COMMON SHARES | NOTE 9 – COMMON SHARES Common Stock At June 30, 2022, the Company’s authorized capital consisted of 50,000,000 of common shares with a $0.001 par value and 25,508,044 shares were issued and outstanding. During the year ended June 30, 2021, the Company incurred the following transactions: During the period from July 2, 2020 to July 31, 2020, the Company completed various private placements whereby a total of 500,000 common shares were issued at a price of $0.05 per share for a total value of $25,000. During the period from November 24, 2020 to June 30, 2021, the Company completed various private placements whereby a total of 4,541,190 common shares were issued at a price of $0.25 per share for a total value of $1,135,298. As at June 31, 2021, $10,500 of the subscriptions still remained receivable. On December 28, 2020, the Company issued 110,000 common shares to a non-related party at a price of $0.10 per share for a total value of $11,000 as commitment shares in exchange for services related to the issuance of convertible debt. On March 29, 2021, the Company issued 88,000 common shares to a non-related party at a price of $0.25 per share for a total value of $22,000 as debt issuance costs related to the issuance of convertible debt. On March 29, 2021, the Company issued 100,000 common shares to a director of the Company at a price of $0.25 per share for a total value of $25,000 in exchange for services. On April 12, 2021, the Company issued 400,000 common shares to a non-related party at a price of $0.25 per share for a total value of $100,000 in exchange for services. On April 15, 2021, the Company issued 100,000 common shares to a non-related party at a price of $0.25 per share for a total value of $25,000 in exchange for services. On June 21, 2021, the Company issued 41,085 common shares to a non-related party at a price of $0.73 per share for a total value of $30,000 as settlement of debt. On June 25, 2021, the Company issued 10,000 common shares to a non-related party at a price of $0.85 per share for a total value of $8,500 as settlement of debt. During the year ended June 30, 2022, the Company incurred the following transactions: During the period July 1, 2021 to October 28, 2021, the Company completed various private placements whereby a total of 5,558,810 common shares were issued for a total proceeds of $1,425,202. On October 15, 2021, the Company issued 125,000 common shares at a price of $0.80 per share for marketing services valued at $100,000. On October 28, 2021, the Company issued 28,572 common shares at a price of $0.70 per share for legal services valued at $20,000. On December 8, 2021, the Company issued 50,000 common shares at a price of $0.71 per share for consulting services valued at $35,250. On December 31, 2021, the Company issued 583,936 common shares for the conversion of debt at a conversion price of $0.10 per share for a total value of $58,394. See Note 10 (a). On December 31, 2021, the Company issued 353,215 common shares for the conversion of debt at a conversion price of $0.10 per share for a total value of $35,321. See Note 10 (b). On January 1, 2022, the Company issued 100,000 common shares at a price of $0.65 per share for consulting services valued at $65,000. On March 25, 2022, the Company issued 12,000 common shares to a non-related party at a price of $0.60 per share for a total value of $7,200 in exchange for services. On May 19, 2022, the Company issued 400,000 common shares to a non-related party at a price of $0.577 per share for investor relations services valued at $230,800 Warrants On December 28, 2020, the Company granted 1,100,000 warrants with a contractual life of two years and exercise price of $0.25 per share to a lender as part of the convertible debt financing transaction (Note 8 (b)). The warrants were valued at $46,898 using the Black Scholes Option Pricing Model. On March 25, 2021, the Company granted 1,100,000 warrants with a contractual life of two years and exercise price of $0.25 per share to a lender as part of the convertible debt financing transaction (Note 8 (c)). The warrants were valued at $41,920 using the Black Scholes Option Pricing Model. On April 22, 2021, the Company granted 506,838 warrants with a contractual life of two years and exercise price of $0.25 per share to a lender as part of the convertible debt financing transaction (Note 8 (a)). The warrants were valued at $44,088 using the Black Scholes Option Pricing Model. On April 28, 2021, the Company granted 307,408 warrants with a contractual life of two years and exercise price of $0.25 per share to a lender as part of the convertible debt financing transaction (Note 8 (a)). The warrants were valued at $25,745 using the Black Scholes Option Pricing Model. The Black Scholes Option Pricing Model assumptions used in the valuation of the warrants are outlined below. The stock price was based on recent issuances. Expected life was based on the expiry date of the warrants as the Company did not have historical exercise data of such warrants. June 30, 2022 Stock price $0.85 - $0.25 Risk-free interest rate 0.13%-0.17% Expected life 2 Years Expected dividend rate 0 Expected volatility 102.03% - 206.63% Continuity of the Company’s common stock purchase warrants issued and outstanding is as follows: Number of Warrants Weighted Average Exercise Price Outstanding, June 30, 2020 - $ - Granted 3,014,246 0.25 Exercised - - Expired - - Outstanding, June 30, 2021 3,014,246 $ 0.25 Granted - - Exercised - - Expired - - Outstanding, June 30, 2022 3,014,246 $ 0.25 As at June 30, 2022, the weighted average remaining contractual life of warrants outstanding was 1.20 years with an intrinsic value of $0.25. Stock Options On December 8, 2021, the Board of Directors of the Company approved the adoption of the 2021 Equity Compensation Plan (the “Equity Compensation Plan”) to provide employees, certain consultants and advisors who perform services for the Company , During the year ended June 30, 2022 the Company issued a total of 6,000,000 non-qualified stock options (the “options”) to directors, officers and certain key consultants. The options are subject to the terms and conditions of the Equity Compensation Plan. All granted options are subject to a five-year vesting schedule equal to 20% per year starting on the 1 st The following is a continuity schedule for the Company’s outstanding non-qualified stock options: Number of options Weighted Average Exercise Price Outstanding, June 30, 2021 - USD - Granted 6,000,000 USD 0.65 Exercised - USD - Cancelled - USD - Outstanding, June 30, 2022 6,000,000 USD 0.65 As at June 30, 2022, the Company had the following stock options outstanding: Grant Date Number Outstanding Number Exercisable Exercise Price Weighted Average Life (Years) Expiry Date January 3, 2022 125,000 - USD 0.65 9.52 January 3, 2032 January 4, 2022 5,875,000 - USD 0.65 9.52 January 4, 2032 Total 6,000,000 - USD 0.65 9.52 During the period ended June 30, 2022, the Company recorded $605,114 as share-based compensation relating to the issuance of the non-qualified stock options. The fair value of the options granted during the year ended June 30, 2022 was estimated on the date of the grant date using the Black-Scholes option pricing model with the following weighted average assumptions: Expected volatility 81.59 % Expected option life (years) 6 years Risk-free interest rate (10-year U.S. treasury yield) 1.55 - 1.66% Expected dividend yield 0 % Performance Stock Units On December 8, 2021, the Board of Directors of the Company approved the adoption of the 2021 Equity Compensation Plan (the “Equity Compensation Plan”) to provide employees, certain consultants and advisors who perform services for the Company , During the year ended June 30, 2022 the Company issued a total of 4,000,000 performance stock units (“performance units”) to directors, officers and certain key consultants. The performance units are subject to the terms and conditions of the Equity Compensation Plan. The performance units will be earned and vest upon reaching certain market capitalization goals during the performance period ending on December 31, 2026. The following is a continuity schedule for the Company’s outstanding performance stock units: Number of Performance Units Weighted Average Exercise Price Outstanding, June 30, 2021 - $ - Granted 4,000,000 - Released - - Forfeited or cancelled - - Outstanding, June 30, 2022 4,000,000 $ - As at June 30, 2022, the Company had the following performance units outstanding: Grant Date Number Outstanding Number Exercisable Exercise Price Weighted Average Life (Years) Expiry Date March 8, 2022 4,000,000 - USD $0.00 4.82 December 31, 2026 Total 4,000,000 - USD $0.00 4.82 During the period ended June 30, 2022, the Company recorded $300,848 as share-based compensation relating to the issuance of the performance units. The fair value of the performance units granted during the year ended June 30, 2022 was estimated on the date of the grant date using advanced techniques with the following weighted average assumptions: Expected volatility 85.0 % Requisite period 4.82 years Risk-free interest rate (US Treasury Bond rate as of the grant date) 1.80 % Expected dividend yield 0 % |