NOTE

14:

CAPITAL STOCK

Equity Financing

September 23, 2020,

we completed a public offering of

12,500,000

units at a price of

$1.20

per unit for gross proceeds of

$15,000,000

(the

“September 2020

Offering”). Each unit consisted of

one

share of our Company and

one

-half of

one

share purchase warrant, and each whole warrant entitles its holder to acquire

one

share of our Company at an exercise price of

$1.80

per share and expiring

months from the date of issuance. In connection with the

September 2020

Offering, we also issued compensation share purchase warrants to agents as part of share issuance costs to purchase

583,333

shares of our Company exercisable at an exercise price of

$1.80

per share and expiring

months from the date of issuance.

The shares were valued at the Company's closing price of

$0.96

per share on

September 23, 2020.

The share purchase warrants were valued using the Black-Scholes option pricing model with the following assumptions.

Expected Risk Free Interest Rate	0.14	%
Expected Annual Volatility	76.81	%
Expected Contractual Life in Years	2.00
Expected Annual Dividend Yield	0.00	%

The net proceeds from the

September 2020

Offering were allocated to the fair values of the shares and share purchase warrants as presented below.

Fair Value of Shares	$	12,000,000
Fair Value of Share Purchase Warrants		1,445,756
Total Fair Value Before Allocation to Net Proceeds	$	13,445,756

Gross Proceeds	$	15,000,000
Share Issuance Costs - Cash		(878,344	)
Net Cash Proceeds Received	$	14,121,656

Relative Fair Value Allocation to:
Shares	$	12,603,224
Share Purchase Warrants		1,518,432
	$	14,121,656

During Fiscal

2019,

we entered into an At The Market Offering Agreement (the “ATM Offering Agreement”) with H.C. Wainwright & Co., LLC and certain co-managers as set forth in the ATM Offering Agreement (collectively, the “ATM Managers”), as amended in Fiscal

2020,

under which the Company

may,

from time to time, sell shares of its common stock having an aggregate offering price of up to

$30

million through the ATM Managers (collectively, the “ATM Offering”).

During the

nine

months ended

April 30, 2021,

we issued

13,668,906

shares of the Company's common stock at a weighted average price of

$2.19

per share under the ATM Offering for net cash proceeds of

$29,320,949

March 19, 2021,

we completed a registered direct offering of

10,000,000

shares of the Company's common stock at a price of

$3.05

per share for net proceeds of

$29,083,710

(the

“March 2021

Offering”).

April 8, 2021,

we completed a registered direct offering of

3,636,364

shares of the Company's common stock at a price of

$3.30

per share for net proceeds of

$11,315,966

(the

“April 2021

Offering”). In connection with the

April 2021

Offering, we also issued, on a private placement basis,

181,818

common stock purchase warrants (each, an “Agent Warrant”) to the agent as partial compensation, and each Agent Warrant entitles its holder to acquire

one

share of common stock at an exercise price of

$4.125

per share and expiring

five

years from the date of issuance.

The Agent Warrants were valued at

$1.80

per share using the Black-Scholes option pricing model with the following assumptions.

Expected Risk Free Interest Rate	0.85	%
Expected Annual Volatility	72.17	%
Expected Contractual Life in Years	5.00
Expected Annual Dividend Yield	0.00	%

Share Purchase Warrants

A continuity schedule of outstanding share purchase warrants for the

nine

months ended

April 30, 2021,

is as follows:

	Number of Warrants			Weighted Average Exercise Price
Balance, July 31, 2020		7,721,981		$	2.03
Issued in connection with September 2020 Offering		6,833,333			1.80
Balance, October 31, 2020		14,555,314			1.92
Exercised		(1,050	)		1.80
Expired		(300,000	)		1.38
Balance, January 31, 2021		14,254,264			1.93
Issued in connection with April 2021 Offering		181,818			4.13
Exercised		(8,145,840	)		1.99
Expired		(809,304	)		2.05
Balance, April 30, 2021		5,480,938		$	1.90

During the

three

and

nine

months ended

April 30, 2021,

we received cash proceeds of

$3,399,303

and

$3,401,193,

and issued

3,598,200

and

3,599,250

shares, respectively, from the exercise of

8,145,840

and

8,146,890

share purchase warrants, respectively.

A summary of share purchase warrants outstanding and exercisable as of

April 30, 2021,

is as follows:

Weighted Average Exercise Price		Number of Warrants Outstanding		Weighted Average Remaining Contractual Life (Years)		Expiry Date
$	2.30		308,728		1.28	August 9, 2022
	1.64		25,000		2.06	May 21, 2023
	1.80		4,965,392		1.40	September 23, 2022
	4.13		181,818		4.93	April 5, 2026
$	1.90		5,480,938		1.51

Stock Options

As of

April 30, 2021,

we had

one

stock option plan, our

2020

Stock Incentive Plan, which superseded and replaced our

2019

Stock Incentive Plan.

A continuity schedule of outstanding stock options for the underlying shares for the

nine

months ended

April 30, 2021,

is as follows:

	Number of Stock Options			Weighted Average Exercise Price
Balance, July 31, 2020		15,514,750		$	1.13
Exercised		(28,500	)		0.93
Expired		(1,315,000	)		1.43
Balance, October 31, 2020		14,171,250			1.10
Exercised		(1,100,782	)		1.11
Balance, January 31, 2021		13,070,468			1.10
Granted		42,490			2.26
Exercised		(1,942,848	)		1.11
Balance, April 30, 2021		11,170,110		$	1.11

During the

three

and

nine

months ended

April 30, 2021

and

2020,

the total number of stock options exercised, the number of shares issued upon exercise of those options and the cash received from such exercises are as follows:

	Three Months Ended April 30,				Nine Months Ended April 30,
	2021		2020		2021		2020
Number of Options Exercised on Forfeiture Basis		988,909		-		1,930,691		-
Number of Options Exercised on Cash Basis		953,939		-		1,141,439		-
Total Number of Options Exercised		1,942,848		-		3,072,130		-

Number of Shares Issued on Cash Exercise		953,939		-		1,141,439		-
Number of Shares Issued on Forfeiture Basis		557,608		-		943,168		-
Total Number of Shares Issued Upon Exercise of Options		1,511,547		-		2,084,607		-

Cash Received from Exercise of Stock Options	$	1,086,844	$	-	$	1,308,278	$	-
Total Intrinsic Value of Options Exercised	$	3,026,602	$	-	$	3,855,217	$	-

Subsequent to

April 30, 2021,

we received further cash proceeds of

$380,776

and issued

704,423

shares of the Company upon the exercise of

888,251

stock options.

A continuity schedule of outstanding unvested stock options as of

April 30, 2021,

and the changes during the period, is as follows:

	Number of Unvested Stock Options			Weighted Average Grant-Date Fair Value
Balance, July 31, 2020		6,797,471		$	0.46
Vested		(718,755	)		0.46
Balance, October 31, 2020		6,078,716			0.46
Vested		(1,042,559	)		0.48
Balance, January 31, 2021		5,036,157			0.45
Granted		42,490			1.29
Vested		(229,229	)		0.46
Balance, April 30, 2021		4,849,418		$	0.46

As of

April 30, 2021,

unrecognized stock-based compensation expense related to the unvested portion of stock options totaled

$922,396

to be recognized over the next

1.06

years.

As of

April 30, 2021,

the aggregate intrinsic value under the provisions of ASC

718

of all outstanding stock options was

$20,034,091

(vested:

$10,709,934

and unvested:

$9,324,157

A summary of stock options outstanding and exercisable as of

April 30, 2021,

is as follows:

					Options Outstanding						Options Exercisable
Range of Exercise Prices					Outstanding at April 30, 2021		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Exercisable at April 30, 2021		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)
$	0.80	to	$	0.99		6,577,995	$	0.92		7.73		3,108,567	$	0.92		6.28
$	1.00	to	$	1.49		2,752,625		1.17		5.13		1,415,125		1.25		1.33
$	1.50	to	$	2.81		1,839,490		1.68		2.21		1,797,000		1.66		2.03
						11,170,110	$	1.11		6.18		6,320,692	$	1.20		3.96

Restricted Stock Units

A summary of outstanding and unvested restricted stock units (“RSU”s) as of

April 30, 2021,

is as follows:

Grant Date	Number of Restricted Stock Units		Grant Date Fair Value		Remaining Life (Years)		Aggregate Intrinsic Value
July 30, 2019		310,000	$	0.94		1.25	$	899,000
July 16, 2020		1,305,000		0.91		2.21		3,784,500
		1,615,000	$	0.92		2.03	$	4,683,500

During the

three

and

nine

months ended

April 30, 2021,

stock-based compensation relating to RSUs totaled

$262,970

and

$806,638

(

three

and

nine

months ended

April 30, 2020:

$66,928

and

$200,784

), respectively. As of

April 30, 2021,

outstanding unvested RSUs totaled

1,615,000

(

July 31, 2020:

1,615,000

), and unrecognized compensation costs relating to unvested RSUs totaled

$508,861,

which is expected to be recognized over a period of approximately

1.14

years.

Performance Based Restricted Stock Units

During the

three

and

nine

months ended

April 30, 2021,

stock-based compensation relating to target performance based restricted stock units (“PRSU”s) totaled

$37,544

and

$112,632

(

three

and

nine

months ended

April 30, 2020:

$68,165

and

$204,495

), respectively. As of

April 30, 2021,

outstanding unvested PRSUs totaled

333,750

(

July 31, 2020:

333,750

), and unrecognized compensation costs relating to unvested PRSUs totaled

$126,720,

which is expected to be recognized over a period of approximately

0.72

years.

Stock-Based Compensation

A summary of stock-based compensation expense is as follows:

	Three Months Ended April 30,				Nine Months Ended April 30,
	2021		2020		2021		2020
Stock-Based Compensation for Consultants
Common stock issued to consultants	$	229,047	$	131,516	$	468,364	$	365,274
Amortization of stock option expenses		54,593		57,130		224,295		157,655
		283,640		188,646		692,659		522,929
Stock-Based Compensation for Management
Common stock issued to management		-		24,308		-		93,115
Amortization of stock option expenses		154,531		100,317		614,579		506,422
Amortization of RSU & PRSU expenses		300,514		135,093		919,270		405,279
		455,045		259,718		1,533,849		1,004,816
Stock-Based Compensation for Employees
Common stock issued to employees		264,484		158,127		738,996		416,152
Amortization of stock option expenses		164,558		89,154		798,796		482,573
		429,042		247,281		1,537,792		898,725

Settlement of share issuance obligation		-		-		-		(15,189	)
	$	1,167,727	$	695,645	$	3,764,300	$	2,411,281