Stockholders’ equity

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Stockholders’ equity

9. Stockholders’ equity:

The holders of common stock are entitled to one vote for each share held. There are no restrictions that limit the Company’s ability to pay dividends on its common stock. The Company has not declared any dividends since incorporation. The Company’s common stock has no par value per common stock.

(a) Common stock issuances:

There were no stock issuances during the quarter ended September 30, 2021.

During the quarter ended June 30, 2021, the Company engaged Research Capital Corporation (“RCC”) as a financial and capital markets advisor. As part of the compensation for its services, RCC will receive a monthly fee of $5,162 (CAD$6,500) for its trading advisory services for a minimum of 6 months with extension by mutual agreement and a financial advisory fee to be satisfied by the issuance of 230,000 common shares of the Company valued at $179,293. In addition, the Company granted 230,000 common share purchase warrants to RCC. Each warrant will entitle the holder thereof to purchase one common share in the capital of the Company at an exercise price of $0.77 (CAD$0.98) at any time up to 24 months following the date of issuance. During the quarter ended June 30, 2021, the Company issued the shares and granted the warrants.

During the quarter ended June 30, 2021, the holder of 70,000 stock options exercised their options for 70,000 shares for $31,264 at an average exercise price of $0.45 (CAD$0.54) per share.

There were no shares issued during the year ended December 31, 2020.

(b) Warrants

A summary of warrant activity for the quarter ended September 30, 2021 are as follows:

	Number of options		Exercise price		Expiry date
Outstanding, December 31, 2020		-	$	-
Granted		230,000		0.77	April 3, 2023
Outstanding September 30, 2021		230,000		0.77

(c) Stock option plans:

2015 stock option plan

In the year ended December 31, 2015, the shareholders approved the 2015 stock option plan and the 1999, 2001 and the 2005 plans were discontinued. The 2015 stock option plan is intended to provide incentive to employees, directors, advisors and consultants of the Company to encourage proprietary interest in the Company, to encourage such employees to remain in the employ of the Company or such directors, advisors and consultants to remain in the service of the Company, and to attract new employees, directors, advisors and consultants with outstanding qualifications. The maximum number of shares issuable under the Plan shall not exceed 10% of the number of Shares of the Company issued and outstanding as of each Award Date unless shareholder approval is obtained in advance. The Board of Directors determines the terms of the options granted, including the number of options granted, the exercise price and their vesting schedule. The maximum term possible is 10 years. Under the amended 2015 plan we have reserved 10% of the number of Shares of the Company issued and outstanding as of each Award Date.

Kidoz Inc. and subsidiaries

(Expressed in United States Dollars)

Notes to Consolidated Financial Statements

Nine Months ended September 30, 2021 and 2020

(Unaudited)

9. Stockholders’ equity: (Continued)

(c) Stock option plans: (Continued)

During the quarter ended September 30, 2021, the Company granted 300,000 options at CAD$0.66 ($0.52)

During the quarter ended June 30, 2021, the Company granted 1,300,000 options at CAD$1.02 ($0.80)

During the quarter ended March 31, 2021, the Company granted 1,075,000 options at CAD$0.50 ($0.39)

During the year ended December 31, 2020, the Company granted 2,745,000 options at CAD$0.45 ($0.35).

	Number of options			Weighted average exercise price
Outstanding December 31, 2019		3,200,750		$	0.45
Granted		2,745,000			0.33
Exercised		-			-
Cancelled		(70,000	)		(0.42	)
Outstanding, December 31, 2020		5,875,750		$	0.39
Granted		2,675,000			0.62
Exercised		(70,000	)		(0.45	)
Cancelled		(330,000	)		(0.43	)
Outstanding September 30, 2021		8,150,750		$	0.47

The aggregate intrinsic value for options as of September 30, 2021 was $686,823 (December 31, 2020 - $137,250).

The following table summarizes information concerning outstanding and exercisable stock options at September 30, 2021:

Exercise prices per share	Number outstanding		Number exercisable		Expiry date
CAD$0.45		2,545,000		295,264		June 30, 2025
CAD$0.50		991,600		127,600		February 1, 2026
CAD$0.54		570,000		570,000		December 20, 2021
CAD$0.54		506,150		492,850		November 8, 2022
CAD$0.54		713,000		713,000		June 4, 2023
CAD$0.66		300,000		18,000		July 12, 2026
US$0.50		1,275,000		1,275,000		June 4, 2023
CAD$1.02		1,250,000		150,000		April 6, 2026
		8,150,750		3,641,714

Kidoz Inc. and subsidiaries

(Expressed in United States Dollars)

Notes to Consolidated Financial Statements

Nine Months ended September 30, 2021 and 2020

(Unaudited)

9. Stockholders’ equity: (Continued)

(c) Stock option plans: (Continued)

During the quarter ended September 30, 2021, the Company recorded stock-based compensation of $178,763 on the options granted and vested (September 30, 2020 – $73,614) and as per the Black-Scholes option-pricing model, with a weighted average fair value per option of $0.36 (September 30, 2020 - $0.26).