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Related Party Transactions
 9 Months Ended
Sep. 30, 2024
Related Party Transactions [Abstract]  
Related Party Transactions
15.Related Party Transactions

 

Related parties consist of the following individuals and corporations:

 

●Braeden Lichti, Non-executive Chairman, significant shareholder through BWL Investments Ltd.

 

●Jordan Plews, Director and CEO of Skincare and BioSciences, significant shareholder through JP Bio Consulting LLC

 

●Graydon Bensler, Director and CEO, CFO of Elevai

 

●Tim Sayed, Former Chief Medical Officer and Former Director (resigned August 1, 2024)

 

●Brenda Buechler, Former Chief Marketing Officer (effective June 20, 2024)

 

●Christoph Kraneiss, Former Chief Commercial Officer (effective June 20, 2024)

 

●Jeffrey Parry, Director (appointed June 1, 2023)

 

●Julie Daley, Director (appointed June 1, 2023)

 

●Crystal Muilenburg, Former Director (appointed June 1, 2023, resigned February 29, 2024)

 

●George Kovalyov, Director (appointed March 1, 2024)

 

●GB Capital Ltd., controlled by Graydon Bensler

 

●JP Bio Consulting LLC, significant shareholder and controlled by Jordan Plews

 

●BWL Investments Ltd., significant shareholder and controlled by Braeden Lichti

 

●Northstrive Companies Inc., controlled by Braeden Lichti

 

Key management personnel include those persons having authority and responsibility for planning, directing, and controlling the activities of the Company as a whole. The Company has determined that key management personnel consist of members of the Company’s Board of Directors, corporate officers, and individuals with more than 10% control.

 

Remuneration attributed to key management personnel are summarized as follows:

 

   Three months
ended
September 30,
2024		   Three months
ended
September 30,
2023		   Nine months
ended
September 30,
2024		   Nine months
ended
September 30,
2023		 
Consulting fees  $101,100    51,250    261,933    153,750 
Salaries   67,353    159,874    445,009    476,126 
Share-based compensation   30,764    124,994    (1,819)   247,348 
   $199,217    336,118    705,123    877,224 

 

During the nine months ended September 30, 2024, the Company incurred consulting fees of $150,833 (September 30, 2023 - $63,750) to GB Capital Ltd., a company controlled by Graydon Bensler, CEO, CFO and Director. In addition, the Company incurred consulting fees of $111,100 (September 30, 2023 - $90,000) to Northstrive Companies Inc., a company controlled by Braeden Litchi, the Company’s Chairman.

 

Jordan Plews, Director and CEO of Skincare and BioSciences, earned a Salary of $189,385 and $168,050 respectively during the nine months ended September 30, 2024, and 2023 (includes employer taxes of $21,051 and $18,050, respectively).

 

Brenda Buechler, former Chief Marketing Officer, earned a Salary of $132,807 and $159,950, respectively during the nine months ended September 30, 2024, and 2023 (includes employer taxes of $14,297 and $17,446 respectively).

 

Christoph Kraneiss, former Chief Commercial Officer, earned a Salary of $122,818 and $148,131, respectively during the nine months ended September 30, 2024, and 2023 (includes employer taxes of $10,639 and $13,131, respectively).

 

During the nine months ended September 30, 2024, and 2023, the Company issued the following stock options to related parties:

 

On March 1, 2024, the Company granted 80,000 stock options to directors of the company with a contractual life of 10 years and exercise price of $1.00 per share of common stock. These stock options were valued at $45,986 using the Black-Scholes Option Pricing Model. The options vest 25% on the first anniversary of the grant date and the remaining 75% vest evenly over 36 months thereafter.

 

Details of the fair value granted to each related party in the current and prior periods, and the related expense recorded for the nine months ended September 30, 2024, and 2023 is as follow:

 

   Nine Months
Ended
September 30,
2024		   Nine Months
Ended
September 30,
2023		   Fair value of
stock options
granted		 
Braeden Lichti, Chairman  $1,894   $5,398   $50,995 
Graydon Bensler, CEO, CFO and Director   1,897    5,398    50,995 
Jordan Plews, Director and CEO of Skincare and BioSciences   1,897    5,398    50,995 
Tim Sayed, Former Chief Medical Officer and Former Director1   (4,291)   5,398    50,995 
Jeffrey Parry, Director   18,564    21,177    107,669 
Crystal Muilenburg, Former Director1   (41,668)   46,725    210,245 
Julie Daley, Director   69,111    56,022    210,245 
George Kovalyov, Director   18,144    
-
    52,845 
Brenda Buechler, Former Chief Marketing Officer1   (36,918)   
-
    143,671 
Christoph Kraneiss, Former Chief Commercial Officer1   (30,449)   
-
    121,243 
   $(1,819)  $145,516   $1,049,898 

 

1354,990 options of related parties were forfeited in the nine months ended September 30, 2024.

 

As of September 30, 2024, and December 31, 2023, the Company had $22,217 and $22,455, respectively due to companies controlled by Braeden Lichti, of which $22,217 and $22,455, respectively, is unsecured, non-interest bearing and are due on demand. Additionally, the Company drew $200,000 on a line of credit provided by a company controlled by Braeden Lichti during the nine months ended September 30, 2024. The line of credit incurs interest at a rate of 20% per annum on the outstanding principal. During the nine months ended September 30, 2024, $6,833 in interest had accrued on this line of credit.

 

As of September 30, 2024, the Company had $80,368 (December 31, 2023 - $34,378) in consulting fees due to Graydon Bensler, CEO, CFO and Director, $49,500 (December 31, 2023 - $15,143) due to companies controlled by Braeden Lichti, and $Nil and $Nil (December 31, 2023 - $4,272 and $879) due to Jordan Plews, Director and CEO of Skincare and BioSciences, and Christopher Kraneiss, former Chief Commercial Officer, respectively, for expenses incurred on behalf of the Company. As of September 30, 2024, the Company owed Jordan Plews, Director, $60,539 (December 31, 2023 - $Nil) in accrued salaries.