| WARRANTS AND OPTIONS |
NOTE
20 – WARRANTS AND OPTIONS:
a)
Warrants
| |
(i) |
Warrant
transactions for the years ended December 31, 2022, and 2021 are as follows: |
SCHEDULE
OF WARRANTS TRANSACTIONS
| | |
Number | | |
Weighted
Average Exercise
Price | |
| Balance,
January 1, 2021 | |
| 7,289,885 | | |
$ | 1.91 | |
| Warrants
issued in the April 2021 Private Placement | |
| 221,100 | | |
| | |
| Warrants
issued in the May 2021 Private Placement | |
| 1,084,562 | | |
| | |
| Exercise
of warrants | |
| (2,629,343 | ) | |
| | |
| Balance, December
31, 2021 | |
| 5,966,204 | | |
$ | 3.55 | |
| Expiration of warrants | |
| (5,437 | ) | |
| | |
| Exercise of warrants | |
| (630,161 | ) | |
| | |
| Warrants
issued in the November 2022 Private Placement | |
| 1,726,366 | | |
| | |
| Balance,
December 31, 2022 | |
| 7,056,972 | | |
$ | 3.54 | |
| |
(ii) |
As
of December 31, 2022, the Company had outstanding warrants, enabling the holders to acquire common shares as follows: |
SCHEDULE
OF OUTSTANDING WARRANTS
| December
31, 2022 | | |
Expiry
date | |
Exercise price |
| |
Exercise
price (USD) | |
| | 2,658,313 | | |
November
10, 2025 | |
ILS | |
| 7.1418 | (2) | |
$ | 2.03 | |
| | 1,366,631 | | |
December 24, 2025 | |
ILS | |
| 7.1418 | (2) | |
$ | 2.03 | |
| | 221,100 | | |
April 18, 2023 | |
ILS | |
| 29.025 | (3) | |
$ | 8.25 | |
| | 1,084,562 | | |
May 28, 2023 | |
ILS | |
| 29.025 | (3) | |
$ | 8.25 | |
| | 1,726,366 | | |
November
8, 2024 | |
CAD | |
| 2.04 | | |
$ | 1.60 | |
| | 7,056,972 | | |
| |
| |
| | | |
| | |
| |
(1) |
On
June 30, 2021, warrant holders and the Company, agreed that the exercise price of CAD$1.95 would be payable in New Israeli Shekels.
The exercise price is NIS 5.124 per warrant (see also Note 11). |
| |
|
|
| |
(2) |
On
March 31, 2021, warrant holders and the Company, agreed that the exercise price of CAD$2.70 would be payable in New Israeli Shekels.
The exercise price is NIS 7.1418 per warrant (see also Note 11). |
| |
|
|
| |
(3) |
On
June 30, 2021, warrant holders and the Company, agreed that the exercise price of CAD$11.04 would be payable in New Israeli Shekels.
The exercise price is NIS 29.025 per warrant (see also Note 11). |
A2Z
SMART TECHNOLOGIES CORP.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed
in Thousands of US Dollars, except per share data)
NOTE
20 – WARRANTS AND OPTIONS (CONTINUED):
a)
Warrants (continued)
| |
(iii) |
On
December 16, 2021, 1,095,322 warrants with an exercise price of ILS2.52 were exercised in a cashless mechanism and the warrant holders
were granted 980,673 shares. |
b)
Stock Options
Stock
option transactions for the years ended December 31, 2022, and 2021 are as follows:
SCHEDULE
OF STOCK OPTION TRANSACTIONS
| | |
Number | | |
Weighted
Average Exercise Price (CAD) | | |
Weighted
Average Exercise Price (USD) | |
| Balance
January 1, 2021 | |
| 889,523 | | |
$ | 1.62 | | |
$ | 1.27 | |
| Options
granted | |
| 333,377 | | |
| 3.00 | | |
| | |
| Exercise of options | |
| (286,223 | ) | |
| 2.25 | | |
| | |
| Expiry
of options | |
| (116,667 | ) | |
| 3.00 | | |
| | |
| Balance
December 31, 2021 | |
| 820,010 | | |
$ | 2.10 | | |
$ | 1.78 | |
| Exercise of options | |
| (116,667 | ) | |
| 2.27 | | |
| | |
| Expiry of options | |
| (20,000 | ) | |
| 1.5 | | |
| | |
| Options
granted | |
| 1,200,000 | | |
| 3.67 | | |
| | |
| Balance
December 31, 2022 | |
| 1,883,343 | | |
$ | 3.17 | | |
$ | 2.32 | |
| |
(i) |
On
January 28, 2021, 33,333 stock options were issued to a consultant with an exercise price of CAD$3.00. The options expire on January
28, 2025. The fair value of the options granted was estimated at CAD$90 using the Black-Scholes option pricing model, using the following
assumptions: Share Price: CAD$2.82; Expected option life 4 years; Volatility 209%; Risk-free interest rate 0.30%; Dividend yield
0%. |
| |
(ii) |
On
January 28, 2021, 116,667 stock options were issued to a consultant with an exercise price of CAD$3.00. The options expire on December
31, 2021. The fair value of the options granted was estimated at CAD$191 using the Black-Scholes option pricing model, using the
following assumptions: Share Price: CAD$2.82; Expected option life 0.92 years; Volatility 173%; Risk-free interest rate 0.11%; Dividend
yield 0%. |
| |
(iii) |
On
June 3, 2021, 50,000 stock options were issued to a consultant with an exercise price of CAD$8.40. The options expire on June 3,
2026. The fair value of the options granted was estimated at CAD$445 using the Black-Scholes option pricing model, using the following
assumptions: Share Price: CAD$9.18; Expected option life 5 years; Volatility 191%; Risk-free interest rate 0.93%; Dividend yield
0%. |
| |
(iv) |
On
August 23, 2021, 116,700 stock options were issued to consultants with an exercise price of CAD$6.00. The options expire on April
30, 2022. The fair value of the options granted was estimated at CAD$242 using the Black-Scholes option pricing model, using the
following assumptions: Share Price: CAD$6.50; Expected option life 0.68 years; Volatility 126%; Risk-free interest rate 0.19%; Dividend
yield 0%. |
A2Z
SMART TECHNOLOGIES CORP.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed
in Thousands of US Dollars, except per share data)
NOTE
20 – WARRANTS AND OPTIONS (CONTINUED):
b)
Stock Options (continued)
|
(v) |
On
October 28, 2021, 16,677 stock options were issued to a director with an exercise price of
CAD$8.00. The options expire on October 28, 2026. The fair value of the options granted was
estimated at CAD$242 using the Black-Scholes option pricing model, using the following assumptions:
Share Price: CAD$9.37; Expected option life 5 years; Volatility 114%; Risk-free interest
rate 1.43%; Dividend yield 0%.
|
|
(vi) |
On
August 4, 2022, 900,000 stock options were issued to a director with an exercise price of
CAD$3.56. The options expire on August 2, 2032. The fair value of the options granted was
estimated at $2,712 using the Black-Scholes option pricing model, using the following assumptions:
Share Price: CAD$4.12; Expected option life 10 years; Volatility 112%; Risk-free interest
rate 2.67%; Dividend yield 0%.
|
|
(vii) |
On
August 21, 2022, 300,000 stock options were issued to a consultant with an exercise price
of CAD$4.00. The options expire on August 2, 2032. The fair value of the options granted
was estimated at $977 using the Black-Scholes option pricing model, using the following assumptions:
Share Price: CAD$4.00; Expected option life 10 years; Volatility 112%; Risk-free interest
rate 2.99%; Dividend yield 0%.
|
| |
(viii) |
As
at December 31, 2022, the Company had outstanding stock options, enabling the holders to acquire common shares as follows: |
SCHEDULE
OF OUTSTANDING STOCK OPTIONS
| Outstanding
as of December 31, 2022 | | |
Exercisable
as of December 31, 2022 | | |
Expiry
date | |
Exercise
price (CAD) | | |
Exercise
price (USD) | |
| | 543,333 | | |
| 510,000 | | |
August
20, 2025 | |
CAD | 1.50 | | |
$ | 1.11 | |
| | 40,000 | | |
| 40,000 | | |
September 1, 2025 | |
CAD | 2.25 | | |
$ | 1.66 | |
| | 33,333 | | |
| 33,333 | | |
January 28, 2025 | |
CAD | 3.00 | | |
$ | 2.21 | |
| | 50,000 | | |
| 33,333 | | |
June 3, 2026 | |
CAD | 8.40 | | |
$ | 6.20 | |
| | 16,677 | | |
| 11,118 | | |
October 28, 2026 | |
CAD | 8.00 | | |
$ | 5.90 | |
| | 900,000 | | |
| 225,000 | | |
August 2, 2032 | |
CAD | 3.56 | | |
$ | 2.63 | |
| | 300,000 | | |
| 300,000 | | |
August
21, 2032 | |
CAD | 4.00 | | |
$ | 2.95 | |
| | 1,883,343 | | |
| 1,152,784 | | |
| |
| | | |
| | |
| |
(ix) |
Share-based
compensation expense is recognized over the vesting period of options. During the year ended December 31, 2022, share-based compensation
of $4,868 was recognized and charged to the Consolidated Statement of Comprehensive Loss (December 31, 2021 - $843, December 31,
2020 – $800). |
c)
RSU’s
On
August 4, 2022, the Company granted 1,265,000 Restricted Share Units (“RSUs”) to directors, officers and advisers, of which
590,000 RSU’s are to executives and directors, pursuant to the Company’s RSU Plan and in acknowledgment of the Company’s
management recent success and increased future workload. The RSUs will vest at each recipient’s discretion and taking into account
personal tax implications and convert into 1,265,000 common shares of no par value in the Company (“Common Shares”).
RSU’s
transactions for the year ended December 31, 2022, and for the year ended December 31, 2021, are as follows:
SCHEDULE
OF RSU’S TRANSACTIONS
| | |
Number | |
| Balance,
January 1, 2021 | |
| - | |
| RSU’s
granted | |
| - | |
| Exercise
of RSU’s | |
| - | |
| Balance,
December 31, 2021 | |
| - | |
| RSU’s
granted | |
| 1,265,000 | |
| Exercise
of RSU’s | |
| (545,000 | ) |
| Balance,
December 31, 2022 | |
| 720,000 | |
Total
exercisable RSU’s as at December 31, 2022, are 225,832. During the year ended December 31, 2022, share-based compensation in respect
of RSU’s of $2,475 was charged to the Consolidated Statement of Comprehensive Loss (December 31, 2021 – $nil, December 31,
2020 – $nil).
A2Z
SMART TECHNOLOGIES CORP.
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed
in Thousands of US Dollars, except per share data)
|