Quarterly report pursuant to Section 13 or 15(d)

Share Capital

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Share Capital
6 Months Ended
Jun. 30, 2024
Share Capital [Abstract]  
SHARE CAPITAL
11. 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.

 

  b) Issued share capital

 

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.

 

  c) Stock options

 

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