Idaho Copper Corp

Previous wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the condensed consolidated financial statements and notes thereto for the six months ended July 31, 2024, and 2023, and related management discussion herein.

Current wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the condensed consolidated financial statements and notes thereto for the nine months ended October 31, 2024, and 2023, and related management discussion herein.

Previous wording

Several conditions and events cast substantial doubt about the Company’s ability to continue as a going concern. The Company has incurred cumulative net losses of $34,085,857 from its inception to July 31, 2024, and requires capital for its contemplated operational and marketing activities to take place. The Company’s ability to raise additional capital through debt or future issuances of capital stock is unknown. The obtainment of additional financing, the successful development of the Company’s contemplated plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue operations. The ability to successfully resolve these factors raises substantial doubt about the Company’s ability to continue as a going concern.

Current wording

Several conditions and events cast substantial doubt about the Company’s ability to continue as a going concern. The Company has incurred cumulative net losses of $36,438,438 from its inception to October 31, 2024, and requires capital for its contemplated operational and marketing activities to take place. The Company’s ability to raise additional capital through debt or future issuances of capital stock is unknown. The obtainment of additional financing, the successful development of the Company’s contemplated plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue operations. The ability to successfully resolve these factors raises substantial doubt about the Company’s ability to continue as a going concern.

Previous wording

The Company had operating expenses of $943,460 for the three months ended July 31, 2024, compared to $398,940 for the three months ended July 31, 2023. The increase was primarily due to the increase in stock-based compensation ($364,808 for the three months ended July 31, 2024 compared to $0 for the same period in 2023), rent expense ($29,385 for the three months ended July 31, 2024 compared to $10,500 for the same period in 2023), and other general and administrative expenses ($272,423 for the three months ended July 31, 2024 compared to $10,784 for the same period in 2023), offset by the decrease in professional fees ($81,694 for the three months ended July 31, 2024 compared to $127,656 for the same period in 2023) and payroll and related expenses ($195,150 for the three months ended July 31, 2024 compared to $250,000 for the same period in 2023. The increase in stock-based compensation was primarily due to the conversion of officers’ accrued compensation into common stock. The increase in rent expense was due to larger facility needs. The increase in other general and administrative costs was primarily due to scanning services for the quarter. The decrease in payroll and related expenses was primarily due to officers converting accrued compensation into common stock.

Current wording

The Company had operating expenses of $2,204,968 for the three months ended October 31, 2024, compared to $436,726 for the three months ended October 31, 2023. The increase was primarily due to the increase in stock-based compensation ($1,704,024 for the three months ended October 31, 2024 compared to $0 for the same period in 2023), professional fees ($285,336 for the three months ended October 31, 2024 compared to $100,821 for the same period in 2023), rent expense ($28,800 for the three months ended October 31, 2024 compared to $10,500 for the same period in 2023), and other general and administrative expenses ($126,808 for the three months ended October 31, 2024 compared to $42,905 for the same period in 2023), offset by the decrease in payroll and related expenses ($60,000 for the three months ended October 31, 2024 compared to $282,500 for the same period in 2023. The increase in stock-based compensation was primarily due to the conversion of officers’ accrued compensation into common stock. The increase in rent expense was due to larger facility needs. The increase in other general and administrative costs was primarily due to scanning services for the quarter. The decrease in payroll and related expenses was primarily due to officers converting accrued compensation into common stock.

Previous wording

The Company had other expenses, net, of $92,521 for the three months ended July 31, 2024, compared to $188,590 of expense for the three months ended July 31. 2023.

Current wording

The Company had other expenses, net, of $147,613 for the three months ended October 31, 2024, compared to $143,732 of expense for the three months ended October 31. 2023.

Previous wording

The Company had a net loss of $1,035,981 for the three months ended July 31, 2024, compared to $587,530 for the three months ended July 31, 2023.

Current wording

The Company had a net loss of $2,352,581 for the three months ended October 31, 2024, compared to $580,459 for the three months ended October 31, 2023.

Previous wording

The Company had operating expenses of $1,918,422 for the six months ended July 31, 2024, compared to $800,096 for the six months ended July 31, 2023. The increase was primarily due to the increase in payroll and related expenses ($452,650 for the six months ended July 31, 2024 compared to $357,000 for the same period in 2024), rent expense ($143,085 for the six months ended July 31, 2024 compared to $21,000 for the same period in 2023), and other general and administrative expenses ($428,022 for the six months ended July 31, 2024 compared to $24,554 for the same period in 2023), stock-based compensation ($554,056 for the six months ended July 31, 2024 compared to $140,741 for the same period in 2023), and professional fees ($340,609 for the six months ended July 31, 2024 compared to $256,801 for the same period in 2023. The increase in payroll and related expenses is related to a pay increase for two officers. The increase in rent expense is primarily due to a settlement of $100,000 and the larger facility rented. The increase in other general and administrative expenses was primarily due to scanning services of $363,268. The increase in stock-based compensation was primarily due to conversions of accrued compensation for officers and the issuances of common stock to various third parties for services. The increase in professional fees relates to increased services required for funding activities and the preparation for the filing of Form S-1.

Current wording

The Company had operating expenses of $4,123,390 for the nine months ended October 31, 2024, compared to $1,236,821 for the nine months ended October 31, 2023. The increase was primarily due to the increase in stock-based compensation expenses ($2,258,080 for the nine months ended October 31, 2024 compared to $140,739 for the same period in 2024), professional fees ($625,945 for the nine months ended October 31, 2024 compared to $357,622 for the same period in 2023), rent expense ($171,885 for the nine months ended October 31, 2024 compared to $31,500 for the same period in 2023), and other general and administrative expenses ($554,830 for the nine months ended October 31, 2024 compared to $67,459 for the same period in 2023), offset by the decrease in payroll and payroll related expenses ($512,650 for the nine months ended October 31, 2024 compared to $639,500 for the same period in 2023). The decrease in payroll and related expenses is related to the conversion of accrued payroll into common stock offset by a pay increase for two officers. The increase in rent expense is primarily due to a settlement of $100,000 and the larger facility rented. The increase in other general and administrative expenses was primarily due to scanning services of $413,608. The increase in stock-based compensation was primarily due to conversions of accrued compensation for officers and the issuances of common stock to various third parties for services. The increase in professional fees relates to increased services required for funding activities and the preparation for the filing of Form S-1.

Previous wording

The Company had other expenses, net, of $161,825 for the six months ended July 31, 2024, compared to $362,435 of income for the six months ended July 31. 2023.

Current wording

The Company had other expenses, net, of $309,439 for the nine months ended October 31, 2024, compared to expenses of $506,170 for the nine months ended October 31. 2023.

Previous wording

The Company had a net loss of $2,080,247 for the six months ended July 31, 2024, compared to $1,162,531 for the six months ended July 31, 2023.

Current wording

The Company had a net loss of $4,432,829 for the nine months ended October 31, 2024, compared to $1,742,989 for the nine months ended October 31, 2023.

Previous wording

As of July 31, 2024, the Company had cash of $454,256. We do not have sufficient resources to effectuate our business. We expect to incur expenses offset by revenues during the next twelve months of operations. We estimate that these expenses will be comprised primarily of general expenses including overhead, legal and accounting fees. The Company does not project revenue for the next few years, as is typical in mining companies. The Company has and will continue to raise capital to fund the expenses. To maintain our plan of growth, we need to raise a minimum of an additional $750,000. These factors raise substantial doubts about the Company’s ability to continue as a going concern.

Current wording

As of October 31, 2024, the Company had cash of $18,731. We do not have sufficient resources to effectuate our business. We expect to incur expenses offset by revenues during the next twelve months of operations. We estimate that these expenses will be comprised primarily of general expenses including overhead, legal and accounting fees. The Company does not project revenue for the next few years, as is typical in mining companies. The Company has and will continue to raise capital to fund the expenses. To maintain our plan of growth, we need to raise a minimum of an additional $750,000. These factors raise substantial doubts about the Company’s ability to continue as a going concern.

Previous wording

Operations used cash of $1,599,274 for the six months ended July 31, 2024, compared to cash used of $579,634 for the same period in 2023.

Current wording

Operations used cash of $2,071,799 for the nine months ended October 31, 2024, compared to cash used of $614,860 for the same period in 2023.

Previous wording

We used cash in financing activities of $0 for the six months ended July 31, 2024, compared to $0 for the same period in 2023.

Current wording

We used cash in financing activities of $0 for the nine months ended October 31, 2024, compared to $0 for the same period in 2023.

Previous wording

We had cash provided by financing activities for the six months ended July 31, 2024, of $2,023,384 compared to $201,200 for the same period in 2023.

Current wording

We had cash provided by financing activities for the nine months ended October 31, 2024, of $2,060,384 compared to $201,200 for the same period in 2023.