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WARRANTS AND OPTIONS
 9 Months Ended
Sep. 30, 2024
Warrants And Options  
WARRANTS AND OPTIONS

NOTE 5 - WARRANTS AND OPTIONS

 

a) Warrants

 

  (i) Warrant transactions for the nine months ended September 30, 2024, and for the year ended December 31, 2023 are as follows:

   Number   Weighted Average
Exercise Price		 
Balance, January 1, 2023   2,822,789   $8.85 
Warrants issued in the March 2023 Private Placement   413,785      
Exercise of warrants   (36,800)     
Warrants issued in the June 2023 Registered Direct Offering   885,838      
Warrants issued in the December 2023 Registered Direct Offering   300,622      
Balance, December 31, 2023   4,386,234   $6.58 
Warrants issued in the January 2024 Registered Direct Offering   651,062    3.75 
Pre-Funded Warrants issued in the August 2024 Registered Direct Offering   1,200,000    0.00025 
Balance, September 30, 2024   6,237,296   $4.90 

 

 

A2Z CUST2MATE SOLUTIONS CORP. (formerly A2Z Smart Technologies Corp.)

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Expressed in thousands of US Dollars)

 

NOTE 5 - WARRANTS AND OPTIONS (CONTINUED)

 

a) Warrants (continued)

 

As at September 30, 2024, the Company had outstanding warrants, enabling the holders to acquire common shares as follows:

  

September 30, 2024   Expiry date  Exercise price  Exercise price (USD) 
 1,063,325   November 10, 2025  ILS   17.8545   $4.81 
 546,653   December 24, 2025  ILS   17.8545   $4.81 
 88,440   April 18, 2026  ILS   72.563   $19.56 
 433,825   May 28, 2026  ILS   72.563   $19.56 
 653,746   November 8, 2024  CAD   5.10   $4.00 
 413,785   March 13, 2025  CAD   5.88   $4.38 
 885,838   June 12, 2025  CAD   7.33   $5.50 
 300,622   December 13, 2025  CAD   5.13   $3.75 
 651,062   January 4, 2026  CAD   5.13   $3.75 
 1,200,000                 
 6,237,296                 

 

b) Stock Options

 

Stock option transactions for the nine months ended September 30, 2024, and for the year ending December 31, 2023, are as follows:

 

   Number   Weighted Average Exercise Price (CAD)   Weighted Average Exercise Price (USD) 
   Unaudited   Unaudited   Unaudited 
Balance January 1, 2023   753,337   $7.93   $6.13 
Options granted (i)(ii)(iii)(iv)   694,100    -      
Exercise of options   -           
Expiry of options   (24,550)          
Balance December 31, 2023   1,422,887   $6.33   $4.78 
Options cancelled   (133,550)   -      
Options granted (v)   552,000           
Balance September 30, 2024   1,841,337   $5.22   $3.86 

 

  (i)

On January 4, 2023, 326,600 stock options were issued to directors and consultants with an exercise price of CAD$4.125. The options expire on January 4, 2033. The fair value of the options granted was estimated at $1,017 using the Black-Scholes option pricing model, using the following assumptions: Share Price: CAD$4.50; Expected option life 10 years; Volatility 112%; Risk-free interest rate 3.28%; Dividend yield 0%.

 

  (ii) On February 8, 2023, 40,000 stock options were issued to a consultant with an exercise price of CAD$3.75. The options expire on November 25, 2027. The fair value of the options granted was estimated at $135 using the Black-Scholes option pricing model, using the following assumptions: Share Price: CAD$5.45; Expected option life 4.8 years; Volatility 112%; Risk-free interest rate 3.16%; Dividend yield 0%.
     
  (iii)

On April 18, 2023, 169,500 stock options were issued to employees with an exercise price of CAD$4.00. The options expire on April 18, 2033. The fair value of the options granted was estimated at $420 using the Black-Scholes option pricing model, using the following assumptions: Share Price: CAD$3.55; Expected option life 10 years; Volatility 111%; Risk-free interest rate 3.57%; Dividend yield 0%.

 

  (iv) On June 28, 2023, 98,000 stock options were issued to officers with an exercise price of CAD$6.125. The options expire on June 28, 2033. The fair value of the options granted was estimated at $443 using the Black-Scholes option pricing model, using the following assumptions: Share Price: CAD$7.30; Expected option life 5 years; Volatility 111%; Risk-free interest rate 4.14%; Dividend yield 0%.
     
  (v)

On August 14, 2024, 552,000 stock options were issued to employees, consultants and officers with an exercise price of $1.78. The options expire on August 13, 2029. The fair value of the options granted was estimated at $779 using the Black-Scholes option pricing model, using the following assumptions: Share Price: $1.78; Expected option life 5 years; Volatility 109%; Risk-free interest rate 3.67%; Dividend yield 0%.

 

 

A2Z CUST2MATE SOLUTIONS CORP. (formerly A2Z Smart Technologies Corp.)

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Expressed in thousands of US Dollars)

 

NOTE 5 - WARRANTS AND OPTIONS (CONTINUED)

 

b) Stock Options (continued)

 

As at September 30, 2024, the Company had outstanding stock options, enabling the holders to acquire common shares as follows:

SCHEDULE OF OUTSTANDING STOCK OPTIONS

 

Outstanding as
of September 30,
2024		   Exercisable as
of September 30,
2024		   Expiry date  Exercise price (CAD)  Exercise price (USD) 
 217,333    217,333   August 20, 2025  CAD   3.75   $2.77 
 13,333    13,333   January 28, 2025  CAD   7.50   $5.55 
 20,000    20,000   June 3, 2026  CAD   21.00   $15.53 
 6,671    6,671   October 28, 2026  CAD   20.00   $14.79 
 360,000    270,000   August 2, 2032  CAD   8.90   $6.58 
 120,000    120,000   August 21, 2032  CAD   10.00   $7.39 
 320,000    320,000   January 4, 2033  CAD   4.13   $3.05 
 40,000    40,000   November 25, 2027  CAD   5.03   $3.72 
 114,000    48,000   April 18, 2033  CAD   4.00   $2.96 
 18,000    8,000   June 28, 2028  CAD   6.13   $4.53 
 60,000    44,000   September 20, 2033  CAD   5.50   $4.07 
 552,000    -   August 14, 2034  CAD   2.40   $1.78 
 1,841,337    1,107,337                 

 

Share-based compensation expense is recognized over the vesting period of options. During the three and nine months ended September 30, 2024, share-based compensation of $690 and $1,176 was recognized and charged to the Consolidated Statement of Loss and Comprehensive Loss, respectively (September 30, 2023 – $752 and $3,299, respectively).

 

c) RSUs

 

On August 4, 2022, the Company granted 506,000 RSUs to directors, officers and advisers, of which 236,000 RSUs are to executives and directors, pursuant to the Company’s RSU Plan and in acknowledgment of the Company’s management recent success and increased future workload. The RSUs will vest at each recipient’s discretion and taking into account personal tax implications and convert into 506,000 common shares of no-par value in the Company.

 

On January 4, 2023, the Company granted 410,800 RSUs to directors, officers and advisers, of which 104,000 RSUs are to executives and directors, pursuant to the Company’s RSU Plan and in acknowledgment of the Company’s management recent success and increased future workload. The RSUs will vest at each recipient’s discretion and taking into account personal tax implications and convert into 410,800 common shares of no-par value in the Company.

 

On April 18, 2023, the Company granted 46,500 RSUs to employees, pursuant to the Company’s RSU Plan. The RSUs will vest at each recipient’s discretion and taking into account personal tax implications and convert into 46,500 common shares of no-par value in the Company.

 

On June 28, 2023, the Company granted 66,000 Restricted Share Units (“RSUs”) to officers pursuant to the Company’s RSU Plan. The RSUs will vest at each recipient’s discretion and taking into account personal tax implications and convert into 66,000 common shares of no-par value in the Company (“Common Shares”).

 

On August 14, 2024, the Company granted 326,000 Restricted Share Units (“RSUs”) to officers and advisors, pursuant to the Company’s RSU Plan. The RSUs will vest at each recipient’s discretion and taking into account personal tax implications and convert into 326,000 common shares of no-par value in the Company (“Common Shares”).

 

RSUs transactions for the nine months ended September 30, 2024, and for the year ending December 31, 2023, are as follows:

 

   Number 
Balance, January 1, 2023   288,000 
RSUs granted   523,300 
Expiry of RSUs   (36,666)
      
Exercise of RSUs   (185,800)
Balance, December 31, 2023   588,884 
RSUs cancelled   (34,166)
RSUs granted   326,000 
Exercise of RSUs   (324,668)
Balance, September 30, 2024   556,000 

 

Total exercisable RSUs as of September 30, 2024, are 447,333 (December 31, 2023 – 109,664). During the three and nine months ended September 30, 2024, share-based compensation of $853 and $1,036 was recognized and charged to the Consolidated Statement of Loss and Comprehensive Loss respectively (September 30, 2023 – $377 and $797).

 

 

A2Z CUST2MATE SOLUTIONS CORP. (formerly A2Z Smart Technologies Corp.)

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Expressed in thousands of US Dollars)