | 511,608 | 511,608 | |||||||
Weighted average grant date fair value | $ 2.48 | ||||||||
Weighted average remaining contractual life (years) | 2 years 1 month 28 days | ||||||||
Exercisable options | shares | 497,869 | 497,869 | |||||||
Exercise Price 2.78 - 3.70 | Minimum. | |||||||||
Share-based payments | |||||||||
Exercise price | $ 2.78 | ||||||||
Exercise price of shares granted | 2.78 | ||||||||
Exercise Price 2.78 - 3.70 | Maximum. | |||||||||
Share-based payments | |||||||||
Exercise price | 3.70 | ||||||||
Exercise price of shares granted | $ 3.70 | ||||||||
Exercise Price 5.65 - 5.83 | |||||||||
Share-based payments | |||||||||
Number of options outstanding | shares | 586,000 | 586,000 | |||||||
Weighted average grant date fair value | $ 2.85 | ||||||||
Weighted average remaining contractual life (years) | 4 years 6 months 3 days | ||||||||
Exercisable options | shares | 498,300 | 498,300 | |||||||
Exercise Price 5.65 - 5.83 | Minimum. | |||||||||
Share-based payments | |||||||||
Exercise price | $ 5.65 | ||||||||
Exercise price of shares granted | 5.65 | ||||||||
Exercise Price 5.65 - 5.83 | Maximum. | |||||||||
Share-based payments | |||||||||
Exercise price | 5.83 | ||||||||
Exercise price of shares granted | $ 5.83 | ||||||||
Exercise Price 6.09 - 8.85 | |||||||||
Share-based payments | |||||||||
Number of options outstanding | shares | 35,000 | 35,000 | |||||||
Weighted average grant date fair value | $ 6.05 | ||||||||
Weighted average remaining contractual life (years) | 7 years 4 months 6 days | ||||||||
Exercisable options | shares | 25,000 | 25,000 | |||||||
Exercise Price 6.09 - 8.85 | Minimum. | |||||||||
Share-based payments | |||||||||
Exercise price | $ 6.09 | ||||||||
Exercise price of shares granted | 6.09 | ||||||||
Exercise Price 6.09 - 8.85 | Maximum. | |||||||||
Share-based payments | |||||||||
Exercise price | 8.85 | ||||||||
Exercise price of shares granted | 8.85 | ||||||||
Exercise Price 16.29 | |||||||||
Share-based payments | |||||||||
Exercise price | $ 16.29 | $ 16.29 | |||||||
Number of options outstanding | shares | 35,000 | 35,000 | 440,000 | ||||||
Weighted average grant date fair value | $ 9.33 | $ 9.33 | |||||||
Weighted average remaining contractual life (years) | 7 years 6 months | 8 years 3 months | |||||||
Exercisable options | shares | 35,000 | 35,000 | 440,000 | ||||||
Exercise price of shares granted | $ 16.29 | $ 16.29 | |||||||
Exercise Price 2.78 | |||||||||
Share-based payments | |||||||||
Exercise price | $ 2.78 | ||||||||
Number of options outstanding | shares | 162,162 | ||||||||
Weighted average grant date fair value | $ 2.59 | ||||||||
Weighted average remaining contractual life (years) | 2 years 9 months | ||||||||
Exercisable options | shares | 162,162 | ||||||||
Exercise price of shares granted | $ 2.78 | ||||||||
Exercise Price 3.70 | |||||||||
Share-based payments | |||||||||
Exercise price | $ 3.70 | ||||||||
Number of options outstanding | shares | 345,946 | ||||||||
Weighted average grant date fair value | $ 2.42 | ||||||||
Weighted average remaining contractual life (years) | 2 years 9 months | ||||||||
Exercisable options | shares | 325,253 | ||||||||
Exercise price of shares granted | $ 3.70 | ||||||||
Exercise Price 3.7 | |||||||||
Share-based payments | |||||||||
Exercise price | $ 3.70 | ||||||||
Number of options outstanding | shares | 10,810 | ||||||||
Weighted average grant date fair value | $ 2.69 | ||||||||
Weighted average remaining contractual life (years) | 3 years | ||||||||
Exercisable options | shares | 7,883 | ||||||||
Exercise price of shares granted | $ 3.70 | ||||||||
Exercise Price 15.75 | |||||||||
Share-based payments | |||||||||
Exercise price | $ 15.75 | ||||||||
Number of options outstanding | shares | 120,000 | ||||||||
Weighted average grant date fair value | $ 11.28 | ||||||||
Weighted average remaining contractual life (years) | 3 years 6 months | ||||||||
Exercisable options | shares | 45,000 | ||||||||
Exercise price of shares granted | $ 15.75 | ||||||||
Exercise Price 8.98 | |||||||||
Share-based payments | |||||||||
Exercise price | $ 8.98 | ||||||||
Number of options outstanding | shares | 500,000 | ||||||||
Weighted average grant date fair value | $ 6.91 | ||||||||
Weighted average remaining contractual life (years) | 3 years 9 months | ||||||||
Exercisable options | shares | 500,000 | ||||||||
Exercise price of shares granted | $ 8.98 | ||||||||
Exercise Price 8.85 | |||||||||
Share-based payments | |||||||||
Exercise price | $ 8.85 | ||||||||
Number of options outstanding | shares | 25,000 | ||||||||
Weighted average grant date fair value | $ 6.55 | ||||||||
Weighted average remaining contractual life (years) | 9 years 3 months | ||||||||
Exercisable options | shares | 25,000 | ||||||||
Exercise price of shares granted | $ 8.85 | ||||||||
Exercise Price 5.65 | |||||||||
Share-based payments | |||||||||
Exercise price | $ 5.65 | ||||||||
Number of options outstanding | shares | 102,500 | ||||||||
Weighted average grant date fair value | $ 4.28 | ||||||||
Weighted average remaining contractual life (years) | 4 years 6 months | ||||||||
Exercisable options | shares | 102,500 | ||||||||
Exercise price of shares granted | $ 5.65 |
Share-based payments - Assump_3
Share-based payments - Assumptions used to determine the fair value of option granted (Details) | 3 Months Ended | 9 Months Ended | |||||||||||
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 | May 31, 2023 $ / shares shares | May 31, 2023 Y $ / shares $ / shares shares | May 31, 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 shares purchased with Warrants issued | shares | 381,293 | 475,059 | 554,253 | 50,000 | 151,800 | 381,293 | 1,410,605 | ||||||
Warrants exercise term | 3 years | 3 years | 3 years | 4 years | 5 years | 3 years | |||||||
Exercise price of warrants | (per share) | $ 4.21 | $ 4.21 | $ 4.21 | $ 8 | $ 12.50 | $ 4.21 | $ 4.21 | $ 5.64 | $ 5.67 | $ 5.63 | $ 10.30 | $ 16.53 | |
November 23, 2020 | |||||||||||||
Share-based payments | |||||||||||||
Exercise price of warrants | $ 16.53 | ||||||||||||
August 5, 2022 | |||||||||||||
Share-based payments | |||||||||||||
Exercise price of warrants | 10.30 | ||||||||||||
Market price of warrant options | $ 7.20 | ||||||||||||
Expected volatility % | 1% | ||||||||||||
Risk-free Interest Rate l% | 0.029% | ||||||||||||
Expected life (years) | Y | 3 | ||||||||||||
January 19, 2023 | |||||||||||||
Share-based payments | |||||||||||||
Exercise price of warrants | 5.63 | ||||||||||||
Market price of warrant options | $ 5.63 | ||||||||||||
Expected volatility % | 1% | ||||||||||||
Risk-free Interest Rate l% | 0.034% | ||||||||||||
Expected life (years) | Y | 3 | ||||||||||||
February 17, 2023 | |||||||||||||
Share-based payments | |||||||||||||
Exercise price of warrants | 5.67 | ||||||||||||
Market price of warrant options | $ 6.05 | ||||||||||||
Expected volatility % | 1% | ||||||||||||
Risk-free Interest Rate l% | 0.04% | ||||||||||||
Expected life (years) | Y | 3 | ||||||||||||
April 19, 2023 | |||||||||||||
Share-based payments | |||||||||||||
Exercise price of warrants | $ 5.64 | ||||||||||||
Market price of warrant options | $ 5.55 | ||||||||||||
Expected volatility % | 0.75% | ||||||||||||
Risk-free Interest Rate l% | 0.039% | ||||||||||||
Expected life (years) | Y | 3 |
Share-based payments - Warran_2
Share-based payments - Warrants outstanding (Details) | 9 Months Ended | |||||||||||
Nov. 23, 2020 $ / shares shares | May 31, 2023 $ / shares shares | May 31, 2023 $ / shares 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 shares | |
Share-based payments | ||||||||||||
Exercise price of warrants | (per share) | $ 12.50 | $ 4.21 | $ 4.21 | $ 5.64 | $ 4.21 | $ 5.67 | $ 4.21 | $ 5.63 | $ 8 | $ 10.30 | $ 16.53 | |
Number of warrants outstanding | 151,800 | 151,800 | ||||||||||
Weighted average remaining contractual life (years) | 3 years 3 months | |||||||||||
November 23, 2020 | ||||||||||||
Share-based payments | ||||||||||||
Exercise price of warrants | $ / shares | $ 16.53 | |||||||||||
Number of warrants outstanding | 151,800 | 151,800 | ||||||||||
Weighted average remaining contractual life (years) | 2 years 3 months | |||||||||||
August 5, 2022 | ||||||||||||
Share-based payments | ||||||||||||
Exercise price of warrants | $ / shares | $ 10.30 | |||||||||||
Number of warrants outstanding | 50,000 | 50,000 | ||||||||||
Weighted average remaining contractual life (years) | 2 years 11 months 1 day | |||||||||||
January 19, 2023 | ||||||||||||
Share-based payments | ||||||||||||
Exercise price of warrants | $ / shares | $ 5.63 | |||||||||||
Number of warrants outstanding | 554,253 | 554,253 | ||||||||||
Weighted average remaining contractual life (years) | 2 years 7 months 17 days | |||||||||||
February 17, 2023 | ||||||||||||
Share-based payments | ||||||||||||
Exercise price of warrants | $ / shares | $ 5.67 | |||||||||||
Number of warrants outstanding | 475,059 | 475,059 | ||||||||||
Weighted average remaining contractual life (years) | 2 years 8 months 19 days | |||||||||||
April 19, 2023 | ||||||||||||
Share-based payments | ||||||||||||
Exercise price of warrants | $ / shares | $ 5.64 | |||||||||||
Number of warrants outstanding | 381,293 | 381,293 | ||||||||||
Weighted average remaining contractual life (years) | 2 years 10 months 17 days |
Share-based payments - Additi_2
Share-based payments - Additional information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
May 31, 2023 CAD ($) shares | May 31, 2022 CAD ($) | May 31, 2023 CAD ($) shares $ / shares | May 31, 2022 CAD ($) | Aug. 31, 2022 CAD ($) shares $ / shares | Aug. 31, 2021 CAD ($) | Aug. 31, 2020 CAD ($) | |
Share-based payments | |||||||
Number of share options granted | shares | 1,917,526 | 1,917,526 | 1,664,526 | ||||
Share-based compensation expense | $ | $ 628,923,139 | $ 367,054 | $ 1,052,090 | $ 2,545,720 | $ 2,699,481 | $ 7,121,444 | $ 1,312,071 |
Exercise Price 2.78 | |||||||
Share-based payments | |||||||
Exercise price | $ 2.78 | ||||||
Exercise Price 3.70 | |||||||
Share-based payments | |||||||
Exercise price | 3.70 | ||||||
Minimum. | |||||||
Share-based payments | |||||||
Exercise price | $ 2.78 | $ 2.78 | |||||
Expiration period | 5 years | 5 years | |||||
Maximum. | |||||||
Share-based payments | |||||||
Exercise price | $ 16.29 | $ 16.29 | |||||
Expiration period | 10 years | 10 years |
Revenues (Details)_2
Revenues (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | Feb. 28, 2023 | Nov. 30, 2022 | |
Revenues | |||||||||
Revenues | $ 1,300,100 | $ 2,014,769 | $ 3,531,055 | $ 3,975,140 | $ 7,350,946 | $ 3,513,788 | $ 2,417,173 | ||
Provision for onerous contract | 220,000 | 220,000 | $ 220,000 | $ 220,000 | |||||
Sales of boats | |||||||||
Revenues | |||||||||
Revenues | 2,459,365 | 2,080,110 | 2,249,107 | ||||||
Sale of electric boats | |||||||||
Revenues | |||||||||
Revenues | 341,397 | 613,354 | 692,638 | 873,158 | |||||
Sales of parts and boat maintenance | |||||||||
Revenues | |||||||||
Revenues | 80,443 | 32,878 | 255,299 | 56,968 | 97,721 | 75,205 | 167,263 | ||
Boat rental and boat club membership revenue | |||||||||
Revenues | |||||||||
Revenues | $ 878,260 | $ 1,368,537 | $ 2,583,118 | $ 3,045,014 | $ 4,793,860 | 1,355,548 | |||
Others | |||||||||
Revenues | |||||||||
Revenues | $ 2,925 | $ 803 |
Revenues - geographical distr_2
Revenues - geographical distribution of revenues from external customers (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Revenues | |||||||
Revenues | $ 1,300,100 | $ 2,014,769 | $ 3,531,055 | $ 3,975,140 | $ 7,350,946 | $ 3,513,788 | $ 2,417,173 |
Canada | |||||||
Revenues | |||||||
Revenues | 184,199 | 229,972 | 184,199 | 370,448 | 557,639 | 571,216 | 827,057 |
USA | |||||||
Revenues | |||||||
Revenues | 1,018,301 | 1,784,797 | 3,249,256 | 3,604,692 | 6,086,527 | 2,692,599 | 1,407,063 |
Other | |||||||
Revenues | |||||||
Revenues | 97,600 | 97,600 | 706,780 | 249,973 | $ 183,053 | ||
Sale of electric boats | |||||||
Revenues | |||||||
Revenues | 421,840 | 646,232 | 947,937 | 930,126 | 2,557,085 | 2,150,764 | |
Sale of electric boats | Canada | |||||||
Revenues | |||||||
Revenues | 184,199 | 229,972 | 184,199 | 370,448 | 557,639 | 571,216 | |
Sale of electric boats | USA | |||||||
Revenues | |||||||
Revenues | 140,041 | 416,260 | 666,138 | 559,678 | 1,292,666 | 1,329,575 | |
Sale of electric boats | Other | |||||||
Revenues | |||||||
Revenues | 97,600 | 97,600 | 706,780 | 249,973 | |||
Rental of electric boats | |||||||
Revenues | |||||||
Revenues | 878,260 | 1,368,537 | 2,583,118 | 3,045,014 | 4,793,861 | 1,363,024 | |
Rental of electric boats | USA | |||||||
Revenues | |||||||
Revenues | $ 878,260 | $ 1,368,537 | $ 2,583,118 | $ 3,045,014 | $ 4,793,861 | $ 1,363,024 |
Grants and investment tax cre_4
Grants and investment tax credits (Details) - CAD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
May 31, 2023 | May 31, 2022 | May 31, 2023 | May 31, 2022 | Aug. 31, 2022 | Aug. 31, 2021 | |
Grants and investment tax credits | ||||||
Grants and investment tax credits | $ 39,940 | $ 607,256 | $ 39,940 | $ 1,410,605 | $ 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 | $ 39,940 | $ 607,256 | $ 39,940 | $ 1,384,516 | 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 | $ 17,203 |
Net finance expense (income) (D
Net finance expense (income) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
May 31, 2023 CAD ($) | May 31, 2022 CAD ($) | May 31, 2023 CAD ($) | May 31, 2023 USD ($) | May 31, 2022 CAD ($) | Aug. 31, 2022 CAD ($) | Aug. 31, 2021 CAD ($) | Aug. 31, 2020 CAD ($) | |
Net finance expense | ||||||||
Interest and bank charges | $ 73,789 | $ 42,274 | $ 200,924 | $ 123,972 | $ 184,895 | $ 123,100 | $ 107,105 | |
Interest income | (85,000) | (311,667) | (257,891) | (379,288) | ||||
Foreign currency exchange (gain) loss | 13,544 | 27,334 | (105,179) | (89,162) | (251,947) | 1,583,292 | 1,295 | |
Transaction costs [note 15] | 51,199 | 489,096 | $ 489,096 | |||||
Gain on derivative liabilities | (1,551,616) | (1,613,058) | ||||||
Loss on Debentures [note 5] | 115,000 | 109,667 | 436,500 | 670,000 | 550,000 | |||
Net finance expense | $ (1,413,084) | $ 99,608 | $ (1,230,217) | $ 213,419 | $ 223,660 | $ 2,256,392 | $ 108,400 |
Fair value measurement and hi_2
Fair value measurement and hierarchy (Details) - CAD ($) | 9 Months Ended | 12 Months Ended |
May 31, 2023 | Aug. 31, 2022 | |
Debentures | Volatility | ||
Fair value measurement and hierarchy | ||
Percentage of reasonably possible increase in unobservable input liabilities | 5% | |
Percentage of reasonably possible decrease in unobservable input liabilities | (5.00%) | |
Change in fair value of debentures by percentage of reasonably possible increase in unobservable input liabilities | $ 2,441,000 | |
Change in fair value of debentures by percentage of reasonably possible decrease in unobservable input liabilities | $ 2,431,500 | |
Debentures | Credit spread | ||
Fair value measurement and hierarchy | ||
Percentage of reasonably possible increase in unobservable input liabilities | 2% | |
Percentage of reasonably possible decrease in unobservable input liabilities | (2.00%) | |
Change in fair value of debentures by percentage of reasonably possible increase in unobservable input liabilities | $ 2,382,000 | |
Change in fair value of debentures by percentage of reasonably possible decrease in unobservable input liabilities | $ 2,490,500 | |
Derivative liabilities | Volatility | ||
Fair value measurement and hierarchy | ||
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 | $ 378,000 |
Segment information (Details)_2
Segment information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
May 31, 2023 CAD ($) | May 31, 2022 CAD ($) | May 31, 2023 CAD ($) segment | May 31, 2022 CAD ($) | Aug. 31, 2022 CAD ($) segment | Aug. 31, 2022 USD ($) segment | Aug. 31, 2021 CAD ($) | Aug. 31, 2021 USD ($) | Aug. 31, 2020 CAD ($) | Aug. 31, 2022 USD ($) | Aug. 31, 2021 USD ($) | |
Segment information | |||||||||||
Number of reportable business segments | segment | 2 | 2 | 2 | ||||||||
Revenue from external customers | $ 1,300,100 | $ 2,014,769 | $ 3,531,055 | $ 3,975,140 | |||||||
Segment revenues | 1,300,100 | 2,014,769 | 3,531,055 | 3,975,140 | $ 7,350,946 | $ 3,513,788 | $ 2,417,173 | ||||
Segment gross profit | 372,351 | 1,124,120 | 525,951 | 1,895,319 | 3,285,565 | 1,604,182 | 604,390 | ||||
Segment (loss) profit before tax | (3,297,067) | (1,853,954) | (16,791,924) | (9,012,946) | (12,853,442) | (15,008,317) | (2,254,223) | ||||
Research and development | 751,674 | 32,670 | 5,072,428 | 50,179 | 2,242,794 | 1,489,953 | |||||
Office salaries and benefits | 899,864 | 968,126 | 2,725,049 | 2,571,948 | 3,335,799 | 1,754,613 | 315,138 | ||||
Segment assets | 21,903,692 | 21,903,692 | 29,100,209 | 38,801,292 | |||||||
Cash | 1,536,064 | 1,536,064 | 5,824,716 | 18,147,821 | |||||||
Additions to property and equipment | 834,296 | 680,536 | 1,108,888 | 544,354 | $ 77,966 | ||||||
Additions to intangible assets | 32,202 | 32,202 | 528,726 | ||||||||
Segment liabilities | 9,613,225 | 9,613,225 | 5,071,613 | $ 5,276,105 | |||||||
Operating segments | |||||||||||
Segment information | |||||||||||
Revenue from external customers | $ 7,350,946 | $ 3,513,788 | |||||||||
Segment revenues | 7,350,946 | 3,513,788 | |||||||||
Segment gross profit | 3,285,565 | 1,604,182 | |||||||||
Segment (loss) profit before tax | (12,853,442) | (15,008,317) | |||||||||
Research and development | 2,242,794 | 1,489,953 | |||||||||
Office salaries and benefits | 3,335,799 | 1,754,613 | |||||||||
Segment assets | $ 29,100,209 | $ 38,801,292 | |||||||||
Cash | 5,824,716 | 18,147,821 | |||||||||
Additions to property and equipment | 1,108,888 | 544,354 | |||||||||
Additions to intangible assets | 32,202 | 1,102,662 | |||||||||
Segment liabilities | 5,071,613 | 5,276,105 | |||||||||
Inter-segment eliminations | |||||||||||
Segment information | |||||||||||
Revenue from other segments | (401,573) | (121,784) | (1,158,708) | (498,179) | (901,225) | (149,483) | |||||
Segment revenues | (401,573) | (121,784) | (1,158,708) | (498,179) | (901,225) | (149,483) | |||||
Segment gross profit | (32,158) | (2,369) | (280,199) | (87,526) | (150,975) | (39,642) | |||||
Segment (loss) profit before tax | (87,943) | 15,420 | (186,449) | (42,535) | (93,852) | (32,255) | |||||
Research and development | (42,854) | (228,102) | |||||||||
Segment assets | (10,412,497) | (10,412,497) | (9,438,326) | (9,438,326) | (9,108,603) | ||||||
Additions to property and equipment | (175,554) | (162,446) | (162,446) | (33,468) | |||||||
Segment liabilities | (1,324,391) | (1,324,391) | (262,883) | (262,883) | (63,470) | ||||||
Sale of electric boats | Operating segments | |||||||||||
Segment information | |||||||||||
Revenue from external customers | 421,840 | 646,232 | 947,937 | 930,126 | 2,557,086 | 2,158,240 | |||||
Revenue from other segments | 346,954 | 105,272 | 826,869 | 433,898 | 820,383 | 142,007 | |||||
Segment revenues | 768,794 | 751,504 | 1,774,806 | 1,364,024 | 3,377,469 | 2,300,247 | |||||
Segment gross profit | 157,321 | 271,869 | (421,138) | 237,024 | 596,570 | 640,228 | |||||
Segment (loss) profit before tax | (2,850,077) | (2,188,967) | (16,120,375) | (9,199,678) | (13,632,377) | (15,517,319) | |||||
Research and development | 794,528 | 32,670 | 5,300,530 | 50,179 | 2,242,794 | 1,489,953 | |||||
Office salaries and benefits | 664,300 | 749,455 | 2,014,875 | 1,869,128 | 2,384,746 | 1,555,014 | |||||
Segment assets | 18,451,237 | 18,451,237 | 24,499,107 | 24,499,107 | 35,175,599 | ||||||
Cash | 1,372,769 | 1,372,769 | 4,146,260 | 4,146,260 | 17,210,266 | ||||||
Additions to property and equipment | 163,880 | 412,158 | 412,158 | 432,547 | |||||||
Additions to intangible assets | 32,202 | 32,202 | 1,102,662 | ||||||||
Segment liabilities | 7,427,977 | 7,427,977 | 2,023,368 | 2,023,368 | 2,400,829 | ||||||
Rental of electric boats | Operating segments | |||||||||||
Segment information | |||||||||||
Revenue from external customers | 878,260 | 1,368,537 | 2,583,118 | 3,045,014 | 4,793,860 | 1,355,548 | |||||
Revenue from other segments | 54,619 | 16,512 | 331,839 | 64,281 | 80,842 | 7,476 | |||||
Segment revenues | 932,879 | 1,385,049 | 2,914,957 | 3,109,295 | 4,874,702 | 1,363,024 | |||||
Segment gross profit | 247,188 | 854,620 | 1,227,288 | 1,745,821 | 2,839,970 | 1,003,596 | |||||
Segment (loss) profit before tax | (359,047) | 319,593 | (485,100) | 229,267 | 872,787 | 541,257 | |||||
Office salaries and benefits | 235,564 | $ 218,671 | 710,174 | $ 702,820 | 951,053 | 199,599 | |||||
Segment assets | 13,864,952 | 13,864,952 | 14,039,428 | 14,039,428 | 12,734,296 | ||||||
Cash | 163,295 | 163,295 | 1,678,456 | 1,678,456 | 937,555 | ||||||
Additions to property and equipment | 890,777 | 859,176 | $ 859,176 | $ 145,275 | |||||||
Segment liabilities | $ 3,509,640 | $ 3,509,640 | $ 3,311,128 | $ 3,311,128 | $ 2,938,746 |
Additional cash flows informa_6
Additional cash flows information (Details) - CAD ($) | 9 Months Ended | 12 Months Ended | ||
May 31, 2023 | May 31, 2022 | 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 | $ 922,479 | $ 208,534 | $ 234,608 | 852,467 |
Lease termination | $ 131,247 | $ 148,002 | $ 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)_2
Commitments (Details) | May 31, 2023 CAD ($) | Aug. 31, 2022 USD ($) |
2023 | ||
Commitments | ||
Amount of the minimum fixed and determinable portion of the unconditional purchase obligations over the next years | $ 1,222,198 | $ 4,350,104 |
Later than two years and not later than three years [member] | ||
Commitments | ||
Amount of the minimum fixed and determinable portion of the unconditional purchase obligations over the next years | $ 4,052,051 | $ 2,253,394 |
Commitments - Summary Of Undi_2
Commitments - Summary Of Undiscounted Lease Commitments (Details) | May 31, 2023 CAD ($) | Aug. 31, 2022 USD ($) |
2023 | ||
Commitments | ||
Undiscounted lease commitments | $ 105,000 | |
2024 | ||
Commitments | ||
Undiscounted lease commitments | $ 67,990 | 159,000 |
2025 | ||
Commitments | ||
Undiscounted lease commitments | 164,536 | 162,000 |
2026 | ||
Commitments | ||
Undiscounted lease commitments | 167,827 | 165,000 |
2027 and thereafter | ||
Commitments | ||
Undiscounted lease commitments | $ 448,815 | $ 225,000 |
Subsequent events (Details)_2
Subsequent events (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||
Jun. 16, 2023 CAD ($) 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 | Jul. 31, 2023 shares | Jun. 30, 2023 shares | May 31, 2023 USD ($) $ / shares shares | Nov. 30, 2022 shares | May 31, 2023 CAD ($) shares | May 31, 2023 USD ($) $ / shares shares | May 31, 2022 CAD ($) | Aug. 31, 2022 CAD ($) | Aug. 31, 2021 CAD ($) | Aug. 31, 2020 CAD ($) | 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 | $ 101,942 | $ 285,832 | $ 774,759 | $ 0 | $ 0 | $ 0 | $ 320,230 | |||||||||||||||
Number of shares purchased with Warrants issued | 381,293 | 475,059 | 554,253 | 50,000 | 151,800 | 381,293 | 1,410,605 | 1,410,605 | ||||||||||||||
Warrants exercise term | 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 | $ 8 | $ 12.50 | $ 4.21 | $ 4.21 | $ 5.64 | $ 5.67 | $ 5.63 | $ 10.30 | $ 16.53 | ||||||||||
Issue of voting common shares | ||||||||||||||||||||||
Subsequent events | ||||||||||||||||||||||
Shares issued for services | 10,870 | 10,870 | 19,457 | |||||||||||||||||||
Number of shares and warrants issued | 493,828 | |||||||||||||||||||||
Proceeds from issuing shares and warrants | $ | $ 2,485,740 | |||||||||||||||||||||
Transaction costs | $ | $ 158,664 | |||||||||||||||||||||
Number of shares purchased with Warrants issued | 493,828 | |||||||||||||||||||||
Warrants exercise term | 3 years | |||||||||||||||||||||
Exercise price of warrants | $ / shares | $ 4.05 |