| 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.
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 $4,561,200. |
During
the nine months ended September 30, 2024, the Company:
| |
i) |
Did not enter into any
capital transactions. |
The
Company may grant incentive stock options to its officers, directors, employees, and consultants. The Company has implemented a rolling
Stock Option Plan (the “Plan”) whereby the Company can issue up to 10% of the issued and outstanding common shares of the
Company. Options have a maximum term of ten years and vesting is determined by the Board of Directors.
A
continuity schedule of outstanding stock options is as follows:
| |
|
Number
Outstanding |
|
|
Weighted Average
Exercise Price |
|
| |
|
|
|
|
($) |
|
| Outstanding
– December 31, 2023 |
|
|
28,990 |
|
|
|
165.38 |
|
| Granted |
|
|
- |
|
|
|
- |
|
| Exercised |
|
|
- |
|
|
|
- |
|
| Forfeited |
|
|
(13,860 |
) |
|
|
186.49 |
|
| Outstanding –
September 30, 2024 |
|
|
15,130 |
|
|
|
146.03 |
|
During
the three months ended September 30, 2024 and 2023 the Company recorded share-based compensation of none and $1,909, respectively, relating
to options vested during the period. During the nine months ended September 30, 2024 and 2023 the Company recorded share-based compensation
of $160,865 and $(1,154,308), respectively.
There
were no grants in the three-month and nine-month period ended September 30, 2024. There were no grants in the three-month period ended
September 30, 2023. The Company used the following assumptions in calculating the grant date fair value of stock options granted for
the nine-month period ended September 30, 2023:
| |
| September 30,
2023 |
|
| Risk-free interest rate |
| |
3.93 |
% |
| Expected life of options |
| |
5.0 years |
|
| Expected dividend yield |
| |
Nil |
|
| Volatility |
| |
132.65 |
% |
| |
d) |
Share purchase warrants |
A
continuity schedule of outstanding share purchase warrants is as follows:
| |
|
Number
Outstanding |
|
|
Weighted
Average
Exercise
Price |
|
| |
|
|
|
|
($) |
|
| 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 – September
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:
| |
|
December 31,
2023 |
|
| Risk-free interest rate |
|
|
4.13% – 4.49% |
|
| Expected life of warrants |
|
|
2.06 – 4.80 years |
|
| Expected dividend yield |
|
|
Nil |
|
| Volatility |
|
|
132.78 |
% |
| Weighted average fair value per warrant |
|
$ |
4.69 |
|
At
September 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 |
|
| |
1.31 |
|
| February 28, 2027 |
| |
20,689 |
|
| |
460.80 |
|
| |
2.42 |
|
| December 6, 2027 |
| |
13,781 |
|
| |
20.00 |
|
| |
3.18 |
|
| December 9, 2027 |
| |
9,876 |
|
| |
17.60 |
|
| |
3.19 |
|
| January 18, 2028 |
| |
25,906 |
|
| |
124.80 |
|
| |
3.30 |
|
| February 2, 2028 |
| |
10,938 |
|
| |
14.40 |
|
| |
3.35 |
|
| October 17, 2028 |
| |
783,968 |
|
| |
3.68 |
|
| |
4.05 |
|
| October 17, 2028 |
| |
24,457 |
|
| |
4.05 |
|
| |
4.05 |
|
| |
| |
896,645 |
|
| |
32.36 |
|
| |
3.94 |
|
|