UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

Commission file number 000-30414

ALR TECHNOLOGIES INC.

(Exact name of registrant as specified in its charter)

nevada

(State or other jurisdiction of incorporation or organization)

88-0225807

(I.R.S. Employer Identification No.)

7400 Beaufont Springs Drive Suite 300

Richmond, VA 23225

(Address of principal executive offices, including zip code.)

(804) 554-3500

(Telephone number, including area code)

Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the last 90 days. YesYES [ Xx ] NO [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (SS 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YesYES [X] NO [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer, “accelerated filer,” “non-accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

[   ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES [ ] NoNO [ X ]

YES

APPLICABLE ONLY TO CORPORATE ISSUERS:

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: 542,716,344542,716,844 as of August 12, 2021.May 16, 2022.

ALR TECHNOLOGIES INC.

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION

ALR TECHNOLOGIES INC.

Condensed Consolidated Financial Statements

June 30,March 31, 2022 and 2021 and 2020

(unaudited)

ALR TECHNOLOGIES INC.

Condensed Consolidated Balance Sheets

($ United States)

Basis of presentation, nature of operations and going concern (note 1)

Subsequent event (note 11)

See accompanying notes to the condensed consolidated financial statements.

ALR TECHNOLOGIES INC.

Condensed Consolidated Statements of Operations

($ United States)

(Unaudited)

See accompanying notes to the condensed consolidated financial statements.

ALR TECHNOLOGIES INC.

Condensed Consolidated Statements of Cash Flows

($ United States)

(Unaudited)

See accompanying notes to the condensed consolidated financial statements.

ALR TECHNOLOGIES INC.

Notes to Condensed Consolidated Financial Statements

For the SixThree Months Ended June 30, 2021March 31, 2022

($ United States)

(Unaudited)

1.       Basis of Presentation, Naturepresentation, nature of Operationsoperations and Going Concerngoing concern

ALR Technologies Inc. (the “Company”) was incorporated under the laws of the state of Nevada on March 24, 1987. On May 16, 2020, the Company incorporated a wholly owned subsidiary, ALR Technologies Sg Pte. Ltd. (“ALRT SG”), under the Companies Actof Singapore. On June 9, 2021, the Company incorporated a wholly owned subsidiary, Canada Diabetes Solution Centre, Inc., under the Business Corporations Act of Alberta.Alberta. The Company has developed its Diabetes Management Solution, which is a comprehensive approach to diabetes care consisting of data collection, predictive A1C, insulin dosage adjustment suggestions, performance tracking, remote monitoring and diabetes test supplies. The Company is seeking commercial opportunities to deploy the Diabetes Management Solution in the United States of America,(“U.S.”), Canada and Singapore.

These unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) in U.S. dollars and on a going concern basis, which presumes the realization of assets and the discharge of liabilities and commitments in the normal course of operations for the foreseeable future. Several adverse conditions cast substantial doubt on the validity of this assumption. The Company has incurred significant losses over the six-monththree-month periods ended June 30,March 31, 2022 and 2021 and 2020 of $3,337,4531,404,849 and $1,983,3421,016,923, respectively. As of June 30, 2021,March 31, 2022, the Company is unable to self-finance its operations, has a working capital deficit of $22,221,39925,371,971 (December 31, 20202021 - $21,760,60824,312,143), accumulated deficit of $96,909,215$103,419,926 (December 31, 20202021 - $93,571,762)$102,015,077), limited resources, no source of operating cash flow and no assurance that sufficient funding will be available to conduct continued product development activities. If the Company is able to finance its required product development activities, there is no assurance the Company’s current projects will be commercially viable or profitable. The Company has debts comprised of accounts payable and accrued liabilities, interest payable, lines of credit and promissory notes payable totaling $22,655,594$25,639,349 currently due, due on demand or considered delinquent. There is no assurance that the Company will not face additional legal action from creditors regarding delinquent accounts payable, promissory notes payable and interest payable. Any one or a combination of these above conditions could result in the failure of the business and cause the Company to cease operations.

The Company’s ability to continue as a going concern is dependent upon the continued financial support of its creditors and its ability to obtain financing to fund working capital and overhead requirements, fund the development of the Company’s product line, and ultimately, the Company’s ability to achieve profitable operations and repay overdue obligations. Management has obtained a mix of equity and line of creditshort-term financing from related parties. Theparties through line of credit facilities havewith available borrowing in principal up to $12,300,000.$14,300,000. As of June 30, 2021,March 31, 2022, the total principal balance outstanding was $11,940,884.$12,988,100. The resolution of whether the Company is able to continue as a going concern is dependent upon the realization of management’s plans. There can be no assurance that the Company will be able to raise any additional debt or equity capital from the sources described above or that the lenders in the line of credit arrangements will maintain the availability of borrowing from the line. If management is unsuccessful in obtaining short-term financing or achieving long-term profitable operations, the Company will be required to cease operations.

In March 2020, the World Health Organization declared coronavirus, COVID-19, a global pandemic. This contagious disease outbreak, which has continued to spread, and any related adverse public health developments, has adversely affected workforces, economies and financial markets globally, potentially leading to an economic downturn. Management does not expect that COVID-19 will have a significant impact on the Company; however, it could have a potential impact on the Company’s ability to raise money, market its products to attract customers or procure equipment and parts for its glucose monitoring system.

ALR TECHNOLOGIES INC.

Notes to Condensed Consolidated Financial Statements

For the SixThree Months Ended June 30, 2021March 31, 2022

($ United States)

(Unaudited)

1.       Basis of Presentation, Naturepresentation, nature of Operationsoperations and Going Concerngoing concern (continued)

All of the Company’s debt is either due on demand or is in default, while continuing to accrue interest at its stated rate.rates. The Company will seek to obtain creditors’ consents to delay repayment of the outstanding promissory notes payable and related interest thereto, until it is able to replace this financing with funds generated by operations, recapitalization with replacement debt or from equity financings through private placements. While some of the Company’s creditors have agreed to extend repayment deadlines in the past, there is no assurance that they will continue to do so in the future. In the past, creditors have successfully commenced legal action against the Company to recover debts outstanding. In those instances, the Company was able to obtain financing from related parties to cover the verdict or settlement; however, there is no assurance that the Company would be able to obtain the same financing in the future. If the Company is unsuccessful in obtaining financing to cover any potential verdicts or settlements, the Company will be required to cease operations.

The Company’s activities will necessitate significant uses of working capital beyond 2021.2022. Additionally, the Company’s capital requirements will depend on many factors, including the success of the Company’s continued product development and distribution efforts. The Company plans to continue financing its operations with the lines of credit it has available.available and other sources of financing.

2.       Significant Accounting Policiesaccounting policies

These unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, ALR Technologies Sg Pte. Ltd.,subsidiary, ALRT SG, which was incorporated on May 16, 2020 in Singapore, and Canada Diabetes Solution Centre, Inc., which was incorporated on June 9, 2021 in Alberta.Alberta, Canada. The Canadian subsidiary is currently inactive. All significant intercompany balances and transactions have been eliminated on consolidation.

The unaudited condensed consolidated financial statements as of June 30, 2021March 31, 2022 and for the period then ended have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading.

In the opinion of management, all adjustments necessary to present fairly the financial position as of June 30, 2021March 31, 2022 and December 31, 20202021, and the results of operations and cash flows as of June 30,March 31, 2022 and 2021, and 2020, and for the periods then ended, have been made. Those adjustments consist of normal and recurring adjustments.

These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2020.2021.

The results of operations for the six monthsthree-month period ended June 30, 2021March 31, 2022 are not necessarily indicative of the results to be expected for the full year.

ALR TECHNOLOGIES INC.

Notes to Condensed Consolidated Financial Statements

For the SixThree Months Ended June 30, 2021March 31, 2022

($ United States)

(Unaudited)

3.       Accounts payable and accrued liabilities

A summary of the accounts payable and accrued liabilities is as follows:

4.Interest, Advancesadvances and Promissory Notes Payablepromissory notes payable

a)       Promissory notes payable to related parties

A summary of activities of promissory notes payable to related parties is as follows:

A summary of the promissory notes payable to related parties is as follows:

Schedule of Promissory Notes Payable - Relatives of Board of Directors

All amounts past maturity continue to accrue interest at their stated rate and are considered due on demand.

b)       Promissory notes payable to unrelated parties

A summary of the promissory notes payable to unrelated parties is as follows:

Schedule of Activity of Promissory Notes Payable to Unrelated Lenders

During the six months ended June 30, 2021, the Company:

There was no promissory note activity during the year-ended December 31, 2020.

All amounts past maturity continue to accrue interest at their stated raterates and are considered due on demand.

ALR TECHNOLOGIES INC.

Notes to Condensed Consolidated Financial Statements

For the SixThree Months Ended June 30, 2021March 31, 2022

($ United States)

(Unaudited)

3.4.       Interest, Advancesadvances and promissory notes payable (continued)

b)       Promissory notes payable to unrelated parties

A summary of activities of promissory notes payable to unrelated parties is as follows:

A summary of the promissory notes payable to unrelated parties is as follows:

The Company received an advance from a shareholder for Singapore dollars (“SGD”) $270,000 (US$199,395), with a fixed interest amount of SGD$8,000, which will mature and be repayable on July 31, 2022.

All amounts past maturity continue to accrue interest at their stated rates and are considered due on demand.

ALR TECHNOLOGIES INC.

Notes Payableto Condensed Consolidated Financial Statements

For the Three Months Ended March 31, 2022

($ United States)

(Unaudited)

4.Interest, advances and promissory notes payable (continued)

c)       Interest payable

A summary of the interest payable activity is as follows:

 ScheduleofInterestPayable

Interest payable is due to related and non-related parties as follows:

The payment terms, security and any interest payable are based on the underlying promissory notes payable that the Company has outstanding.

d)       Interest expense

During the period ended June 30, 2021,March 31, 2022, the Company incurred interest expense of $2,283,770 (2020$550,636 (2021 - $1,044,627)$479,367) as follows:

ALR TECHNOLOGIES INC.

Notes to Condensed Consolidated Financial Statements

For the Six Months Ended June 30, 2021

($ United States)

(Unaudited)

4.        Lines of Credit

As of June 30, 2021, the Company had two lines of credit as follows:

Schedule Line of Credit Related Party

As of December 31, 2020, the Company had two lines of credit as follows:

On September 21, 2020, the Company, the Chairman and the Chairman’s spouse agreed to retire a portion of the principal of $1,038,967 and accrued interest of $8,642,491 pursuant to two shares for debt agreements (note 5(b)).

5.       Capital Stock

10,000,000,000 shares of common stock with a par value of $0.001 per share.

500,000,000 shares of preferred stock with a par value of $0.001 per share.

ALR TECHNOLOGIES INC.

Notes to Condensed Consolidated Financial Statements

For the SixThree Months Ended June 30, 2021March 31, 2022

($ United States)

(Unaudited)

5.Lines of credit

A summary of lines of credit activity is as follows:

On December 10, 2021, the Company and the spouse of the Chairman entered into an amendment agreement to increase the borrowing limit on the line of credit provided by the spouse of the Chairman to the Company from $2,000,000 to $4,000,000. The terms of amounts to be advanced under the amendment are consistent with the line of credit. In connection with the line of credit, the Company granted the spouse of the Chairman the option to acquire 40,000,000 shares of common of the Company at a price of $0.05 per share until December 31, 2026 (note 7).

As of March 31, 2022, the Company had two lines of credit as follows:

As of December 31, 2021, the Company had two lines of credit as follows:

ALR TECHNOLOGIES INC.

Notes to Condensed Consolidated Financial Statements

For the Three Months Ended March 31, 2022

($ United States)

(Unaudited)

6.       Capital Stock stock(continued)

10,000,000,000 shares of common stock with a par value of $0.001 per share.

500,000,000 shares of preferred stock with a par value of $0.001 per share.

b)       Issued capital stock

During the period ended June 30, 2021:March 31, 2022:

ALR TECHNOLOGIES INC.

Notes to Condensed Consolidated Financial Statements

For the Three Months Ended March 31, 2022

($ United States)

(Unaudited)

6.       Capital stock (continued)

b)       Issued capital stock (continued)

During the year ended December 31, 2021:

·      Accounts payable - $ 194,186

·      Promissory notes – Principal - $ 20,000

·      Line of credit – Accrued interest - $ 3,000

The Company recognized loss on debt settlement of $33,614. The Company also issued commitment letters to two creditors offering them an aggregate 20,000,000 shares of common stock in exchange for the extinguishment of $1,511,377 in promissory notes and interest payable prior to December 31, 2021.

During the year ended2021 (note 8). These offer letters expired on December 31, 2020:2021 without the parties executing any settlements. On March 18, 2022, the Company extended the offer letters from December 31, 2021 to December 31, 2022 for the settlement of $1,541,000 in promissory notes and interest payable. As of the date of these condensed consolidated financial statements, the offer letters have not been executed.

ALR TECHNOLOGIES INC.

Notes to Condensed Consolidated Financial Statements

For the SixThree Months Ended June 30, 2021March 31, 2022

($ United States)

(Unaudited)

5.Capital Stock (continued)

b)       Issued capital stock (continued)

During the year ended December 31, 2020: (continued)

6.7.        Additional Paid-in Capitalpaid-in capital

Stock options

A summary of stock option activity is as follows:

Schedule of Share-based Compensation, Stock Options, Activity

During the period ended March 31, 2022:

On March 18, 2022, the Company modified 70,000,000 options previously granted to a number of advisors and independent contractors by extending the vesting period under vesting terms, which have not been met, from September 30, 2021 and December 31, 2021 to December 31, 2022 and from June 30, 2022 to June 30, 2023.

On March 18, 2022, the Company amended 2,500,000 options previously granted to an individual on October 4, 2021 by vesting 1,000,000 options with performance conditions and cancelling the remaining 1,500,000 options. During the period ended March 31, 2022, $59,639 related to the 1,000,000 options that vested immediately was recorded.

Effective March 18, 2022, the Company cancelled 20,000,000 stock options exercisable at $0.015, 10,000,000 stock options exercisable at $0.035 and 28,500,000 exercisable at $0.05 related to the termination of certain contractors.

During the period ended March 31, 2022, the Company recorded a total of $319,789 in compensation expense related to the vesting of stock options granted in 2021, including the $59,639 from the modification of vesting terms of 1,000,000 options.

ALR TECHNOLOGIES INC.

Notes to Condensed Consolidated Financial Statements

For the SixThree Months Ended June 30, 2021March 31, 2022

($ United States)

(Unaudited)

6.7.        Additional Paid-in Capitalpaid-in capital (continued)

Stock options (continued)

During the periodyear ended June 30,December 31, 2021:

On January 28, 2021, the Company granted the option to acquire an aggregate 32,000,000 shares of common stock at a price of $0.05 per share to six individuals. All of the options will vest according to performance or time-based conditions. Options to acquire 22,000,000 shares of common stock will expire December 31, 2025, and options to acquire 10,000,000 shares of common stock will expire May 17, 2024. None of theseAs at March 31, 2022, 2,000,000 (December 31, 2021, 1,000,000) options have vested to date. The fair value of the options granted totals $1,706,244, of which $573,292 relates to stock options that have time-based vesting conditions and $1,132,952 relates to stock options that have performance vesting conditions. During the current period $112,813 relatesended March 31, 2022, $52,238 (December 31, 2021 - $248,189) related to the stock options with time-based vesting conditions whichand $56,648 (December 31, 2021 - $nil) related to stock options with performance-based vesting conditions was recorded.recognized. The remaining fair value of $1,593,431$1,349,169 has not been recorded.

On February 22, 2021, the Company granted the option to acquire an aggregate 5,000,000 shares of common stock at a price of $0.05 per share. These options were granted to three individuals and have an expiry date of May 17, 2024. None of these options have vested to date. The fair value of the options granted totalstotaled $225,141. During the current period $23,092 relatesended March 31, 2022, $17,319 (December 31, 2021 - $57,730) related to stock options with time-based vesting conditions which was recorded.recognized. The remaining fair value of $202,049$150,092 has not been recorded.

On April 14, 2021, the Company’s Board of Directors approved the grant of the option to acquire an aggregate 28,500,000 shares of common stock at a price of $0.05 per share until December 31, 2025 to five individuals. All of the options will vest according to performance or time-based conditions. None of theseconditions; 200,000 options have vested to date. The fair value of the options granted totalstotaled $1,565,812, of which $351,621 relatesrelated to stock options that have time-based vesting conditions and $1,214,191 relatesrelated to stock options that have performance vesting conditions. During the current period $5,232 relatesended March 31, 2022, $27,279 (December 31, 2021 - $88,540) related to the stock options with time-based vesting conditions which was recorded.recognized. The remaining fair value of $1,560,580$1,449,993 has not been recorded.

On May 12, 2021, the Company’s Board of Directors amended the option to acquire 2,000,000 shares, previously granted on January 28, 2021 to a consultant, to increase the option by 1,000,000 to provide the optionee the option to acquire an aggregate of 3,000,000 shares of common stock at a price of $0.05 per share until December 31, 2025. All other terms of the January 28, 2021 grant remain the same and the options are subject to performance vesting conditions. The fair value of the additional 1,000,000 amended options granted totalingtotaled $54,940 was not recorded, as it cannot be determined that it is more likely than not that the performance condition will be met.

On May 31, 2021, the Company granted one consultant the option to acquire 5,000,000 shares of common stock of the Company at a price of $0.05 per share until December 31, 2025 subject to performance vesting conditions. The fair value of the options granted totalingtotaled $254,708 was not recorded, as it cannot be determined that it is more likely than not that the performance condition will be met.

ALR TECHNOLOGIES INC.

Notes to Condensed Consolidated Financial Statements

For the Six Months Ended June 30, 2021

($ United States)

(Unaudited)

6.        Additional Paid-in Capital (continued)

Stock options (continued)

During the period ended June 30, 2021: (continued)

On June 27, 2021, the Company cancelled 7,400,000 stock options with an average exercise price of $0.033.

ALR TECHNOLOGIES INC.

Notes to Condensed Consolidated Financial Statements

For the Three Months Ended March 31, 2022

($ United States)

(Unaudited)

7.        Additional paid-in capital (continued)

Stock options (continued)

During the year ended December 31, 2021: (continued)

On June 27, 2021, the Company’s Board of Directors approved the grant of the option to acquire an aggregate 21,000,000 shares of common stock at a price of $0.05 per share until June 30, 2026 to four individuals. All of the options will vest according to performance or time-based conditions. None of these options have vested to date. The fair value of the options granted totalstotaled $1,374,208, of which $26,175 relatesrelated to stock options that havewith time-based vesting conditions and $1,348,033 relatesrelated to stock options that havewith performance vesting conditions. During the period ended March 31, 2022, $4,908 (December 31, 2021 - $9,816) related to the stock options with time-based vesting conditions was recognized. The remaining fair value of $1,374,208$1,359,484 has not been recorded.

On June 30, 2021, the Company amended the option to acquire 4,365,001,300 shares of common stock granted on July 1, 2016 by extending the expiry date from July 1, 2021 to April 12, 2024. The options were granted in connection with lines of credit provided by the Chairman and his spouse, which are currently outstanding (note 4)5). All of the options had vested in previous years. The fair value of the amendments totaled $1,287,834 and was recorded during the current periodyear ended December 31, 2021 in interest expense.

DuringEffective July 22, 2021, the year ended December 31, 2020:Company cancelled 22,500,000 stock options exercisable at $0.035 related to the termination of certain contractors and advisors.

On April 1, 2020,August 27, 2021, the Company granted one consultanta member of the Board of Directors the option to acquire 10,000,0005,000,000 shares of common stock at a price of $0.035$0.05 per share for a term of five years.until June 30, 2026. The fair value of the options granted totaling $391,843$304,692 was fully recorded at grant.

On May 12, 2020,October 4, 2021, the Company amendedgranted two individuals the option to acquire 40,000,000 sharesan aggregate 17,500,000 options at an exercise price of common stock granted on June 12, 2019$0.05 per share until September 30, 2026; 15,000,000 of the options will vest according to extendtime-based conditions and 2,500,000 will vest according to performance conditions. On March 18, 2022, the period ofCompany cancelled 1,500,000 options and vested 1,000,000 options with performance vesting from Mayconditions. As at March 31, 2020 to December2022, 1,000,000 (December 31, 2020. None of these2021 - nil) options have vested to date. The fair value of the options granted totaled $1,043,690, of which $894,592 related to stock options that have time-based vesting conditions and $149,098 related to stock options that have performance vesting conditions. During the period ended March 31, 2022, $101,758 (December 31, 2021 - $101,758) related to stock options with time-based vesting conditions and $59,639 (December 31, 2021 - $nil) related to stock options with performance-based vesting conditions was recognized. The remaining fair value of $780,535 has not been recorded.

On May 18, 2020,December 10, 2021, the Company granted one consultantcreditor the option to acquire 500,00040,000,000 shares of common stock of the Company at a price of $0.035$0.05 per share until May 17, 2024.December 31, 2026 in connection with receiving line of credit financing (note 5). The fair value of the options granted totaling $18,725totaled $2,137,286 and was fully recorded at grant.

On June 1, 2020,upon the Company granted one consultant the option to acquire 10,000,000 shares of common stock of the Company at a price of $0.035 per share until May 31, 2025 subject to performance vesting conditions. The fair value of the options granted totaling $621,853 was not recorded, as it cannot be determined that it is more likely than not that the performance condition will be met.

ALR TECHNOLOGIES INC.

Notes to Condensed Consolidated Financial Statements

For the Six Months Ended June 30, 2021

($ United States)

(Unaudited)

6.        Additional Paid-in Capital (continued)

Stock options (continued)

During the year ended December 31, 2020: (continued)

On June 5, 2020, the Company granted one sales agent the option to acquire 10,000,000 shares of common stock of the Company at a price of $0.035 per share until May 31, 2025 subject to the agent enrolling 20,000 patientsentering into the ALRT Diabetes Solution by May 31, 2021. The fair value offinancing agreement with the options granted totaling $494,868 was not recorded, as it cannot be determined that it is more likely than not that the performance condition will be met.

On September 1, 2020, the Company granted thirteen individuals the option to acquire an aggregate 74,500,000 options at an exercise price of $0.05 per share; 22,000,000 stock options, which vested at the time of grant, will expire on May 17, 2024 and 52,500,000 stock options, which vest upon achievement of performance conditions, will expire on May 31, 2025. None of the stock options with performance vesting conditions have vested. The fair value of the options granted totals $3,854,619, of which $1,137,397 related to the stock options that have vested was recorded and $2,717,222 related to the options that have not vested was not recorded.

On October 12, 2020, the Company granted eight individuals the option to acquire an aggregate 34,800,000 options at an exercise price of $0.05 per share until May 31, 2025; 18,300,000 vested at the time of grant and 16,500,000 of the stock options granted will vest upon achievement of performance conditions. None of the stock options with performance vesting conditions have vested. The fair value of the options granted totals $2,434,053, of which $1,279,973 related to the stock options that have vested was recorded and $1,154,080 related to the options that have not vested was not recorded.

During the year ended December 31, 2020, the Company recorded a further $79 in compensation expense related to the vesting of stock options granted in previous years.

ALR TECHNOLOGIES INC.

Notes to Condensed Consolidated Financial Statements

For the Six Months Ended June 30, 2021

($ United States)

(Unaudited)

6.        Additional Paid-in Capital (continued)

Stock options (continued)

Outstanding:

The options outstanding at June 30, 2021 and December 31, 2020 were as follows:

Schedule of Options Outstanding

creditor.

ALR TECHNOLOGIES INC.

Notes to Condensed Consolidated Financial Statements

For the SixThree Months Ended June 30, 2021March 31, 2022

($ United States)

(Unaudited)

6.7.        Additional Paid-in Capitalpaid-in capital (continued)

Stock options (continued)

During the year ended December 31, 2021: (continued)

On December 10, 2021, the Company granted one consultant the option to acquire 10,000,000 shares of common stock of the Company at a price of $0.05 per share until December 31, 2026 subject to performance vesting conditions. The fair value of the options granted totaled $534,321 was not recorded, as it cannot be determined that it is more likely than not that the performance condition will be met.

During the year ended December 31, 2021, the Company recorded a further $167,373 in compensation expense related to the vesting of stock options granted in previous years.

Outstanding

The options outstanding at March 31, 2022 and December 31, 2021 were as follows:

ALR TECHNOLOGIES INC.

Notes to Condensed Consolidated Financial Statements

For the Three Months Ended March 31, 2022

($ United States)

(Unaudited)

7.        Additional paid-in capital (continued)

Stock options (continued)

The fair value of the stock options granted and vested was allocated as follows:

Schedule of Fair Value of Stock Options Granted-Allocation

The Company uses the fair value method for determining stock-based compensation for all options granted during the fiscal periods. The fair value was determined using the Black-Scholes option pricing model based on the following weighted average assumptions:

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

There were no options granted during the three months ended March 31, 2022. The weighted average fair value for the options granted during the six months ended June 30, 2021 was $0.06 (yearyear ended December 31, 2020 -2021 was $0.06).

ALR TECHNOLOGIES INC.

Notes to Condensed Consolidated Financial Statements

For the SixThree Months Ended June 30, 2021March 31, 2022

($ United States)

(Unaudited)

7.8.       Related Party Transactionsparty transactions and Balances

Schedule of related party transactions

balances