| Schedule of gain on change in fair value |
The fair values were determined using the assumptions
below:
| | | December 13,
2024 | | | December 31,
2024 | | | May 5,
2025 | | | May 23,
2025 | | | Share price (CAD) | | $ | 5.85 | | | $ | 5.20 | | | $ | 11.86 | | | $ | 15.89 | | | Conversion price (CAD) | | $ | 6.25 | | | $ | 6.25 | | | $ | 6.25 | | | $ | 6.25 | | | Expected Volatility | | | 98.04 | % | | | 100.68 | % | | | 109.68 | % | | | 111.59 | % | | Risk free interest rate | | | 2.78 | % | | | 2.70 | % | | | 2.83 | % | | | 2.83 | % | | Expected life | | | 3.00 | | | | 2.95 | | | | 2.64 | | | | 2.60 | | | Credit Spread | | | 12.25 | % | | | 12.25 | % | | | 25 | % | | | 25 | % | | Foreign exchange rate | | | 0.7025 | | | | 0.6952 | | | | 0.7240 | | | | 0.7270 | | | | | January 20,
2025 | | | February 7,
2025 | | | February 26,
2025 | | | Share price (CAD) | | $ | 4.90 | | | $ | 16.16 | | | $ | 8.27 | | | Conversion price (CAD) | | $ | 4.85 | | | $ | 4.85 | | | $ | 4.85 | | | Expected Volatility | | | 93.66 | % | | | 105.28 | % | | | 104.91 | % | | Risk free interest rate | | | 2.99 | % | | | 2.63 | % | | | 2.70 | % | | Expected life | | | 3.00 | | | | 2.95 | | | | 2.90 | | | Credit Spread | | | 25 | % | | | 25 | % | | | 25 | % | | Foreign exchange rate | | | 0.6978 | | | | 0.6994 | | | | 0.6974 | | | | | March 6,
2025 | | | Share price (CAD) | | $ | 6.44 | | | Conversion price (CAD) | | $ | 4.85 | | | Expected Volatility | | | 106.09 | % | | Risk free interest rate | | | 2.72 | % | | Expected life | | | 3.00 | | | Credit Spread | | | 25 | % | | Foreign exchange rate | | | 0.6989 | | | | | March 28,
2025 | | | April 10,
2025 | | | April 23,
2025 | | | May 12,
2025 | | | May 21,
2025 | | | June 5,
2025 | | | Share price (CAD) | | $ | 11.08 | | | $ | 9.38 | | | $ | 9.53 | | | $ | 12.77 | | | $ | 17.03 | | | $ | 18.78 | | | Conversion price (CAD) | | $ | 6.60 | | | $ | 6.60 | | | $ | 6.60 | | | $ | 6.60 | | | $ | 6.60 | | | $ | 6.60 | | | Expected Volatility | | | 108.64 | % | | | 107.93 | % | | | 108.27 | % | | | 106.62 | % | | | 107.09 | % | | | 107.90 | % | | Risk free interest rate | | | 2.61 | % | | | 2.81 | % | | | 2.84 | % | | | 2.80 | % | | | 2.97 | % | | | 2.86 | % | | Expected life | | | 3.00 | | | | 3.00 | | | | 2.98 | | | | 2.93 | | | | 2.9 | | | | 2.86 | | | Credit Spread | | | 25 | % | | | 25 | % | | | 25 | % | | | 25 | % | | | 25 | % | | | 25 | % | | Foreign exchange rate | | | 0.6952 | | | | 0.7135 | | | | 0.7209 | | | | 0.7144 | | | | 0.7221 | | | | 0.7321 | | | Conversion value | | $ | 1,954,755 | | | $ | 2,029,678 | | | $ | 2,001,723 | | | $ | 2,612,294 | | | $ | 3,404,094 | | | $ | 3,740,737 | | | | | March 20,
2026 | | | March 31,
2026 | | | April 16,
2026
– June 25,
2026 | | | June 30,
2026 | | | Share price (CAD) | | $ | 3.07 | | | $ | 6.73 | | | $ | 4.25-$10.76 | | | $ | 5.14 | | | Conversion price (CAD) | | $ | 3.00 | | | $ | 3.00 | | | $ | 3.00 | | | $ | 3.00 | | | Expected Volatility | | | 136.65 | % | | | 142.21 | % | | | 142.55 | % | | | 142.55 | % | | Risk free interest rate | | | 3.03 | % | | | 2.79 | % | | | 2.73%-3.01 | % | | | 2.71 | % | | Expected life | | | 2.00 | | | | 1.97 | | | | 1.93-1.74 | | | | 1.72 | | | Credit Spread | | | 25 | % | | | 25 | % | | | 25 | % | | | 25 | % | | Foreign exchange rate | | | 0.729 | | | | 0.717 | | | | 0.704-0.734 | | | | 0.7037 | | | Conversion value | | $ | 2,739,338 | | | $ | 6,655,088 | | | $ | 2,097,862 - $8,672,271 | | | $ | 1,726,994 | | | | | April 15,
2025 | | | July 7,
2025 | | | August/September
2025 | | | October/ November
2025 | | | December 31,
2025 | | | June 30, 2026 | | | Share price (USD) | | $ | 0.00017 | | | $ | 0.00017 | | | $ | 0.00017 | | | $ | 0.00017 | | | $ | 0.00017 | | | $ | 0.00017 | | | Conversion price (USD) | | $ | 0.15000 | | | $ | 0.15000 | | | $ | 0.15000 | | | $ | 0.15000 | | | $ | 0.15000 | | | $ | 0.15000 | | | Expected Volatility | | | 119.78 | % | | | 132.95 | % | | | 136.82%-141.83% | | | | 124.06%-127.63 | % | | | 135.29 | % | | | 149.46 | % | | Risk free interest rate | | | 2.54 | % | | | 2.69 | % | | | 2.50%-2.69% | | | | 2.46%-2.47 | % | | | 2.55 | % | | | 2.71 | % | | Expected life (years) | | | 2.00 | | | | 1.77 | | | | 1.59-1.71 | | | | 2.16-2.28 | | | | 1.31-2.00 | | | | 1.52 | | | Credit Spread | | | 25 | % | | | 25 | % | | | 25 | % | | | 25 | % | | | 25 | % | | | 25 | % | | Foreign exchange rate | | | 1.39 | | | | 1.37 | | | | 1.38 | | | | 1.40 | | | | 1.37 | | | | 1.42 | | | | | July 25,
2025 | | | December 31,
2025 | | | June 30,
2026 | | | Share price (USD) | | $ | 0.00017 | | | $ | 0.00017 | | | $ | 0.00017 | | | Conversion price (USD) | | $ | 0.05000 | | | $ | 0.05000 | | | $ | 0.05000 | | | Expected Volatility | | | 168.20 | % | | | 146.51 | % | | | 159.52 | % | | Risk free interest rate | | | 2.77 | % | | | 2.55 | % | | | 2.71 | % | | Expected life (years) | | | 1.00 | | | | 0.56 | | | | 0.07 | | | Credit Spread | | | 25 | % | | | 25 | % | | | 25 | % | | Foreign exchange rate | | | 1.37 | | | | 1.37 | | | | 1.42 | | | | | April 15,
2025 | | | July 7,
2025 | | | August/September
2025 | | | October/November
2025 | | | December 31,
2025 | | | June 30,
2026 | | | Share price (USD) | | $ | 0.00017 | | | $ | 0.00017 | | | $ | 0.00017 | | | $ | 0.00017 | | | $ | 0.00017 | | | $ | 0.00017 | | | Exercise price (USD) | | $ | 0.15000 | | | $ | 0.15000 | | | $ | 0.15000 | | | $ | 0.15000 | | | $ | 0.15000 | | | $ | 0.15000 | | | Expected dividend yield | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | Risk free interest rate | | | 2.54 | % | | | 2.69 | % | | | 2.49%-2.69 | % | | | 2.46%-2.47 | % | | | 2.55 | % | | | 2.71 | % | | Expected life (years) | | | 2.00 | | | | 1.77 | | | | 1.57-1.69 | | | | 2.13-2.25 | | | | 2.00 | | | | 1.50 | | | Expected volatility | | | 119.78 | % | | | 132.95 | % | | | 136.82-%141.83 | % | | | 124.06%-127.63 | % | | | 135.29 | % | | | 149.46 | % | | Foreign exchange rate | | | 1.39 | | | | 1.37 | | | | 1.38 | | | | 1.40 | | | | 2.00 | | | | 1.42 | | | | | July 25,
2025 | | | December 31,
2025 | | | June 30,
2026 | | | Share price (USD) | | $ | 0.00017 | | | $ | 0.00017 | | | $ | 0.00017 | | | Exercise price (USD) | | $ | 0.15000 | | | $ | 0.15000 | | | $ | 0.15000 | | | Expected dividend yield | | | — | | | | — | | | | — | | | Risk free interest rate | | | 2.77 | % | | | 2.55 | % | | | 2.71 | % | | Expected life (years) | | | 2.00 | | | | 1.56 | | | | 1.07 | | | Expected volatility | | | 168.20 | % | | | 146.51 | % | | | 159.52 | % | | Foreign exchange rate | | | 1.37 | | | | 1.37 | | | | 1.42 | |
|
| Schedule of convertible debentures |
As of June 30, 2026, the Company had the following
December 2024 Debenture balance outstanding:
| Proceeds | |
$ | 702,700 | |
| Value of conversion option | |
| (320,000 | ) |
| Value of warrants (Note 9 [b]) | |
| (245,147 | ) |
| Initial recognition of debt | |
$ | 137,553 | |
| Accretion expense | |
| 14,560 | |
| Balance, December 31, 2024 | |
$ | 152,113 | |
| Accretion expense | |
| 7,426 | |
| Balance, date of conversion, May 5, 2025 | |
$ | 159,539 | |
| Amount converted | |
| (81,079 | ) |
| Balance, May 5, 2025 | |
$ | 78,460 | |
| Accretion expense | |
| 2,630 | |
| Balance, date of conversion, May 23, 2025 | |
$ | 81,090 | |
| Amount converted | |
| (81,090 | ) |
| Balance, December 31, 2025 and June 30, 2026 | |
$ | - | |
| Proceeds | |
$ | 1,032,744 | |
| Value of conversion option | |
| (599,770 | ) |
| Value of warrants (Note 9 [c]) | |
| (405,656 | ) |
| Initial recognition of debt – January 20, 2025 | |
$ | 27,318 | |
| Accretion expense | |
| 14,186 | |
| Balance, date of conversion – February 7, 2025 | |
$ | 41,504 | |
| Amount converted | |
| (27,845 | ) |
| Balance, February 7, 2025 | |
$ | 13,659 | |
| Accretion expense | |
| 7,519 | |
| Balance, date of conversion, February 26, 2025 | |
$ | 21,178 | |
| Amount converted | |
| (21,178 | ) |
| Balance, December 31, 2025, and June 30, 2026 | |
$ | - | |
| Proceeds | |
$ | 69,890 | |
| Value of conversion option | |
| (30,000 | ) |
| Value of warrants (Note 9 [d]) | |
| (38,702 | ) |
| Initial recognition of debt - March 6, 2025 and date of conversion, March 25, 2025 | |
$ | 1,188 | |
| Amount converted | |
| (1,188 | ) |
| Balance, December 31, 2025 and June 30, 2026 | |
$ | - | |
| Proceeds | |
$ | 1,683,352 | |
| Value of conversion option | |
| (1,954,755 | ) |
| Value of warrants (Note 9 [e]) | |
| (1,218,875 | ) |
| Loss on issuance of convertible | |
| 1,490,278 | |
| Initial recognition of debt - March 28, 2025 | |
$ | - | |
| Proceeds | |
$ | 2,733,109 | |
| Value of conversion option using relative fair value | |
| (1,491,844 | ) |
| Value of warrants (Note 9 [e]) using relative fair value | |
| (1,241,265 | ) |
| Initial recognition of debt – March 20, 2026 | |
$ | - | |
| Accretion expense | |
| 125,346 | |
| Balance, June 30, 2026 | |
$ | 125,346 | |
| | |
Unsecured | | |
Secured | | |
Total | |
| Proceeds | |
$ | 334,955 | | |
$ | 122,222 | | |
$ | 457,177 | |
| Initial recognition of debt | |
$ | 334,955 | | |
$ | 122,222 | | |
$ | 457,177 | |
| | |
| | | |
| | | |
| | |
| Accretion expense | |
| 14,833 | | |
| 487 | | |
| 15,320 | |
| Balance, June 30, 2026, and December 31, 2025 | |
$ | 349,788 | | |
$ | 122,709 | | |
$ | 472,497 | |
|