| Related party transactions |
| 19. | Related party transactions |
Related parties and related party transactions
impacting the condensed consolidated interim financial statements are summarized below and include transactions with the following individuals
or entities:
Key management personnel
Related parties include directors, officers, close
family members, certain consultants and enterprises that are controlled by these individuals as well as certain individuals performing
similar functions.
Key management personnel are those individuals
who have authority and responsibility for planning, directing and controlling the activities of the Company directly or indirectly, including
any directors (executive and non-executive) of the Company.
Transactions with key management and directors
comprise the following:
| a) | Director’s compensation for the three and six months ended June 30, 2026, is $30,495 and $61,342,
respectively (2025 – $30,777 and $60,363, respectively). |
| b) | During the six months ended June 30, 2026, the Company granted 5,000 (2025 – 57,692) options to
an officer of the Company with an exercise price of $6.50 (2025 - C$6.60 to C$9.90) and expiring five years (2025 – two years) from
the date of issuance. |
| c) | During the six months ended June 30, 2026, the Company issued a total of 300,000 Class B Subordinate Voting
Shares related to management bonuses of $645,570 accrued as of December 31, 2025 (Note 12). |
| d) | Of the 3,750 March 2026 Debenture Units, 300 March 2026 Debenture Units were issued to a related party
of the Company, who is a director of the Company, and 1,400 March 2026 Debenture Units were issued to an entity, which is owned by a family
member of the CFO of the Company. (Note 11). |
| e) | During the year ended December 31, 2025, the Company entered into a lease agreement with Peak Corp, an
entity, which is owned by a family member of the CFO of the Company. The lease arrangement had resulted in the right-of-use asset recognized
as at December 31, 2025, of $102,320. The lease term ends on June 30, 2027. During the six months ended June 30, 2026, the Company paid
an aggregate of C$54,240 for monthly installments in accordance with the lease arrangement. |
| f) | During the six months ended June 30, 2026, pursuant to the exercise of warrants from the March 2026 Debentures,
311,818 Class B Subordinate Voting Shares were issued to an entity, which is owned by a family member of the CFO of the Company (Note
12). |
Key management personnel compensation during the
three and six months ended June 30, 2026, and 2025, is comprised of:
| | |
For the three months ended
June 30, | | |
For the six months ended
June 30, | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| | |
$ | | |
$ | | |
$ | | |
$ | |
| Salaries, benefits, bonuses and consulting fees | |
| 215,708 | | |
| 216,641 | | |
| 433,373 | | |
| 424,773 | |
| Share-based payments | |
| 8,960 | | |
| — | | |
| 769,985 | | |
| 1,316,483 | |
| | |
| 224,668 | | |
| 216,641 | | |
| 1,203,358 | | |
| 1,741,256 | |
As at June 30, 2026, the Company has $Nil (December
31, 2025 - $645,570) owing to related parties related to bonus accruals included in accounts payable and accrued liabilities.
|