9. SHARE CAPITAL

On March 29, 2021, the Company issued 30,000 common shares with a fair value of $179,700 against consulting services from a third party.

On May 10, 2021, the Company declared, and on May 11, 2021 issued, 86,739 common shares as stock dividend to holders of Series A Preferred shares issued on May 2, 2019.

On May 10, 2021, the Company declared, and on May 11, 2021 issued, 48,791 common shares as stock dividend to holders of Series A Preferred shares issued on May 10, 2019.

On May 27, 2021, the Company issued to consultants a total of 7,237 common shares.

On May 27, 2021, the Company issued 820,029 common shares as a result of 1,113,701 stock options exercised on a cashless basis at various exercise prices.

On May 28, 2021, the Company’s officers opted to receive a total of 98,356 common shares as bonus compensation for services rendered and accrued for in 2019 and 2020.

On May 31, 2021, the Company granted a total of 405,059 stock options to directors, officers, employees, and consultants of the Company. The stock options will vest over the next three years following the grant date with the first vesting date of three-month anniversary after the grant date. The stock options are exercisable for a five-year period at an exercise price of $7.00. The fair value of the options was estimated at $1.48 million determined using the Black-Scholes option pricing model was based on the following assumptions; stock price $6.00, dividend yield – nil, expected volatility 80%, risk free rate of return 0.98%, expected term of 3 years.

On July 15, 2021 the Company granted a total of 55,445 stock options to an officer of the Company. The stock options will vest over the next three years following the grant date with the first vesting date of three-month anniversary after the grant date. The stock options are exercisable for a five-year period at an exercise price of $7.00. The fair value of the options was estimated at $85,693 determined using the Black-Scholes option pricing model was based on the following assumptions; stock price $3.86, dividend yield – nil, expected volatility 80%, risk free rate of return 0.88%, expected life of 3 years.

On September 30, 2021 the Company granted a total of 49,284 stock options to directors of the Company. The stock options will vest over the next three years following the grant date with the first vesting date of three-month anniversary after the grant date. The stock options are exercisable for a five-year period at an exercise price of $7.00. The fair value of the options was estimated at $32,530 determined using the Black-Scholes option pricing model was based on the following assumptions; stock price $2.30, dividend yield – nil, expected volatility 80%, risk free rate of return 1.11%, expected life of 3 years.

As of September 30, 2021, there was $901,575 of total unrecognized compensation cost related to unvested share-based compensation granted under the stock option plan; that cost is expected to be recognized over a period of 3 years.

On June 24, 2021, the Company issued to a consultant working with the senior secured debentures holders, a total of 10,000 common shares on their behalf, for the term extension of the Bride Loan (see Note 6).

On July 12, 2021, the Company completed its IPO whereby it sold a total of 3,127,998 units, each consisting of one common share and one Series A warrant to purchase one common share, at a public offering price of $5.00 for gross proceeds of $15,639,990. The Company received net proceeds from the IPO of $14,388,791, after deducting underwriting discounts and commissions of 1,251,199.

Concurrent with the closing of the IPO, the 2,258,826 common shares were issued upon the conversion of all of its issued and outstanding Series A Preferred Shares.

On July 13, 2021, the Company declared and issued, 53,474 common shares as final stock dividend to the holders of Series A Preferred shares.

On July 13, 2021, the Company issued to consultants a total of 15,000 common shares.

On July 15, 2021, the Company issued 39,800 common shares as a result of exercise of 39,800 Series A warrants on cash basis at an exercise price of $6 per warrant.

On July 28, 2021, 93,938 common stock purchase warrants were issued to the purchaser of the senior secured debentures, with a term of three years and a strike price per share of $3.99.

On Sep 01, 2021, the Company issued to Directors 19,992 common shares as settlement of accrued directors’ fee.