BQE Water Inc.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BQE WATER INC. 
 
CONSOLIDATED FINANCIAL STATEMENTS 
For the years ended December 31, 2024 and 2023 
 
 
 
 

 
KPMG LLP 
PO Box 10426 777 Dunsmuir Street 
Vancouver BC V7Y 1K3 
Canada 
Telephone (604) 691-3000 
Fax (604) 691-3031 
 
 
 
KPMG LLP, an Ontario limited liability partnership and member firm of the KPMG 
global organization of independent member firms affiliated with KPMG International 
Limited, a private English company limited by guarantee. KPMG Canada provides 
services to KPMG LLP. Document classification: Confidential. 
INDEPENDENT AUDITOR’S REPORT 
To the Shareholders of BQE Water Inc. 
Opinion 
We have audited the consolidated financial statements of BQE Water Inc. (the Entity), which comprise: 
• 
the consolidated statement of financial position as at December 31, 2024  
• 
the consolidated statement of income and comprehensive income for the year then ended 
• 
the consolidated statement of changes in equity for the year then ended  
• 
the consolidated statement of cash flows for the year then ended 
• 
and notes to the consolidated financial statements, including a summary of material accounting policies  
(Hereinafter referred to as the “financial statements”). 
In our opinion, the accompanying financial statements present fairly, in all material respects, the consolidated 
financial position of the Entity as at December 31, 2024, its consolidated financial performance and its 
consolidated cash flows for the year then ended in accordance with IFRS Accounting Standards as issued 
by the International Accounting Standards Board. 
Basis for Opinion 
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our 
responsibilities under those standards are further described in the “Auditor’s Responsibilities for the 
Audit of the Financial Statements” section of our auditor’s report.  
We are independent of the Entity in accordance with the ethical requirements that are relevant to our audit 
of the financial statements in Canada and we have fulfilled our other ethical responsibilities in accordance 
with these requirements.  
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 
opinion.  
Key Audit Matters 
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit 
of the financial statements for the year ended December 31, 2024. These matters were addressed in the 

 
 
 
Page 2 
 
context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do 
not provide a separate opinion on these matters.  
We have determined the matters described below to be the key audit matters to be communicated in our 
auditor’s report.  
Revenue recognition - estimation of labor hours or costs to completion for fixed-fee technical 
services contracts 
  
Description of the matter  
We draw attention to notes 3(j), 4(b)(i) and 21 to the financial statements. For the year ended December 
31, 2024 revenue recognized under technical services contracts is $6,695,329. For fixed-fee contracts 
where the Entity has enforceable right to payment for performance to date, revenue is recognized based 
on the extent of progress towards completion of the performance obligation.  The extent of progress is 
measured using the percentage-of-completion method based on actual labor hours or costs incurred 
relative to the total estimated hours or costs for completion, whichever most faithfully depicts the progress 
of the Entity’s performance based on its efforts inputted. The Entity applies significant judgment and 
estimates to determine estimated labor hours or costs to completion, which affects the timing of revenue 
recognized for technical services.  
 
Why the matter is a key audit matter  
We identified the estimation of labor hours or costs to completion for fixed-fee technical services contracts 
as a key audit matter. This matter represented an area of significant risk of material misstatement due to 
the magnitude of the revenues and the high degree of subjectivity and estimation uncertainty in the 
estimation of labor hours or costs to completion for fixed-fee technical services contracts. Significant 
auditor judgment was required to evaluate the estimation of labor hours or costs to completion and in 
evaluating the results of our audit procedures.  
How the matter was addressed in the audit  
The primary procedures we performed to address this key audit matter included the following: 
• 
For a selection of fixed-fee technical services contracts, we inquired with the Entity’s project 
managers responsible for the contracts. We obtained an understanding of the estimated labor hours 
or costs at contract inception, any changes to the estimated labor hours or costs to completion at 
year-end and any changes to the estimates subsequent to year-end. We inspected source 
documents such as contracts, change requests and correspondence, including project budget 
documents if any, between the Entity and the customer to assess such estimates 
• 
We evaluated the Entity’s ability to accurately estimate labor hours or costs to completion by 
comparing the Entity’s prior period estimates to the current year estimated labor hours or costs to 
completion. 
Other Matter – Comparative Information 
The financial statements for the year ended December 31, 2023 were audited by another auditor who 
expressed an unmodified opinion on those financial statements on April 25, 2024. 

 
 
 
Page 3 
 
Other Information 
Management is responsible for the other information. Other information comprises:  
• 
the information included in Management’s Discussion and Analysis filed with the relevant Canadian 
Securities Commissions. 
Our opinion on the financial statements does not cover the other information and we do not and will not 
express any form of assurance conclusion thereon.  
In connection with our audit of the financial statements, our responsibility is to read the other information 
identified above and, in doing so, consider whether the other information is materially inconsistent with the 
financial statements or our knowledge obtained in the audit and remain alert for indications that the other 
information appears to be materially misstated. 
We obtained the information included in Management’s Discussion and Analysis filed with the relevant 
Canadian Securities Commissions as at the date of this auditor’s report. If, based on the work we have 
performed on this other information, we conclude that there is a material misstatement of this other 
information, we are required to report that fact in the auditor’s report. 
We have nothing to report in this regard.  
Responsibilities of Management and Those Charged with Governance  for the Financial Statements 
Management is responsible for the preparation and fair presentation of the financial statements in 
accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board, 
and for such internal control as management determines is necessary to enable the preparation of financial 
statements that are free from material misstatement, whether due to fraud or error. 
In preparing the financial statements, management is responsible for assessing the Entity's ability to continue 
as a going concern, disclosing as applicable, matters related to going concern and using the going concern 
basis of accounting unless management either intends to liquidate the Entity or to cease operations, or has 
no realistic alternative but to do so.  
Those charged with governance are responsible for overseeing the Entity's financial reporting process. 
Auditor’s Responsibilities for the Audit of the Financial Statements 
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are 
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes 
our opinion. 
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in 
accordance with Canadian generally accepted auditing standards will always detect a material misstatement 
when it exists. 
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, 
they could reasonably be expected to influence the economic decisions of users taken on the basis of the 
financial statements. 
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise 
professional judgment and maintain professional skepticism throughout the audit. 

 
 
 
Page 4 
 
We also:  
• 
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud 
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that 
is sufficient and appropriate to provide a basis for our opinion. 
 
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting 
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the 
override of internal control.  
 
• 
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that 
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the 
effectiveness of the Entity's internal control.  
 
• 
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting 
estimates and related disclosures made by management.  
 
• 
Conclude on the appropriateness of management's use of the going concern basis of accounting and, 
based on the audit evidence obtained, whether a material uncertainty exists related to events or 
conditions that may cast significant doubt on the Entity's ability to continue as a going concern. If we 
conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to 
the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our 
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. 
However, future events or conditions may cause the Entity to cease to continue as a going concern. 
 
• 
Evaluate the overall presentation, structure and content of the financial statements, including the 
disclosures, and whether the financial statements represent the underlying transactions and events in a 
manner that achieves fair presentation. 
 
• 
Communicate with those charged with governance regarding, among other matters, the planned scope 
and timing of the audit and significant audit findings, including any significant deficiencies in internal 
control that we identify during our audit. 
 
• 
Provide those charged with governance with a statement that we have complied with relevant ethical 
requirements regarding independence, and communicate with them all relationships and other matters 
that may reasonably be thought to bear on our independence, and where applicable, related safeguards. 
 
• 
Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial 
information of the entities or business units within the group as a basis for forming an opinion on the 
group financial statements. We are responsible for the direction, supervision and review of the audit work 
performed for the purposes of the group audit. We remain solely responsible for our audit opinion. 
 
• 
Determine, from the matters communicated with those charged with governance, those matters that 
were of most significance in the audit of the financial statements of the current period and are therefore 
the key audit matters. We describe these matters in our auditor’s report unless law or regulation 
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine 

 
 
 
Page 5 
 
that a matter should not be communicated in our auditor’s report because the adverse consequences of 
doing so would reasonably be expected to outweigh the public interest benefits of such communication. 
 
 
Chartered Professional Accountants  
The engagement partner on the audit resulting in this auditor’s report is Helen Zhu. 
Vancouver, Canada 
April 24, 2025 
 
 

BQE WATER INC. 
 
Consolidated Statements of Financial Position 
As at December 31, 2024 and 2023 
(Expressed in Canadian dollars) 
 
2024 Consolidated Financial Statements 
 
 
 
pg. 6 
December 31
December 31
2024
2023
$
$
note
Assets
Current assets
Cash and cash equivalents
11,771,214
7,927,603
Trade and other receivables
5, 7 (a)
4,462,710
4,374,275
Prepaids and other current assets
6
1,081,220
407,717
Total current assets
17,315,144
12,709,595
Non-current assets
Property and equipment
8
2,154,044
1,816,830
Intangible assets
9
146,895
230,835
Investment in joint ventures
10
6,047,497
4,046,677
Deposits
52,203
52,204
Deferred tax assets
18
1,377,000
-
Total non-current assets
9,777,639
6,146,546
Total assets
27,092,783
18,856,141
Liabilities
Current liabilities
Trade payable and accrued liabilities
11
1,748,719
1,340,240
Loans
12
82,500
82,500
Deferred revenues
21 (d)
1,554,085
37,350
Lease obligations
13
158,419
105,436
Deferred benefits
14
1,178,540
614,612
Total current liabilities
4,722,263
2,180,138
Non-current liabilities
Loans
12
248,728
229,596
Deferred revenues
21 (d)
141,870
170,244
Lease obligations
13
1,451,030
1,500,346
Total non-current liabilities
1,841,628
1,900,186
Total liabilities
6,563,891
4,080,324
Shareholders’ Equity 
 
 
Share capital
15
56,807,264
56,302,539
Contributed surplus
14 (a)
11,182,930
11,106,796
Accumulated other comprehensive income
1,598,935
1,231,278
Accumulated deficit
(49,060,237)
(53,864,796)
Total shareholders’ equity
20,528,892
14,775,817
Total liabilities and shareholders’ equity
27,092,783
18,856,141
Commitments (note 20) 
 
 
Approved and authorized by the Board of Directors:
“Peter Gleeson”
, Executive Chairman
“Sara Elford”
, Director
 
The accompanying notes are an integral part of these consolidated financial statements. 

BQE WATER INC. 
 
Consolidated Statements of Income and Comprehensive Income 
For the years ended December 31, 2024 and 2023 
(Expressed in Canadian dollars) 
 
2024 Consolidated Financial Statements 
 
 
 
pg. 7 
Year ended December 31
2024
2023
$
$
note
Revenues
7 (a), 21
17,178,322
18,137,004
Operating expenses (excluding depreciation)
17
(8,768,893)
(9,074,847)
Gross margin
8,409,429
9,062,157
Share of income from joint ventures
10
2,471,577
418,816
General and administration
17
(3,172,325)
(2,726,934)
Sales and development
17
(3,131,383)
(2,655,360)
Share-based payments
7 (b), 14
(1,016,518)
(466,097)
Depreciation and amortization
8, 9
(439,223)
(430,400)
Income from operations and joint ventures
3,121,557
3,202,182
Finance income, net
16
104,659
204,429
Foreign exchange gain (loss)
223,882
(140,999)
Bad debt expenses
24 (a)
(14,237)
(473,112)
Other income, net
93,157
51,898
Income before income taxes
3,529,018
2,844,398
Income tax recovery (expense)
18
1,275,541
(191,221)
Net income for the year
4,804,559
2,653,177
Other comprehensive income (loss)
Items that may be reclassified subsequently to income
Foreign currency translation
367,657
(351,504)
Comprehensive income for the year
5,172,216
2,301,673
Earnings per share
Basic
15 (c)
3.78
2.12
Diluted
15 (c)
3.75
2.08
Weighted average number of shares outstanding
Basic
15 (c)
1,270,211
1,251,284
Diluted
15 (c)
1,282,290
1,274,793
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these consolidated financial statements.

BQE WATER INC. 
 
Consolidated Statements of Changes in Equity 
For the years ended December 31, 2024 and 2023 
(Expressed in Canadian dollars) 
 
2024 Consolidated Financial Statements 
 
 
 
pg. 8 
Year ended December 31
Year ended December 31
Number of
2024
Number of
2023
Shares
$
Shares
$
note
Share Capital
Balance, beginning of the year
15 (a)
1,246,628
56,302,539
1,256,928
56,654,061
Exercise of stock options
14 (a)
40,440
504,725
3,000
26,250
Shares repurchased
15 (b)
-
-
(13,300)
(377,772)
Balance, end of the year
1,287,068
56,807,264
1,246,628
56,302,539
Contributed surplus
Balance, beginning of the year
11,106,796
10,919,623
Equity settled share-based payments
14 (a)
76,134
187,173
Balance, end of the year
11,182,930
11,106,796
Accumulated other comprehensive income
Balance, beginning of the year
1,231,278
1,582,782
Other comprehensive income (loss) for the year
367,657
(351,504)
Balance, end of the year
1,598,935
1,231,278
Accumulated deficit
Balance, beginning of the year
(53,864,796)
(56,517,973)
Net income for the year
4,804,559
2,653,177
Balance, end of the year
(49,060,237)
(53,864,796)
Total shareholders’ equity
Balance, beginning of the year
14,775,817
12,638,493
Exercise of stock options
14 (a)
504,725
26,250
Shares repurchased
15 (b)
-
(377,772)
Equity settled share-based payments
14 (a)
76,134
187,173
Other comprehensive income (loss) for the year
367,657
(351,504)
Net income for the year
4,804,559
2,653,177
Balance, end of the year
20,528,892
14,775,817
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these consolidated financial statements. 

 
BQE WATER INC. 
 
Consolidated Statements of Cash Flow 
For the years ended December 31, 2024 and 2023 
(Expressed in Canadian dollars) 
2024 Consolidated Financial Statements 
 
 
 
pg. 9 
Year ended December 31
2024
2023
$
$
note
Operating activities
Net income for the year
4,804,559
2,653,177
Adjustments for:
Bad debt expenses
24 (a)
14,237
473,112
Income tax (recovery) expenses
18
(1,275,541)
-
Other income
(93,157)
(4,285)
Share of income from joint ventures
10
(2,471,577)
(418,816)
Finance income, net
16
(104,659)
(204,429)
Depreciation and amortization
8, 9
439,223
430,400
Unrealized foreign exchange gain
(103,421)
(6,457)
Share-based payments
14
1,016,518
466,097
2,226,182
3,388,799
Change in non-cash operating working capital items
19
837,795
(2,518,464)
Income taxes paid
18
(105,785)
-
Net cash from operating activities
2,958,192
870,335
Investing activities
Purchase of property and equipment
8
(581,986)
(180,387)
Proceeds on sale of equipment
-
4,285
Dividends received from joint venture
10 (a)
784,618
1,386,750
Interest received
263,781
103,470
Net cash from investing activities
466,413
1,314,118
Financing activities
Lease payments on principal portion
13
(181,065)
(264,994)
Lease payments on interest portion
13
(103,832)
(26,467)
Proceeds from exercise of stock options 
14 (a)
504,725
26,250
Repurchase of shares
15 (b)
-
(377,772)
Repayment of loan
12
(89,375)
(75,625)
Proceeds from loan
12
176,026
273,699
Interest paid
(97)
(329)
Net cash from (used in) financing activities
306,382
(445,238)
Effect of exchange rate changes on cash balances
112,624
(45,964)
Net increase in cash and cash equivalents
3,843,611
1,693,251
Cash and cash equivalents, beginning of the year
7,927,603
6,234,352
Cash and cash equivalents, end of the year
11,771,214
7,927,603
 
 
 
 
 
The accompanying notes are an integral part of these consolidated financial statements. 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 10 
1. DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONS 
BQE Water Inc. (“BQE Water” or the “Company”) is the ultimate parent company of its consolidated group. BQE Water is an 
integrated water management services and treatment solutions provider with unique expertise and intellectual property to 
support the mining and metallurgical industry in reducing life cycle costs and risks associated with water. 
 
The Company is a publicly listed company incorporated and domiciled in Canada with limited liability under the legislation of 
the Province of British Columbia. The Company’s shares are listed on the TSX Venture Exchange trading under the symbol 
BQE. The address of its registered office is Suite 200 – 30 East 6th Avenue, Vancouver, British Columbia, V5T 1J4, Canada. 
 
2. BASIS OF PRESENTATION 
These consolidated financial statements have been prepared in accordance with IFRS Accounting Standards as issued by the 
International Accounting Standards Board ("IASB"). These consolidated financial statements were authorized for issue on 
April 24, 2025 by the Company’s Board of Directors. 
 
These consolidated financial statements are presented in Canadian dollars, which is the Company’s functional currency, and 
have been prepared under the historical cost basis except for those assets and liabilities that are measured at fair values at 
the end of each reporting period. Additionally, these consolidated financial statements have been prepared using the accrual 
basis of accounting, except for cash flow information. 
 
 
3. MATERIAL ACCOUNTING POLICIES 
The principal accounting policies as set out below have been consistently applied to all periods presented in the consolidated 
financial statements: 
 
a) 
Basis of Consolidation 
These consolidated financial statements incorporate the financial statements of the Company, and the entities controlled by 
the Company, and the share of net earnings or losses in entities which the Company is a joint venture partner.  
The principal subsidiaries of the Company, which are accounted for under the consolidation method, are as follows: 
 
Country of
Ownership
Ownership
incorporation
interest as at
interest as at
Entity
and operation
Dec. 31, 2024
Dec. 31, 2023
Biomet Mining Corporation
Canada
100%
100%
BioteQ Water (Chile) SpA 
Chile 
100% 
100% 
BioteQ Water Mexico S.A. de C.V.
Mexico
100%
100%
BQE Water (Hangzhou) Co. Ltd.
China
100%
100%
BQE Water Delaware, Inc.
USA
100%
100%
 
The joint ventures of the Company, which are accounted for under the equity method, are as follows: 
 
 
 
Country of
Beneficial 
Ownership
Beneficial 
Ownership
 
incorporation 
interest as at 
interest as at 
Entity
and operation
Dec. 31, 2024
Dec. 31, 2023
JCC-BioteQ Environmental Technologies Co. Ltd.
China
50%
50%
Shandong MWT BioteQ Environmental Technologies Co. Ltd.
China
20%
20%
BQE Water Nuvumiut Development Inc.
Canada
49%
49%
 
 
 
 
 
 
 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 11 
i) 
Subsidiaries 
Subsidiaries are entities controlled by the Company. The Company controls an entity when it is exposed to, or has rights to, 
variable returns from its involvement with the entity and has the ability to affect those returns through its power over the 
entity. The financial statements of a subsidiary are included in the consolidated financial statements from the date that 
control commences until the date that control ceases. Inter-company balances and transactions, and any unrealized income 
and expenses arising from inter-company transactions, are eliminated in preparing the consolidated financial statements. The 
activities of any dissolved subsidiary are recorded up to the date of dissolution. 
 
ii) 
Investments in Joint Ventures 
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net 
assets of the joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists 
only when decisions about the relevant activities require unanimous consent of the parties sharing control. 
 
The financial results, assets and liabilities of joint ventures are incorporated in these consolidated financial statements using 
the equity method of accounting. Under the equity method, an investment in a joint venture is initially recognized in the 
consolidated statements of financial position at cost and adjusted thereafter to recognize the Company’s share of the profit 
or loss and other comprehensive income of the joint venture. The Company records an increase or decrease to the 
investment in joint venture for subsequent contributions made by the Company or dividends received from the joint 
venture’s profit. When the Company’s share of losses in the joint venture exceeds the Company’s interest in that joint 
venture, the Company discontinues recognizing its share of further losses. Additional losses are recognized only to the extent 
that the Company has incurred legal or constructive obligations or made payments on behalf of the joint venture. If the joint 
venture subsequently reports a profit, the Company resumes recognizing its share of those profits only after its share of the 
profits equals the share of losses not recognized. 
 
When the Company transacts with a joint venture, profits or losses resulting from the transactions with the joint venture are 
recognized in the Company’s consolidated financial statements only to the extent of interests in the joint venture that are not 
related to the Company. 
 
b) 
Foreign Currency Translation 
i) 
Functional and Presentation Currency 
The consolidated financial statements are presented in Canadian dollars (“CAD”), which is the Company’s presentation 
currency. 
 
Items included in the financial statements of each consolidated entity in BQE Water Inc.’s group are measured using the 
currency of the primary economic environment in which the entity operates (the “functional currency”). The functional 
currency of the Company’s subsidiaries and its joint ventures, except for BioteQ Water Mexico S.A. de C.V. which is CAD, are 
respective of their local currency, such as the United States dollars (“USD”), Chilean peso (“CLP”) and Chinese renminbi 
(“RMB”).  
 
For the purpose of presenting these consolidated financial statements, entities including joint ventures that have a functional 
currency different from the presentation currency (“foreign operations”) are translated into CAD as follows:  
 
Assets and liabilities: at the closing rate at the date of the statement of financial position. 
 
Income and expenses: at the average rate for the period (as this is considered a reasonable approximation of actual 
rates prevailing at the transaction dates). 
 
Exchange differences arising, if any, are recognized in other comprehensive income and accumulated in equity. When an 
entity disposes of its entire interest in a foreign operation, or loses control, joint control, or significant influence over a 
foreign operation, the foreign currency gains or losses accumulated in other comprehensive income related to the foreign 
operation are recognized in profit or loss. If an entity disposes part of an interest in a foreign operation which remains a 
subsidiary, a proportionate amount of foreign currency gains or losses accumulated in other comprehensive income related 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 12 
to the subsidiary is reallocated between controlling and non-controlling interests. 
 
ii) 
Transactions and Balances 
In preparing the financial statements of each individual BQE Water entity, transactions in currencies other than the entity’s 
functional currency (“foreign currency”) are recognized at the rates of exchange prevailing at the date of the transactions. At 
the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing 
at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the 
rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical 
cost in a foreign currency are not retranslated. 
 
Exchange differences on monetary items are recognized in profit or loss in the period in which they arise except for the 
exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither 
planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognized 
initially in other comprehensive income and reclassified from equity to profit or loss on repayment of the monetary items. 
 
c) 
Cash and Cash Equivalents 
The Company considers all highly liquid investments that are readily convertible to known amounts of cash and short-term 
guaranteed investment certificates with original maturities of three months or less at the date of acquisition to be cash 
equivalents.  
 
d) 
Property and Equipment 
i) 
Recognition and Measurement 
Property and equipment are stated at historical cost less accumulated depreciation and any accumulated impairment losses. 
Historical cost includes expenditures that are directly attributable to the acquisition of the assets and costs directly 
attributable to bringing the assets to a working condition for their intended use. If significant components of a property, 
plants or equipment have different useful lives, then they are accounted for as separate items (major components) of 
property and equipment.  
 
ii) 
Subsequent Measurement 
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it 
is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be 
measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged 
to the consolidated statements of income and comprehensive income in the financial period in which they are incurred.  
 
Property and equipment items are 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 from the disposal or retirement of a property and equipment 
item is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in 
profit or loss. 
 
iii) 
Depreciation 
Depreciation of property and equipment is calculated using the straight-line method to allocate their cost net of their residual 
values, over the shorter of their estimated useful lives and the contract life. Depreciation commences when the asset is fully 
constructed and available for use. Depreciation methods, useful lives and residual values are reviewed annually and adjusted 
prospectively, if appropriate. Where an indicator of impairment exists, property and equipment are subject to impairment 
testing as described in “Impairment” under note 3 (h). Depreciation categories and useful lives for items included in property 
and equipment are as follows: 
 
 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 13 
 
Asset 
Estimated useful life 
Computer equipment 
3 years 
Furniture, office and lab equipment 
5 years 
Right-of-use assets & leasehold improvements 
Remaining lease term 
Water treatment plants within joint ventures 
Shorter of contract life or 10 to 20 years 
 
e) 
Intangible Assets 
Intangible assets are recorded at cost, net of amortization and any provision for impairment. 
 
Intellectual property assets are being amortized over the useful life of 5 years, being the remaining useful life of the related 
intellectual property assets from acquisition. Residual values and useful lives are reviewed at each reporting date. Where an 
indicator of impairment exists, intangible assets are subject to impairment testing as described in “Impairment” under note 3 
(h).  
 
f) 
Financial Instruments 
Financial assets and liabilities, including derivatives, are recognized in the consolidated statements of financial position when 
the Company becomes a party to the contractual provisions of the instrument. Financial instruments are required to be 
initially measured at fair value and are subsequently accounted for based on their classification as described below. The 
classification depends on the purpose for which the financial instruments were acquired and their characteristics. Except in 
very limited circumstances, the classification is not changed subsequent to initial recognition.  
 
i) 
Fair Value Estimation 
Fair value is 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, regardless of whether that price is directly observable or estimated using 
another valuation technique. In estimating the fair value of an asset or liability, the Company takes into account the 
characteristics of the asset or liability if market participants would take those characteristics into account when pricing the 
asset or liability at the measurement date.  
 
In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree 
to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value 
measurement in its entirety. These levels are described as follows: 
 
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access 
at the measurement date. 
 
Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, 
either directly or indirectly. 
 
Level 3 inputs are unobservable inputs for the asset or liability. 
 
ii) 
Financial Assets  
Based on their nature, the Company classifies its financial assets as subsequently measured at amortized cost, fair value 
through other comprehensive income (“FVTOCI”) or fair value through profit or loss (“FVTPL”). The classification of financial 
assets is based on the contractual cash flow characteristics and the Company’s business model for managing the financial 
asset. On initial recognition, the Company may irrevocably designate a financial asset that meets the amortized cost or 
FVTOCI criteria as measured at FVTPL, if doing so eliminates or significantly reduces a measurement or recognition 
inconsistency. The financial assets are not reclassified subsequent to their initial recognition unless the Company changes its 
business model for managing financial assets. 
 
Financial assets are derecognized when the contractual cash flows from the asset expire or when the Company transfers the 
right to receive the contractual cash flows of the asset in a transaction whereby all risks and rewards of the financial asset are 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 14 
transferred. Any retained interest in the financial asset transferred is recognized as a separate financial asset or liability. 
 
Financial assets and liabilities are offset and presented net in the consolidated statements of financial position only when a 
legal right of offset exists and the Company intends to settle the transaction on a net basis or realize the asset and the liability 
simultaneously. 
 
Financial Assets at Amortized Cost  
Financial assets with fixed or determinable payments that are neither derivatives nor quoted in an active market are 
classified as financial assets at amortized cost. The objective is to hold such assets to collect contractual cash flows and 
contractual terms give rise on specified dates to cash flows that represent solely payments of principal and interest. These 
financial assets are initially recognized at fair value plus any transaction costs directly attributable to the asset. These assets, 
including any interest-bearing financial assets, are subsequently measured at amortized cost using the effective interest 
method, less any impairment losses under note 3 (h). 
 
Financial Assets at Fair Value Through Other Comprehensive Income (“FVTOCI”) 
Financial assets at FVTOCI represent those non-derivative financial assets that are held to achieve an objective by both 
collecting contractual cash flows and selling the financial assets, where contractual terms give rise on specified dates to cash 
flows that represent solely payments of principal and interest. Financial assets at FVTOCI are initially measured at fair value 
plus any transaction costs directly attributable to the asset. Subsequent fair value gains or losses are recognized in other 
comprehensive income, except for impairment.  
 
Financial Assets at Fair Value Through Profit or Loss (“FVTPL”) 
A financial asset is measured at FVTPL if it does not meet the criteria for assets measured at amortized cost or fair value 
through other comprehensive income. Financial assets at FVTPL include held for trading assets and derivative instruments. 
Financial assets are classified as held for trading if the Company manages such investments and makes purchase and sale 
decisions based on their fair value in accordance with the Company’s documented risk management or investment strategy 
and have been acquired principally for the purpose of selling in the near term. A financial asset is measured at FVTPL if it is a 
derivative that is not designated as effective as a hedging instrument. Financial assets at FVTPL are measured at fair value 
with changes recognized in profit or loss. Transaction costs associated with assets classified as FVTPL are recognized as 
incurred through profit or loss. 
 
Cash and cash equivalents, and trade and other receivables excluding all tax receivable, such as value added tax (“VAT”) and 
GST/PST/QST/HST/IVA, are classified as financial assets at amortized cost. No financial asset was designated as FVTPL or 
FVTOCI as at December 31, 2024 and 2023. 
 
iii) 
Financial Liabilities  
The Company classifies its financial liabilities into one of the following categories: 
 
Financial Liabilities at Fair Value Through Profit or Loss 
This category comprises derivatives and financial liabilities incurred principally for the purpose of selling or repurchasing in 
the near term. They are carried at fair value with changes in fair value recognized in profit or loss. The Company has classified 
deferred benefits, which are the provisions related to the Company’s Deferred Share Units (“DSU”) and Restricted Share Units 
(“RSU”), as FVTPL. All transaction costs related to financial liabilities designated at FVTPL are expensed as incurred. 
 
Other Financial Liabilities   
This category consists of liabilities carried at amortized cost using the effective interest method. Financial liabilities at 
amortized costs are initially recognized at fair value minus any transaction costs directly attributable to the liability. The 
Company has classified trade payable and accrued liabilities, which exclude all tax payable such as VAT and 
GST/PST/QST/HST/IVA, and loans as financial liabilities at amortized cost.  
 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 15 
The Company initially recognizes financial liabilities on the trade date at which the Company becomes a party to the 
contractual provisions of the instrument. Financial liabilities are derecognized when their contractual obligations are 
discharged, cancelled or have expired. Any adjustment to the amortized cost of the financial liability arising from a 
modification or exchange is recognized in profit or loss at the date of the modification or exchange. 
 
g) 
Leases 
At the inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a 
lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for 
consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses 
whether 1) the supplier has a substantive substitution right, 2) the Company has the right to obtain substantially all of the 
economic benefits from use of the asset throughout the period; and 3) the Company has the right to direct the use of the 
asset. 
 
For contracts that contain a lease, the Company recognizes a right-of-use (“RoU”) asset and a lease obligation at the lease 
commencement date in the consolidated statements of financial position. The RoU asset is initially measured based on the 
initial amount of the lease obligation plus any initial direct costs incurred less any lease incentives received. The RoU asset is 
subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful 
life of the RoU asset or the end of the lease term.  
 
The lease obligation is initially measured at the present value of the lease payments that are unpaid at the commencement 
date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s 
incremental borrowing rate. The lease obligation is subsequently measured at amortized cost using the effective interest rate 
method. Lease payments included in the measurement of the lease liability comprise the following: 
 
fixed payments (including in-substance fixed payments), less any lease incentives receivable; 
 
variable lease payments that depend on an index or a rate (such as CPI), initially measured using the index or rate as at 
the commencement date; 
 
amounts expected to be payable by the Company under residual value guarantees; 
 
exercise price of a purchase option if the Company is reasonably certain to exercise that option; and 
 
payments of penalties for terminating the lease, if the lease term reflects the Company exercising an option to terminate 
the lease. 
 
A lease modification is accounted for as a separate lease from the original lease if the modification increases the scope of the 
lease by adding the right to use one or more underlying assets; and the consideration for the lease increase by an amount 
commensurate with the stand-alone price for the increase in scope and any appropriate adjustments to that stand-alone 
price to reflect the circumstances of the particular contract. If the lease modification merely extends the Company’s right to 
use an existing leased asset to which it already has access, the modification is not accounted for as a separate lease. Instead, 
the Company recalculates the existing lease obligations on the effective date of the lease modification to include the lease 
payments until the end of the extended period and a corresponding adjustment is also made to the RoU asset. The additional 
RoU asset and lease obligations relating to the extended period are therefore recognized on the date of modification. 
 
Variable rent payments that are not based on an index or rate, including additional rent for operating costs and taxes 
and non-recoverable goods and services tax, are recognized as rent expense, within general and administrative 
expense or direct costs, as incurred. For short-term leases (terms of 12 months or less) and leases of low-value assets, the 
Company has elected to recognize these lease payments as expenses on a straight-line basis over the lease term in the 
consolidated statements of income and comprehensive income (note 13), as permitted by IFRS 16. This expense is presented 
within general and administration expenses.  
 
 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 16 
h) 
Impairment  
i) 
Property and equipment & intangible assets 
The Company’s property and equipment & intangible assets are reviewed for indications of impairment at each financial 
position date. Such indications may be based on events or changes in the market environment, or on internal sources of 
information. If any such indication is present, the recoverable amount of the asset is estimated to determine whether 
impairment exists. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are 
separately identifiable cash flows (cash-generating units). When it is not possible to estimate the recoverable amount of an 
individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. 
When a reasonable and consistent basis of allocation can be identified, the Company’s assets are also allocated to individual 
cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable 
and consistent allocation can be identified. 
 
An asset’s recoverable amount is the higher of its fair value less costs of disposal ("FVLCD") and value in use (“VIU”). In 
assessing value in use, the estimated future cash flows are discounted to their present value, using a pre-tax discount rate 
that reflects current market assessments of the time value of money and the risks specific to the asset for which estimates of 
future cash flows have not been adjusted. 
 
If the recoverable amount of an asset or cash generating unit is estimated to be less than its carrying amount, the carrying 
amount is reduced to the recoverable amount. Impairment losses are recognized in profit and loss for the period. Impairment 
losses recorded may be subsequently reversed if the recoverable amount of the assets is once again higher than their 
carrying value. Where impairment is subsequently reversed, the carrying amount is increased to the revised estimate of the 
recoverable amount but only to the extent that it does not exceed the carrying value that would have been determined (net 
of depreciation) had no impairment loss been recognized in prior periods. 
 
ii) 
Financial Assets 
The Company recognizes loss allowances for expected credit loss on financial assets measured at amortized costs, including 
cash and cash equivalents, trade and other receivables, and contract assets relating to fixed fee revenue contracts. Trade and 
other receivables and contract assets are assessed at each reporting date to determine whether there is objective evidence 
of impairment.  
 
The Company applies the IFRS 9 simplified approach to measure expected credit losses, which uses a lifetime expected loss 
allowance for all trade receivables and contract assets. To measure the expected credit losses, trade receivables and contract 
assets have been grouped based on shared credit risk characteristics and the days past due. The contract assets relate to 
unbilled work in progress and have substantially the same risk characteristics as the trade receivables for the same types of 
contract. The Company has therefore concluded that the expected loss rates for trade receivables are a reasonable 
approximation of the loss rates for the contract assets. The expected loss rates are based on the payment profiles of sales 
over a period of the 36 months before each reporting date, and the corresponding historical credit losses experienced within 
this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic 
factors affecting the ability of the customers to settle the receivables. 
 
Trade receivables and contract assets are written off where there is no reasonable expectation of recovery. Indicators that 
there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan 
with the Company, and a failure to make contractual payments for a period of greater than 365 days past due. Impairment 
losses on trade receivables and contract assets are presented as an expense. Subsequent recoveries of amounts previously 
written off are credited against the same line item. 
 
iii) 
Equity-Accounted Investment in Joint Venture 
An equity accounted investment in joint venture is reviewed for indication of impairment at each financial position date. 
Indications include observable data indicating there is a measurable decrease in the estimated future cash flows of the 
investee’s operations. When there is objective evidence that an investment is impaired, the carrying amount of such 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 17 
investment is compared to its recoverable amount, being the higher of its FVLCD and VIU. If the recoverable amount of an 
investment is less than its carrying amount, the carrying amount is reduced to its recoverable amount and an impairment 
loss, being the excess of carrying amount over the recoverable amount, is recognized in the period in which the relevant 
circumstances are identified. When an impairment loss reverses in a subsequent period, the carrying amount of the 
investment is increased to the revised estimate of recoverable amount to the extent that the increased carrying amount does 
not exceed the carrying amount that would have been determined had an impairment loss not been previously recognized. A 
reversal of an impairment loss is recognized in profit or loss in the period in which the reversal occurs. 
 
i) 
Provisions 
A provision is a liability of uncertain timing or amount. Provisions are recognized when: (i) the Company has present legal or 
constructive obligations as a result of past events; (ii) it is probable that an outflow of resources will be required to settle the 
obligations; and (iii) the amount has been reliably estimated. 
 
Provisions are measured at the present value of the expenditures expected to be required to settle the obligations using a 
pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the obligations. The 
increase in the provision due to passage of time is recognized as interest expense. 
 
j) 
Revenue Recognition 
The Company generates revenues from providing operational services on water treatment and technical services for water 
management.  Revenue from contracts with customers is recognized when services are rendered and control of goods are 
transferred to the customers, at an amount that reflects the consideration to which the Company expects to be entitled in 
exchange for those services or products.  
 
The Company’s joint ventures in China earn revenues on the sale of metal concentrates recovered from the operation of 
water treatment plants. For the sale of metal concentrate, the performance obligations are satisfied at a point in time when 
the control of metal concentrate is passed from the Company’s joint ventures to the customer. Revenue is recognized based 
on the final settlement of weights and assays and is recorded at fair value, based on prevailing market prices adjusted in 
accordance with agreed upon terms. 
 
i) 
Operation of Water Treatment Plants 
For revenue on water treatment operations, the performance obligations are satisfied and revenue from operations of water 
treatment plants is recognized over time when water is treated per discharge limits and discharged into the environment. 
The Company has agreements with customers for the operation of different water treatment plants, and considerations for 
such plants are earned based on a fixed monthly fee, a quarterly fee, or water treatment fee based on the volume of water 
treated and discharged into the environment. Some agreements have a combination of the above as total considerations for 
water treatment operation services.  
 
ii) Technical Services Relating to Water Management 
Technical services include both water management consulting and technical innovation services. Water management 
consulting services include feasibility and assessment studies, toxicity investigations, process engineering design, plant 
commissioning and plant optimization. Technical innovation services include field pilot demonstrations, laboratory 
treatability assessments, designing and conducting experiments, and delivery of final reports on the results. For technical 
service contracts, the customer either receives and uses the benefits simultaneously as services are provided or the Company 
is creating a work product with no alternative use. Technical services contracts can be remunerated on a time and material 
basis, or a fixed-fee commitment for the scope of the contract.  
 
For time and material technical service contracts, revenue is recognized over time based on agreed upon hourly rates and 
actual hours and costs incurred as services are rendered and transferred to the customer. For fixed-fee contracts where the 
Company has enforceable right to payment for performance to date, revenue is recognized based on the extent of progress 
towards completion of the performance obligation.  The extent of progress is measured using the percentage-of-completion 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 18 
method based on actual labor hours or costs incurred relative to the total estimated hours or costs for completion, whichever 
most faithfully depicts the progress of the Company’s performance based on its efforts inputted.  Estimates of extent of 
progress toward completion are revised if circumstances change. Any resulting increases or decreases in estimated revenues 
are reflected in profit or loss in the period in which the circumstances that give rise to the revision become known by 
management. For fixed-fee technical service contracts without enforceable right to payment for performance completed to 
date, revenue is recognized at a point of time upon delivery of the work product, such as a written report for completion of a 
performance test or a feasibility study, when control of the work product is transferred to the customer.  
 
From time to time, the Company enters into contracts with multiple products and services. For revenue recognition, the 
Company considers whether the promises in the contract are separate performance obligations that are distinct from each 
other. In assessing if each promise is a distinct performance obligation, management considers if the Company provides a 
significant service of integrating the goods or services to produce an output specified by the customer, or goods or services 
are highly interdependent, highly inter-related, or one significantly modifies or customizes the other. Significant judgement is 
required in assessing if a good or a service is a performance obligation that is capable of being distinct and distinct within the 
context of the contract.  Where the contracts include multiple performance obligations, the transaction price is allocated to 
each performance obligation based on the stand-alone selling prices. Where these are not directly observable, they are 
estimated based on expected cost-plus margin. 
 
k) 
Contract Assets and Deferred Revenue 
 
Contract assets primarily relate to the Company’s right to consideration for work completed but not billed at the report date 
for fixed-fee contracts. In the case of fixed-fee contracts, the customer pays the amount based on a payment schedule. Any 
excess of revenue recognized over progress billings is carried as a contract asset in the consolidated statements of financial 
position. In most cases, the specific contract asset is amortized with reference to the same pattern of recognition as the 
revenue recognized on the associated project.  
 
Deferred revenue primarily relates to the advance consideration received from customers before the Company transfers 
related services or goods. Any advance payments received from a customer based on progress billings are recorded as 
deferred revenue in the consolidated financial statements and recognized as revenue when the Company performs under the 
contract. 
 
l) 
Government Grants 
Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be 
received and the Company will comply with all attached conditions. Grants that compensate the Company for expenses 
incurred are deferred and recognized in the consolidated statements of income and comprehensive income on a systematic 
basis in the periods in which the intended expenses are recognized. 
 
m) Employee Benefits 
i) 
Bonus Plans 
The Company recognizes a liability and an expense for bonuses based on a formula that takes into consideration the key 
performance indicators of the Company. The Company recognizes a provision where contractually obliged or where there is a 
past practice that has created a constructive obligation. 
 
ii)  Defined Contribution Plans 
Obligations for contributions to defined contribution plans are recognized as an employee benefit expense in profit or loss in 
the periods during which the related service is provided by the employees. 
 
iii) Termination Benefits 
Termination benefits are payable when employment is terminated by the Company before the normal retirement date, or 
whenever an employee accepts voluntary redundancy in exchange for these benefits. The Company recognizes termination 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 19 
benefits at the earlier of the following dates: 
 
When the Company can no longer withdraw the offer of those benefits. 
 
When the entity recognizes costs for a restructuring that is within the scope of IAS 37 and involves the payment of 
termination benefits. 
 
When benefits falling due more than 12 months after the end of the reporting period are discounted to their present 
value. 
 
n) 
Share-based Payments 
The Company maintains a Deferred Share Unit (“DSU”) plan, a Restricted Share unit (“RSU”) plan and a stock option plan for 
employees and directors of the Company. The DSU plan and the RSU plan are considered as cash-settled share-based 
payments and the stock option plan is considered as equity-settled share-based payments. 
 
RSUs are measured initially at the fair value and the amount payable is recognized as an expense with a corresponding 
increase in liabilities over the vesting period. The Company will settle all RSUs in cash, and all RSUs vest over three years in 
equal installments, with each vesting tranche considered a separate award with its own vesting period. Compensation 
expense relating to the award and changes in the market price at each reporting date is recognized on a straight-line basis in 
profit or loss over the vesting period with a corresponding increase in deferred benefits liability. The liability is remeasured at 
each reporting date until it is settled and any changes in the fair value of the liability are recognized in profit or loss. 
 
DSUs vest immediately upon issuance and may only be redeemed on the date a holder ceases to be a participant under the 
plan, with payment no later than December 31 of the following calendar year. They are measured initially at the fair value 
and the amount payable is recognized as an expense immediately in the period of grant with a corresponding increase in 
deferred benefits liability. The liability is remeasured at each reporting date until it is settled, with any changes in fair value of 
the liability recognized in profit or loss. 
 
Stock options are measured at the fair value of the equity instruments at the grant date using the Black-Scholes pricing 
model. The stock options vest over three years in equal installments and the Company will settle all options by issuing shares. 
The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis 
over the vesting period, based on the Company’s estimate of equity instruments that will eventually vest, with a 
corresponding increase in contributed surplus. Each vesting tranche in an award is considered a separate award with its own 
vesting period and grant date fair value. Compensation expense is recognized over the tranche’s vesting period by increasing 
contributed surplus based on the number of awards expected to vest. At the end of each reporting period, the Company 
revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original 
estimates, if any, is recognized in profit or loss such that the cumulative expense reflects the revised estimate, with a 
corresponding adjustment to the contributed surplus. Upon exercise of stock options, the consideration paid by the option 
holder is recorded as an increase to share capital. 
 
Equity-settled share-based payments with parties other than employees are measured at the fair value of the goods or 
services received, except where that fair value cannot be estimated reliably, in which case they are measured at the fair value 
of the equity instruments granted, measured at the date the entity obtains the goods or the counterparty renders the 
service. 
 
o) 
Income Tax 
The Company follows the asset and liability method of accounting for income taxes. Income tax is recognized in profit or loss, 
except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the 
current and deferred tax are also recognized in other comprehensive income or directly in equity, respectively. Where 
current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the 
accounting for the business combination. Income tax comprises of two components: current and deferred. 
 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 20 
i) 
Current Tax 
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before taxes as reported in 
the consolidated statements of income and comprehensive income because of items of income or expense that are taxable 
or deductible in other years and items that are never taxable or deductible. Current tax comprises the expected tax payable 
or receivable on the taxable profit for the year and any adjustment to tax payable or receivable in respect of previous years. 
Current tax also includes any tax arising from dividends. The Company’s current tax is calculated using tax rates that have 
been enacted or substantively enacted by the end of the reporting period. 
 
ii) Deferred Tax 
Under the asset and liability method, deferred income tax assets and liabilities are recognized for the future tax 
consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities 
and their respective tax bases, unused tax losses and other income tax deductions. Deferred tax assets are generally 
recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available 
against those deductible temporary differences which can be utilized.  
 
Deferred tax assets are recognized for unused tax losses, unused tax credits and deductible temporary differences to the 
extent that it is probable that future taxable profits will be available against which they can be used. Deferred tax assets and 
liabilities are not recognized for: 
 
Temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination 
and that affects neither accounting nor taxable profit or loss. 
 
Temporary differences related to investments in subsidiaries, associates and joint arrangements, and interests in joint 
ventures, to the extent that the Company is able to control the timing of the reversal of the temporary differences and it 
is probable that they will not reverse in the foreseeable future. 
 
Taxable temporary differences arising on the initial recognition of goodwill. 
 
Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the 
related tax benefit will be realized. Deferred tax is measured at the tax rates that are expected to be applied to temporary 
differences when they reverse or the tax rates enacted or substantively enacted at the reporting date. 
 
The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company 
expects at the reporting date to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and 
liabilities are offset only if certain criteria are met. 
 
In determining the amount of current and deferred taxes, the Company takes into account the impact of uncertain tax 
positions and whether additional taxes and interest may be due.  Management believes that its tax liabilities for uncertain tax 
positions are adequate for all open tax years based on its assessment of many factors, including interpretations of tax law and 
prior experience.  This assessment relies on estimates and assumptions and may involve a series of judgments about future 
events.  New information may become available that causes the Company to change its judgment regarding the adequacy of 
existing tax liabilities; such changes to tax liabilities will impact tax expense in the period that such a determination is made. 
 
p) 
Share Capital 
Common shares are classified as share capital. When the Company purchases its own share capital, the consideration paid, 
including any directly attributable incremental costs if any, is deducted from the Company’s equity.  
 
q) 
Earnings Per Share 
Basic earnings per share is calculated by dividing the net income for the year attributable to the equity owners of the 
Company by the weighted average number of common shares outstanding during the year. Diluted earnings per share is 
calculated using the treasury stock method by adjusting the weighted average number of common shares outstanding for 
dilutive instruments. Stock options are considered dilutive when the average market price of the Company’s common shares 
during the period disclosed exceeds the exercise price of the stock option. If the Company incurs net losses in a fiscal year, 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 21 
basic and diluted losses per share are the same. 
 
r) 
New and Amended Standards Adopted 
There are new accounting standards and amendments to accounting standards and interpretations that are effective for 
annual periods beginning on or after January 1, 2024 that have been applied in preparing the consolidated financial 
statements for the year ended December 31, 2024. These standards and interpretations are not expected to have a 
significant impact on the Company’s consolidated financial statements. 
 
The Company has applied the following standards and amendments for the first time for its annual reporting period 
commencing January 1, 2024: 
 
Classification of Liabilities as Current or Non-current and Non-current liabilities with covenants – Amendments to IAS 1; 
 
Lease Liability in Sale and Leaseback – Amendments to IFRS 16; and 
 
Supplier Finance Arrangements – Amendments to IAS 7 and IFRS 7. 
 
The amendments listed above did not have any material impact on the amounts recognized in prior periods and are not 
expected to significantly affect the current or future periods. 
 
s) 
Future Accounting Changes 
Certain new accounting standards and amendments to accounting standards have been published that are not mandatory for 
December 31, 2024 reporting periods and have not been early adopted by the Company. The Company’s assessment of the 
impact of these new standards and amendments is set out below: 
 
i) 
Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7 
(effective for annual periods beginning on or after January 1, 2026) 
 
On May 30, 2024, the IASB issued targeted amendments to IFRS 9 and IFRS 7 to respond to recent questions arising in 
practice, and to include new requirements not only for financial institutions but also for corporate entities. These 
amendments: 
 
clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some 
financial liabilities settled through an electronic cash transfer system; 
 
clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and 
interest (SPPI) criterion; 
 
add new disclosures for certain instruments with contractual terms that can change cash flows (such as some financial 
instruments with features linked to the achievement of environment, social and governance targets); and 
 
update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI). 
 
The Company does not expect these amendments to have a material impact on its operations or financial statements. 
 
ii) IFRS 18 Presentation and Disclosure in Financial Statements (effective for annual periods beginning on or after 
January 1, 2027) 
 
IFRS 18 will replace IAS 1 Presentation of financial statements, introducing new requirements that will help to achieve 
comparability of the financial performance of similar entities and provide more relevant information and transparency to 
users. Even though IFRS 18 will not impact the recognition or measurement of items in the financial statements, its impacts 
on presentation and disclosure are expected to be pervasive, in particular those related to the statement of financial 
performance and providing management-defined performance measures within the financial statements. 
Management is currently assessing the detailed implications of applying the new standard on the Company’s consolidated 
financial statements. The Company will apply the new standard from its mandatory effective date of January 1, 2027. 
Retrospective application is required, and so the comparative information for the financial year ending December 31, 2026 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 22 
will be restated in accordance with IFRS 18. 
 
 
4. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS  
The preparation of the Company’s consolidated financial statements in conformity with IFRS requires the Company’s 
management to make judgments, estimates and assumptions about future events that affect the application of the 
Company’s accounting policies and amounts reported in the consolidated financial statements and related notes to the 
consolidated financial statements. The estimates and associated assumptions are based on historical experience and other 
factors considered to be relevant. Actual results may differ from these estimates. 
 
Estimates and assumptions are continually evaluated and are based on management’s experience and other facts and 
circumstances. Revisions to estimates and the resulting effects on the carrying amounts of the Company’s assets and 
liabilities are accounted for prospectively. 
 
The areas which require management to make significant judgments, estimates and assumptions in determining carrying 
values include, but are not limited to: 
 
a) 
Critical Judgments  
Critical judgments that management has made in the process of applying the Company’s accounting policies and that have 
the most significant effect on the amounts recognized in the consolidated financial statements are: 
i) 
Management’s assessment of the Company’s ability to continue as a going concern, as the consolidated financial 
statements have been prepared on a going concern basis, which contemplates the realization of assets and the 
settlement of liabilities in the normal course of business. 
ii) Management’s judgment on revenue recognition, when determining the performance obligations that exist in an 
arrangement and the timing of the transfer of control and satisfaction of performance obligations of either at a point 
in time or over time. 
iii) Management’ assessment of impairment indicators for asset impairment on long-term assets such as property and 
equipment or investment in joint ventures. 
 
b) 
Key Sources of Estimation Uncertainty and Assumptions 
The following are key assumptions concerning the future and other key sources of estimation uncertainty at the end of the 
reporting period, that have a significant risk of causing a material adjustment to the reported amounts of assets and 
liabilities, income and expenses within the next fiscal year.  
 
i) 
Revenue Recognition 
Revenue for fixed-fee technical services relating to water management are recognized over time using the percentage of 
completion method based on labor hours or project costs as input. The Company applies significant judgment and estimates 
to determine estimated labor hours or costs to completion, which affects the timing of revenue recognized for technical 
services. For the revenue arrangements comprise multiple performance obligations, judgements are required to determine 
whether products and services are considered distinct performance obligations, and estimates are required when 
determining the relative fair value of each performance obligation utilizing standalone prices for similar deliverables where it 
exists or internally generated estimates of standalone price. 
 
ii) Expected Credit Loss 
Trade and other receivables are assessed for impairment at each reporting date by applying the expected credit loss 
impairment model. Expected credit loss represents management’s best estimate and assumptions based on actual credit loss 
experience and informed credit assessment, and also takes into consideration forward-looking information. If actual credit 
losses differ from estimates, future earnings would be affected. 
 
 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 23 
iii) Right-of-Use Assets & Lease Obligations 
To determine the value of the initial recognition and subsequent re-measurement of RoU assets and lease obligations, 
management is required to exercise judgment and estimates in several areas. Management has reviewed its lease 
agreements to estimate the lease term by evaluating the probability of exercising its option to extend or renew its lease 
contracts. Further judgment are estimates are required to determine the discount rate on lease payments by assessing its 
incremental borrowing rate at each of the Company’s locations. 
 
iv) Taxation 
Provisions for current and deferred taxes require management’s interpretation of tax regulations and legislation in the 
various tax jurisdictions in which the Company operates, which are subject to change. The measurement of deferred tax 
assets and liabilities requires estimates of the timing of the reversal of temporary differences identified and management’s 
assessment of the Company’s ability to utilize the underlying future tax deductions against future taxable income before they 
expire, which involves estimating future taxable income. 
 
The Company is subject to assessments by various taxation authorities in the tax jurisdictions in which it operates, and these 
taxation authorities may interpret the tax legislation and regulations differently. As such, income taxes are subject to 
measurement uncertainty and actual amounts of taxes may vary from the estimates made by management.  
 
 
5. TRADE AND OTHER RECEIVABLES 
 
 
 Dec. 31, 2024 
Dec. 31, 2023 
 $ 
 $ 
Trade receivables (note 7 (a)) 
2,775,202 
3,783,087 
Allowance for expected credit loss (note 24 (a)) 
(16,025) 
(1,788) 
Contract assets (note 21 (c)) 
940,268 
506,866 
Other receivables 
763,265 
86,110 
4,462,710 
4,374,275 
 
 
 
6. PREPAID AND OTHER CURRENT ASSETS 
 
 Dec. 31, 2024 
Dec. 31, 2023 
 $ 
 $ 
Prepaids 
767,160 
354,969 
Current deposits 
16,491 
52,748 
Other current assets 
297,569 
- 
1,081,220 
407,717 
 
 
In 2024, the Company contracted with a customer to implement a new treatment system including engineering design, 
equipment supply, site installation, commissioning, and start-up of the water treatment plant for a legacy site in the Yukon. 
As of December 31, 2024, the Company recorded $343,137 in prepaids for deposits made for purchase orders on this project 
and had $297,569 recognized under other current assets for equipment acquired which remained undelivered to the 
customer ($nil in 2023). 
 
 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 24 
 
7. RELATED PARTY TRANSACTIONS AND BALANCES 
The following transactions were carried out with related parties of the Company: 
 
a) 
Transactions with Joint Ventures 
The Company earns fees from the joint venture, BQE Water Nuvumiut Development Inc., for providing water treatment 
services and technical services in the Nunavik region. Revenue earned from this joint venture for the year ended December 
31, 2024 was $2,168,681 ($2,200,877 in 2023). As of December 31, 2024, included in trade and other receivable are $193,308 
($382,837 at December 31, 2023) of trade receivables due from the joint venture.  
 
In 2024, the Company also received dividends from JCC-BioteQ Environmental Technologies Co. Ltd. Other details of the 
Company’s interest in joint ventures are set out in note 10 (a). 
 
Transaction balances with joint ventures are nonsecure, non-interest bearing and are to be settled in cash.  No expense has 
been recognized in the current year or prior year for bad or doubtful debts in respect of amounts owed by joint ventures.   
 
b) 
Key Management Compensation 
For the years ended December 31, 2024 and 2023, the compensation awarded to the Company’s key management, which 
includes the Board of Directors and executive management, are as follows: 
 
2024 
2023 
$ 
$ 
Salaries, fees and short-term benefits 
1,146,232 
865,362 
Share-based payments (note 14 (a) and 14 (c)) 
206,067 
150,250 
1,352,299 
1,015,612 
 
 
As of December 31, 2024 and 2023, the Company does not have any unpaid salaries or fees to key management. 
 
 
 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 25 
8. PROPERTY AND EQUIPMENT 
 
 
Right-of-use assets1 
Pilot plants 
Other2 
Total 
 
$ 
$ 
$ 
$ 
Cost 
 
 
 
 
  As at December 31, 2022 
747,911
580,593
799,149
2,127,653
Additions 
1,470,048
-
300,773
1,770,821
Adjustment 
-
-
(192,991)
(192,991)
Foreign exchange translation 
(8,214) 
- 
(5,653) 
(13,867) 
 
  As at December 31, 2023 
2,209,745
580,593
901,278
3,691,616
 
 
 
 
 
Additions 
101,206
-
581,986
683,192
Disposals 
- 
- 
- 
- 
Foreign exchange translation 
22,296
-
(648)
21,648
 
  As at December 31, 2024 
2,333,247
580,593
1,482,616
4,396,456
 
 
 
 
 
 
 
 
 
 
Accumulated Depreciation 
 
 
 
 
  As at December 31, 2022 
(464,199)
(580,593)
(687,405)
(1,732,197)
Depreciation for the year 
(306,232)
-
(40,228)
(346,460)
Disposals 
-
-
192,991
192,991
Foreign exchange translation 
5,228 
- 
5,652 
10,880 
 
 
 
 
 
  As at December 31, 2023 
 
(765,203)
(580,593)
(528,990)
(1,874,786)
 
 
 
 
 
Depreciation for the year 
(263,439)
-
(91,844)
(355,283)
Disposals 
-
-
-
-
Foreign exchange translation 
(12,992)
-
649
(12,343)
 
  As at December 31, 2024 
(1,041,634)
(580,593)
(620,185)
(2,242,412)
 
 
 
 
 
 
Carrying Amount 
  As at December 31, 2023 
1,444,542
-
372,288
1,816,830
  As at December 31, 2024 
1,291,613
-
862,431
2,154,044
 
1Right-of-use assets comprise leased assets (note 13), including leased office buildings, vehicles and office equipment. 
2Other comprises leasehold improvements, furniture, office equipment and lab equipment. 
 
 
 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 26 
9. INTANGIBLE ASSETS 
 
 
Total 
 
$ 
Cost 
  As at December 31, 2022 & 2023 & 2024 
419,700 
 
 
 
Accumulated Depreciation 
 
  As at December 31, 2022 
(104,925)
Depreciation for the year 
(83,940) 
 
 
  As at December 31, 2023 
 
(188,865) 
 
 
Depreciation for the year 
(83,940)
 
  As at December 31, 2024 
(272,805)
 
 
 
Carrying Amount 
 
  As at December 31, 2023 
230,835
  As at December 31, 2024 
146,895
 
 
 
10. INVESTMENT IN JOINT VENTURES 
The Company’s share of investment in joint ventures on December 31, 2024 was $6,047,497 ($4,046,677 on December 31, 
2023), comprised of: 
 
 
JCC-BQE 
MWT-BQE 
NVM-BQE 
 
$ 
$ 
$ 
Balance, January 1, 2023 
5,264,299 
- 
36,928 
Share of net income 
381,190 
(99,312) 
37,626 
Share of translation loss on foreign operation 
(286,616) 
(12,465) 
- 
Dividends received 
(1,386,750) 
- 
- 
Unrecognized share of comprehensive income 
- 
111,777 
- 
 
 
 
 
Balance, December 31, 2023 
3,972,123 
- 
74,554 
 
 
 
 
Share of net income (loss) 
2,451,435 
(159,506) 
20,142 
Share of translation gain on foreign operation 
313,861 
1,292 
- 
Dividends received 
(784,618) 
- 
- 
Unrecognized share of comprehensive income 
- 
158,214 
- 
 
 
 
 
Balance, December 31, 2024 
5,952,801 
- 
94,696 
 
 
 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 27 
a) JCC-BioteQ Environmental Technologies Co. Ltd. 
In 2007, BQE Water entered into a definitive joint venture agreement with Jiangxi Copper Corporation (“JCC”) for the 
operation of a water treatment facility located at JCC’s Dexing Mine in Jiangxi Province, China. The joint venture is structured 
as a separate vehicle and formed through a 50/50 share company between BQE Water and JCC, is called JCC-BioteQ 
Environmental Technologies Co. Ltd. (“JCC-BQE”). The Company has joint control in the JCC-BQE joint venture and a 50 
percent ownership interest in its net assets. Accordingly, the Company has classified its interest in JCC-BQE as a joint venture. 
The joint venture builds and operates water treatment plants utilizing BQE Water’s technologies. The agreement includes a 
license contract whereby BQE Water will provide its patented technology on a royalty-free basis to the joint venture company 
for use at Dexing Mine and up to five potential additional sites owned and operated by JCC. The JCC-BQE joint venture is not 
publicly listed. 
 
The joint venture sells the metal concentrate recovered in its operations to the joint venture partner, JCC. All related party 
sales are recorded on the date of sale at the fair market price of the metal with adjustments in accordance with the agreed 
upon terms. Currently, the joint venture operates three water treatment plants.  
 
Any cash distributions from the joint venture to BQE Water must be unanimously approved by both partners and comply with 
Chinese tax and regulatory requirements. Distributions are also subject to Chinese withholding taxes and minimum capital 
requirements as applicable. Currently, BQE Water and JCC have a standing agreement to distribute excess cash reserves 
annually. The partners take into consideration factors such as operating performance of the plants, future capital 
requirements and working capital flexibility in determining the cash amount to be distributed as dividends in a given year.  
 
The joint venture derives its revenue from recovered metal sales, which are subject to risks that are beyond the control of the 
joint venture. The metal recovery rate is dependent on the rainfall in the region and the grade of metal in the water treated, 
while the revenue is exposed to global commodity price risk.  
 
The statement of financial position of the Company’s 50% interest in the JCC-BQE joint venture are presented as follows: 
  
 
Dec. 31, 2024 
Dec. 31, 2023 
 
$ 
$ 
 
 
 
Assets 
 
 
 Cash and cash equivalents 
1,160,351 
1,861,985 
 Short-term investments 
3,153,600 
- 
 Other current assets 
356,671 
546,913 
 Non-current assets 
2,166,551 
2,405,888 
 
 
 
Total assets 
6,837,173 
4,814,786 
 
 
 
 
 
 
Current liabilities 
884,372 
842,663 
Partner’s Equity 
5,952,801 
3,972,123 
 
 
 
Total liabilities and partner’s equity 
6,837,173 
4,814,786 
 
 
 
 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 28 
The statement of income and comprehensive income of the Company’s 50% interest in the JCC-BQE joint venture are 
presented as follows: 
 
 
2024 
2023 
 
$ 
$ 
 
 
 
Revenues 
7,617,332 
4,376,419 
Operating expenses (excluding depreciation) 
(3,471,220) 
(2,812,355) 
 
4,146,112 
1,564,064 
 
 
 
Non-operating expenses 
(713,166) 
(636,096) 
Depreciation of plant and equipment 
(462,577) 
(470,638) 
Income tax expense 
(518,934) 
(76,140) 
Net income for the year 
2,451,435 
381,190 
 
 
 
Other comprehensive income (loss) 
313,861 
(286,616) 
 
 
 
Comprehensive income for the year 
2,765,296 
94,574 
 
 
b) Shandong MWT BioteQ Environmental Technologies Co. Ltd. 
In 2016, BQE Water signed a joint venture agreement with Beijing MWT Water Treatment Project Limited Company (“MWT”) 
for the construction and operation of a water treatment plant located in Shandong Province, China. BQE Water and MWT 
formed a new joint venture called Shandong MWT BioteQ Environmental Technologies Co., Ltd. (“MWT-BQE”). Upon the 
establishment of MWT-BQE, the Company paid a cash contribution of $96,400 (RMB $500,000) as registered capital, which 
represents 4.35% of the total registered capital of the joint venture. Accordingly, the Company has classified its interest in 
MWT-BQE as a joint venture. The MWT-BQE joint venture is not publicly listed. 
 
The joint venture built a water treatment plant at a smelter owned by Shandong Zhaojin Group Zhaoyuan Gold Smelting Co., 
Ltd (“Zhaoye”), and operates the plant using BQE Water’s patented technology to recover and sell copper and zinc from 
Zhaoye’s industrial wastewater stream to generate revenues. The joint venture derives its revenue from recovered metal 
sales, which are subject to risks that are beyond the control of the joint venture. The metal recovery rate is dependent on the 
grade of metal found in the smelter’s waste feed into the treatment plant, while the revenue is exposed to global commodity 
price risk.  
 
BQE Water is entitled to 20% of the after-tax profits of the joint venture, but does not have a commitment to fund the losses 
of MWT-BQE, the share of comprehensive income of the joint venture will be recognized on the investments of MWT-BQE 
when the unrecognized share of net losses are reduced to zero. As of December 31, 2024, the balance of unrecognized share 
of net losses for MWT-BQE is $398,481 ($240,267 on December 31, 2023). 
 
 
 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 29 
The statement of financial position of the Company’s 4.35% interest in the MWT-BQE joint venture are presented as follows: 
  
 
Dec. 31, 2024 
Dec. 31, 2023 
 
$ 
$ 
 
 
 
Current assets 
70,200 
49,040 
Plant and equipment 
22,883 
24,447 
Current liabilities 
104,271 
50,264 
Non-current liabilities 
- 
- 
Partner’s equity 
- 
- 
 
 
The statement of loss of BQE Water’s 20% interest in the MWT-BQE joint venture are presented as follows: 
  
 
2024 
2023 
 
$ 
$ 
 
 
 
Revenues 
3,011 
212,474 
Operating expenses (excluding depreciation) 
(43,632) 
(174,677) 
 
(40,621) 
37,797 
 
 
 
Non-operating expenses (including depreciation) 
(118,885) 
(137,109) 
Net loss for the year 
(159,506) 
(99,312) 
 
 
 
Other comprehensive income (loss) 
1,292 
(12,465) 
 
 
 
Comprehensive loss for the year 
(158,214) 
(111,777) 
 
c) BQE Water Nuvumiut Development Inc. 
In 2021, BQE Water entered into a joint venture agreement with Nuvumiut Development Inc. (“NVM”), as partners with the 
Inuit community, to jointly provide water management and treatment services in the Nunavik regions, located in Northern 
Quebec, Canada. The separated vehicle, BQE Water Nuvumiut Development Inc. (“NVM-BQE”) was federally incorporated on 
December 2, 2021, with 49% ownership belonging to BQE and 51% to NVM. BQE Water has joint control in the NVM-BQE 
joint venture with 50% voting rights and a 49% ownership interest in its net assets. Accordingly, the Company has classified 
its interest in NVM-BQE as a joint venture. The NVM-BQE joint venture is not publicly listed. 
 
The statement of financial position of BQE Water’s 49% interest in the NVM-BQE joint venture are presented as follows: 
 
 
Dec. 31, 2024 
Dec. 31, 2023 
 
$ 
$ 
 
 
 
Current assets 
196,400 
280,439 
Current liabilities 
101,704 
205,885 
Partner’s equity 
94,696 
74,554 
 
 
 
 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 30 
The statement of income of BQE Water’s 49% interest in the NVM-BQE joint venture are presented as follows: 
  
 
 
2024 
2023 
 
 
$ 
$ 
 
 
 
 
Revenues 
 
1,168,572 
1,160,879 
Operating expenses 
 
(1,121,204) 
(1,113,951) 
 
 
47,368 
46,928 
 
 
 
 
Non-operating expenses 
 
(27,226) 
(9,302) 
 
 
 
 
Net income for the year 
 
20,142 
37,626 
 
 
11. TRADE PAYABLE AND ACCRUED LIABILITIES 
 
 Dec. 31, 2024 
Dec. 31, 2023 
 $ 
 $ 
Trade payable and accruals 
1,016,362 
661,989 
Payroll liabilities 
670,862 
654,118 
Tax payable 
61,495 
24,133 
 
 
 
1,748,719 
1,340,240 
 
 
12. LOANS 
In 2018, the Company entered into the first loan agreement with the Minister responsible for Western Economic 
Diversification Canada under the Western Innovation Initiative (“WINN”). The WINN program offers the Company an interest-
free loan contribution up to a maximum of $412,500. The WINN loan was granted to the Company to assist in the 
commercialization of its selenium removal technology in the resource sector. Under the loan agreement, the Company is 
required to repay the total contribution in 60 equal monthly installments, equal to $6,875 per month, which began April 1, 
2021 and continues until March 1, 2026. The Company’s carrying value of the WINN loan is as follows: 
 
 
Dec. 31, 2024 
Dec. 31, 2023 
 
$ 
$ 
 
 
 
Balance at January 1 
192,500 
268,125 
   Repayments 
(89,375) 
(75,625) 
 
 
 
Ending Balance 
103,125 
192,500 
 
 
 
Less: current portion of WINN loan 
82,500 
82,500 
 
 
 
Non-current portion of WINN loan 
20,625 
110,000 
 
 
 
 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 31 
In 2023, the Company entered into a second loan agreement with Minister responsible for Pacific Economic Development 
Canada under the Business Scale-Up & Productivity Program (“BSP”). The BSP program offers the Company an interest-free 
loan contribution up to a maximum of $1,725,000. The BSP loan was granted to assist the Company to scale-up its water 
treatment plant commissioning capacity, with activities including marketing, and recruiting, hiring, and training of new staff 
for plant commissioning and operation expansion. Under the loan agreement, the Company shall repay the total contribution 
in 60 equal monthly installments commencing on April 1, 2027 until March 1, 2032. The BSP loan will be advanced in multiple 
trenches throughout the program. Cash received under the BSP program are initially recorded at fair value, measured at 
present values  discounted by the effective market interest rate at the time of receipts. The Company’s carrying value of the 
BSP loan is as follows: 
 
 
Dec. 31, 2024 
Dec. 31, 2023 
 
$ 
$ 
 
 
 
Balance at January 1 
119,596 
- 
   Additions 
82,869 
118,120 
   Interest expense on loan 
25,638 
1,476 
 
 
 
Ending Balance, non-current portion of BSP loan 
228,103 
119,596 
 
 
 
Undiscounted value of BSP loan 
449,725 
273,699 
 
 
 
13. LEASES 
The Company recognizes right-of-use assets (note 8) and lease obligations in relation to office, vehicle and equipment leases. 
The assets and liabilities were measured at the present value of the remaining lease payments, discounted using the 
Company’s incremental borrowing rates at the time the leases were assumed or entered into. The incremental borrowing 
rates used are between 12% to 15% and it varies depending on the geographic area of the leases. The total cash outflow for 
leases for the year ended December 31, 2024 was $284,897 ($291,461 in 2023) and the carrying value of lease obligations are 
as follows: 
 
 
Dec. 31, 2024 
Dec. 31, 2023 
 
$ 
$ 
 
 
 
Balance at January 1 
1,605,782 
277,790 
   Additions 
101,206 
1,470,048 
   Adjustments 
(14,032) 
- 
   Interest expense 
194,672 
151,368 
   Payments on interest portion 
(103,832) 
(26,467) 
   Payments on principal portion 
(181,065) 
(264,994) 
   Foreign exchange translation 
6,718 
(1,963) 
 
 
 
Ending Balance 
1,609,449 
1,605,782 
Less: current portion of lease obligations 
158,419 
105,436 
 
 
 
Non-current portion of lease obligations 
1,451,030 
1,500,346 
 
 
 
 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 32 
The Company’s lease expense, which is not included under lease obligations, are as follows: 
 
 
 
 
 
2024
$ 
2023
$ 
Short-term or as low value 
 
 
 
68,293 
82,713 
Leases with variable lease payments 
 
 
 
187,960 
129,293 
 
 
 
256,253
212,006 
 
 
The following is a schedule of the Company’s future lease payments under lease obligations: 
 
Dec. 31, 2024
$ 
2025 
341,088 
2026 
275,222 
2027 
252,114 
2028 
253,205 
2029 
280,588 
2030 – 2034 
1,239,709 
Total undiscounted lease payments 
2,641,926 
Less: imputed interest 
(1,032,477) 
 
Total carrying value of lease obligations 
1,609,449 
 
 
 
14. SHARE-BASED PAYMENT EXPENSES 
The Company’s share-based payment expenses are comprised as follows: 
 
 Dec. 31, 2024 
Dec. 31, 2023 
 $ 
 $ 
Stock options (a) 
76,134 
187,173 
Deferred share units (b) 
229,376 
10,264 
Restricted share units (c) 
711,008 
268,660 
 
 
1,016,518 
466,097 
 
 
a) 
Stock Options 
Under the Company’s Stock Option Plan (the “Plan”), the maximum number of shares reserved for exercise of all stock 
options granted by the Company may not exceed 10% of the Company’s shares issued and outstanding at the time the stock 
options are granted. The exercise price of each stock option granted under the Plan is determined at the discretion of the 
Board at no less than the five-day volume weighted average share price preceding the grant date. Stock options granted 
under the Plan expire no later than the fifth anniversary of the date the options were granted and vesting provisions for 
issued stock options are determined at the discretion of the Board although the Company has a practice of having stock 
options vest over 3 years in equal installments. 
 
 
 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 33 
Movements in the number of stock options outstanding and their related weighted average exercise prices are as follows: 
 
Number 
of options 
Weighted average 
exercise price 
$ 
Balance, January 1, 2023 
90,340 
21.10 
   Exercised 
(3,000) 
8.75 
   Forfeited 
(3,000) 
30.00 
Balance, December 31, 2023 
84,340 
21.22 
   Exercised 
(40,440) 
12.48 
 
Balance, December 31, 2024 
43,900 
29.27 
 
 
As at December 31, 2024, the Company has 27,400 stock options outstanding which were exercisable with a weighted 
average exercise price of $28.84 (51,340 stock options on December 31, 2023 with a weighted average exercise price of 
$15.58). The weighted average market price per common share on the days of exercise during the year ended December 31, 
2024 was $54.39 ($27.50 in 2023). 
 
The expiry date by exercise price at December 31, 2024 and 2023 are as follows: 
 
Exercise 
price 
Expiry Date 
No. of outstanding 
share options, 
Dec. 31, 2024 
No. of exercisable 
share options, 
Dec. 31, 2024 
No. of outstanding 
share options, 
Dec. 31, 2023 
No. of exercisable 
share options, 
Dec. 31, 2023 
$8.75 
January 8, 2025 
1,500 
1,500 
34,840 
34,840 
$30.00 
April 22, 2027 
42,400 
25,900 
49,500 
16,500 
 
 
b) 
Deferred Share Units 
The Company implemented a deferred share unit (“DSU”) plan pursuant to which DSUs may be granted to management and 
non-employee members of the Board of Directors on an annual basis. The number of DSUs granted to a participant is 
calculated by dividing: (i) a specified dollar amount of the participant’s compensation amount paid in DSUs in lieu of cash by 
(ii) the five-day volume weighted average trading price of the shares of the Company traded through the facilities of the 
Toronto Venture Exchange on the trading days immediately preceding the date of grant. Each DSU entitles the holder to 
receive a cash payment equal to the five-day volume weighted average trading price of the shares preceding the date of 
redemption. The DSUs vest immediately upon issuance and may only be redeemed on the date a holder ceases to be a 
participant under the plan, with payment no later than December 31 of the following calendar year. 
 
 
 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 34 
As the Company is required to settle this award in cash, it records these awards as a liability and a corresponding charge, 
along with subsequent changes to the fair value of the liability to share-based payment expense. The DSU is fair valued at 
each reporting date based on the five-day volume weighted average price of the Company’s common shares. The following 
table presents the changes to the DSU plan: 
 
Number of 
units 
Value
$ 
Balance, January 1, 2023 
10,574 
311,933 
   Fair value adjustment 
(2,737) 
(85,449) 
   Redeemed 
- 
10,264 
Balance, December 31, 2023 
7,837 
236,748 
   Fair value adjustment 
- 
229,376 
 
Balance, December 31, 2024 
7,837 
466,124 
 
 
c) 
Restricted Share Units 
The Company implemented a restricted share unit (“RSU”) plan pursuant to which RSUs may be granted to the officers and 
employees of the Company. Under this plan, notional RSUs are granted and vest annually over a three-year term in general or 
otherwise as determined by the Board. Upon vesting, the Company will settle the RSUs immediately in cash, with payment 
equal to the five-day volume weighted average trading price of the number of RSUs held preceding the date of redemption. 
The RSU plan was amended by the Board of Directors on January 8, 2020. Under the new amendment, any unvested RSUs 
shall be forfeited upon separation of employment with the Company.  
 
RSUs granted are accounted for and fair valued by recognizing share-based payment expenses on a straight-line basis over 
the vesting period. The fair value per RSU on grant date was determined based on the five-day volume weighted average 
price of the Company’s share price on the day of grant. The initial fair values determined upon each grant date between 
January 1, 2023 and December 31, 2024 are as follows: 
 
Grant date 
Number of 
RSUs 
Fair value
$ 
   April 27, 2023 
3,651 
109,843 
   September 20, 2023 
847 
25,003 
   April 25, 2024 
11,144 
575,365 
 
 
 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 35 
The following table presents the changes to the RSU plan: 
 
Number of 
units 
Value
$ 
Balance, January 1, 2023 
24,139 
389,016 
   Granted 
4,498 
- 
   Forfeited 
(1,180) 
- 
   Redeemed 
(9,136) 
(279,812) 
   Fair value adjustment 
- 
268,660 
Balance, December 31, 2023 
18,321 
377,864 
   Granted 
11,144 
- 
   Forfeited 
(1,204) 
- 
   Redeemed 
(8,973) 
(376,455) 
   Fair value adjustment 
- 
711,007 
 
Balance, December 31, 2024 
19,288 
712,416 
 
15. SHARE CAPITAL 
 
a) Authorized 
An unlimited number of common shares, without nominal or par value. 
 
b) Normal Course Issuer Bid (NCIB) 
In 2022, the Company obtained the approval of the TSX Venture Exchange to commence a NCIB to repurchase for 
cancellation over a 12-month period starting on December 12, 2022. On December 6, 2023, the Company renewed the NCIB 
to repurchase for cancellation up to 62,351, representing 5% of common shares issued and outstanding, over a 12-month 
period starting on December 13, 2023. On December 9, 2024, the Company again renewed the NCIB for a 12-month period 
starting on December 14, 2024 to repurchase for cancellation up to 64,120, representing 5% of common shares issued and 
outstanding. In 2024, no common shares were purchased and cancelled under the NCIB (13,300 common shares at a 
weighted average price per share of $28.40 in 2023). Subsequent to the reporting year, between January 1, 2025 to April 24, 
2025, the Company purchased 500 common shares for cancellation under the NCIB. 
 
c) Earnings Per Share 
The calculation of earnings per share for the year ended December 31, 2024 and 2023 are as follows:  
 
2024 
2023 
 $ 
 $ 
Net income 
4,804,559 
2,653,177 
 
 
 
Basic weighted average number of shares outstanding 
1,270,211 
1,251,284 
Dilution of securities (effect of stock options) 
12,079 
23,509 
 
Diluted weighted average number of shares outstanding 
1,282,290 
1,274,793 
 
Earnings per share: 
Basic 
3.78 
2.12 
 
Diluted 
3.75 
2.08 
 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 36 
16. FINANCE INCOME 
The net of finance income is comprised as follows: 
 
2024 
2023 
$ 
$ 
Finance income 
325,043 
357,602 
Interest expense 
(220,384) 
(153,173) 
104,659 
204,429 
 
 
17. EXPENSES BY NATURE 
2024 
2023 
$ 
$ 
Operating expenses (excluding depreciation) 
 
Employee benefits 
6,857,491 
6,378,215 
Consulting and contractor expenses 
717,208 
1,368,292 
Travel expenses 
796,906 
1,043,324 
Raw materials and consumables used 
232,576 
140,670 
Other expenses 
164,712 
144,346 
 
8,768,893 
9,074,847 
 
 
 
General and administration 
 
Employee benefits 
1,421,596 
1,360,546 
Consulting and contractor expenses 
776,814 
522,218 
Insurance expenses 
425,204 
395,063 
Rental expenses 
220,015 
149,894 
Travel expenses 
74,025 
73,160 
Director fees 
89,912 
78,400 
Other expenses 
164,759 
147,653 
 
3,172,325 
2,726,934 
 
 
 
Sales and development 
 
Employee benefits 
2,540,886 
2,039,223 
Consulting and contractor expenses 
177,143 
151,334 
Travel expenses 
188,816 
207,181 
Rental expenses 
36,238 
62,113 
Other expenses 
188,300 
195,509 
3,131,383 
2,655,360 
 
For the year ended December 31, 2024, the Company has expenses from employee benefits of $10,819,973 ($9,777,984), 
which is included in operating expenses (excluding depreciation), general and administration, and sales and development. 
 
 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 37 
18. INCOME TAXES 
Income tax expense differs from that computed by applying the applicable Canadian federal and provincial statutory rate of 
27% (2023 – 27%) before taxes as follows: 
 
2024 
2023 
 $ 
 $ 
Expected income tax expense at statutory rates 
952,835 
767,987 
Non-taxable income 
(647,694) 
(63,411) 
Withholding tax 
81,373 
182,354 
Functional currency adjustments and other 
(181,646) 
(13,064) 
Different statutory tax rates on foreign subsidiaries 
(59,019) 
26,865 
Change in unrecognized deferred tax assets 
(1,421,390) 
(709,510) 
Income tax (recovery) expense 
(1,275,541) 
191,221 
 
 
 
2024 
2023 
$ 
$ 
Current tax expense 
101,459 
191,221 
Deferred tax recovery 
(1,377,000) 
- 
Income tax (recovery) expense 
(1,275,541) 
191,221 
 
 
The Company’s unrecognized deductible temporary differences and non-capital losses at December 31, 2024 and 2023 are as 
follows: 
 
2024 
2023 
 $ 
 $ 
Canada 
 
 
Property and equipment 
890,166 
532,513 
Net capital losses 
16,113,423 
8,056,712 
Non-capital losses 
16,943,492 
24,596,264 
Deferred benefits and others 
2,714,813 
2,137,564 
 
36,661,894 
35,323,053 
 
 
 
 
Foreign Jurisdictions 
 
 
Property and equipment 
172,890 
334,209 
Unrealized foreign exchange loss 
1,082,059 
346,754 
Non-capital losses 
1,571,430 
1,474,209 
Other 
230,732 
53,562 
 
3,057,111 
2,208,734 
Total unrecognized deductible temporary differences 
39,719,005 
37,531,787 
 
 
 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 38 
As at December 31, 2024, the Company has recognized deferred income tax assets of $1,377,000 ($nil in 2023) related to 
non-capital losses in Canada. During the year ended December 31, 2024, the change in deferred income taxes was 
$1,377,000 ($nil in 2023) and is included in income tax recovery on the consolidated statements of income and 
comprehensive income. 
 
No deferred tax liability has been recognized at December 31, 2024 on temporary differences associated with earnings 
related in the Company's investment in joint ventures in which it has an equity percentage. The Company is able to control 
the timing of the reversal of these differences and currently has no plans in the foreseeable future to repatriate any funds in 
excess of its investment. 
 
The Company has non-capital loss carryforwards of approximately $22,043,493 (2023: $24,596,264) which may be carried 
forward to apply against future year income tax for Canadian income tax purposes, subject to the final determination by 
taxation authorities, expiring in the following years: 
 $ 
2026 
330,979 
2027 
- 
2028 
- 
2029 
1,990,067 
2030 
965,964 
2031 - 2039 
18,756,483 
22,043,493 
 
In addition, the Company has available tax losses in other jurisdictions that total $1,571,430 ($1,474,209 in 2023). These 
losses can be carried forward to offset against future taxable income in those jurisdictions with expiry periods from 5 years to 
indefinitely, with losses of $664,687 beginning to expire in 2025. 
 
 
19. SUPPLEMENTAL CASH FLOW INFORMATION 
Supplemental cash flow information (included within operating activities) is as follows: 
 
2024 
2023 
Change in non-cash working capital items 
 $ 
 $ 
Changes in trade and other receivables 
(12,125) 
(1,567,042) 
Changes in restricted cash 
- 
172,364 
Changes in prepaids and other assets 
(675,444) 
(105,540) 
Changes in trade payable and accrued liabilities 
409,972 
(2,049) 
Changes in deferred revenues 
1,488,071 
(512,562) 
Changes in deferred benefits and other liabilities 
(372,679) 
(503,635) 
Change in non-cash working capital items 
837,795 
(2,518,464) 
 
 
 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 39 
20. COMMITMENTS 
Commitments under lease obligations are detailed in note 13. The Company has non-lease obligation commitments of 
$2,494,658 for operating cost for office premises, short-term apartment rentals, and for laboratory assay services, as follows: 
 
 $ 
2025 
416,973
2026 
376,386
2027 
376,386
2028 
211,986
2029 
211,986
2030 - 2034 
900,941
2,494,658
 
21. REVENUE 
The Company monetizes the value of its intellectual property and expertise primarily through the services of long-term 
operations and maintenance of water treatment plants to generate recurring revenue. As the period between the 
identification of new projects and treatment plants entering their operating phase can be lengthy, the Company also 
generates revenues from technical services relating to water management that are project specific and generally non-
recurring in nature. 
 
a) 
Disaggregation of Revenue 
The Company functions as providers of operational services of water treatment plants and as providers of technical services 
relating to water management. The Company disaggregates revenues from contracts with customers into operations 
contracts and technical services contracts.  
 
Operations contracts are when the Company is appointed to operate water treatment plants and to provide operations 
support for a customer. Operations contracts generate recurring revenue for the Company, which is either based on an 
agreed upon tolling fee for water treated and discharged into the environment or based on a fixed monthly or quarterly 
operation support fee, or a combination of the two. 
 
Technical services contracts are when the Company is appointed to provide water management consulting services and 
technical innovation services to its customers. Such services include feasibility & assessment studies, toxicity investigation, 
process engineering design, plant commissioning, plant optimization, laboratory treatability assessments and field pilot 
demonstrations. Depending on the need of the customer or the project requirements, technical services contracts may be in 
the form of a fixed fee contract or a time-and-material contract. 
 
The disaggregated revenue of the Company are as follows: 
 
2024 
2023 
 $ 
 $ 
Operations contracts 
10,482,993 
8,278,022 
Technical services contracts 
6,695,329 
9,858,982 
17,178,322 
18,137,004 
 
 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 40 
b) 
Remaining Performance Obligations 
As at December 31, 2024, the aggregate amount of the transaction price of ongoing contracts allocated to remaining 
performance obligations is $7,188,750, compared to $465,196 as at December 31, 2023. The remaining performance 
obligations of the Company are expected to be fully completed in the 12 months following the reporting date. The value of 
remaining performance obligations does not include amounts for non-contracted future services or for estimated future work 
orders where the value of work is not specified. Therefore, the Company’s anticipated future work to be performed at a given 
time is greater than what is reported as remaining performance obligations. 
 
c) 
Changes in Contract Assets 
The Company’s contract assets are grouped within trade and other receivables (note 5), and the changes in contract assets 
are as follows: 
 
 
2024 
2023 
 
$ 
$ 
Contract assets, beginning of the year 
506,866 
715,237 
Amounts invoiced included in the beginning balance 
(389,987) 
(715,237) 
Net increase in contract assets recognized 
823,389 
506,866 
 
 
 
Contract assets, end of the year 
940,268 
506,866 
 
 
d) 
Changes in Deferred Revenue 
The Company’s changes in deferred revenue are as follows: 
 
 
2024 
2023 
 
$ 
$ 
Deferred revenue, beginning of the year 
207,594 
719,779 
Revenue recognized included in the beginning balance 
(170,844) 
(529,535) 
Net increase in deferred revenue recognized 
1,659,205 
17,350 
 
Deferred revenue, end of the year 
1,695,955 
207,594 
 
 
 
Less: Non-current portion of deferred revenue 
(141,870) 
(170,244) 
 
Current portion of deferred revenue 
1,554,085 
37,350 
 
 
 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 41 
22. SEGMENTED INFORMATION 
Segmented information is reviewed by the Company’s chief decision maker to assess performance and allocate resources 
within the Company. The Company has one operating segment, principally being an integrated water management services 
and treatment solutions provider. The Company functions as a provider of operational services of water treatment plants and 
as providers of technical services relating to water management. 
 
a) 
Geographic Information 
The Company primarily generates revenue in North America and from other countries. The Company’s revenue by geographic 
location, presented based on the location in which the sale originated from, is as follows: 
 
2024 
2023 
 $ 
 $ 
Revenue 
Canada 
8,080,262 
6,276,818 
USA 
7,818,471 
8,330,613 
China 
825,218 
1,141,626 
Latin America 
427,522 
2,387,947 
Other 
26,849 
- 
17,178,322 
18,137,004 
 
 
The Company’s non-current assets, excluding non-current deposits and deferred income tax assets, by location of assets are 
as follows: 
 
 Dec. 31, 2024 
 Dec. 31, 2023 
 $ 
 $ 
Canada 
2,250,864 
2,000,758 
USA 
50,596 
92,215 
China 
6,046,976 
4,001,369 
8,348,436 
6,094,342 
 
 
b) 
Information about Major Customers 
The following table presents revenue for individual customers exceeding 10% of annual revenue for the year ended 
December 31, 2024 and 2023: 
 
2024 
2023 
 $ 
 $ 
Customer A 
2,168,681 
2,200,877 
Customer B 
6,530,194 
6,654,814 
Customer C 
1,183,299 
2,080,762 
Customer D 
2,400,106 
- 
 
Total 
12,282,280 
10,936,453 
 
Represents percentage of total revenue for the year 
71% 
60% 
 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 42 
23. CAPITAL MANAGEMENT 
The Company’s capital management objectives are to ensure that the Company has the financial capacity to support its 
current and anticipated volume and geographical mix of business, to manage unforeseen operational and project 
requirements, and to provide its investors with maximum long-term returns on equity. 
 
In the management of capital, the Company defines capital as shareholder’s equity and non-current liabilities, which includes 
loans, lease obligations, and deferred revenues. In order to facilitate the management of its capital requirements, the 
Company prepares annual budgets, which are approved by the Board of Directors annually. Working capital is total current 
assets less total current liabilities. As a component of working capital, the Company maintains balances of cash, which are 
intended to cover current liabilities. To maintain or adjust its capital structure, the Company may issue new shares, purchase 
shares for cancellation pursuant to a normal course issuer bid, raise additional debt financing or refinance existing debt with 
different characteristics. There were no changes in the Company’s approach to capital management during the year. 
 
The amounts of shareholders’ equity, working capital and non-current liabilities at December 31, 2024 and 2023 as are 
follows: 
 
2024 
2023 
 $ 
 $ 
Shareholders’ equity 
20,528,892 
14,775,817 
Working capital 
12,592,881 
10,529,457 
Non-current liabilities 
1,841,628 
1,900,186 
 
 
24. FINANCIAL RISK MANAGEMENT 
The Company’s activities expose it to various risks, including credit risk, market risks such as foreign currency risk, liquidity 
risk, and commodity price risk. The Company’s risk management activities are designed to mitigate possible adverse effects 
on the Company’s performance, having regard for the size and scope of the Company’s operations, with a primary focus on 
the preservation of capital. Risk management activities are managed by the Company’s finance and accounting department, 
with oversight from the Board of Directors. The Company’s risk management policies and procedures have not changed from 
2023. 
 
a) 
Credit Risk 
Credit risk is the risk of financial loss if a counterparty to the Company’s financial instruments fails to meet their contractual 
obligations. The Company’s financial assets are primarily comprised of cash and cash equivalents, and trade and other 
receivables, including contract assets and excluding taxes receivable. Credit risk is primarily associated with trade and other 
receivables; however, it also arises on cash and cash equivalents.  
 
The Company’s maximum exposure to credit risk is as follows: 
 
 Dec. 31, 2024 
Dec. 31, 2023 
 $ 
 $ 
Cash and cash equivalents 
11,771,214 
7,927,603 
Trade and other receivables (exclude tax receivable) 
4,462,710 
4,374,275 
16,233,924 
12,301,878 
 
 
The Company invests its cash and cash equivalents with the objective of maintaining safety of principal and providing 
adequate liquidity to meet all current payment obligations. The cash and cash equivalents are held with bank and financial 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 43 
institution counterparties with high credit quality as assessed by reputable rating agencies. The Company considers that its 
cash and cash equivalent are subject to minimal credit risk based on the external credit ratings of the counterparties. 
 
The Company transacts with customers with strong credit ratings and strives to minimize credit risk by performing credit 
reviews, ongoing credit evaluation and account monitoring procedures. The definition of receivables that are past due is 
determined by reference to terms agreed upon with individual customers, typically ranging between 15 to 60 days. The credit 
risk associated with trade receivables and contract assets with aging balances over 90 days is considered higher than normal. 
The aging of trade and other receivables is as follows: 
 
Dec. 31, 2024 
Dec. 31, 2023 
 0-30
days 
31-90
days 
 Over 90
days 
Total 
Total 
 $ 
 $ 
 $ 
 $ 
 $ 
Trade and other receivables 
(exclude tax receivable) 
2,217,936 
1,029,905 
1,214,869 
4,462,710 
4,374,275 
 
 
Collection of the Company’s trade receivables over 90 days is reasonably assured since approximately 98% of trade 
receivables as of December 31, 2024 has been collected subsequent to the reporting period (96% in 2023). Aside from those 
mentioned below, no trade receivables have been challenged by the respective customers and are considered for 
impairment. The Company continues to conduct business with its existing customers on an ongoing basis.  
 
The Company uses a historical 3-year trend and future expectations to make estimates on expected credit losses. The 
Company’s changes in allowance for expected credit loss for the year ended December 31, 2024 and 2023 are as follows: 
 
 
 Dec. 31, 2024 
Dec. 31, 2023 
 $ 
 $ 
Allowance for expected credit loss, beginning of the year 
(1,788) 
- 
Net remeasurement of expected credit loss 
(14,237) 
(474,900) 
Amounts written off 
- 
473,112 
Allowance for expected credit loss, end of the year 
(16,025) 
(1,788) 
 
Amounts written off during the year ended December 31, 2023 were primarily related to a trade receivable from a Yukon-
based customer. The customer ceased their operations at the mine site in May 2023 and the government later appointed a 
receiver for certain mining assets at site. The amounts written off during 2023 are still subject to enforcement activity.   
 
b) 
Currency Risk 
The Company conducts business in Canada, United States, Mexico, Chile and China. As a result, the Company has foreign 
currency exposure with respect to items not denominated in Canadian dollars. The two main types of foreign exchange risk 
for the Company can be categorized as follows: 
 
i) 
Transaction Exposure 
The Company’s operations sell mainly services and incur costs in different currencies. This creates exposure at the 
operational level, which may affect the Company’s profitability as exchange rates fluctuate. The Company has not hedged its 
exposure to currency fluctuations. 
 
ii) Foreign Exchange Exposure 
The Company is exposed to currency risk through the following assets and liabilities denominated in currencies other than 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 44 
the Canadian dollar: cash and cash equivalents, trade and other receivable excluding tax receivable, and trade payable and 
accrued liabilities excluding tax payable. The currencies of the Company’s financial assets and liabilities exposed to currency 
risk, based on notional amounts and presented in CAD, were as follows: 
 
 
 
December 31, 2024 
U.S. 
Mexican 
Chilean 
Chinese 
 dollar 
 peso 
 peso 
 RMB 
Cash and cash equivalents 
2,585,449 
32,932 
23,199 
478,829 
Trade and other receivables (exclude tax) 
1,358,313 
- 
15,397 
527,996 
Trade and other payables (exclude tax) 
(199,853) 
30,644 
(426,832) 
(97,373) 
 
Gross balance sheet exposure 
3,743,909 
63,576 
(388,236) 
909,452 
 
 
 
 
December 31, 2023 
U.S. 
Mexican 
Chilean 
Chinese 
 dollar 
 peso 
 peso 
 RMB 
Cash and cash equivalents 
1,085,117 
26,393 
510,378 
225,906 
Trade and other receivables (exclude tax) 
2,834,344 
159 
22,990 
624,120 
Trade and other payables (exclude tax) 
(52,814) 
19,002 
(422,985) 
(4,308) 
 
Gross balance sheet exposure 
3,866,647 
45,554 
110,383 
845,718 
 
 
A 10% strengthening (weakening) of the Canadian dollar against the following currencies would have decreased (increased) 
the Company’s net income from its financial instruments presented by the amounts shown below. 
 
2024 
2023 
 $ 
 $ 
U.S. dollar 
374,391 
386,665 
Mexican peso 
6,358 
4,555 
Chilean peso 
(38,824) 
11,038 
Chinese RMB 
90,945 
84,572 
432,870 
486,830 
 
c) 
Liquidity Risk 
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company 
currently settles its financial obligations from cash and cash equivalents. The ability to do this relies on the Company 
collecting its trade and other receivables in a timely manner and maintaining sufficient cash in excess of anticipated needs. As 
of December 31, 2024, the Company has working capital of $12,592,881 ($10,529,457 as of December 31, 2023). To further 
improve the Company’s access to liquidity, there are credit facilities available with the Royal Bank of Canada including credit 
card facilities of approximately $70,000 and a revolving demand credit facility of $1,000,000. As of December 31, 2024 and 
2023, the revolving demand credit facility remains undrawn. The Company believes that it has access to sufficient funding 
through its cash to meet its foreseeable operating requirements without the use of the credit facility. 
 
The following table shows the contractual maturities of financial liabilities at the reporting date. The amounts presented are 
gross undiscounted, and include contractual principal and interest payments, and therefore, do not equate to the carrying 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 45 
amounts on the consolidated statements of financial position. 
 
Dec. 31, 2024 
Dec. 31, 2023 
< 1 year 
1 to 3 years 
> 3 years 
Total 
Total 
 $ 
 $ 
 $ 
 $ 
 $ 
Trade payable and other payables 
(excludes tax payable) 
1,687,224 
- 
- 
1,687,224 
1,316,107 
Deferred benefits 
1,178,540 
- 
- 
1,178,540 
614,612 
Loans 
82,500 
88,084 
382,266 
552,850 
466,199 
Lease obligations 
341,088 
527,336 
1,773,502 
2,641,926 
2,825,015 
 
3,289,352 
615,420 
2,155,768 
6,060,540 
5,221,933 
 
Taking into consideration the Company’s current cash position, volatile equity markets, global uncertainty in the capital 
markets and increasing cost pressures, the Company continues to review expenditures to ensure adequate liquidity. A period 
of extended depression in the mining industry, as the Company’s main customer base, may necessitate the Company to seek 
financing opportunities in accordance with its capital management strategy (note 23). 
 
d) 
Price Risk 
The Company’s net income and financial condition are subject to price risk due to fluctuations of the following:  
 
i) 
Commodity Price Risk 
The profitability of the Company’s investment in JCC-BQE joint venture will be significantly affected by changes in the 
commodity price of recovered base metals being sold by the joint venture of the Company. Copper and zinc prices fluctuate 
on a daily basis and are affected by numerous factors beyond the Company’s control. The supply and demand for copper and 
zinc, the level of interest rates, the rate of inflation, investment decisions by large holders of base metals, including 
governmental reserves, and the stability of exchange rates can all cause significant fluctuations in metal prices. A 10% change 
in base copper and zinc prices would impact the Company’s net income or loss before taxes and other comprehensive income 
or loss before taxes by $762,127 in 2024 ($437,642 in 2023). 
 
ii) Common Stock Price Risk 
The Company is subject to price risk for changes in the Company’s common stock price per share. The Company has 
implemented, as part of its long-term incentive plan, the DSU and RSU plans that the Company is required to satisfy in cash. 
The Company considers the plans a financial liability and are required to fair value the outstanding liabilities with the 
resulting changes included in stock-based compensation expense in each reporting period: an increase in share unit award 
prices would decrease the Company’s net income or loss. A 10% change in common stock prices would impact the Company’s 
net income or loss before taxes and other comprehensive income or loss before taxes by $160,851 in 2024 ($77,192 in 2023). 
 
 
 

 
BQE WATER INC. 
 
Notes to the Consolidated Financial Statements 
For the years ended December 31, 2024 and 2023 
2024 Consolidated Financial Statements 
 
 
 
pg. 46 
25. FAIR VALUE MEASUREMENT 
The Company defines fair value as 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. In assessing the fair value of a particular contract, the 
market participant would consider the credit risk of the counterparties to the contract. Consequently, when it is appropriate 
to do so, the Company adjusts the valuation models to incorporate a measure of credit risk. Fair value represents 
management’s estimates of the current market value at a given point in time. 
 
The Company’s financial assets and liabilities by category and information about financial assets and liabilities in the 
consolidated statements of financial position are classified and measured as follows: 
 
 
 
 
 Dec. 31, 2024 
 Dec. 31, 2023 
Category 
 $ 
 $ 
Financial assets 
 
Cash and cash equivalents 
Financial assets at amortized cost 
11,771,214 
7,927,603 
Trade and other receivables 
(excludes tax receivable) 
 
Financial assets at amortized cost 
4,462,710 
4,374,275 
 
 
Financial liabilities 
 
 
Trade payable and other payables 
(excludes tax payable) 
 
Financial liabilities at amortized cost 
1,687,224 
1,316,107 
Loans 
Financial liabilities at amortized cost 
331,228 
312,096 
Lease obligation 
Financial liabilities at amortized cost 
1,609,449 
1,605,782 
Deferred benefits 
Financial liabilities at fair value 
1,178,540 
614,612 
 
 
The carrying values of the financial assets and liabilities at amortized cost presented above other than long-term portion of 
loans and lease obligation approximate their fair values due to the short-term maturities of these instruments. The carrying 
amounts of loans and lease obligation approximate fair values due to prevailing interest rates and the risk characteristics of 
the instruments. The Company has not offset financial assets with financial liabilities. 
 
The fair value hierarchy establishes three levels to classify the significance of inputs to valuation techniques used to measure 
fair value as described in note 3(f). The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority 
to Level 3 inputs. The Company’s deferred benefits, which consist of DSUs and RSUs, are held at fair value, measured by Level 
1 inputs based on quoted stock prices. There were no transfers between Levels 1, 2 and 3 during the years ended December 
31, 2024 and 2023. The Company’s policy is to recognize transfers into and transfers out of fair value hierarchy levels as of 
the date of the event or change in circumstances that caused the transfer.   
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Management’s Discussion and Analysis 
 
 
For the years ended December 31, 2024 and 2023 
 
 

 
 
2024 Management’s Discussion and Analysis 
 
 
pg. 2 
 
MANAGEMENT’S DISCUSSION AND ANALYSIS 
 
The following Management’s Discussion and Analysis (“MD&A”) provides information that management believes is relevant 
to an assessment and understanding of our consolidated results of operations and financial condition. Management of the 
Company have prepared this document in conjunction with their broader responsibilities for reasonable assurance 
regarding the reliability of the financial reporting and the establishment and maintenance of adequate information systems 
and internal controls to ensure that the financial information is complete and reliable. Management also believes that any 
internal controls and procedures for financial reporting, no matter how well conceived and operated, can provide only 
reasonable, not absolute, assurance that the objectives of the control systems are met. The Audit Committee of the Board 
of Directors, consisting of independent directors, has reviewed this document and all other publicly reported financial 
information, for integrity, usefulness, reliability and consistency. 
 
This 2024 MD&A should be read in conjunction with our audited consolidated financial statements for the year ended 
December 31, 2024, under IFRS Accounting Standards (“IFRS”) as issued by the International Accounting Standards Board 
(“IASB”) and interpretations of the IFRS Interpretations Committee (“IFRIC”). All financial information in this MD&A is 
derived from the Company’s Financial Statements, prepared on a going concern basis, which presumes the realization of 
assets and discharge of liabilities in the normal course of business operations for the foreseeable future. Our accounting 
policies are described in Note 3 of our audited consolidated financial statements. All financial information is presented in 
Canadian dollars (the presentation currency of the Company’s consolidated financial statements) and all tabular amounts 
are in $000s, unless otherwise noted. This MD&A has been prepared as at April 24, 2025.   
 
Certain statements contained in the MD&A constitute forward-looking statements. Such forward-looking statements 
involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, 
performance or achievements of the Company to be materially different from any future results, performance or 
achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance 
on these forward-looking statements, which speak only as of the date the statements were made, and readers are advised 
to consider such forward-looking statements in light of the risks 
 
OUR BUSINESS 
BQE Water Inc. (“BQE Water” or the “Company”) is helping to make the mining and metallurgical industry more 
environmentally sustainable and profitable by implementing innovative water management and treatment solutions that 
support and improve operations in this sector. Central to our business model, BQE Water produces clean water and stable 
residues or saleable by-products, and we monetize the value of our unique process know-how through recurring revenues 
generated from plant operations services. 
 
BQE Water is headquartered in Vancouver, British Columbia, Canada. The Company has regional offices in Chile and China, 
which are two key geographical markets for our business. The Company has been in operation for over 25 years and draws 
upon the extensive experience to deliver exceptional operational and technical services. BQE Water is listed on the TSX 
Venture Exchange under the symbol “BQE”. Additional information may be found on our website at www.bqewater.com 
and on SEDAR+ at www.sedarplus.ca. 
 
 
 

 
 
2024 Management’s Discussion and Analysis 
 
 
pg. 3 
 
OUR STRATEGY 
The Company’s strategy is to apply our unique expertise and intellectual property (“IP”) related to the treatment of mine 
water and metallurgical bleed streams to help clients minimize their life cycle costs and risks associated with water. 
Additionally, we recognize that sustained growth and the financial success of our business are linked to ongoing innovation 
and the expansion of our IP portfolio, activities we are actively engaged in through our own operations and through 
inquiries from clients evaluating new projects. 
 
The Company monetizes the value of its IP and expertise through services that span the full life cycle of mining projects 
from pre-permitting to post-closure. The Company’s primary service is the long-term operation of water treatment plants, 
designed by our team, to generate recurring revenues linked to plant performance. As the period between the 
identification of new projects and treatment plants entering their operating phase can be lengthy, we also generate 
revenues from technical services that are project specific and generally non-recurring in nature. As such, our services are 
grouped into two key areas:  
 
Operational Services 
Revenues from operational services provided by the Company are recurring in nature and are earned through water 
treatment fees, support fees or through the sale of recovered base metals. Water treatment fees are either based on an 
agreed upon tolling for water treated and discharged into the environment or based on a fixed monthly or quarterly fee, or 
a combination of the two. Support fees are earned for the Company’s expertise linked to operational targets and delivered 
through supervisory and ongoing operational support services. The Company also monetizes the value of its IP through joint 
ventures by sharing in the value of base metals recovered from treating wastewater.  
 
Technical Services 
Technical services provided by the Company can be grouped into consulting and technical innovation services. Consulting 
services help mining companies define water problems, identify opportunities for improving project performance and 
present solutions to address specific water management issues. Such services include feasibility & assessment studies, 
toxicity investigations, process engineering design, construction of water treatment plants, treatment plant commissioning 
and plant optimization. Technical innovation services offer our clients beneficial design and technological improvements 
drawn from our unique knowledge and expertise acquired from ongoing plant operations services. This also provides the 
Company with opportunities to develop new technologies, through either laboratory treatability assessments or field pilot 
demonstrations, based on industry needs. These services allow us to follow projects through the entirety of their 
development and implementation phases, and to provide our clients with recurring operational services. 
 
 
 
 

 
 
2024 Management’s Discussion and Analysis 
 
 
pg. 4 
 
NON-GAAP MEASURES 
The Company uses non-GAAP financial measures to supplement our consolidated financial statements presented in 
accordance with generally accepted accounting principles (IFRS), or GAAP, to enhance overall understanding of the 
Company's current financial performance with investors and observers. Non-GAAP financial measures have limitations in 
that they do not reflect all amounts associated with our operational results as determined in accordance with GAAP. In 
addition, non-GAAP financial measures do not have any standardized meaning prescribed by GAAP and are unlikely to be 
comparable to similar non-GAAP financial measures presented by other companies. Non-GAAP financial measures should 
only be used to evaluate our operational results in conjunction with the corresponding GAAP measures. 
 
Proportional Results 
To provide additional insight into our financial results, certain statements in this MD&A disclose the effective portion of 
results we would have reported if our Chinese joint venture operations had been proportionately integrated and are 
referred to as BQE Water’s proportional share (“Proportional”). All Proportional financial measures disclosed in this MD&A 
are non-GAAP measures. 
 
Proportional Revenues 
This non-GAAP financial measure of Proportional Revenue adds BQE Water’s share of revenues from its China joint ventures 
to the Company’s revenues reported under GAAP. Proportional Revenues for the year ended December 31, 2024 and 2023 
are as follows: 
 
(in $’000s) 
2024 
2023 
 
$ 
$ 
Reported revenues under GAAP 
17,178 
18,137 
Share of revenues from joint ventures in China 
7,620 
4,589 
Proportional Revenues for the year 
24,798 
22,726 
 
Adjusted EBITDA 
Adjusted EBITDA (“earnings before interest, taxes, depreciation and amortization”) is intended to provide additional 
information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures 
presented by other companies. It should not be considered in isolation or as a substitute for measures of performance 
prepared in accordance with IFRS. Consequently, the presentation of Adjusted EBITDA enables shareholders to better 
understand the underlying financial performance of our business through the eyes of management. Adjusted EBITDA 
includes adjustments of the Company’s Proportional share of joint venture results. The following table reconciles this non-
GAAP measure to the most directly comparable IFRS measure of net income: 
 
(in $’000s) 
2024 
2023 
 
$ 
$ 
GAAP: Net income 
4,806 
2,654 
   deduct: interest income 
(92) 
(211) 
   add/deduct: income tax (recovery) expenses 
(757) 
268 
   add: depreciation and amortization 
915 
916 
EBITDA 
4,872 
3,627 
   add: share-based payment expenses 
1,017 
466 
   add/deduct: other (income) 
(96) 
(51) 
   add: bad debt expense 
14 
473 
   add/deduct: net foreign exchange 
(224) 
141 
Adjusted EBITDA 
5,583 
4,656 
 

 
 
2024 Management’s Discussion and Analysis 
 
 
pg. 5 
 
FINANCIAL HIGHLIGHTS 
 
Revenues of $17.2 million in 2024, a decrease of 5% or $959,000 compared to 2023. 
 
Achieved record Proportional Revenues of $24.8 million in 2024, a $2.1 million or 9% increase from 2023. 
 
Net income and earnings per share for the year were $4.8 million and $3.78, compared to $2.6 million and $2.12 in the 
prior year, representing increases of 81% and 78%, respectively. 
 
Adjusted EBITDA was $5.6 million compared to $4.6 million the year prior, a 20% increase. 
 
Increased working capital by $2.1 million, or 20% year-over-year, to $12.6 million as at December 31, 2024. 
 
Grew net cash and cash equivalents by $3.8 million, or 48% year-over-year, to $11.8 million as of December 31, 2024. 
 
Selected financial results for the last 5 years are as follows: 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
2024 Management’s Discussion and Analysis 
 
 
pg. 6 
 
Selected financial results for the 3 and 12 months ended December 31, 2024 are as follows:  
 
(in ’000s) 
3 months ended Dec. 31 
 
12 months ended Dec. 31 
 
2024 
2023 
 
2024 
2023 
 
$ 
$ 
 
$ 
$ 
Revenues under GAAP 
5,088 
5,014 
 
17,178 
18,137 
Proportional Revenues 
5,765 
5,431 
 
24,798 
22,726 
Net income 
1,214 
249 
 
4,806 
2,654 
Adjusted EBITDA 
(2) 
541 
 
5,583 
4,656 
 
 
OPERATIONAL SERVICES HIGHLIGHTS 
Our operational services consist of the operation or technical supervision of water treatment plants, which generate 
recurring revenues from three main sources: sales of recovered metals, water treatment fees and operations support fees. 
The Company’s operations by source of revenue are as follows: 
 
Operations 
Location 
Revenue Source 
JCC-BQE Joint Venture 
Jiangxi province, China 
Sales of recovered metals 
MWT-BQE Joint Venture 
Shandong province, China 
Sales of recovered metals 
Raglan Mine for Glencore 
Northern Québec, Canada 
Water treatment fees 
Minto Mine for Government of Yukon 
Yukon, Canada 
Water treatment fees 
Zhongkuang Metallurgical Facilities for MWT 
Shandong province, China 
Operations support fees 
Zhaojin Metallurgical Facilities for MWT 
Shandong province, China 
Operations support fees 
Power utility ash pond for WesTech 
Eastern USA 
Water treatment fees 
Base metal project for a metal producer 
Southwestern USA 
Water treatment fees 
 
JCC-BQE Joint Venture Operations 
Our 50/50 joint venture with partner Jiangxi Copper Company (“JCC”) operates three water treatment plants at Dexing 
Mine and at Yinshan Mine in Jiangxi province of China. The volume of water treated, and metals recovered by the plants 
fluctuate seasonally depending on precipitation levels in the region. The operating results for the 12 months ended 
December 31, 2024 and 2023 are as follows: 
 
(in ’000s) 
2024 
2023 
Water treated (cubic metres) 
21,842 
19,493 
Copper recovered (pounds) 
2,662 
1,935 
Zinc recovered (pounds) 
1,231 
- 
 
During 2024, all three plants met mechanical availability and process performance set by the Company. The volume of 
water treated increased by 12% year-over-year and the mass of copper recovered increased by 37%. Starting in 2024, the 
Yinshan water treatment plant began to recover zinc as part of their normal operations. Such changes in water volume and 
metal grade in feed water from period to period are largely the result of environmental conditions beyond the control of 
the joint venture.  
 
 

 
 
2024 Management’s Discussion and Analysis 
 
 
pg. 7 
 
MWT-BQE Joint Venture Operations 
Our 20% share of MWT-BQE is with our 80% partner Beijing MWT Water Treatment Project Limited Company (“MWT”) and 
together we operate a water treatment plant at a smelter in Shandong province of China. MWT-BQE generates revenues 
from the sale of zinc and copper recovered from smelter wastewater. The operating results for the 12 months ended 
December 31, 2024 and 2023 are as follows: 
 
(in ’000s) 
2024 
2023 
Water treated (cubic metres) 
296 
285 
Zinc recovered (pounds) 
96 
162 
Copper recovered (pounds) 
50 
49 
 
Copper recovery remained consistent with the previous year, while the mass of zinc decreased by 41%. The smelter 
periodically operated its production lines with ores from different sources which led to varying concentrations of zinc and 
copper in the feed and a fluctuation in the volume of wastewater treated by the plant. The joint venture has no control 
over the composition and volume of feed that flows into the plant. In 2024, the plant operated intermittently to reduce 
costs, as the value of zinc and copper in the feed was lower than the recovery cost of the metals.  
 
BQE Water Operations 
The number of operating days contributing to water treatment or support fees for the 12 months ended December 31, 
2024 and 2023 are as follows: 
 
(in days) 
2024 
2023 
Raglan Mine water treatment plants 
202 
206 
Minto Mine water treatment plant 
96 
312 
Zhongkuang SART plant 
356 
364 
Zhaojin SART plant 
358 
354 
Water treatment plant in Eastern USA 
264 
238 
Water treatment plants in Southwest USA 
365 
363 
 
 
The volume of water treated by geographic location for the 12 months ended December 31, 2024 and 2023 are as follows: 
 
(in ’000s cubic metres) 
2024 
2023 
Raglan Mine water treatment plants 
2,075 
2,218 
Minto Mine water treatment plant 
435 
938 
SART plants in China 
652 
602 
Water treatment plants in USA 
1,566 
168 
 
The Company, with our Inuit partner Nuvumiut Development, operates four water treatment plants at Raglan Mine for 
Glencore Canada Corporation (“Glencore”). From May to December 2024, we mobilized our operations team for the 21st 
operating season at the mine. The total volume of water treated across all four plants at Raglan Mine in 2024 decreased by 
6% compared to 2023.  
 
Since 2022, the Company is contracted with the Yukon Government to treat and discharge clean water at the Minto Mine in 
the Yukon in support of environmental protection. In 2024, our operating season was shortened as we demobilized our 
team in late August to assist with an environmental emergency caused by a heap leach failure at the Eagle Gold Mine in the 
Yukon.   
 
 
In 2021, we began operations of the Zhongkuang SART (sulphidication-acidification-recycling-thickening) plant and the 
Zhaojin SART plant at metallurgical facilities in China. Both plants have been under our technical supervision since the start 
of full production. Both SART plants operated fully throughout 2024 without disruption. 
 

 
 
2024 Management’s Discussion and Analysis 
 
 
pg. 8 
 
In 2022, we began operations of a treatment plant utilizing our Selen-IX™ process in Eastern USA to remove selenium from 
ash pond water for WesTech Engineering (“WesTech”). In 2024, our operations team continued providing water treatment 
services with the Selen-IX™ circuit to manage the presence of selenium in the feed. 
 
In 2022, we completed the commissioning of a treatment plant utilizing a combination of nanofiltration and our proprietary 
selenium electro-reduction process for the simultaneous removal of selenium and sulphate from mine water for a base 
metal project in the American Southwest. In August 2023, our team completed the performance test milestone for a second 
newly constructed selenium removal water treatment plant which entered the operation phase. In 2024, we continued to 
provide water treatment operation services for both Selen-IX™ water treatment plants in the American Southwest. 
 
 
TECHNICAL SERVICES HIGHLIGHTS 
BQE Water’s technical expertise and IP are applicable globally across broad areas of water management. Highlights of some 
of our technical services and technical innovation projects during 2024 are summarized below. 
 
Trusted Advisory Services (Water Management and Water Studies) 
 
Completed the engineering design and began procurement for a water treatment facility to support the clean-up of 
legacy tailings site in the Yukon.  
 
Provided ongoing advisory and water treatment services in response to the environmental emergency caused by a 
heap leach failure at the Eagle Gold Mine in the Yukon.  
 
Completed lab testing and preliminary engineering for selenium removal plant at a new uranium project in 
development in Canada. 
 
Continued plant operations support and engineering services to an actively producing mine requiring improvements to 
their existing treatment in the Yukon.   
 
Completed a field pilot campaign for thiosalts removal at a mine in Eastern Canada. 
 
Continued with engineering services for the design, procurement, and construction of another selenium removal plant 
using BQE’s Selen-IX™ to meet end-of-pipe limit of less than 2 parts per billion at a gold mine in Central US. 
 
Assisted an integrated lead smelter-recycling facility in Eastern Canada with completing upgrades to existing treatment 
system and implementation of new sulphate removal stage to a discharge limit less than 1,500 mg/L and initiated 
operations support for the newly upgraded facility. 
 
Completed the plant automation scope for a new water treatment plant for water recycle at a gold mine in Mexico. 
 
Continued selenium stability test program simulating conditions in semi-passive treatment systems to support holistic 
risk assessment of selenium treatment options for a client based in BC. 
 
Cyanide Management (Destruction and Recycle) 
 
Continued to provide on-site engineering and laboratory services for cyanide removal from impacted water at the Eagle 
Gold Mine in the Yukon and proceeded with a chosen method that best integrates into the emergency temporary 
water treatment at site that targets less than 25 ppb residual cyanide at the end-of-pipe.   
 
Completed the engineering design for a cyanide removal facility requiring the end-of-pipe cyanide concentration below 
8 ppb in the US. 
 
Continued to provide engineering services for Shandong Gold to support the construction of the third SART plant in 
China. 
 
 

 
 
2024 Management’s Discussion and Analysis 
 
 
pg. 9 
 
2024 COMMENTARY AND OUTLOOK FOR 2025 
Our 2024 financial results delivered another set of new highs in several key metrics including year-end Proportional 
Revenue, net income, Adjusted EBITDA, and working capital. Overall, BQE Water’s financial performance in 2024 reflects 
the success of our long-term business strategy, including growing our recurring revenue from water treatment plant 
operations. The Company’s performance can be summarized as follows:  
 
1) Proportional annual recurring revenue of $18.1 million achieved a record high, with $10.5 million in revenue from 
operating treatment fees and $7.6 million from our proportional share of joint venture revenue from the sale of 
recovered metals. Operating fees reached a new record high, while sales of recovered metals returned to their 
long-term mean following a drop in 2023.   
2) Non-recurring technical services revenue decreased by $3.2 million or 32% compared to 2023.  
 
The first point demonstrates the progress we have made in executing our business strategy and confirms the growing 
importance of recurring revenue from water treatment fees in terms of the overall financial performance of the Company. 
It also highlights the upside potential from our exposure to copper and zinc prices associated with metals recovered from 
the joint ventures. 
 
The second point reaffirms that our technical services revenue is lumpy. This lumpiness stems from the unpredictable 
timing and progression of mining projects in general, as well as the wide range of technical services contract values – from 
$30,000 to $3.0 million depending on the stage of the project. Smaller contracts are associated with the earliest stages of a 
mining project. As the project advances, contract values typically increase, culminating in plant commissioning and 
ultimately new operating contracts. While one or two larger short-term technical services contracts can boost our fees in 
any given period, they can also create a temporary drop in fees in subsequent periods. This was the situation in the first half 
of 2024 when we initiated work on multiple new early-stage projects while certain larger contracts had been completed or 
delayed. Earning lower fees from many small contracts remains very valuable for the Company’s long-term strategic 
growth.  
 
Several items in the consolidated financial statements also deserve commentary and explanation: 
 
1) Recorded deferred revenue of $1.6 million under current liabilities on the statement of financial position, primarily 
representing milestone payments from a customer for a major project in the Yukon. This deferred revenue will be 
recognized as technical services revenue in 2025. 
2) Recognition of deferred income tax asset of $1.4 million under non-current assets, which also is included in the 
income tax recovery of $1.3 million. The deferred tax asset stems from the cumulative prior year losses carry 
forward in Canada available to offset future income taxes. The recognition of a deferred tax asset in 2024 is due to 
the Company’s track record of taxable profits over the past few years and management’s forecast of taxable 
profits in the future. We expect the deferred tax asset and matching income tax recovery may increase in the next 
few years before declining as the sum of the total accumulated losses are depleted. 
 
With respect to our outlook for 2025: 
 
We presently have good visibility and certainty over several larger technical services contracts and expect strong results in 
the first half of the year on this front; specifically,  
 
1) Installation and commissioning of the Valley Tailings plant in the Yukon. 
2) Commissioning of the fourth Selen-IX™ plant in the North Central region of the US. 
3) Detailed design of a sulphate removal plant that will subsequently go into construction in BC. 
4) Commissioning of the third SART plant for Shandong Gold in China. 
 
Our operating contract for Minto Mine ended in 2024 and we will not be operating the Minto plant in 2025. The Selkirk First 
Nation has become the key player in deciding next steps, but no clear direction has been set for the future of this project 

 
 
2024 Management’s Discussion and Analysis 
 
 
pg. 10 
 
yet. Our partnership with the Selkirk Development Corporation remains strong and enables us to stay abreast of 
developments that may benefit from our involvement beyond 2025. In the meantime, our Minto operations team is fully 
utilized operating the emergency response water treatment system at the Eagle Gold Mine in the Yukon. This contract is set 
to conclude in June 2025 but may get extended depending on the water situation at site post spring freshet. We anticipate 
that the Eagle project will more than offset the revenue lossfrom Minto in 2025.     
 
We engaged with our customer in the Southwestern US on the renewal and restructuring of our operating contracts for two 
plants on the same site where the operating term was set to expire in 12 to 18 months, respectively. Our contract was 
renewed early for a 5-year term, at a lower monthly fee, as we reduced our scope from full operations to operations 
support. While this may reduce the Company’s revenue from operations in the short term, we are pleased to gain certainty 
and longevity of recurring revenue from these operations over the coming five years. We expect to cover the shortfall in 
2025 with revenue from other projects and then increase recurring revenue from new sites such as those undergoing 
commissioning in 2025.  
 
There has been no immediate impact from trade tariffs on BQE Water since we don’t manufacture goods and/or generate 
profit by exporting or importing goods. Services have so far been exempted from tariffs. Nevertheless, tariffs may create 
economic uncertainty, and this may impact access to funding in the mining sector, which may delay capital projects. The 
drop in global trade may also produce a global economic recession. As a result, we may see a market slowdown, especially 
in some of our projects being developed by junior mining companies. In the medium to long term, the shift towards self-
dependency may produce growth in the mining and metal extraction sector in Canada and the US. Announcements by 
various governments aimed at accelerating permitting and/or allocating direct government support for critical minerals 
projects as well as development of nuclear power generation capacity is an early sign of this. 
  
We live in uncertain times and despite our relatively positive outlook for 2025, we caution readers about the risks that may 
create headwinds for us and our business. These include geopolitical risks with China, weak inflows of capital into the 
mining sector, a global recession, and/or prolonged weakness in commodity prices. For these reasons, we remain focused 
on fiscal prudence and maintaining our working capital at a level that allows us to withstand exogenous impacts and even 
be positioned to take advantage of opportunities. Our strong balance sheet will allow us to navigate the economic 
uncertainties ahead.  
 
 
 
 

 
 
2024 Management’s Discussion and Analysis 
 
 
pg. 11 
 
SELECTED FINANCIAL INFORMATION 
 
(in $’000 except for per share amounts) 
2024 
2023 
2022 
 
$ 
$ 
$ 
Revenues 
17,178 
18,137 
12,158 
Operating expenses (excluding depreciation) 
(8,769) 
(9,075) 
(7,107) 
Gross margin 
8,409 
9,062 
5,051 
 
 
 
 
Share of income from joint ventures 
 
 
2,472 
419 
1,487 
General and administration 
(3,172) 
(2,727) 
(2,464) 
Sales and development 
(3,131) 
(2,655) 
(1,768) 
Share-based payments 
(1,017) 
(466) 
(671) 
Depreciation and amortization 
(439) 
(430) 
(264) 
Income from operations and joint ventures 
3,122 
3,203 
1,371 
 
 
 
 
Other income, net 
422 
115 
108 
Bad debt expense 
(14) 
(473) 
(8) 
Income tax recovery (expenses) 
1,276 
(191) 
(309) 
 
 
 
 
Net income for the year 
4,806 
2,654 
1,162 
 
 
 
 
Earnings per share (basic) 
3.78 
2.12 
0.93 
Earnings per share (diluted) 
3.75 
2.08 
0.92 
 
 
 
 
Proportional Revenues (Non-GAAP measures) 
24,798 
22,726 
18,879 
Adjusted EBITDA (Non-GAAP measures) 
5,583 
4,656 
3,059 
Comprehensive income 
5,174 
2,302 
994 
 
 
 
 
 
 
 
 
 
at Dec 31 
at Dec 31 
at Dec 31 
 
2024 
2023 
2022 
 
$ 
$ 
$ 
Cash and cash equivalents 
11,771 
7,928 
6,234 
Working capital 
12,593 
10,529 
7,165 
Total assets 
27,093 
18,856 
15,988 
Total non-current liabilities 
1,842 
1,900 
555 
Shareholders’ equity 
20,529 
14,776 
12,638 
 
 
 

 
 
2024 Management’s Discussion and Analysis 
 
 
pg. 12 
 
COMPARISON OF QUARTERS 
Financial data for the last eight quarters: 
 
(in $’000s) 
Dec-24 
Sept-24* 
Jun-24 
Mar-24 
Dec-23 
Sept-23 
Jun-23 
Mar-23 
  
$ 
$ 
$ 
$ 
$ 
$ 
$ 
$ 
Revenues   
5,088 
6,165 
3,417 
2,508 
5,014 
6,246 
4,186 
2,691 
Operating expenses 
(3,058) 
(2,497) 
(1,810) 
(1,403) 
(2,260) 
(2,959) 
(2,162) 
(1,694) 
 
2,030 
3,668 
1,607 
1,105 
2,754 
3,287 
2,024 
997 
 
 
 
 
 
 
 
 
 
Share of results from 
 
 
 
 
 
 
 
 
   joint ventures 
(567) 
1,577 
1,129 
332 
(452) 
382 
407 
81 
General and administration  
(810) 
(771) 
(892) 
(700) 
(695) 
(610) 
(750) 
(672) 
Sales and development 
(704) 
(576) 
(928) 
(924) 
(930) 
(555) 
(557) 
(613) 
Share-based payments 
(201) 
(199) 
(343) 
(273) 
(138) 
(109) 
(29) 
(190) 
Depreciation and amortization 
(129) 
(106) 
(103) 
(101) 
(126) 
(111) 
(111) 
(82) 
Income (loss) from operations 
(381) 
3,593 
470 
(561) 
413 
2,284 
984 
(479) 
 
 
 
 
 
 
 
 
 
Other income (expenses), net 
232 
2 
100 
87 
68 
(13) 
(83) 
143 
Bad debt expense 
(14) 
- 
- 
- 
(214) 
- 
(259) 
- 
Income tax recovery (expense) 
1,377 
(78) 
(10) 
(12) 
(18) 
(140) 
(27) 
(6) 
Net income (loss) 
1,214 
3,517 
560 
(486) 
249 
2,131 
615 
(342) 
 
 
 
 
 
 
 
 
 
Translation gain (loss) 
187 
123 
14 
43 
39 
71 
(471) 
10 
Comprehensive income (loss) 
1,401 
3,640 
574 
(443) 
288 
2,202 
144 
(332) 
 
 
 
 
 
 
 
 
 
*Certain revenues and operating expenses, with a net impact of $206,000 to net income, have been restated from Q3 2024 
to Q4 2024. There are no changes to the annual figures. 
 
 
 
 
 
 
 
 
 
Non-GAAP Measures: 
 
 
 
 
 
 
 
 
Proportional Revenue 
5,765 
9,540 
6,083 
3,410 
5,431 
7,964 
5,772 
3,560 
Adjusted EBITDA 
(2) 
4,362 
1,342 
(121) 
541 
2,742 
1,451 
(80) 
 
Quarterly results can fluctuate based on the number of plants operating, variations in the volume and grade of water 
treated, and movements in commodity prices. Seasonality at certain sites also impacts the timing of revenues. Operations 
located at Northern Quebec and in the Yukon will operate in the warmer months, typically from May to October of each 
year. The Company is actively adding new operations that are not affected by seasonality to smooth out the operations 
revenue from period to period. For variations in Proportional Revenue, which includes our share of revenue from the 
Dexing joint venture, metal production typically increases between April and September and declines during the winter 
months due to lower seasonal precipitation and the annual maintenance schedule. Revenues from contracts for technical 
services related to water management and technical innovation projects occur based on the timing of client requirements. 
 
 

 
 
2024 Management’s Discussion and Analysis 
 
 
pg. 13 
 
SUMMARY OF Q4 2024 FINANCIAL RESULTS 
The following is a summary of selected financial results for the three-month periods ended December 31, 2024 and 2023. 
 
Revenues and Proportional Revenues 
The change in Revenues and Proportional Revenues from each revenue source is shown in the table below: 
 
(in $’000s) 
Q4 2024
Q4 2023
Revenue source 
$
% of total
$
% of total
 % Change
Water treatment fees from operations 
2,260
39%
2,843
52%
(21%)
Technical services 
2,828
49%
2,171
40%
30%
Total Revenues 
5,088
5,014
1%
Sale of recovered metals from operations 
677
12%
417
8%
62%
Total Proportional Revenues 
5,765
100%
5,431
100%
6%
 
The Company earns water treatment fee revenues, including monthly fees and tolling fees from the volume of water 
treated and operations support fees, at four different sites including Raglan Mine in Nunavik through our partnership with 
Inuit company Nuvumiut Development, at Minto Mine in the Yukon, and at the three selenium removal plants in the US. 
The $583,000 decrease in water treatment fees in Q4 2024 is due to shorter operating seasons in 2024 at Raglan Mine and 
at Minto Mine, as less water was required for treatment when compared Q4 2023. Our treatment fees earned in the US and 
the operation support fees from the two SART plants in China are comparable with Q4 2023. 
 
Technical services revenues increased by $657,000 in Q4 2024 compared to Q4 2023. These revenues are non-recurring in 
nature and are related to water management services such as treatability assessments, permitting assistance, engineering 
and plant design, construction and commissioning of water treatment plants, laboratory testing and pilot demonstrations. 
These revenues represent the sum of multiple contracts from various clients of varying contract values. During Q4 2024, the 
Company worked on several larger onsite technical support contracts across Canada, namely in the Yukon, Northern BC, 
and in Quebec. 
 
Revenues from the sale of base metals recovered comprise the Company’s share of revenues from its joint ventures in 
China. During Q4 2024, the JCC-BQE joint venture contributed $675,000 to the Company’s Proportional Revenue compared 
to $416,000 in Q4 2023. The 62% increase was due to an approximate 5% increase in the quantity of copper recovered and 
a 41% increase in the average copper price, plus $63,000 of additional revenue attributed to zinc recovered and sold from 
the Yinshan plant. During Q4 2024, the MWT-BQE joint venture was operating intermittently and contributed comparable 
amounts to the Company’s share of Proportional Revenue compared Q4 2023. The share of results from the Chinese joint 
ventures, which is net of cost of sales and expenses, is mostly driven by the sale of metals recovered during the operation 
of water treatment plants and is affected by the amount and market price of metal concentrate sold.   
 
Expenses 
Total operating expenses in Q4 2024 were $3.1 million compared to $2.3 million in Q4 2023, an increase of 35%, which is 
consistent with the resources required for the larger technical support contracts during the quarter. Each individual project 
requires different levels of technical expertise and resources depending on the specific mine conditions and treatment 
solutions. 
 
In Q4 2024, general and administration costs were $810,000 compared to $695,000 in Q4 2023. The $115,000 increase, or 
17%, was mainly due to the $45,000 increase in professional services, along with marginal increases in employee benefits, 
insurance premiums, rent expenses, and travel expenses. 
 
Sales and development costs in Q4 2024 were $704,000 compared to $930,000 in Q4 2023, representing a decrease of 
$226,000 or 24%. The decrease was largely attributable to $134,000 in labor resources allocated to operating expenses to 
fulfill technical services contracts, a $25,000 decrease in travel and event expenses related to business development, and a 
$55,000 decrease in professional services. 
 

 
 
2024 Management’s Discussion and Analysis 
 
 
pg. 14 
 
Income Tax 
During Q4 2024, income tax recovery was $1.4 million compared to an expense of $18,000 in the prior year, mainly due to 
the Company’s recognition of $1.4 million of deferred tax assets for Canadian based unused tax losses from prior years, 
which will be used against probable future taxable profits.  
 
Net Income 
Overall, net income for the quarter was $1.2 million compared to $249,000 in Q4 2023. 
 
 
SUMMARY OF 2024 FINANCIAL RESULTS 
The following is a summary of selected financial results for the years ending December 31, 2024 and 2023. 
 
Revenues and Proportional Revenues 
The change in Revenues and Proportional Revenues from each revenue source is shown in the table below: 
 
(in $’000s) 
2024
2023
Revenue source 
$
% of total
$
% of total
 % Change
Water treatment fee from operations 
10,483
42%
8,278
36%
27%
Technical services 
6,695
27%
9,859
44%
(32%)
Total Revenues 
17,178
18,137
(5%)
Sale of recovered metals from operations 
7,620
31%
4,589
20%
66%
Total Proportional Revenues 
24,798
100%
22,726
100%
9%
 
Water treatment fee revenues increased by $2.2 million or 27% compared to 2023, mainly due to the start of operations of 
a selenium removal plant in the US in August 2023, contributing a total of $2.9 million of additional recurring revenues in 
2024. This increase was partially offset by a $803,000 decrease from Canada based operations. Both the operations at 
Minto Mine and Raglan Mine had shorter operating seasons due to lower temperatures and with less water requiring 
treatment when compared to 2023. In 2024, we continued to earn support fees in our SART plants in China totaling 
$718,000 compared to $719,000 from the prior year.  
 
Revenues from technical services decreased by $3.2 million in 2024 compared to 2023. The 32% decrease is due to a 
reduction in project scope during 2024, as most of the projects completed or processed in 2024 are in their earlier stages, 
compared to several late-stage projects completed in 2023, which included commissioning activities in the US and two pilot 
demonstrations in Chile. 
 
Revenues from the sale of base metals recovered comprises the Company’s share of revenues from joint ventures in China. 
During 2024, our share of revenues from the JCC-BQE joint venture was $7.6 million compared to $4.4 million in 2023, 
representing a $3.2 million or 74% increase. This increase was attributable to a 37% increase in the quantity of copper 
recovered and a 12% increase in the average copper price during the period, compounded by $863,000 of additional 
revenue arising from the recovery and sale of zinc at the Yinshan plant in 2024. The share of revenues from the MWT-BQE 
joint venture was $3,000 in 2024 compared to $212,000 in 2023. While the treatment plant was recovering traces of zinc 
and copper in 2024, majority of the inventory was not sold as at December 31, 2024. The Company’s share of income from 
joint ventures in 2024, which includes the above noted sale of recovered metals from operations, partially offset by cost of 
sales and expense, was $2.5 million compared to $418,000 in 2023, an increase of $2.1 million. The change in net result 
from joint ventures are predominantly driven by the sale of metals recovered during the operation of water treatment 
plants in China and is affected by the amount and market price of metal concentrate sold.   
 
Operating Expenses 
Total operating expenses in 2024 were $8.8 million compared to $9.1 million in 2023, a decrease of $306,000. The 3% 
decrease in operating expenses is primarily attributable to the mix of operations services and project activity related to 
technical services completed in the year, as each operation site and individual project calls for varying levels of technical 

 
 
2024 Management’s Discussion and Analysis 
 
 
pg. 15 
 
expertise and resources depending on the specific mine conditions and treatment needs. During 2024, the Company’s gross 
margin ratio was 49% compared to 50% in 2023. 
 
Expenses 
General and administration expenses in 2024 were $3.2 million compared to $2.7 million in 2023, representing a $445,000 
or 16% increase. The increase was attributable to a $257,000 increase in professional services, $71,000 increase in 
employee benefits, and a $100,000 increase in rent expense and insurance premiums for the year. 
 
Sales and development costs in 2024 were $3.1 million compared $2.7 million in 2023, an increase of 18%. The $476,000 
increase was largely attributed to a $502,000 increase in employee benefits and partially offset by marginal decreases in 
expenses related to business and technology development.  
 
Share-based payment expenses were $1.0 million in 2024 compared to $466,000 in 2023, an increase of $551,000. Share-
based payment expenses mainly consist of non-cash compensation expenses relating to stock options which are expensed 
on a straight-line basis over the vesting period. Other share-based payment expenses were due to fair value adjustments of 
deferred and restricted share units resulting from an increase in the Company share price throughout 2024. 
 
Depreciation and amortization expenses were $439,000 in 2024 compared to $430,000 in 2023. The increase was due to 
the addition of furniture and equipment assets during 2024.  
 
Other Income and Expenses 
The net of other income was $422,000 in 2024 compared to $115,000 in 2023. Other income consists of net finance 
income, foreign exchange and other income.  
 
Net finance income was $105,000 in 2024 compared to $204,000 in 2023. Finance income consists of interest income 
earned primarily from on-demand guaranteed investment certificates within cash and cash equivalents and is netted 
against finance costs, which consist of interest paid and interest accrued for loans and lease obligations.  
 
Foreign exchange gain was $224,000 in 2024 compared to a loss of $141,000 in 2023. Exchange gains and losses arise 
mainly from changes in the value of the US dollar, Mexican peso, Chilean peso, and Chinese renminbi relative to the 
functional currency of the Company and each of its subsidiaries. 
 
The remaining variance is from other income of $93,000 in 2024 compared to an income of $52,000 in 2023. Other income 
consists of fair value adjustments on interest-free loans, and other gains and fees earned which are non-operating in 
nature.  
 
2023 had a one-time bad debt expense of $473,000 from a customer going into receivership. 
 
Income Tax 
Income tax includes deferred income tax and current income tax. In 2024, income tax recovery was $1.3 million compared 
to an expense of $191,000 in the prior year. In 2024, the Company recognized $1.4 million of deferred tax assets for 
Canadian based unused tax losses from prior years, which will be used against probable future taxable profits. Such taxes 
losses are not able to be offset against accumulated tax benefits in other jurisdictions. 
 
Current income tax expenses are mainly attributed to 10% withholding taxes deducted from annual dividends received 
during quarter from the Company’s investment from joint venture income earned in China during the preceding fiscal years.  
 
Net Income 
Overall, net income for the year was $4.8 million compared to $2.6 million in 2023. 
 
 
 

 
 
2024 Management’s Discussion and Analysis 
 
 
pg. 16 
 
SUMMARY OF OPERATIONAL SERVICES 
JCC-BQE Joint Venture Operation, Jiangxi Province, China 
In 2007, BQE Water entered into a 50/50 joint venture arrangement with JCC, China’s largest copper producer. In April 
2008, the joint venture completed the construction and commissioning of its first water treatment plant at JCC’s Dexing 
Mine, an active copper mine in China. The plant utilizes our patented ChemSulphide® process to remove and recover 
dissolved copper and zinc from acid mine drainage generated by waste dumps and low-grade stockpiles. The recovered 
high-grade copper or zinc concentrate is shipped to JCC’s refinery. In 2014, the joint venture completed the construction 
and commissioning of two additional water treatment plants at JCC’s Yinshan Mine and Dexing Mine sites. Both plants also 
utilize the ChemSulphide® process. 
 
All three water treatment plants were designed by BQE Water and are operated by the joint venture. The plants are 
managed jointly whereby BQE Water is responsible for technical operations and JCC is responsible for local administrative, 
procurement and government activities. The joint venture partners share 50% of the revenues and costs. Revenues are 
generated through the sale of recovered metals from the plants based on the metal price during the day when the 
concentrate is shipped. 
 
Operating results for all three plants during the year were as follows: 
 
(in ’000s) 
2024 
2023 
Dexing 1 
 
 
Water treated (cubic metres) 
8,379 
7,057 
Copper produced (pounds) 
1,045 
720 
 
 
 
Dexing 2 
 
 
Water treated (cubic metres) 
8,293 
8,206 
Copper produced (pounds) 
947 
677 
 
 
 
Yinshan 
 
 
Water treated (cubic metres) 
5,170 
4,230 
Copper produced (pounds) 
670 
538 
Zinc produced (pounds) 
1,231 
- 
 
 
 
Total  
 
 
Water treated (cubic metres) 
21,842 
19,493 
Copper produced (pounds) 
2,662 
1,935 
Zinc produced (pounds) 
1,231 
- 
 
The volume of water treated will fluctuate depending on precipitation levels and pounds of metals recovered at all three 
plants is driven by climatic conditions such as temperature, humidity, and frequency and duration of rain events. Over time, 
the mass of base metals recovered is expected to decline over time which is driven by resource depletion in the waste rock 
piles that the copper containing wastewater comes from. The two plants, Dexing 1 and Dexing 2, treat water from the same 
source and water may be diverted from one plant to the other to optimize operations. 
 
During 2024, all three plants met or exceeded mechanical availability and process performance. Changes in water volume 
and feed grade are largely the result of environmental conditions beyond the control of the joint venture and will vary from 
period to period. Starting in 2024, the Yinshan water treatment plant began to recover zinc as part of their normal 
operations. 
 
 

 
 
2024 Management’s Discussion and Analysis 
 
 
pg. 17 
 
 
MWT-BQE Joint Venture Operation, Shandong Province, China 
In 2016, BQE Water entered into a joint venture agreement with MWT for the design, construction and operation of a 
treatment plant that recovers copper and zinc from wastewater generated by the Guoda gold smelter and refinery owned 
by Zhaoyuan Gold Smelting Co., Ltd (“Zhaoye”). BQE Water provides its technology and plant operating experience in 
exchange for an ongoing 20% share of the profit from metals recovered and technical support fees. Copper concentrate 
produced by the plant is sold back to Zhaoye and the zinc concentrate is sold to local metal traders. 
 
Operating results for the plant during the year were as follows: 
 
(in ’000s) 
2024 
2023 
Water treated (cubic metres) 
296 
285 
Zinc recovered (pounds) 
96 
162 
Copper recovered (pounds) 
50 
49 
 
 
Raglan Mine Operation for Glencore Canada Corporation, Québec, Canada 
BQE Water, with our joint venture partner Nuvumiut Development, operates four water treatment plants at Raglan Mine, 
an active nickel mine in Northern Québec which is owned by Glencore. The four plants include: BQE Water’s 
ChemSulphide® process plant, BQE Water’s Met-IX™ process plant, the lime neutralization plant at Spoon pit and the lime 
plant at Katinniq. All four plants discharge the treated water into the environment. The ChemSulphide® and Met-IX™ plants 
also recover nickel from wastewater which is blended into the nickel concentrate produced by the mine. Because of the 
harsh winter conditions in Northern Québec, water is not available for processing until the spring thaw; the plant runs 
seasonally, typically from late spring to fall. BQE Water, through the joint venture, is responsible for all aspects of plant 
operations and receives a treatment fee per cubic metre of water treated and discharged. 
 
The volume of water treated for the four plants during the year were as follows: 
 
(in ’000s cubic metres) 
2024 
2023 
ChemSulphide® and Met-IX™ plants 
1,001 
901 
Spoon plant 
444 
457 
Katinniq plant 
630 
860 
Total 
2,075 
2,218 
 
 
Minto Mine Operation for Yukon Government, Yukon, Canada 
In 2022, BQE Water entered into an operational services agreement with Minto Metals to operate an existing water 
treatment plant at Minto Mine. As part of the operational services, BQE Water provides operations labor and coordination 
of mechanical and electrical maintenance to ensure effluent from the water treatment plant meets the specific discharge 
limits set within the permit parameters. In May 2023, the Government of Yukon assumed control of the mine to ensure the 
water management at the site complies with environmental protection. During 2024, our team was mobilized to site during 
the warmer months, from May to August, as only a limited amount of water is required for treatment. 
 
Operating results for the plant during the year were as follows: 
 
 
2024 
2023 
Operating days 
96 
312 
Water treated (in ’000s cubic metres) 
435 
938 
 
 

 
 
2024 Management’s Discussion and Analysis 
 
 
pg. 18 
 
Kemess Property Operation for Centerra Gold, British Columbia, Canada 
In 2020, we completed the commissioning of the first industrial scale plant utilizing our patented Selen-IX™ process for 
selenium management at the Kemess property in Northern BC owned by Centerra Gold. Upon commissioning, the plant 
operated continuously for a month treating up to 5,600 m3/day of mine impacted water to produce clean water containing 
selenium concentrations of less than 2 parts per billion. In December 2020, the Kemess site was declared to be in a state of 
care and maintenance. With the site requiring active water treatment only during mine construction, operation and closure 
but not during care and maintenance, the water treatment plant is not expected to operate until the site status changes. 
During 2024, we completed annual maintenance activities required to maintain the water treatment plant during this state. 
 
China Metallurgical Facilities Operations for MWT Water Treatment Ltd., Shandong Province, China 
In 2021, BQE Water completed the commissioning of two SART plants at two metallurgical facilities located in Eastern 
China, owned by Shandong Zhongkuang Group Co., Ltd. (“Zhongkuang”) and Zhaojin Mining Industry Co., Ltd. (“Zhaojin”). 
The Zhongkuang SART plant began operations in January 2021 and the Zhaojin SART plant in April 2021. Both SART plants 
are operated under the ongoing technical supervision of BQE Water. During operations, the SART plants are expected to 
recover cyanide, copper and zinc. Recovered cyanide will be re-used within the metallurgical process and the copper and 
zinc will be sold to generate incremental revenues for each owner.  
 
The volume of water treated for the two plants during the year were as follows: 
 
(in ’000s cubic metres) 
2024 
2023 
Zhongkuang SART plant 
174 
178 
Zhaojin SART plant 
478 
424 
 
 
Ash Pond Clean-up Operations for WesTech Engineering, Virginia, USA 
At the end of 2021, BQE Water completed the commissioning of our first project in the power generation industry, a 
treatment plant utilizing our Selen-IX™ process to remove selenium from ash pond water for WesTech. The Selen-IX™ plant 
has a treatment capacity of 1,500 US gallons per minute and is designed to remove selenium down to below 7.7 parts per 
billion. BQE Water operates the Selen-IX™ plant under contract to WesTech who manages overall site operations. During 
2024, our team was onsite providing water treatment services and utilizing the Selen-IX™ circuit, when selenium is present 
to remove selenium. 
 
Base Metal Mine in Southwestern, USA 
In 2022, BQE Water completed the commissioning of a treatment plant utilizing a combination of nanofiltration and our 
proprietary selenium electro-reduction process to simultaneously remove selenium and sulphate from mine water for a 
base metal project in the American Southwest. Upon completion of commissioning, we began providing ongoing plant 
operations services in exchange for water treatment fees comprised of a fixed guaranteed minimum and a variable fee 
linked to the volume of water treated.  
 
In August 2023, BQE Water completed the commissioning of a second water treatment plant for the same base metal mine. 
Since being operational, the treatment plant treats mine impacted waters, removing selenium to below 2 ppb (Parts Per 
Billion) and dissolved metals, in compliance with applicable effluent quality regulations. Compensation for operations 
services consists of a base monthly fee, regardless of the volume of water reporting to treatment, plus a supplemental fee 
for additional water treated over and above the base. The plant has been operating year-round 24/7, with an overall plant 
availability more than 95%, and treat up to 4,500 gallons of water per minute, making it the largest Selen-IX™ plant 
currently in operation. 
 
In 2024, our operations team was onsite operating both plants for the full year. 
 

 
 
2024 Management’s Discussion and Analysis 
 
 
pg. 19 
 
LIQUIDITY AND CAPITAL RESOURCES 
At December 31, 2024, BQE Water had 1,287,068 common shares issued (1,246,628 at December 31, 2023) and 43,900 
stock options outstanding (84,340 at December 31, 2023). 
 
In 2022, the Company obtained the approval of the TSX Venture Exchange to commence a NCIB to repurchase for 
cancellation over a 12-month period starting on December 12, 2022. On December 6, 2023, the Company renewed the 
NCIB to repurchase for cancellation up to 62,351 common shares, representing 5% of common shares issued and 
outstanding, over a 12-month period starting on December 13, 2023. On December 9, 2024, the Company again renewed 
the NCIB for a 12-month period starting on December 14, 2024 to repurchase for cancellation up to 64,120 common shares, 
representing 5% of common shares issued and outstanding. In 2024, no common shares were purchased and cancelled 
under the NCIB (13,300 common shares at a weighted average price per share of $28.40 as of December 31, 2023).  
 
Subsequent to the reporting year, as of the date of this MD&A on April 24, 2025, the Company had 1,293,268 common 
shares issued and outstanding, and 37,400 stock options outstanding, and have purchased and cancelled 500 shares under 
the NCIB. 
 
At December 31, 2024, we had cash and cash equivalents of $11.8 million, an increase of approximately $3.8 million from 
December 31, 2023. For the 12 months ended December 31, 2024, our net cash provided by operating activities was $2.9 
million ($870,000 in 2023).  
 
Working capital is defined as current assets minus current liabilities. At December 31, 2024, the Company had a 
consolidated working capital position of $12.6 million, an increase of $2.1 million from December 31, 2023. At December 
31, 2024, significant working capital items, aside from cash and cash equivalents, include trade and other receivables of 
$4.5 million ($4.4 million at December 31, 2023) and trade payables and accrued liabilities of $1.7 million ($1.3 million at 
December 31, 2023). 
 
The Company has interest-free loans with the Minister of Western Economic Diversification Canada under the Western 
Innovation Initiative (“WINN”) program and with Pacific Economic Development Canada under the Business Scale-Up & 
Productivity Program (“BSP”). At December 31, 2024, the WINN and BSP loan balance was $331,000, both with obligations 
to repay the loan with 60 equal monthly installments ($312,000 at December 31, 2023). Additionally, there are credit 
facilities available with the Royal Bank of Canada including a credit card facility of $70,000 and a revolving demand credit 
facility of $1.0 million which had not been utilized as at December 31, 2024.  
 
The Company has non-lease obligation commitments of $2.5 million until 2034 under operating leases for office and 
laboratory premises, and assay services.  
 
Management of the Company believes it will have sufficient working capital resources to finance current operations beyond 
the next 12 months. 
 
 
 

 
 
2024 Management’s Discussion and Analysis 
 
 
pg. 20 
 
RELATED PARTY TRANSACTIONS AND BALANCES 
Key Management Compensation 
For the years ended December 31, 2024 and 2023, the compensation awarded to the Company’s key management, which 
includes the Board of Directors and executive management, are as follows: 
 
2024 
2023 
$ 
$ 
Salaries, fees and short-term benefits 
1,146,232 
865,362 
Share-based payments 
206,067 
150,250 
1,352,299 
1,015,612 
 
As of December 31, 2024 and 2023, the Company does not have any unpaid salaries or fees to key management. 
 
 
Transactions with Joint Ventures 
The Company earns fees from the joint venture, BQE Water Nuvumiut Development Inc., for providing water treatment 
services and technical services in the Nunavik region. Revenue earned from this joint venture for the year ended December 
31, 2024 was $2,168,681 ($2,200,877 in 2023). As of December 31, 2024, included in trade and other receivable are 
$193,308 ($382,837 at December 31, 2023) of trade receivables due from the joint venture.  
 
In 2024, the Company received dividends from JCC-BioteQ Environmental Technologies Co. Ltd. of $1.4 million ($785,000 in 
2023). 
 
Transaction balances with joint ventures are nonsecure, non-interest bearing and are to be settled in cash.  No expense has 
been recognized in the current year or prior year for bad or doubtful debts in respect of amounts owed by joint ventures.   
 
CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS  
The preparation of the Company’s consolidated financial statements in conformity with IFRS requires the Company’s 
management to make judgments, estimates and assumptions about future events that affect the application of the 
Company’s accounting policies and amounts reported in the consolidated financial statements and related notes to the 
consolidated financial statements. The estimates and associated assumptions are based on historical experience and other 
factors considered to be relevant. Actual results may differ from these estimates. 
 
Estimates and assumptions are continually evaluated and are based on management’s experience and other facts and 
circumstances. Revisions to estimates and the resulting effects on the carrying amounts of the Company’s assets and 
liabilities are accounted for prospectively. 
 
The areas which require management to make significant judgments, estimates and assumptions in determining carrying 
values include, but are not limited to: 
 
 

 
 
2024 Management’s Discussion and Analysis 
 
 
pg. 21 
 
 
Critical Judgments  
Critical judgments that management has made in the process of applying the Company’s accounting policies and that have 
the most significant effect on the amounts recognized in the consolidated financial statement are: 
i) 
Management’s assessment of the Company’s ability to continue as a going concern, as the consolidated financial 
statements have been prepared on a going concern basis, which contemplates the realization of assets and the 
settlement of liabilities in the normal course of business. 
ii) Management’s judgment on revenue recognition, when determining the performance obligations that exist in an 
arrangement and the timing of the transfer of control and satisfaction of performance obligations of either at a 
point in time or over time. 
iii) Management’ assessment of impairment indicators for asset impairment on long-term assets such as property and 
equipment or investment in joint ventures. 
 
Key Sources of Estimation Uncertainty and Assumptions 
The following are key assumptions concerning the future and other key sources of estimation uncertainty at the end of the 
reporting period, that have a significant risk of causing a material adjustment to the reported amounts of assets and 
liabilities, income and expenses within the next fiscal year.  
 
Revenue Recognition 
Revenue for fixed-fee technical services relating to water management are recognized over time using the percentage of 
completion method based on labor hours or project costs as input. The Company applies significant judgment and 
estimates to determine estimated labor hours or costs to completion, which affects the timing of revenue recognized for 
technical services. For the revenue arrangements comprise multiple performance obligations, judgements are required to 
determine whether products and services are considered distinct performance obligations, and estimates are required 
when determining the relative fair value of each performance obligation utilizing standalone prices for similar deliverables 
where it exists or internally generated estimates of standalone price. 
 
Expected Credit Loss 
Trade and other receivables are assessed for impairment at each reporting date by applying the expected credit loss 
impairment model. Expected credit loss represents management’s best estimate and assumptions based on actual credit 
loss experience and informed credit assessment, and also takes into consideration forward-looking information. If actual 
credit losses differ from estimates, future earnings would be affected. 
 
Right-of-Use Assets & Lease Obligations 
To determine the value of the initial recognition and subsequent re-measurement of RoU assets and lease obligations, 
management is required to exercise judgment and estimates in several areas. Management has reviewed its lease 
agreements to estimate the lease term by evaluating the probability of exercising its option to extend or renew its lease 
contracts. Further judgment are estimates are required to determine the discount rate on lease payments by assessing its 
incremental borrowing rate at each of the Company’s locations. 
 
Taxation 
Provisions for current and deferred taxes require management’s interpretation of tax regulations and legislation in the 
various tax jurisdictions in which the Company operates, which are subject to change. The measurement of deferred tax 
assets and liabilities requires estimates of the timing of the reversal of temporary differences identified and management’s 
assessment of the Company’s ability to utilize the underlying future tax deductions against future taxable income before 
they expire, which involves estimating future taxable income. 
 
The Company is subject to assessments by various taxation authorities in the tax jurisdictions in which it operates, and 
these taxation authorities may interpret the tax legislation and regulations differently. As such, income taxes are subject to 
measurement uncertainty and actual amounts of taxes may vary from the estimates made by management.  
 
 
 

 
 
2024 Management’s Discussion and Analysis 
 
 
pg. 22 
 
GENERAL 
Disclosure Controls and Procedures and Internal Control over Financial Reporting  
The Company’s management, including the Chief Executive Officer and Chief Financial Officer, believe that any disclosure 
controls and procedures or internal controls over financial reporting, no matter how well conceived and operated, can 
provide only reasonable and not absolute assurance that the objectives of the control system are met. Further, the design 
of a control system reflects the fact that there are resource constraints and the benefits of controls must be considered 
relative to their costs. Because of the inherent limitations in all control systems, they cannot provide absolute assurance 
that all control issues and instances of fraud, if any, within the Company have been prevented or detected. 
 
There has been no change in BQE Water’s internal controls over financial reporting during the year ended December 31, 
2024 that has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting. 
 
Future Accounting Standards and Amendments 
The Company's material accounting policies and future changes in accounting policies are presented in Note 3 of the 
Company’s audited consolidated financial statements for the year ended December 31, 2024 and have been consistently 
applied in the preparation of the consolidated financial statements. 
 
 
FINANCIAL RISK MANAGEMENT 
The Company examines the various financial instrument risks to which it is exposed and assesses the impact and likelihood 
of those risks. These risks may include credit risk, market risks such as foreign currency risk, liquidity risk, and commodity 
price risk. The Company determines the fair value of its financial instruments as outlined in Note 25 of the Company’s 
audited consolidated financial statements. 
 
a) 
Credit Risk 
Credit risk is the risk of financial loss if a counterparty to the Company’s financial instruments fails to meet their contractual 
obligations. The Company’s financial assets are primarily comprised of cash and cash equivalents, and trade and other 
receivables, including contract assets and excluding taxes receivable. Credit risk is primarily associated with trade and other 
receivables; however, it also arises on cash and cash equivalents.  
 
The Company’s maximum exposure to credit risk is as follows: 
 
 Dec. 31, 2024 
Dec. 31, 2023 
 $ 
 $ 
Cash and cash equivalents 
11,771,214 
7,927,603 
Trade and other receivables (exclude tax receivable) 
4,462,710 
4,374,275 
16,233,924 
12,301,878 
 
 
The Company invests its cash and cash equivalents with the objective of maintaining safety of principal and providing 
adequate liquidity to meet all current payment obligations. The cash and cash equivalents are held with bank and financial 
institution counterparties with high credit quality as assessed by reputable rating agencies. The Company considers that its 
cash and cash equivalent are subject to minimal credit risk based on the external credit ratings of the counterparties. 
 
The Company transacts with customers with strong credit ratings and strives to minimize credit risk by performing credit 
reviews, ongoing credit evaluation and account monitoring procedures. The definition of receivables that are past due is 
determined by reference to terms agreed upon with individual customers, typically ranging between 15 to 60 days. The 
credit risk associated with trade receivables and contract assets with aging balances over 90 days is considered higher than 
normal. The aging of trade and other receivables is as follows: 
 
 

 
 
2024 Management’s Discussion and Analysis 
 
 
pg. 23 
 
 
Dec. 31, 2024 
Dec. 31, 2023 
 0-30
days 
31-90
days 
 Over 90
days 
Total 
Total 
 $ 
 $ 
 $ 
 $ 
 $ 
Trade and other receivables 
(exclude tax receivable) 
2,217,936 
1,029,905 
1,214,869 
4,462,710 
4,374,275 
 
 
Collection of the Company’s trade receivables over 90 days is reasonably assured since approximately 98% of trade 
receivables as of December 31, 2024 has been collected subsequent to the reporting period (96% in 2023). Aside from 
those mentioned below, no trade receivables have been challenged by the respective customers and are considered for 
impairment. The Company continues to conduct business with its existing customers on an ongoing basis.  
 
The Company uses a historical 3-year trend and future expectations to make estimates on expected credit losses. The 
Company’s changes in allowance for expected credit loss for the year ended December 31, 2024 and 2023 are as follows: 
 
 
 Dec. 31, 2024 
Dec. 31, 2023 
 $ 
 $ 
Allowance for expected credit loss, beginning of the year 
(1,788) 
- 
Net remeasurement of expected credit loss 
(14,237) 
(474,900) 
Amounts written off 
- 
473,112 
Allowance for expected credit loss, end of the year 
(16,025) 
(1,788) 
 
 
b) 
Currency Risk 
The Company conducts business in Canada, United States, Mexico, Chile and China. As a result, the Company has foreign 
currency exposure with respect to items not denominated in Canadian dollars. The two main types of foreign exchange risk 
for the Company can be categorized as follows: 
 
i) 
Transaction Exposure 
The Company’s operations sell mainly services and incur costs in different currencies. This creates exposure at the 
operational level, which may affect the Company’s profitability as exchange rates fluctuate. The Company has not hedged 
its exposure to currency fluctuations. 
 
ii) Foreign Exchange Exposure 
The Company is exposed to currency risk through the following assets and liabilities denominated in currencies other than 
the Canadian dollar: cash and cash equivalents, trade and other receivable excluding tax receivable, and trade payable and 
accrued liabilities excluding tax payable. The currencies of the Company’s financial assets and liabilities exposed to currency 
risk, based on notional amounts and presented in CAD, were as follows: 
 
 
 
December 31, 2024 
U.S. 
Mexican 
Chilean 
Chinese 
 dollar 
 peso 
 peso 
 RMB 
Cash and cash equivalents 
2,585,449 
32,932 
23,199 
478,829 
Trade and other receivables (exclude tax) 
1,358,313 
- 
15,397 
527,996 
Trade and other payables (exclude tax) 
(199,853) 
30,644 
(426,832) 
(97,373) 
 
Gross balance sheet exposure 
3,743,909 
63,576 
(388,236) 
909,452 
 

 
 
2024 Management’s Discussion and Analysis 
 
 
pg. 24 
 
 
 
 
December 31, 2023 
U.S. 
Mexican 
Chilean 
Chinese 
 dollar 
 peso 
 peso 
 RMB 
Cash and cash equivalents 
1,085,117 
26,393 
510,378 
225,906 
Trade and other receivables (exclude tax) 
2,834,344 
159 
22,990 
624,120 
Trade and other payables (exclude tax) 
(52,814) 
19,002 
(422,985) 
(4,308) 
 
Gross balance sheet exposure 
3,866,647 
45,554 
110,383 
845,718 
 
 
A 10% strengthening (weakening) of the Canadian dollar against the following currencies would have decreased (increased) 
the Company’s net income from its financial instruments presented by the amounts shown below. 
 
2024 
2023 
 $ 
 $ 
U.S. dollar 
374,391 
386,665 
Mexican peso 
6,358 
4,555 
Chilean peso 
(38,824) 
11,038 
Chinese RMB 
90,945 
84,572 
432,870 
486,830 
 
c) 
Liquidity Risk 
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company 
currently settles its financial obligations from cash and cash equivalents. The ability to do this relies on the Company 
collecting its trade and other receivables in a timely manner and maintaining sufficient cash in excess of anticipated needs. 
As of December 31, 2024, the Company has working capital of $12,592,881 ($10,529,457 as of December 31, 2023). To 
further improve the Company’s access to liquidity, there are credit facilities available with the Royal Bank of Canada 
including credit card facilities of approximately $70,000 and a revolving demand credit facility of $1,000,000. As of 
December 31, 2024 and 2023, the revolving demand credit facility remains undrawn. The Company believes that it has 
access to sufficient funding through its cash to meet its foreseeable operating requirements without the use of the credit 
facility. 
 
The following table shows the contractual maturities of financial liabilities at the reporting date. The amounts presented are 
gross undiscounted, and include contractual principal and interest payments, and therefore, do not equate to the carrying 
amounts on the consolidated statements of financial position. 
 
Dec. 31, 2024 
Dec. 31, 2023 
< 1 year 
1 to 3 years 
> 3 years 
Total 
Total 
 $ 
 $ 
 $ 
 $ 
 $ 
Trade payable and other payables 
(excludes tax payable) 
1,687,224 
- 
- 
1,687,224 
1,316,107 
Deferred benefits 
1,178,540 
- 
- 
1,178,540 
614,612 
Loans 
82,500 
88,084 
382,266 
552,850 
466,199 
Lease obligations 
341,088 
527,336 
1,773,502 
2,641,926 
2,825,015 
 
3,289,352 
615,420 
2,155,768 
6,060,540 
5,221,933 
 
Taking into consideration the Company’s current cash position, volatile equity markets, global uncertainty in the capital 
markets and increasing cost pressures, the Company continues to review expenditures to ensure adequate liquidity. A 

 
 
2024 Management’s Discussion and Analysis 
 
 
pg. 25 
 
period of extended depression in the mining industry, as the Company’s main customer base, may necessitate the Company 
to seek financing opportunities in accordance with its capital management strategy. 
 
d) 
Price Risk 
The Company’s net income and financial condition are subject to price risk due to fluctuations of the following:  
 
i) 
Commodity Price Risk 
The profitability of the Company’s investment in JCC-BQE joint venture will be significantly affected by changes in the 
commodity price of recovered base metals being sold by the joint venture of the Company. Copper and zinc prices fluctuate 
on a daily basis and are affected by numerous factors beyond the Company’s control. The supply and demand for copper 
and zinc, the level of interest rates, the rate of inflation, investment decisions by large holders of base metals, including 
governmental reserves, and the stability of exchange rates can all cause significant fluctuations in metal prices. A 10% 
change in base copper and zinc prices would impact the Company’s net income or loss before taxes and other 
comprehensive income or loss before taxes by $762,127 in 2024 ($437,642 in 2023). 
 
ii) Common Stock Price Risk 
The Company is subject to price risk for changes in the Company’s common stock price per share. The Company has 
implemented, as part of its long-term incentive plan, the DSU and RSU plans that the Company is required to satisfy in cash. 
The Company considers the plans a financial liability and are required to fair value the outstanding liabilities with the 
resulting changes included in stock-based compensation expense in each reporting period: an increase in share unit award 
prices would decrease the Company’s net income or loss. A 10% change in common stock prices would impact the 
Company’s net income or loss before taxes and other comprehensive income or loss before taxes by $160,851 in 2024 
($77,192 in 2023). 
 
 
RISKS AND UNCERTAINTIES 
Companies operating in the process technology sector face many and varied risks. While we strive to manage such risks to 
the extent possible and practical, risk management cannot eliminate risk completely. Following are the risk factors which 
management believes are most important in the context of the Company’s business. It should be noted that this list may 
not be exhaustive and other risks may apply. An investment in the Company may not be suitable for all investors. 
 
Dependence on Key Personnel 
The Company is substantially dependent upon a number of key management, technical, project and business development 
personnel. The loss of any one or more key employees or consultants could have an adverse material effect on our 
business. Additionally, the Company’s ability to develop, manufacture and market its services and compete with current 
and future competitors depends, in large part, on its ability to attract and retain qualified personnel. Competition for 
qualified personnel may prove to be intense and it may have to compete for personnel with companies that have 
substantially greater financial and other resources than it does. Failure to attract and retain qualified personnel could have 
an adverse material effect on the Company’s business operating results and financial condition. 
 
Maintaining Safety and Protecting the Environment 
Despite the Company’s efforts to minimize the risk of safety and environmental incidents, they can occur from time to time 
and, if and when they do, the impact on the Company can be significant. Our success in the water management and 
treatment space is highly dependent on our ability to keep project and work sites safe and any failure to do so can have 
serious impact on the personal safety of our employees and others. In addition, it can expose the Company to contract 
termination, fines, regulatory sanctions or even criminal prosecution. 
 
Our safety record and operational safety practices also have a direct bearing on our ability to secure new project work. 
Certain clients will not engage contractors or consultants to perform work if their safety practices do not conform to 
predetermined standards or if they have an unacceptably high incidence of safety infractions or incidents. 
 

 
 
2024 Management’s Discussion and Analysis 
 
 
pg. 26 
 
We adhere to very rigorous safety policies and procedures which are continually reinforced on project and work sites. 
Management is not aware of any pending health and safety legislation or prior incidents which would be likely to have a 
material impact on any of our operations or competitive position.  
 
Management of Growth 
The Company’s current growth trajectory could put a significant strain on each of the Company’s managerial, operational 
and financial resources. The Company must implement and constantly improve its operational and financial systems and 
expand, train and manage its employee base to manage growth. As the Company establishes additional water treatment 
facilities and streams of recurring revenue, it would create additional operational and management complexities. In 
addition, the Company expects that its operational and management systems will face increased strain as a result of the 
expansion of the Company’s technologies and services. The Company might not be able to effectively manage the 
expansion of its operations and systems, and its procedures and controls might not be adequate to support its operations. 
In addition, management might not be able to make and execute decisions rapidly enough to exploit market opportunities 
for the expansion of the Company’s technologies and services. If the Company is unable to manage its growth effectively, 
its business, results of operations and financial condition could suffer. 
 
Tariffs and Global Financial Conditions 
Tariffs imposed by one country on goods or services being imported into that country from another country can cause 
disruption in global trade that affects prices, exchange rates, availability of tariffed goods or services in certain countries 
and changes in consumption and production levels on tariffed goods or services. If one country imposes tariffs on another 
countries, other countries may impose retaliatory tariffs as a response. There is currently a rise in threatened and imposed 
tariffs as well as threatened or imposed retaliatory tariffs between countries. While the Company is not directly impacted 
by tariffs on goods, the Company can be affected by the consequent disruptions in global trade, including increased cost or 
decreased availability of plant supplies and impacts on exchange rates. Global financial conditions have been subject to 
continued volatility. Disruptions in the credit and capital markets can have a negative impact on the availability and terms 
of credit and capital for our customers, which could lead to a potential reduction or delay in the Company’s pipeline and 
technical services revenue. 
 
Economic and Project Site Dependence 
The Company currently derives its revenues from a limited number of contracts and customers. For certain contracts, we 
have made significant investments in fixed plants that are dependent on conditions at the project site that may be beyond 
our control. Changes in site conditions and/or the loss of any one contract could result in a materially adverse effect to our 
financial condition. 
 
Commodity Prices 
The Company’s joint venture operations generate revenues by selling recovered metals of value from treated water. These 
recovered metals face commodity price risk based on world supply and demand variables. There can be no assurance that 
the prices of these metals will be sustained at current levels. 
 
Competition 
The Company faces competition for water treatment opportunities. There is a possibility that other companies will enter 
our markets and compete with the Company. Such competitors could possess greater financial resources and technical 
capabilities. Increased competition could result in significant price competition, reduced profit margins or loss of market 
share. The Company believes it’s technologies for water treatment solutions is far beyond the capabilities of others 
available in the market, but the Company may not be able to compete successfully with future competitors and cannot 
ensure that competitive pressures will not materially and adversely affect its business, operating results and financial 
condition. 
 
Credit Risk 
The Company’s credit risk is primarily associated with trade and other receivables; however, it also arises with cash and 
cash equivalents. The Company invests its cash with counterparties that it believes are of high credit quality as assessed by 
reputable rating agencies. To manage credit risk on trade and other receivables, the Company transacts with customers 
with strong credit ratings and follows ongoing credit evaluation and account monitoring procedures. The credit risk 
associated with trade receivables with aging balances over 90 days are generally considered higher than normal. 

 
 
2024 Management’s Discussion and Analysis 
 
 
pg. 27 
 
 
Technology Risk 
The Company has completed the construction and commissioning of a number of plants. The operating and engineering 
data from these plants is used in estimates for new projects under evaluation and/or in the design engineering stage. 
Notwithstanding the foregoing, each new commercial venture undertaken by the Company has the inherent technical risk 
of any continuous biological and/or chemical process, which could include the loss of the biological feedstock. 
 
Intellectual Property Protection 
The Company cannot provide any assurance that any further intellectual property applications will be approved. Even if 
they are approved, such patents, trademarks or other intellectual property registrations may be successfully challenged by 
others or invalidated. The success of the Company and its ability to compete are substantially dependent on its internally 
developed technologies and processes which the Company will need to protect through a combination of patent, copyright, 
trade secret and trademark law. 
 
The trademark, copyright and trade secret positions of the Company’s business are uncertain and involve complex and 
evolving legal and factual questions. In addition, there can be no assurance that competitors will not seek to apply for and 
obtain trademarks and trade names that will prevent, limit or interfere with the Company’s BioSulphide®, ChemSulphide®, 
Met-IX™, Sulf-IX™ and Selen-IX™ processes. Litigation or regulatory proceedings, which could result in substantial cost and 
uncertainty to the Company, may also be necessary to enforce the intellectual property rights of the Company or to 
determine the scope and validity of other parties’ proprietary rights. There can be no assurance that the Company will have 
the financial resources to defend its patents, trademarks and copyrights from infringement or claims of invalidity. 
 
The patent positions of emerging companies can be highly uncertain and involve complex legal and factual questions. Thus, 
there can be no assurance that any patent applications made by or on behalf of the Company will result in the issuance of 
patents, that the Company will develop additional proprietary products that are patentable, that any patents issued or 
licensed to the Company will provide the Company with any competitive advantages or will not be challenged by any third 
parties, that the patents of others will not impede the ability of the Company to do business or that third parties will not be 
able to circumvent the patents assigned or licensed to the Company. Furthermore, there can be no assurance that others 
will not independently develop similar products, duplicate any of the Company’s products or, if patents are issued and 
licensed to the Company, design around the patented product developed for the benefit of the Company. 
 
Since patent applications are maintained in secrecy for a period of time after filing, and since publication of discoveries in 
the scientific or patent literature often lags behind actual discoveries, the Company cannot be certain that the inventors of 
the patents were the first creators of inventions covered by pending applications, or that it was the first to file patent 
applications for such inventions. There can be no assurance that the Company’s patents, if issued, would be valid or 
enforceable by a court or that a competitor’s technology or product would be found to infringe such patents. 
 
The Company is not currently aware of any claims asserted by third parties that the Company’s intellectual property 
infringes on their intellectual property. However, in the future, a third party may assert a claim that the Company infringes 
on their intellectual property. If the Company is forced to defend against these claims, which may be with or without any 
merit or whether they are resolved in favour or against the Company, the Company may face costly litigation and diversion 
of management’s attention and resources. As a result of such a dispute, the Company may have to develop costly non-
infringement technology or enter into license agreements which may not be available at favourable terms. 
 
Information Systems and Cyber-Security Risk 
The Company relies on information technology to manage, process, store and transmit electronic information. Complete, 
accurate, available and secure information is vital to the Company’s operations and any compromise in such information 
could result in improper decision making, inaccurate or delayed operational and/or financial reporting, delayed resolution 
to problems, breach of privacy and/or unintended disclosure of confidential information. Failure in the completeness, 
accuracy, availability or security of the Company’s information systems, the risk of system interruption or failure during 
system upgrades or implementation, or a breach of data security could adversely affect the Company’s operations and 
financial results. 
 

 
 
2024 Management’s Discussion and Analysis 
 
 
pg. 28 
 
In addition, cyber-security incidents relating to the Company’s information technology systems may disrupt operations and 
impact operating results. Cyber-security incidents may occur from a range of techniques, from phishing or hacking attacks 
to sophisticated malware, hardware or network attacks. While the Company has implemented systems, policies, 
procedures, practices, hardware and backups designed to prevent and limit the effect of cyber-security attacks, there can 
be no assurance that these measures will be sufficient to prevent, detect or address the attacks in a timely matter or at all. 
A successful cyber-attack may allow unauthorized interception, destruction, use or dissemination of the Company’s 
confidential information, which could have a material adverse effect on the business.  
 
Currency Risk 
The Company conducts significant business in Canada, the United States, Mexico, Chile and China. As a result, the Company 
has foreign currency exposure with respect to items not denominated in Canadian dollars. The Company’s joint venture 
operations sell and incur costs mainly in Chinese renminbi. This creates exposure at the operational level, which may affect 
the Company’s profitability as exchange rates fluctuate. The Company has not hedged its exposure to currency fluctuations. 
The Company is also exposed to currency risk through assets and liabilities denominated in currencies other than the 
Canadian dollar. 
 
Access to Proprietary Information 
The Company generally controls access to and distribution of its technologies, documentation and other proprietary 
information. Despite efforts by the Company to protect its proprietary rights from unauthorized use or disclosure, parties 
may attempt to disclose, obtain or use its solutions or technologies. There can be no assurance that the steps the Company 
has taken or will be taking will prevent misappropriation of its solutions or technologies, particularly in foreign countries 
where laws or law enforcement practices may not protect proprietary rights as fully as in Canada or the United States. 
 
Environmental Regulation 
The Company’s business and operations are subject to environmental regulations in various jurisdictions in which it 
operates. There is no assurance that future changes in environmental regulation, if any, will not adversely affect the 
Company’s business and operations. 
 
Possible Volatility of Share Price 
The market price of the Company’s common shares could be subject to wide fluctuations in response to, and may be 
adversely affected by, quarterly variations in operating results, announcements of technological innovations or new 
products by the Company or its competitors, changes in financial estimates by securities analysts, or other events or 
factors. In addition, the financial markets have experienced significant price and volume fluctuations. This volatility has had 
a significant effect on the market prices of securities issued by many companies for reasons unrelated to their operating 
performance. Broad market fluctuations or any failure of the Company’s operating results in a particular quarter to meet 
market expectations may adversely affect the market price of the Company’s common shares.