SHARE CAPITAL |
|
a) |
Authorized share capital |
The Company is authorized to issue
an unlimited number of Class A Shares and an unlimited number of common shares. The Class A Shares and common shares do not have any
special rights or restrictions attached, respectively. The Class A shares were converted to common shares on December 22, 2023, and as of December
31, 2023, there were no Class A Shares issued and outstanding and only common shares outstanding.
During the year ended December 31, 2023, the Company:
| i) | Issued 156,250 shares at a price of $14.40 per share for total proceeds of $2,250,000 in a registered direct offering. In connection with the offering, the Company incurred $226,544 in issuance costs as part of the transaction. |
| ii) | Issued 283,875 common shares pursuant to exercise of 283,875 warrants at a price of $17.37 per share for total proceeds of $4,561,200. |
| iii) | Issued 815,217 shares at a price of $3.68 per share for total proceeds of $3,000,000 in a registered direct offering. In connection with the offering, the Company incurred $453,345 in issuance costs as part of the transaction. |
| iv) | Issued 989,903 shares at a price of $2.59 per share for total proceeds of $2,562,660 in a private placement. |
| v) | Issued 21 shares upon the conversion of Class A shares. |
During the six months ended June 30, 2024, the Company:
|
i) |
Did not enter into any capital transactions. |
The Company may grant incentive stock
options to its officers, directors, employees, and consultants. The Company has implemented a rolling Stock Option Plan (the “Plan”)
whereby the Company can issue up to 10% of the issued and outstanding common shares of the Company. Options have a maximum term of ten
years and vesting is determined by the Board of Directors.
A continuity schedule of outstanding stock options is as
follows:
| |
Number Outstanding | | |
Weighted Average Exercise Price | |
| |
| | |
($) | |
Balance – December 31, 2022 | |
| 14,238 | | |
| 594.08 | |
Granted | |
| 25,000 | | |
| 14.40 | |
Exercised | |
| - | | |
| - | |
Forfeited | |
| (10,247 | ) | |
| 392.60 | |
Balance – December 31, 2023 | |
| 28,990 | | |
| 165.38 | |
Granted | |
| - | | |
| - | |
Exercised | |
| - | | |
| - | |
Forfeited | |
| (13,860 | ) | |
| 186.49 | |
Balance – June 30, 2024 | |
| 15,130 | | |
| 146.03 | |
During the three months ended June 30, 2024 and 2023 the Company recorded
share-based compensation of none and $90,896, respectively, relating to options vested during the period. During the six months ended
June 30, 2024 and 2023 the Company recorded share-based compensation of $160,865 and $(1,156,217), respectively, relating to options vested
during the period.
The Company used the following assumptions in calculating
the fair value of stock options for the period ended:
| | June 30,
2024 | | | June 30,
2023 | | Risk-free interest rate | | | 3.93 | % | | | 3.93 | % | Expected life of options | | | 3.38 years | | | | 5.0 years | | Expected dividend yield | | | Nil | | | | Nil | | Volatility | | | 132.65 | % | | | 132.65 | % | At June 30, 2024, the Company had incentive
stock options outstanding as follows:
Expiry Date | | Options Outstanding | | | Exercise Price | | | Weighted Average Remaining Life | | | | | | | ($) | | | (years) | | September 27, 2024 | | | 572 | | | | 1,087.20 | | | | 0.24 | | July 24, 2025 | | | 287 | | | | 715.20 | | | | 1.07 | | July 31, 2025 | | | 276 | | | | 715.20 | | | | 1.08 | | June 1, 2026 | | | 59 | | | | 1,689.60 | | | | 1.92 | | August 19, 2026 | | | 761 | | | | 1,008.00 | | | | 2.14 | | August 17, 2027 | | | 1,504 | | | | 96.00 | | | | 3.13 | | September 20, 2027 | | | 140 | | | | 55.20 | | | | 3.22 | | February 13, 2028 | | | 11,531 | | | | 14.40 | | | | 3.62 | | | | | 15,130 | | | | 146.03 | | | | 3.27 | |
|
d) |
Share purchase warrants |
A continuity schedule of outstanding share purchase warrants
is as follows:
| |
Number
Outstanding | | |
Weighted
Average
Exercise
Price | |
| |
| | |
($) | |
Balance –December 31, 2022 | |
| 329,908 | | |
| 91.84 | |
Exercised | |
| (283,875 | ) | |
| 16.19 | |
Expired | |
| - | | |
| - | |
Issued | |
| 850,612 | | |
| 3.83 | |
Balance – December 31, 2023 | |
| 896,645 | | |
| 32.36 | |
Exercised | |
| - | | |
| - | |
Expired | |
| - | | |
| - | |
Issued | |
| - | | |
| - | |
Balance
– June 30, 2024 | |
| 896,645 | | |
| 32.36 | |
During the year ended December 31, 2023, the Company:
| i) | Issued 10,938 placement agent warrants in conjunction with a registered direct offering on February 2, 2023, with an exercise price of $14.40 per share. | | ii) | Issued 815,217 warrants in conjunction with a public offering on October 17, 2023, with an exercise price of $3.68 per share. |
| iii) | Issued 24,457 placement agent warrants in conjunction with a public offering on October 17, 2023, with an exercise price of $4.05 per share. |
The Company used the following assumptions
in calculating the fair value of the warrants for the period ended:
| |
June 30, 2024 | | |
December 31, 2023 | |
Risk-free interest rate | |
4.13% – 4.49% | | |
4.13% – 4.49% | |
Expected life of warrants | |
1.81 – 4.55 years | | |
2.06 – 4.80 years | |
Expected dividend yield | |
Nil | | |
Nil | |
Volatility | |
132.78% | | |
132.78% | |
Weighted average fair value per warrant | |
$4.44 | | |
$4.69 | |
At June 30, 2024, the Company had share
purchase warrants outstanding as follows:
Expiration Date | | Warrants Outstanding | | | Exercise Price | | | Weighted
Average Remaining
Life | | | | | | | ($) | | | (years) | | January 20, 2026 | | | 7,030 | | | | 1,800.00 | | | | 1.56 | | February 28, 2027 | | | 20,689 | | | | 460.80 | | | | 2.67 | | December 6, 2027 | | | 13,781 | | | | 20.00 | | | | 3.43 | | December 9, 2027 | | | 9,876 | | | | 17.60 | | | | 3.44 | | January 18, 2028 | | | 25,906 | | | | 124.80 | | | | 3.55 | | February 2, 2028 | | | 10,938 | | | | 14.40 | | | | 3.60 | | October 17, 2028 | | | 783,968 | | | | 3.68 | | | | 4.30 | | October 17, 2028 | | | 24,457 | | | | 4.05 | | | | 4.30 | | | | | 896,645 | | | | 32.36 | | | | 4.19 | |
|