| WARRANTS AND OPTIONS |
NOTE
8 - WARRANTS AND OPTIONS
a)
Warrants
| |
(i) |
Warrant
transactions for the six months ended June 30, 2026, and for the year ended December 31, 2025, are as follows: |
SCHEDULE OF WARRANTS TRANSACTIONS
| | |
Number | | |
Weighted
Average
Exercise
Price | |
| Balance,
January 1, 2025 | |
| 4,928,329 | | |
$ | 6.17 | |
| Expiry
of warrants | |
| (721,239 | ) | |
| | |
| Exercise
of warrants | |
| (3,474,595 | ) | |
| | |
| Warrants
issued in the January 2025 Registered Direct Offering and September 2025 underwritten public offering | |
| 554,313 | | |
| | |
| Balance,
December 31, 2025 | |
| 1,286,808 | | |
$ | 13.39 | |
| Exercise
of warrants (a) | |
| (252,967 | ) | |
| | |
| Expiry
of warrants | |
| (522,265 | ) | |
| | |
| Balance,
June 30, 2026 | |
| 511,576 | | |
$ | 9.23 | |
| (a) | | During the six-month
period ended June 30, 2026, the Company issued 252,967 shares in respect of 252,967 warrants that were exercised for total proceeds of
$946. |
| |
(ii) |
As at June 30, 2026, the Company had outstanding warrants,
enabling the holders to acquire Common Shares as follows: |
SCHEDULE
OF OUTSTANDING WARRANTS
June
30, 2026 | | |
Expiry
date | |
Exercise
price | | |
Exercise
price (USD) | |
| | 3,200 | | |
October
2, 2026 | |
USD | 1.88 | | |
$ | 1.88 | |
| | 183,751 | | |
January
29, 2030 | |
USD | 8.00 | | |
$ | 8.00 | |
| | 324,625 | | |
September
16, 2030 | |
USD | 10.00 | | |
$ | 10.00 | |
| | 511,576 | | |
| |
| | | |
| | |
A2Z
CUST2MATE SOLUTIONS CORP.
NOTES
TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026
(Unaudited)
(Expressed
in Thousands of US Dollars, except per share data)
NOTE
8 - WARRANTS AND OPTIONS (CONTINUED)
b)
Stock Options
| |
(i) |
Stock option transactions for the six months ended June 30,
2026, and for the year ended December 31, 2025, are as follows: |
SCHEDULE OF STOCK OPTION TRANSACTIONS
| | |
Number | | |
Weighted
Average
Exercise
Price (CAD) | | |
Weighted
Average
Exercise
Price (USD) | |
| Balance
January 1, 2025 | |
| 1,756,670 | | |
$ | 5.39 | | |
$ | 3.75 | |
| Options
cancelled | |
| (127,668 | ) | |
| | | |
| | |
| Options
exercised | |
| (225,332 | ) | |
| | | |
| | |
| Options
granted | |
| 2,863,500 | | |
| | | |
| | |
| Balance
December 31, 2025 | |
| 4,267,170 | | |
$ | 6.14 | | |
$ | 8.41 | |
| Options
cancelled | |
| (115,000 | ) | |
| | | |
| | |
| Options
exercised | |
| (4,000 | ) | |
| | | |
| | |
| Options
granted | |
| 25,000 | | |
| | | |
| | |
| Balance
June 30, 2026 | |
| 4,168,170 | | |
$ | 8.52 | | |
$ | 6.11 | |
| |
(ii) |
As at June 30, 2026, the Company had outstanding stock options,
enabling the holders to acquire Common Shares as follows: |
SCHEDULE
OF OUTSTANDING STOCK OPTIONS
Outstanding
as of
June 30, 2026 | | |
Exercisable
as of
June 30, 2026 | | |
Expiry
date | |
Exercise
price (CAD) | | |
Exercise
price (USD) | |
| | 6,670 | | |
| 6,670 | | |
October
28, 2026 | |
CAD | 20.00 | | |
$ | 14.07 | |
| | 360,000 | | |
| 360,000 | | |
August
2, 2032 | |
CAD | 8.90 | | |
$ | 6.26 | |
| | 120,000 | | |
| 120,000 | | |
August
21, 2032 | |
CAD | 10.00 | | |
$ | 7.04 | |
| | 220,000 | | |
| 220,000 | | |
January
4, 2033 | |
CAD | 4.13 | | |
$ | 2.90 | |
| | 100,000 | | |
| 100,000 | | |
January
4, 2033 | |
CAD | 4.13 | | |
$ | 2.90 | |
| | 40,000 | | |
| 40,000 | | |
November
25, 2027 | |
CAD | 5.03 | | |
$ | 3.54 | |
| | 99,000 | | |
| 99,000 | | |
April
18, 2033 | |
CAD | 4.00 | | |
$ | 2.81 | |
| | 441,000 | | |
| 293,667 | | |
August
14, 2034 | |
CAD | 2.47 | | |
$ | 1.78 | |
| | 105,000 | | |
| 43,750 | | |
January
15, 2035 | |
CAD | 8.92 | | |
$ | 6.40 | |
| | 500,000 | | |
| 500,000 | | |
February
2, 2035 | |
CAD | 8.92 | | |
$ | 6.40 | |
| | 30,000 | | |
| 20,000 | | |
June
20, 2035 | |
CAD | 2.47 | | |
$ | 1.775 | |
| | 167,000 | | |
| 55,667 | | |
June
20, 2035 | |
CAD | 8.92 | | |
$ | 6.40 | |
| | 224,000 | | |
| 14,667 | | |
October
9, 2035 | |
CAD | 11.37 | | |
$ | 8.00 | |
| | 500,000 | | |
| 500,000 | | |
December
30, 2035 | |
CAD | 8.36 | | |
$ | 6.00 | |
| | 1,230,500 | | |
| 805,333 | | |
December
30, 2035 | |
CAD | 11.37 | | |
$ | 8.00 | |
| | 25,000 | | |
| - | | |
March
27, 2036 | |
CAD | 11.37 | | |
$ | 8.00 | |
| | 4,168,170 | | |
| 3,178,754 | | |
| |
| | | |
| | |
Share-based
compensation expense is recognized over the vesting period of options. During the three and six months ended June 30, 2026, share-based
compensation of $1,050 and $2,110, respectively, were recognized and charged to the Consolidated Statement of Comprehensive Loss (three
and six months ended June 30, 2025, share-based compensation of $426 and $3,740, respectively).
A2Z
CUST2MATE SOLUTIONS CORP.
NOTES
TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026
(Unaudited)
(Expressed
in Thousands of US Dollars, except per share data)
NOTE
8 - WARRANTS AND OPTIONS (CONTINUED)
c)
RSUs
RSUs
transactions for the six months ended June 30, 2026, and for the year ending December 31, 2025, are as follows:
SCHEDULE
OF RSU’S TRANSACTIONS
| | |
Number | |
| Balance,
January 1, 2025 | |
| 110,667 | |
| RSUs
granted | |
| 1,545,000 | |
| Expiry
of RSUs | |
| (6,000 | ) |
| Exercise
of RSUs | |
| (219,667 | ) |
| Balance,
December 31, 2025 | |
| 1,430,000 | |
| Exercise
of RSUs | |
| (930,000 | ) |
| Balance,
June 30, 2026 | |
| 500,000 | |
As
of June 30, 2026, 500,000 RSU’s are milestone based RSU’s for which the milestones have not yet been achieved. During the
three and six months ended June 30, 2026, share-based compensation of $793 and $1,608, respectively, were recognized and charged to the
Consolidated Statement of Comprehensive Loss (during the three and six months ended June 30, 2025, share-based compensation of $2,822
and $3,342, respectively).
A2Z
CUST2MATE SOLUTIONS CORP.
NOTES
TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026
(Unaudited)
(Expressed
in Thousands of US Dollars, except per share data)
|