| ADDITIONAL PAID-IN CAPITAL [Text Block] |
10. ADDITIONAL PAID-IN CAPITAL
a) Stock options
The Company is authorized to grant stock options to directors, employees, and consultants pursuant to its stock option plan for up to 20% of the Company's issued and outstanding common shares. Stock options are granted at the discretion of the Board of Directors and may vest immediately or upon the achievement of specified performance milestones.
The exercise price of each option cannot be lower than the closing market share price of the Company's common shares on the trading day preceding the grant. Most options are granted for a term of five years and invested immediately, except for those subject to performance milestones.
During the six months ended June 30, 2025, the Company granted the following stock options:
- 7,500,000 performance options with an exercise price of $0.08, expiring on April 4, 2030, and vest as follows:
-
3,750,000 vest upon either (a) the market capitalization of the Company's common shares reaches $100,000 for any 30 consecutive trading days or (b) the Company closing a liquidity event having a fair market value of no less than $100,000 (met);
-
3,750,000 vest upon either (a) the market capitalization of the Company's common shares reaches $200,000 for any 30 consecutive trading days or (b) the Company closing a liquidity event having a fair market value of no less than $200,000;
The performance options were valued using a Monte Carlo simulation model with the following inputs:
| |
April 4, 2025 |
| Risk-free interest rate |
2.52% |
| Expected volatility |
125% |
| Dividend yield |
0% |
| Market Cap |
$100M/$200M
|
| Exercise Price |
$0.08 |
| Simulation Paths |
10,000 |
The following table summarizes the continuity of the number of stock options issued and outstanding:
| |
|
June 30, 2026 |
|
|
December 31, 2025 |
|
| |
|
Number
of options |
|
|
Weighted average
exercise price
(CAD) |
|
|
Number
of options |
|
|
Weighted average
exercise price
(CAD) |
|
| Outstanding, beginning of period |
|
88,540,965 |
|
|
0.10 |
|
|
63,735,248 |
|
$ |
0.09 |
|
| Granted |
|
- |
|
|
- |
|
|
29,000,000 |
|
|
0.05 |
|
| Exercised |
|
(4,950,000 |
) |
|
(0.08 |
) |
|
(2,223,635 |
) |
|
(0.08 |
) |
| Expired |
|
(1,750,000 |
) |
|
(0.25 |
) |
|
(1,970,648 |
) |
|
(0.08 |
) |
| Outstanding, ending of period |
|
81,840,965 |
|
|
0.10 |
|
|
88,540,965 |
|
|
0.10 |
|
| Exercisable, ending of period |
|
78,090,965 |
|
|
0.10 |
|
|
81,040,965 |
|
|
0.10 |
|
As of June 30, 2026, all stock options were fully vested except for 3,750,000 granted on April 5, 2025.
As of June 30, 2026, the number of stock options outstanding and exercisable were:
| Expiry date |
|
Exercise price
(CAD) |
|
|
Number of
options
outstanding |
|
|
Remaining
contractual life
in years |
|
|
Number of
options
exercisable |
|
| June 18, 2026* |
|
0.245 |
|
|
800,000 |
|
|
- |
|
|
800,000 |
|
| October 21, 2026 |
|
0.09 |
|
|
900,000 |
|
|
0.31
|
|
|
900,000 |
|
| May 25, 2027 |
|
0.085 |
|
|
2,000,000 |
|
|
0.90
|
|
|
2,000,000 |
|
| March 2, 2028 |
|
0.095 |
|
|
350,000 |
|
|
1.67
|
|
|
350,000 |
|
| July 21, 2028 |
|
0.08 |
|
|
15,715,965 |
|
|
2.06
|
|
|
15,715,965 |
|
| March 1, 2029 |
|
0.07 |
|
|
12,865,000 |
|
|
2.67
|
|
|
12,865,000 |
|
| July 26, 2029 |
|
0.08 |
|
|
7,500,000 |
|
|
3.07
|
|
|
7,500,000 |
|
| December 10, 2029 |
|
0.085 |
|
|
12,710,000 |
|
|
3.45
|
|
|
12,710,000 |
|
| April 4, 2030 |
|
USD 0.08 |
|
|
7,500,000 |
|
|
3.76
|
|
|
3,750,000 |
|
| September 5, 2030 |
|
0.12 |
|
|
20,000,000 |
|
|
4.19
|
|
|
20,000,000 |
|
| September 8, 2030 |
|
0.135 |
|
|
1,500,000 |
|
|
4.19
|
|
|
1,500,000 |
|
| Balance, June 30, 2026 |
|
81,840,965 |
|
|
|
|
|
78,090,965 |
|
*Under the Company's Stock Option Plan, the expiry date of certain stock options has been extended beyond June 18, 2026, as the original expiry fell within a corporate trading blackout period.
As of December 31, 2025, the number of stock options outstanding and exercisable were:
| Expiry date |
|
Exercise price
(CAD) |
|
|
Number of
options
outstanding |
|
|
Remaining
contractual life
in years |
|
|
Number of
options
exercisable |
|
| June 18, 2026 |
|
0.245 |
|
|
2,550,000 |
|
|
0.46
|
|
|
2,550,000 |
|
| October 21, 2026 |
|
0.09 |
|
|
900,000 |
|
|
0.81
|
|
|
900,000 |
|
| May 25, 2027 |
|
0.085 |
|
|
2,000,000 |
|
|
1.40
|
|
|
2,000,000 |
|
| March 2, 2028 |
|
0.095 |
|
|
350,000 |
|
|
2.17
|
|
|
350,000 |
|
| July 21, 2028 |
|
0.08 |
|
|
16,215,965 |
|
|
2.56
|
|
|
16,215,965 |
|
| March 1, 2029 |
|
0.07 |
|
|
12,865,000 |
|
|
3.17
|
|
|
12,865,000 |
|
| July 26, 2029 |
|
0.08 |
|
|
7,500,000 |
|
|
3.57
|
|
|
7,500,000 |
|
| December 10, 2029 |
|
0.085 |
|
|
17,160,000 |
|
|
3.95
|
|
|
17,160,000 |
|
| April 4, 2030 |
|
USD 0.08 |
|
|
7,500,000 |
|
|
4.26
|
|
|
- |
|
| September 5, 2030 |
|
0.12 |
|
|
20,000,000 |
|
|
4.68
|
|
|
20,000,000 |
|
| September 8, 2030 |
|
0.135 |
|
|
1,500,000 |
|
|
4.69
|
|
|
1,500,000 |
|
| Balance, December 31, 2025 |
|
|
|
|
88,540,965 |
|
|
|
|
|
81,040,965 |
|
During the six months ended June 30, 2026, the Company recognized shared-based compensation expense of $88 (2025 - $1,257) related to the vesting of options. Share-based compensation expense is recorded over the vesting period of the respective awards.
b) Share purchase warrants
The following table summarizes the continuity of the number of warrants issued and outstanding:
| |
|
June 30, 2026 |
|
|
December 31, 2025 |
|
| |
|
Number
of warrants |
|
|
Weighted
average
exercise price |
|
|
Number
of warrants |
|
|
Weighted
average
exercise price |
|
| Outstanding, beginning of period |
|
122,759,564 |
|
$ |
0.06 |
|
|
110,477,171 |
|
$ |
0.06 |
|
| Warrants issued |
|
- |
|
|
- |
|
|
27,979,275 |
|
|
0.10 |
|
| Warrants exercised |
|
(12,661,718 |
) |
|
(0.07 |
) |
|
- |
|
|
- |
|
| Warrants expired |
|
- |
|
|
- |
|
|
(15,696,882 |
) |
|
(0.06 |
) |
| Outstanding, end of period |
|
110,097,846 |
|
$ |
0.070 |
|
|
122,759,564 |
|
$ |
0.06 |
|
The following table summarizes warrants outstanding as of June 30, 2026 and December 31, 2025:
| Grant Date |
|
Exercise
Price ($) |
|
|
Expiry Date |
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
| March 8, 2024 |
|
0.056 |
|
|
March 8, 2029
|
|
|
25,536,568 |
|
|
27,917,520 |
|
| September 19, 2024 |
|
0.056 |
|
|
September 19, 2029
|
|
|
40,978,549 |
|
|
41,707,215 |
|
| November 8, 2024 |
|
0.06 |
|
|
November 8, 2029
|
|
|
20,266,666 |
|
|
25,155,554 |
|
| November 6, 2025 |
|
0.0965 |
|
|
November 6, 2030
|
|
|
23,316,063 |
|
|
27,979,275 |
|
| |
|
|
|
|
|
|
|
110,097,846 |
|
|
122,759,564 |
|
|