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<font style="font-size: 19px">&#xA0; <font style="font-weight: bold; font-family: Times New Roman;">UNITED
STATES</font></font></div>
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<font style="font-size: 19px"><font style="font-size: 21px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 24px"><font style="font-size: 19px">
SECURITIES AND EXCHANGE
COMMISSION</font></font></font></font></div>
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<font style="font-family: Times New Roman; font-size: 13px">WASHINGTON,
D.C. 20549</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
FORM 20-F</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">[ ]
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE
SECURITIES EXCHANGE ACT OF 1934</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">OR</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">[X]
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
For the fiscal year ended June 30, 2020</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">OR</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;
&#xA0; &#xA0; &#xA0; TRANSITION REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">For the
transition period from ______________ to
__________________</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;OR</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">[ ]
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15D OF THE
SECURITIES EXCHANGE ACT OF 1934</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">Date of
event requiring this shell company report</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">Commission
file number: 000-50492</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
CORDOVACANN CORP.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;(Exact
name of Registrant as specified in its charter)</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
Canada</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">(Jurisdiction
of incorporation or organization)</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
217 Queen Street West, Suite 401,</font></div>
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<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
Toronto, Ontario, M5V 0R2, Canada</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;(Address
of principal executive offices)</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
Thomas M. Turner, Jr., T: 917-843-2169, F:
416-640-3183,</font></div>
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<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
217 Queen Street West, Suite 401,</font></div>
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<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
Toronto, Ontario, M5V 0R2, Canada</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;(Name,
Telephone, Facsimile number and Address of Company Contact
Person)</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">Securities
registered or to be registered pursuant to Section 12(b) of the
Act: <font style="font-weight: bold">None</font></font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">Securities
registered or to be registered pursuant to Section 12(g) of the
Act.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
Common shares without par value</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">(Title
of Class)</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Securities
for which there is a reporting obligation pursuant to Section 15(d)
of the Act: <font style="font-weight: bold">None</font></font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Indicate
the number of outstanding shares of each of the Issuer&#x2019;s
classes of capital or common stock as of the close of the period
covered by the annual report</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Common shares without par value &#x2013; 65,948,832 as at June 30,
2020</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Indicate
by check mark if the registrant is a well-known seasoned issuer, as
defined in Rule 405 of the Securities Act.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">[ ] Yes
[X] No</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If this
report is an annual or transition report, indicate by check mark if
the registrant is not required to file reports pursuant to Section
13 or 15(d) of the Securities Exchange Act of 1934.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">[X] Yes
[ ] No</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Note -
Checking the box above will not relieve any registrant required to
file reports pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 from their obligations under those
Sections.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Indicate
by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such
report) and (2) has been subject to such filing requirements for
the past 90 days.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">[X]Yes
[ ] No</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Indicate
by check mark whether the registrant has submitted electronically
and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405
of Regulation S-T (Section 232.405 of this chapter) during the
preceding 12 months (or such shorter period that the registrant was
required to submit and post such files).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">[X]Yes
[] No</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Indicate
by check mark whether the registrant is a large accelerated filer,
an accelerated filer, or a non-accelerated filer. See definition of
"accelerated filer and large accelerated filer" in Rule 12b-2 of
the Exchange Act. (Check one):</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Large
accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer
[X]</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Indicate
by check mark which basis of accounting the registrant has used to
prepare the financial statements included in this
filing:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">US GAAP
[
]&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;
International Financial Reporting
Standards&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: left; margin-left: 84px; margin-right: 0px; text-indent: 96px">
<font style="font-family: Times New Roman; font-size: 13px">as
issued by the International Accounting</font></div>
<div style="text-align: left; margin-left: 180px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Standards
Board&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;
[X]</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If
&#x201C;Other&#x201D; has been checked in response to the previous
question, indicate by check mark which financial statement item the
registrant has elected to follow.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">[ ]
Item 17 [ ] Item 18</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If this
is an annual report, indicate by check mark whether the registrant
is a shell company (as defined in Rule 12b-2 of the Exchange
Act).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">[ ] Yes
[X] No</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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TABLE OF CONTENTS</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Page No.</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 90%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 90%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Forward-Looking
Statements</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1<br></font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 90%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 90%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Foreign
Private Issuer Status and Currencies and Exchange
Rates</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1<br></font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 90%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 90%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
Part I</font><font style="color: #000000">&#xA0;</font></font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 90%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 90%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item 1.
Identity of Directors, Senior Management and Advisors</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2<br></font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 90%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item 2.
Offer Statistics and Expected Timetable</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2<br></font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 90%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item 3.
Key Information</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2<br></font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 90%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item 4.
Information on the Company</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">16<br>
</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 90%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item 5.
Operating and Financial Review and Prospects</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">21<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 90%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item 6.
Directors, Senior Management and Employees</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">28</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 90%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item 7.
Major Shareholders and Related Party Transactions</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">35<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 90%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item 8.
Financial Information</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">36</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 90%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item 9.
The Offer and Listing</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">37</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 90%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
10. Additional Information</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">39</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 90%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
11. Quantitative and Qualitative Disclosures About Market
Risk<font style="color: #000000">&#xA0;</font></font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">49</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 90%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
12. Description of Securities Other Than Equity
Securities</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">49</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 90%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 90%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Part II</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 90%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 90%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
13. Defaults, Dividend Arrearages and Delinquencies<font style="color: #000000">&#xA0;</font></font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">50<br>
</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 90%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
14. Material Modifications to the Rights of Security Holders and
Use of Proceeds</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">50<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 90%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
15. Controls and Procedures<font style="color: #000000">&#xA0;</font></font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">50<br>
</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 90%">
<div style="text-align: left; margin-left: 0px; margin-right: -6px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
16. Audit Committee, Code of Ethics, and Principal Accountant's
Fees, and Services</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">51<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 90%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 90%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Part III</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 90%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 90%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
17. Financial Statements</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">53<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 90%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
18. Financial Statements</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">53<br>
</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 90%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
19. Exhibits</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">53<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 90%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Signature</font></div>
</td>
<td style="vertical-align: top; width: 10%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
<div id="pb" style="text-align: center; page-break-after: always; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000">
<!--page break--></div>
<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
FORWARD-LOOKING STATEMENTS</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">This
annual report on Form 20-F (this &#x201C;Annual Report&#x201D;)
includes "forward-looking statements." All statements, other than
statements of historical facts, included in this Annual Report that
address activities, events or developments, which we expect or
anticipate, will or may occur in the future are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended and Section 21E of the Securities Exchange Act
of 1934, as amended.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
words "believe", "intend", "expect", "anticipate", "project",
"estimate", "predict" and similar expressions are also intended to
identify forward-looking statements.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">These
forward-looking statements address, among others, such issues
as:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 48px; margin-right: 0px; text-indent: -36px">
<font style="font-family: Times New Roman; font-size: 13px">-
Future earnings and cash flow;</font></div>
<div style="text-align: justify; margin-left: 48px; margin-right: 0px; text-indent: -36px">
<font style="font-family: Times New Roman; font-size: 13px">-
Expansion and growth of our business and operations;
and</font></div>
<div style="text-align: justify; margin-left: 48px; margin-right: 0px; text-indent: -36px">
<font style="font-family: Times New Roman; font-size: 13px">- Our
prospective operational and financial information.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">These
statements are based on assumptions and analyses made by us in
light of our experience and our perception of historical trends,
current conditions and expected future developments, as well as
other factors we believe are appropriate in particular
circumstances. However, whether actual results and developments
will meet our expectations and predictions depends on a number of
risks and uncertainties, which could cause actual results to differ
materially from our expectations, including the risks set forth in
"Item 3 - Key Information - Risk Factors" and the
following:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr>
<td style="vertical-align: top; width: 100%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;
- Fluctuations in prices of our products and services;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 100%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;
- Potential investments, acquisitions or other business
opportunities;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;-
Availability of financing opportunities, legal and regulatory
risks;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 100%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;
- General economic, market and business conditions;
and</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 100%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;
- Other risks and factors beyond our control.</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Consequently,
all of the forward-looking statements made in this Annual Report
are qualified by these cautionary statements. We cannot assure you
that the actual results or developments anticipated by us will be
realized or, even if substantially realized, that they will have
the expected effect on us or our business or
operations.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Unless
the context indicates otherwise, the terms "CordovaCann Corp.",
&#x201C;the "Company&#x201D;, "CordovaCann", &#x201C;we&#x201D;,
&#x201C;us&#x201D;, &#x201C;our&#x201D; and &#x201C;Registrant&#x201D;
are used interchangeably in this Annual Report and mean CordovaCann
Corp. and its subsidiaries.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
FOREIGN PRIVATE ISSUER STATUS AND CURRENCIES AND EXCHANGE
RATES</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Foreign Private Issuer Status</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">CordovaCann
Corp. (formerly, LiveReel Media Corporation) is a Canadian
corporation governed under the <font style="font-style: italic">Canada Business Corporations Act</font> of
Canada. Approximately 71% of its common shares is held by
approximately 372 non-United States citizens and residents as of
the day of its most recently completed fiscal year and our business
is administered principally outside the United States. As a result,
we believe that we qualify as a "foreign private issuer" for
continuing to report regarding the registration of our common
shares using this Annual Report on Form 20-F format.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Currency</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
financial information presented in this Annual Report is expressed
in Canadian Dollars ("CDN&#x201D; or &#x201C;$") and the financial
data in this Annual Report is presented in accordance with
International Financial Reporting Standards (&#x201C;IFRS&#x201D;) as
issued by the International Accounting Standards Board
("IASB").</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">All
dollar amounts set forth in this report are in Canadian Dollars,
except where otherwise indicated.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">1</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
PART I</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
ITEM 1 - IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND
ADVISORS</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
ITEM 2 - OFFER STATISTICS AND EXPECTED TIMETABLE</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
ITEM 3 - KEY INFORMATION</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(A) SELECTED FINANCIAL DATA</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">This
Report includes audited consolidated financial statements of the
Company for the years ended June 30, 2020, 2019 and 2018. These
audited consolidated financial statements have been prepared in
accordance with IFRS as issued by the IASB.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following is selected financial data for the Company for each of
the last three fiscal years ended 2018 through 2020 on a
consolidated basis. The data is extracted from the audited
consolidated financial statements of the Company for each of the
said years.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Summary of Financial Information in Accordance with International
Financial Reporting Standards (IFRS) (CDN)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Operating data &#x2013; Fiscal year ended June 30</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px; padding-bottom: 2px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">For
the Years Ending June 30,</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font>
<font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2020</font>
<font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font>
<font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2019</font>
<font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2018</font>
<font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Revenue</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">166,773</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Net loss for
year</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(4,650,900</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(5,836,536</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(4,865,933</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Net loss per
share</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(0.10</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(0.15</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(0.15</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Working capital
(deficit)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(4,464,323</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(3,236,359</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3,882,542</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Total
assets</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">14,693,789</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">4,645,132</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">4,875,592</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Total
liabilities</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">8,417,100</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">4,282,562</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">320,321</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Capital
stock</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">19,697,180</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">14,636,828</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">14,480,241</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Contingently
issuable shares</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2,040,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Shares to be
issued</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">510,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Contributed
surplus</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">6,709,782</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">5,226,156</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3,808,611</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Equity portion of
convertible debentures</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">862,913</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">62,498</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Accumulated
deficit</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(24,159,690</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(19,570,801</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(13,734,265</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Accumulated other
comprehensive income</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(41,599</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">7,889</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">684</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Non-controlling
interest</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">658,103</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Shareholders&#x2019;
equity (deficiency)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">6,276,789</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">362,570</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">4,555,271</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">2</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Summary of Financial Information in Accordance with U.S. GAAP
(CDN)</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Operating data &#x2013; Fiscal year ended June 30</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px; padding-bottom: 2px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">For
the Years Ending June 30,</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font>
<font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2020</font>
<font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font>
<font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2019</font>
<font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font>
<font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2018</font>
<font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Revenue</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">166,773</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Net loss for
year</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(4,650,900</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(5,836,536</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(4,865,933</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Net loss per
share</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(0.10</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(0.15</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(0.15</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Working capital
(deficit)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(4,464,323</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(3,236,359</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3,882,542</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Total
assets</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">14,693,789</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">4,645,132</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">4,875,592</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Total
liabilities</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">8,417,100</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">4,282,562</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">320,321</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Capital
stock</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">19,697,180</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">14,636,828</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">14,480,241</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Contingently
issuable shares</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2,040,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Shares to be
issued</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">510,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Contributed
surplus</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">6,709,782</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">5,226,156</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3,808,611</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Equity portion of
convertible debentures</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">862,913</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">62,498</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Accumulated
deficit</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(24,159,690</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(19,570,801</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(13,734,265</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Accumulated other
comprehensive income</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(41,599</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">7,889</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">684</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Non-controlling
interest</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">658,103</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Shareholders&#x2019;
equity (deficiency)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">6,276,789</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">362,570</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">4,555,271</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company has not declared or paid any dividends in any of its last
three fiscal years.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Exchange Rates</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In this
Annual Report on Form 20-F, unless otherwise specified, all
monetary amounts are expressed in Canadian Dollars. The exchange
rates used herein were obtained from Bank of Canada; however, they
cannot be guaranteed.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
November 30, 2020, being the last day of November 2019, the
exchange rate, based on the daily buying rates, for the conversion
of Canadian Dollars into United States Dollars (the &#x201C;Daily
Rate of Exchange&#x201D;) was $0.7713.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following table sets out the high and low exchange rates for each
of the last six months.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;
2020</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">November</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">October</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">September</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">August</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">July</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">June</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:40%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">High for
period</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.7713</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.7621</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.7660</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.7668</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.7485</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.7472</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Low for
period</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.7543</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.7491</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.7465</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.7476</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.7344</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.7309</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following table sets out the average exchange rates for the five
most recent financial years calculated by using the average of the
Daily Rate of Exchange on the last day of each month during the
period.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:50%;">
<div style="margin-left:0px;padding-bottom:2px;"><font style="font-size: 13px"><font style="font-family: Times New Roman;">&#xA0;</font></font></div>
</td>
<td colspan="5" rowspan="1" style="vertical-align:bottom;width:50%;">
<div><font style="text-align: left; padding-bottom:2px;width:2%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:96%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size: 13px"><font style="font-weight: bold; font-family: Times New Roman;">Year Ended June
30,</font></font></div>
</font><font style="text-align: left; padding-bottom:2px;width:2%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:50%;">
<div style="margin-left:0px;padding-bottom:2px;"><font style="font-size: 13px"><font style="font-family: Times New Roman;">&#xA0;</font></font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size: 13px"><font style="font-weight: bold; font-family: Times New Roman;">2020</font></font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size: 13px"><font style="font-weight: bold; font-family: Times New Roman;">2019</font></font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size: 13px"><font style="font-weight: bold; font-family: Times New Roman;">2018</font></font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size: 13px"><font style="font-weight: bold; font-family: Times New Roman;">2017</font></font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size: 13px"><font style="font-weight: bold; font-family: Times New Roman;">2016</font></font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:50%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px"><font style="font-family: Times New Roman;">Average for the
year</font></font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="font-size: 13px"><font style="text-align: left; vertical-align:bottom;width:10%;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-family:Times New Roman;display:inline-block;">0.7453</font><font style="text-align: left; vertical-align:bottom;width:10%;font-family:Times New Roman;display:inline-block;">&#xA0;</font></font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="font-size: 13px"><font style="text-align: left; vertical-align:bottom;width:10%;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-family:Times New Roman;display:inline-block;">0.7556</font><font style="text-align: left; vertical-align:bottom;width:10%;font-family:Times New Roman;display:inline-block;">&#xA0;</font></font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="font-size: 13px"><font style="text-align: left; vertical-align:bottom;width:10%;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-family:Times New Roman;display:inline-block;">0.7855</font><font style="text-align: left; vertical-align:bottom;width:10%;font-family:Times New Roman;display:inline-block;">&#xA0;</font></font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="font-size: 13px"><font style="text-align: left; vertical-align:bottom;width:10%;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-family:Times New Roman;display:inline-block;">0.7564</font><font style="text-align: left; vertical-align:bottom;width:10%;font-family:Times New Roman;display:inline-block;">&#xA0;</font></font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="font-size: 13px"><font style="text-align: left; vertical-align:bottom;width:10%;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-family:Times New Roman;display:inline-block;">0.7540</font><font style="text-align: left; vertical-align:bottom;width:10%;font-family:Times New Roman;display:inline-block;">&#xA0;</font></font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">&#xA0;
<font style="font-family: Times New Roman; font-size: 13px"><br>
</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">

<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(B) CAPITALIZATION AND INDEBTEDNESS</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(C) REASONS FOR THE OFFER AND USE OF PROCEEDS</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
&#xA0;<font style="font-family: Times New Roman; font-size: 13px;"><br></font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">3</font></div>
</div>
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</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(D) RISK FACTORS</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following is a brief discussion of those distinctive or special
characteristics of the Company&#x2019;s operations and industry that
may have a material adverse impact on, or constitute risk factors
in respect of, the Company&#x2019;s future financial
performance.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Summary of Regulatory Environment</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Although
cannabis is federally illegal in the U.S., the U.S. federal
government&#x2019;s approach to enforcement of such laws has trended
toward non-enforcement. On August 29, 2013, the <font style="color: #000000">U.S. Department of Justice (the
&#x201C;DOJ&#x201D;)</font>, issued a memorandum known as the
&#x201C;Cole Memorandum&#x201D; to all U.S. Attorneys&#x2019; offices
(federal prosecutors). The Cole Memorandum generally directed U.S.
Attorneys not to prioritize the enforcement of federal cannabis
laws against individuals and businesses that comply with state laws
legalizing cannabis. While not legally binding, and merely
prosecutorial guidance, the Cole Memorandum laid a framework for
managing the tension between state and federal laws concerning
state regulated cannabis businesses.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
January 4, 2018, the Cole Memorandum was revoked by Attorney
General Jeff Sessions, an opponent of state-regulated medical and
recreational cannabis. While this did not create a change in
federal law, as the Cole Memorandum was not itself legally binding
upon federal prosecutors, the revocation removed the DOJ&#x2019;s
guidance to U.S. Attorneys that state-regulated cannabis industries
substantively in compliance with the Cole Memorandum&#x2019;s
guidelines should not be a prosecutorial priority.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
addition to his revocation of the Cole Memorandum, Attorney General
Sessions also issued a one-page memorandum known as the
&#x201C;Sessions Memorandum.&#x201D; The Sessions Memorandum
confirmed the rescission of the Cole Memorandum and explained the
rationale for such rescission. According to the Sessions
Memorandum, the Cole Memorandum was &#x201C;unnecessary&#x201D; due
to existing general enforcement guidance set forth in the U.S.
Attorney's Manual (the &#x201C;USAM&#x201D;). The USAM enforcement
priorities, similar to the Cole Memorandum priorities, consider the
&#x201C;seriousness&#x201D; of the alleged crimes, the
&#x201C;deterrent effect of criminal prosecution&#x201D; and
&#x201C;the cumulative impact of particular crimes on the
community&#x201D;. Accordingly, U.S. Attorneys presently possess the
same prosecutorial discretion they held while the Cole Memorandum
was in place.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">U.S.
legal counsel continuously monitors all U.S. Attorney comments
related to regulated medical and recreational cannabis laws to
assess various risks and enforcement priorities within each
jurisdiction. Dozens of U.S. Attorneys across the U.S. have
affirmed that their prosecutorial discretion and/or federal
enforcement priorities have not changed.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
addition, federal money laundering statutes may be violated in the
event that financial institutions take any proceeds from cannabis
sales or any other Schedule I substance, and Canadian banks are
hesitant to deal with cannabis companies, due to the uncertain
legal and regulatory framework of the industry. Banks and other
financial institutions could be prosecuted and possibly convicted
of money laundering for providing services to cannabis businesses.
Under U.S. federal law, banks or other financial institutions that
provide a cannabis business with a checking account, debit or
credit card, small business loan, or any other service could be
found guilty of money laundering or conspiracy. Nevertheless, the
U.S. Department of the Treasury issued a memorandum in February of
2014 (the &#x201C;FinCEN Memorandum&#x201D;) outlining the pathways
for financial institutions to bank state-sanctioned cannabis
businesses. Under these guidelines, financial institutions must
submit a &#x201C;suspicious activity report&#x201D;
(&#x201C;SAR&#x201D;) as required by federal money laundering laws.
These cannabis related SARs are divided into three categories:
cannabis limited, cannabis priority, and cannabis terminated, based
on the financial institution&#x2019;s belief that the cannabis
business follows state law, is operating out of compliance with
applicable state law, or where the banking relationship has been
terminated.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Attorney
General Sessions&#x2019; revocation of the Cole Memorandum and the
2014 Cole Memo has not affected the status of the FinCEN
Memorandum, nor has the Department of the Treasury given any
indication that it intends to rescind the FinCEN
Memorandum.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Despite
the revocation of the Cole Memorandum, a legislative safeguard for
the medical cannabis industry remains in place. Congress utilized a
rider provision in the FY 2015, 2016 and 2017 Consolidated
Appropriations Acts (currently the &#x201C;Leahy Amendment&#x201D;)
to prevent the federal government from using congressionally
appropriated funds to enforce federal cannabis laws against
regulated medical cannabis actors operating in compliance with
applicable state law. The Leahy Amendment was included in the FY
2018 budget passed on March 23, 2018, meaning that, the Leahy
Amendment is still in effect as of today&#x2019;s date and will
remain in effect until September 30, 2018, when FY 2019
begins.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Compliance with Applicable State Law</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Each
licensee of the Intellectual Property complies with applicable U.S.
state licensing requirements as follows: (1) each licensee is
licensed pursuant to applicable U.S. state law to cultivate,
possess and/or distribute cannabis in such state; (2) renewal dates
for such licenses are docketed by legal counsel and/or other
advisors; (3) random internal audits of the licensee&#x2019;s
business activities are conducted by the applicable state regulator
and by the respective investee to ensure compliance with applicable
state law; (4) each employee is provided with an employee handbook
that outlines internal standard operating procedures in connection
with the cultivation, possession and distribution of cannabis to
ensure that all cannabis inventory and proceeds from the sale of
such cannabis are properly accounted for and tracked, using
scanners to confirm each customer&#x2019;s legal age and the
validity of each customer&#x2019;s drivers&#x2019; license; (5) each
room that cannabis inventory and/or proceeds from the sale of such
inventory enter is monitored by video surveillance; (6) software is
used to track cannabis inventory from seed-to-sale; and (7) each
licensee is contractually obligated to comply with applicable state
law in connection with the cultivation, possession and/or
distribution of cannabis. CordovaCann&#x2019;s U.S. legal counsel
reviews, from time to time, the licenses and documents referenced
above in order to confirm such information and identify any
deficiencies.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">4</font></div>
</div>
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</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Colorado&#x2019;s Cannabis Regulatory Environment</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
purposes of Staff Notice 51-352, the assets and interests held by
CordovaCann in Colorado are classified as &#x201C;ancillary&#x201D;
involvement in the U.S. cannabis industry.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-size: 13px">
Colorado authorized the cultivation, possession and distribution of
cannabis by certain licensed Colorado cannabis businesses. The
Colorado Marijuana Enforcement Division regulates Colorado&#x2019;s
cannabis regulatory program. CordovaCann is advised by U.S. legal
counsel and/or other advisors in connection with Colorado&#x2019;s
cannabis regulatory program. CordovaCann only engages in
transactions with Colorado cannabis businesses that hold licenses
that are in good standing to cultivate, possess and/or distribute
cannabis in Colorado in compliance with Colorado&#x2019;s cannabis
regulatory program. To the extent required by Colorado&#x2019;s
cannabis regulatory program, CordovaCann has fully disclosed and/or
registered each financial interest CordovaCann holds in such
Colorado cannabis business.</font>&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Oregon&#x2019;s Cannabis Regulatory Environment</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
purposes of Staff Notice 51-352, the assets and interests held by
CordovaCann in Oregon are classified as &#x201C;ancillary&#x201D;
involvement in the U.S. cannabis industry.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Oregon
authorized the cultivation, possession and distribution of cannabis
by certain licensed Oregon cannabis businesses. The Oregon Liquor
Control Commission regulates Oregon&#x2019;s cannabis regulatory
program. CordovaCann is advised by U.S. legal counsel and/or other
advisors in connection with Oregon&#x2019;s cannabis regulatory
program. CordovaCann only engages in transactions with Oregon
cannabis businesses that hold licenses that are in good standing to
cultivate, possess and/or distribute cannabis in Oregon in
compliance with Oregon&#x2019;s cannabis regulatory program. To the
extent required by Oregon&#x2019;s cannabis regulatory program,
CordovaCann has fully disclosed and/or registered each financial
interest CordovaCann holds in such Oregon cannabis
business.<font style="font-size: 13px">&#xA0;</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
California&#x2019;s Cannabis Regulatory Environment</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
purposes of Staff Notice 51-352, the assets and interests
contemplated to be held by CordovaCann in California are classified
as &#x201C;ancillary&#x201D; involvement in the U.S. cannabis
industry.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-size: 13px">
California authorized the cultivation, possession and distribution
of cannabis by certain licensed California cannabis businesses. The
California Bureau of Cannabis Control regulates California&#x2019;s
cannabis regulatory program. CordovaCann is advised by U.S. legal
counsel and/or other advisors in connection with California&#x2019;s
cannabis regulatory program. CordovaCann only engages in
transactions with California cannabis businesses that hold licenses
that are in good standing to cultivate, possess and/or distribute
cannabis in California in compliance with California&#x2019;s
cannabis regulatory program. To the extent required by
California&#x2019;s cannabis regulatory program, CordovaCann has
fully disclosed and/or registered each financial interest
CordovaCann holds in such California cannabis
business.</font>&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following are certain risk factors relating to the business carried
on by the Company that prospective holders of Common Shares should
carefully consider.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Risks specifically related to the United States regulatory
system.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
The Company&#x2019;s investments operate in a new industry which is
highly regulated, highly competitive and evolving rapidly. As such,
new risks may emerge, and management may not be able to predict all
such risks or be able to predict how such risks may result in
actual results differing from the results contained in any
forward-looking statements.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
The Company&#x2019;s investments incur ongoing costs and obligations
related to regulatory compliance. Failure to comply with
regulations may result in additional costs for corrective measures,
penalties or in restrictions of operations. In addition, changes in
regulations, more vigorous enforcement thereof or other
unanticipated events could require extensive changes to operations,
increased compliance costs or give rise to material liabilities,
which could have a material adverse effect on the business, results
of operations and financial condition of the Company&#x2019;s
investments and, therefore, on the Company&#x2019;s prospective
returns. Further, the Company may be subject to a variety of claims
and lawsuits. Adverse outcomes in some or all of these claims may
result in significant monetary damages or injunctive relief that
could adversely affect our ability to conduct our business.
Litigation and other claims are subject to inherent uncertainties
and management&#x2019;s view of these matters may change in the
future. A material adverse impact on our financial statements could
also occur for the period in which the effect of an unfavorable
final outcome becomes probable and reasonably capable of being
estimated. The industry is subject to extensive controls and
regulations which may significantly affect the financial condition
of market participants. The marketability of any product may be
affected by numerous factors that are beyond the control of the
Company&#x2019;s investments and which cannot be predicted, such as
changes to government regulations, including those relating to
taxes and other government levies which may be imposed. Changes in
government levies, including taxes, could reduce the
Company&#x2019;s investments&#x2019; earnings and could make future
capital investments or the Company&#x2019;s investments&#x2019;
operations uneconomic. The industry is also subject to numerous
legal challenges, which may significantly affect the financial
condition of market participants and which cannot be reliably
predicted.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;<br></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
CordovaCann is expected to continue to derive a portion of its
revenues from the cannabis industry in certain states of the United
States, which is illegal under United States federal law. While the
Company&#x2019;s business activities are compliant with applicable
state and local laws, such activities remain illegal under United
States federal law. CordovaCann is involved in the cannabis
industry in the United States where local and state laws permit
such activities or provide limited defenses to criminal
prosecutions. The enforcement of relevant laws is a significant
risk.</font></div>
<div><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">5</font></div>
</div>
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<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;<br></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Over half of the U.S. states have enacted comprehensive legislation
to regulate the sale and use of medical cannabis. Notwithstanding
the permissive regulatory environment of medical cannabis at the
state level, cannabis continues to be categorized as a Schedule 1
controlled substance under the United States Controlled Substances
Act of 1970. As such, cannabis-related practices or activities,
including without limitation, the cultivation, manufacture,
importation, possession, use or distribution of cannabis, are
illegal under United States federal law. Strict compliance with
state laws with respect to cannabis will neither absolve the
Company of liability under United States federal law, nor will it
provide a defense to any federal proceeding which may be brought
against the Company. Any such proceedings brought against the
Company may adversely affect the Company&#x2019;s operations and
financial performance.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Because
of the conflicting views between state legislatures and the federal
government of the United States regarding cannabis, investments in
cannabis businesses in the United States are subject to
inconsistent legislation, regulation, and enforcement. Unless and
until the United States Congress amends the United States
Controlled Substances Act with respect to cannabis or the Drug
Enforcement Agency reschedules or de-schedules cannabis (and as to
the timing or scope of any such potential amendments there can be
no assurance), there is a risk that federal authorities may enforce
current federal law, which would adversely affect the current and
future investments of the Company in the United States. As a result
of the tension between state and federal law, there are a number of
risks associated with the Company&#x2019;s existing and future
investments in the United States.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;<br></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
For the reasons set forth above, the Company&#x2019;s existing
interests in the United States cannabis market may become the
subject of heightened scrutiny by regulators, stock exchanges,
clearing agencies and other authorities in Canada. It has been
reported by certain publications in Canada that the Canadian
Depository for Securities Limited may implement policies that would
see its subsidiary, CDS Clearing and Depository Services Inc.
(&#x201C;CDS&#x201D;), refuse to settle trades for cannabis companies
that have investments in the United States. CDS is Canada&#x2019;s
central securities depository, clearing and settlement hub settling
trades in the Canadian equity, fixed income and money markets. The
TMX Group, the owner and operator of CDS, subsequently issued a
statement on August 17, 2017 reaffirming that there is no CDS ban
on the clearing of securities of companies with cannabis-related
activities in the United States, despite media reports to the
contrary and that the TMX Group was working with regulators to
arrive at a solution that will clarify this matter, which would be
communicated at a later time.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
On February 8, 2018, following discussions with the Canadian
Securities Administrators (&#x201C;CSA&#x201D;) and recognized
Canadian securities exchanges, the TMX Group announced the signing
of a Memorandum of Understanding (&#x201C;TMX MOU&#x201D;) with
Aequitas NEO Exchange Inc., the Canadian Securities Exchange
(&#x201C;CSE&#x201D;), the Toronto Stock Exchange, and the TSX
Venture Exchange. The TMX MOU outlines the parties&#x2019;
understanding of Canada&#x2019;s regulatory framework applicable to
the rules, procedures, and regulatory oversight of the exchanges
and CDS as it relates to companies with cannabis-related activities
in the United States. The TMX MOU confirms, with respect to the
clearing of listed securities, that CDS relies on the exchanges to
review the conduct of listed companies. As a result, there is no
CDS ban on the clearing of securities of companies with
cannabis-related activities in the United States. However, there
can be no guarantee that this approach to regulation will continue
in the future. If such a ban were to be implemented, it would have
a material adverse effect on the ability of holders of Common
Shares to make and settle trades. In particular, the Common Shares
would become highly illiquid as until an alternative was
implemented, investors would have no ability to effect a trade of
the Common Shares through the facilities of a stock exchange. The
Company has obtained eligibility with the Depository Trust Company
(&#x201C;DTC&#x201D;) for its Common Share quotation on the OTCQB and
such DTC eligibility provides another possible avenue to clear
Common Shares in the event of a CDS ban.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;<br></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
The activities of CordovaCann&#x2019;s investments are, and will
continue to be, subject to evolving regulation by governmental
authorities. The Company&#x2019;s investments are directly or
indirectly engaged in the medical and recreational cannabis
industry in the United States and Canada, where local state laws
permit such activities. The legality of the production, extraction,
distribution and use of cannabis differs among each North American
jurisdictions.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
CordovaCann&#x2019;s investments have been focused in three states
that have legalized the medical and/or recreational use of
cannabis, being Oregon, Colorado and California. Over half of the
U.S. states have enacted legislation to legalize and regulate the
sale and use of medical cannabis. However, the U.S. federal
government has not enacted similar legislation. As such, the
cultivation, manufacture, distribution, sale and use of cannabis
remains illegal under U.S. federal law.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;<br></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Further, on January 4, 2018, U.S. Attorney General, Jeff Sessions,
formally rescinded the standing DOJ federal policy guidance
governing enforcement of marijuana laws, as set forth in a series
of memos and guidance from 2009-2014, principally the Cole
Memorandum. The Cole Memorandum generally directed U.S. Attorneys
not to enforce the federal marijuana laws against actors who are
compliant with state laws, provided enumerated enforcement
priorities were not implicated. The rescission of this memo and
other Obama-era prosecutorial guidance did not create a change in
federal law as the Cole Memorandums were never legally binding;
however, the revocation removed the DOJ&#x2019;s guidance to U.S.
Attorneys that state-regulated cannabis industries substantively in
compliance with the Cole Memorandum&#x2019;s guidelines should not
be a prosecutorial priority. The federal government of the United
States has always reserved the right to enforce federal law
regarding the sale and disbursement of medical or recreational
marijuana, even if state law sanctioned such sale and disbursement.
Although the rescission of the above memorandums does not
necessarily indicate that marijuana industry prosecutions are now
affirmatively a priority for the DOJ, there can be no assurance
that the federal government will not enforce such laws in the
future.</font></div>
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<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Additionally, there can be no assurance that state laws legalizing
and regulating the sale and use of cannabis will not be repealed or
overturned, or that local governmental authorities will not limit
the applicability of state laws within their respective
jurisdictions. It is also important to note that local and city
ordinances may strictly limit and/or restrict the distribution of
cannabis in a manner that could make it extremely difficult or
impossible to transact business in the cannabis industry. If the
federal government begins to enforce federal laws relating to
cannabis in states where the sale and use of cannabis is currently
legal, or if existing state laws are repealed or curtailed, the
Company&#x2019;s investments in such businesses would be materially
and adversely affected notwithstanding the fact that the Company is
not directly engaged in the sale or distribution of cannabis.
Federal actions against any individual or entity engaged in the
marijuana industry or a substantial repeal of marijuana related
legislation could adversely affect the Company, its business and
its investments.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">
In light of the political and regulatory uncertainty surrounding
the treatment of U.S. cannabis-related activities, including the
rescission of the Cole Memorandum discussed above, on February 8,
2018, the CSA published Staff Notice 51-352 setting out the
CSA&#x2019;s disclosure expectations for specific risks facing
companies with cannabis-related activities in the United States.
Staff Notice 51-352 confirms that a disclosure-based approach
remains appropriate for companies with U.S. cannabis-related
activities. Staff Notice 51-352 includes additional disclosure
expectations that apply to all companies with U.S. cannabis-related
activities, including those with direct and indirect involvement in
the cultivation and distribution of cannabis, as well as companies
that provide goods and services to third parties involved in the
U.S. cannabis industry. The Company views Staff Notice 51-352
favourably, as it provides increased transparency and greater
certainty regarding the views of the exchanges and the regulators
regarding the Company&#x2019;s existing operations and strategic
business plan as well as the Company&#x2019;s ability to pursue
further investments and opportunities in the United
States.</font>&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
The Company&#x2019;s investments in the United States are subject to
applicable anti-money laundering laws and regulations.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
The Company is subject to a variety of laws and regulations
domestically and in the United States that involve money
laundering, financial recordkeeping and proceeds of crime,
including the U.S. Currency and Foreign Transactions Reporting Act
of 1970 (commonly known as the Bank Secrecy Act), as amended by
Title III of the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act
of 2001 (USA PATRIOT Act), the Proceeds of Crime (Money Laundering)
and Terrorist Financing Act (Canada), as amended and the rules and
regulations thereunder, and any related or similar rules,
regulations or guidelines, issued, administered or enforced by
governmental authorities in the United States and Canada. Further,
under U.S. federal law, banks or other financial institutions that
provide a cannabis business with a checking account, debit or
credit card, small business loan, or any other service could be
found guilty of money laundering, aiding and abetting, or
conspiracy.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Despite these laws, FinCEN issued a memorandum on February 14, 2014
outlining the pathways for financial institutions to bank marijuana
businesses in compliance with federal enforcement priorities. The
FinCEN Memorandum states that in some circumstances, it is
permissible for banks to provide services to cannabis-related
businesses without risking prosecution for violation of federal
money laundering laws. It refers to supplementary guidance that
Deputy Attorney General Cole issued to federal prosecutors relating
to the prosecution of money laundering offenses predicated on
cannabis-related violations of the United States Controlled
Substances Act on the same day (the &#x201C;2014 Cole Memo&#x201D;).
The 2014 Cole Memo has been rescinded as of January 4, 2018, along
with the Cole Memorandum, removing guidance that enforcement of
applicable financial crimes was not a DOJ priority.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;<br></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Attorney General Sessions&#x2019; revocation of the Cole Memorandum
and the 2014 Cole Memo has not affected the status of the FinCEN
Memorandum, nor has the Department of the Treasury given any
indication that it intends to rescind the FinCEN Memorandum itself.
Though it was originally intended for the 2014 Cole Memo and the
FinCEN Memorandum to work in tandem, the FinCEN Memorandum appears
to remain in effect as a standalone document which explicitly lists
the eight enforcement priorities originally cited in the rescinded
Cole Memorandum. Although the FinCEN Memorandum remains intact,
indicating that the Department of the Treasury and FinCEN intend to
continue abiding by its guidance, it is unclear whether the current
administration will continue to follow the guidelines of the FinCEN
Memorandum.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; font-size: 13px">
The Company&#x2019;s investments, and any proceeds thereof, are
considered proceeds of crime due to the fact that cannabis remains
illegal federally in the United States. This restricts the ability
of the Company to declare or pay dividends, effect other
distributions or subsequently repatriate such funds back to Canada.
Furthermore, while the Company has no current intention to declare
or pay dividends on its Common Shares in the foreseeable future,
the Company may decide or be required to suspend declaring or
paying dividends without advance notice and for an indefinite
period of time.</font>&#xA0;</font></div>
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<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
The Company&#x2019;s investments in the United States may be subject
to heightened scrutiny by Canadian authorities.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
For the reasons set forth above, the Company&#x2019;s existing
investments in the United States, and any future investments, may
become the subject of heightened scrutiny by regulators, stock
exchanges and other authorities in Canada. As a result, the Company
may be subject to significant direct and indirect interaction with
public officials. There can be no assurance that this heightened
scrutiny will not in turn lead to the imposition of certain
restrictions on the Company&#x2019;s ability to invest in the United
States or any other jurisdiction, in addition to those described
herein.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; font-size: 13px">
Although the TMX MOU has confirmed that there is currently no CDS
ban on the clearing of securities of companies with
cannabis-related activities in the United States, there can be no
guarantee that this approach to regulation will continue in the
future. If such a ban were to be implemented, it would have a
material adverse effect on the ability of holders of Common Shares
to make and settle trades. In particular, the Common Shares would
become highly illiquid as until an alternative was implemented,
investors would have no ability to effect a trade of the Common
Shares through the facilities of a stock
exchange.</font>&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Change in laws, regulations and guidelines.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Each investment&#x2019;s current and proposed operations are subject
to a variety of laws, regulations and guidelines, including, but
not limited to, those relating to the manufacture, management,
transportation, storage and disposal of cannabis, as well as laws
and regulations relating to health and safety (including those for
consumable products), the conduct of operations and the protection
of the environment. These laws and regulations are broad in scope
and subject to evolving interpretations. If any changes to such
laws, regulations and guidelines occur, which are matters beyond
the control of the Company, the Company may incur significant costs
in complying with such changes or it may be unable to comply
therewith, which in turn may result in a material adverse effect on
the Company&#x2019;s business, financial condition and results of
operation. In addition, violations of these laws, or allegations of
such violations, could disrupt certain aspects of the
Company&#x2019;s business plan and result in a material adverse
effect on certain aspects of its planned operations.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; font-size: 13px">
Changes in regulations, more vigorous enforcement thereof, the
imposition of restrictions on the Company&#x2019;s ability to
operate in the U.S. as a result of the federally illegal nature of
cannabis in the U.S. or other unanticipated events could require
extensive changes to the Company&#x2019;s operations, increased
compliance costs or give rise to material liabilities, which could
have a material adverse effect on the business, results of
operations and financial condition of the
Company.</font>&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
United States tax residence of the Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company, which is and will continue to be a Canadian corporation
generally would be classified as a non-United States corporation
(and, therefore, as a non-United States tax resident) under general
rules of United States federal income taxation. Section 7874 of the
United States Tax Code, however, contains rules that can cause a
non-United States corporation to be taxed as a United States
corporation for United States federal income tax purposes. The
rules described in this paragraph are relatively new, their
application is complex and there is little guidance regarding their
application. Under section 7874 of the United States Tax Code, a
corporation created or organized outside the United States (i.e., a
non-United States corporation) will nevertheless be treated as a
United States corporation for United States federal income tax
purposes (such treatment is referred to as an
&#x201C;Inversion&#x201D;) if each of the following three conditions
are met (i) the non-United States corporation acquires, directly or
indirectly, or is treated as acquiring under applicable United
States Treasury Regulations, substantially all of the assets held,
directly or indirectly, by a United States corporation, (ii) after
the acquisition, the former stockholders of the acquired United
States corporation hold at least 80% (by vote or value) of the
shares of the non-United States corporation by reason of holding
shares of the United States acquired corporation, and (iii) after
the acquisition, the non-United States corporation&#x2019;s expanded
affiliated group does not have substantial business activities in
the non-United States corporation&#x2019;s country of organization
or incorporation when compared to the expanded affiliated
group&#x2019;s total business activities (clauses (i) &#x2013; (iii),
collectively, the &#x201C;Inversion Conditions&#x201D;). For this
purpose, &#x201C;expanded affiliated group&#x201D; means a group of
corporations where (i) the non-United States corporation owns stock
representing more than 50% of the vote and value of at least one
member of the expanded affiliated group, and (ii) stock
representing more than 50% of the vote and value of each member is
owned by other members of the group. The definition of an
&#x201C;expanded affiliated group&#x201D; includes partnerships where
one or more members of the expanded affiliated group own more than
50% (by vote and value) of the interests of the
partnership.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If the
Company is treated as a United States corporation for United States
federal income tax purposes under section 7874 of the United States
Tax Code (which is considered likely, although no definitive
determination of this matter has been reached, and no tax ruling
has been sought or obtained in this regard), the Company would be
considered a United States tax resident and subject to United
States federal income tax on its worldwide income. However, for
Canadian tax purposes, the Company is expected, regardless of any
application of section 7874 of the United States Tax Code, to be
treated as a Canadian resident Company (as defined in the Tax Act)
for Canadian income tax purposes. As a result, if the Company is
considered a United States corporation under section 7874, the
Company would be subject to taxation both in Canada and the United
States which could have a material adverse effect on its financial
condition and results of operations. In addition, any distributions
paid by the Company to a holder of Common Shares may be subject to
United States withholding tax as well as any applicable Canadian
withholding tax. A Non-United States Holder may also be subject to
United States tax, including withholding tax, on disposition of its
Common Shares.</font></div>
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<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Passive Foreign Investment Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; font-size: 13px">
There is a risk that the Company may, in the future, be construed
as a passive foreign investment Company (&#x201C;PFIC&#x201D;). If
the Company is a PFIC, its shareholders in the U.S. are likely
subject to adverse U.S. tax consequences. Under U.S. federal income
tax laws, if a Company is a PFIC for any year, it could have
adverse U.S. federal income tax consequences to a U.S. shareholder
with respect to its investment in Common Shares. The Company may
earn royalty and franchise revenue which may be treated as passive
income unless the royalty and franchise revenue is derived in the
active conduct of a trade or business. Assessing whether royalty or
franchise revenue received by the Company and its subsidiaries is
derived in the active conduct of a trade or business involves
substantial factual and legal ambiguity. Based on current business
plans and financial expectations, the Company expects that it will
not be a PFIC for its current tax year. PFIC classification is
fundamentally factual in nature, generally cannot be determined
until the close of the tax year in question, and is determined
annually. Furthermore, because PFIC determinations are made
annually, it is possible that the Company will meet the
requirements to be treated as a PFIC in one or more years, but not
meet such requirements in other years. U.S. shareholders should
consult their own tax advisors regarding the potential adverse tax
consequences to owning PFIC stock, and whether they are able to and
should make any elections or take other actions to mitigate such
potential adverse tax consequences.</font>&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
If the Company is deemed to be an investment Company under the
United States Investment Company Act of 1940, as amended (the
&#x201C;Investment Company Act&#x201D;), it may be required to
institute burdensome compliance requirements and its activities may
be restricted.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
The Company intends to conduct its operations so that it is not
required to register as an investment Company under the Investment
Company Act. Section 3(a)(1)(C) of the Investment Company Act
defines an investment Company as any Company that is engaged or
proposes to engage in the business of investing, reinvesting,
owning, holding or trading in securities and owns or proposes to
acquire investment securities having a value exceeding 40.0% of the
value of the Company&#x2019;s total assets (exclusive of government
securities and cash items) on an unconsolidated basis. However, any
Company primarily engaged, directly or through a wholly-owned
subsidiary or subsidiaries, in a business or businesses other than
that of investing, reinvesting, owning, holding, or trading in
securities is exempt from the requirements of the Investment
Company Act under Section 3(b)(1).</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; font-size: 13px">
If the Company is deemed to be an investment Company under the
Investment Company Act, its activities may be restricted, including
restrictions on the nature of the Company&#x2019;s investments and
restrictions on the issuance of securities. In addition, the
Company may have imposed upon it burdensome requirements,
including:</font>&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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</td>
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<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
registration as an investment Company;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="text-align: left; width: 100%; font-family: Times New Roman; font-size: 13px; margin: 0px auto 0px 0px;">
<tr>
<td style="vertical-align: top; width: 2%;">
<div style="text-align: justify; margin-left: 48px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
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<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
adoption of a specific form of corporate structure;
and</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="text-align: left; width: 100%; font-family: Times New Roman; font-size: 13px; margin: 0px auto 0px 0px;">
<tr>
<td style="vertical-align: top; width: 2%;">
<div style="text-align: justify; margin-left: 48px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: middle; width: 98%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
reporting, record keeping, voting, proxy and disclosure
requirements and other rules and regulations.</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
In sum, if the Company were to be characterized as an investment
Company, the inability of the Company to satisfy such regulatory
requirements, whether on a timely basis or at all, could, under
certain circumstances, have a material adverse effect on the
Company and its ability to continue pursuing its business plan
could be limited.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">9</font></div>
</div>
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<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
The Company's Common Shares are considered to be penny stock, which
may adversely affect the liquidity of its Common
Shares.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
The capital stock of the Company would be classified as
&#x201C;penny stock&#x201D; as defined in Reg. &#xA7; 240.3a51-1
promulgated under the Securities Exchange Act of 1934 (the
&#x201C;1934 Act&#x201D;). In response to perceived abuse in the
penny stock market generally, the 1934 Act was amended in 1990 to
add new requirements in connection with penny stocks. In connection
with effecting any transaction in a penny stock, a broker or dealer
must give the customer a written risk disclosure document that (a)
describes the nature and level of risk in the market for penny
stocks in both public offerings and secondary trading, (b)
describes the broker&#x2019;s or dealer&#x2019;s duties to the
customer and the rights and remedies available to such customer
with respect to violations of such duties, (c) describes the dealer
market, including &#x201C;bid&#x201D; and &#x201C;ask&#x201D; prices
for penny stock and the significance of the spread between the bid
and ask prices, (d) contains a toll-free telephone number for
inquiries on disciplinary histories of brokers and dealers, and (e)
define significant terms used in the disclosure document or the
conduct of trading in penny stocks. In addition, the broker-dealer
must provide to a penny stock customer a written monthly account
statement that discloses the identity and number of shares of each
penny stock held in the customer&#x2019;s account, and the estimated
market value of such shares. The extensive disclosure and other
broker-dealer compliance related to penny stocks may result in
reducing the level of trading activity in the secondary market for
such stocks, thus limiting the ability of the holder to sell such
stock.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Additional financing.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
The continued development of the Company will require additional
financing. There is no guarantee that the Company will be able to
achieve its business objectives. The Company intends to fund its
future business activities by way of additional offerings of equity
and/or debt financing as well as through anticipated positive cash
flow from operations in the future. The failure to raise or procure
such additional funds or the failure to achieve positive cash flow
could result in the delay or indefinite postponement of current
business objectives. There can be no assurance that additional
capital or other types of financing will be available if needed or
that, if available, will be on terms acceptable to the Company. If
additional funds are raised by offering equity securities, existing
shareholders could suffer significant dilution. Any debt financing
secured in the future could involve the granting of security
against assets of the Company and also contain restrictive
covenants relating to capital raising activities and other
financial and operational matters, which may make it more difficult
for the Company to obtain additional capital and to pursue business
opportunities, including potential acquisitions. The Company will
require additional financing to fund its operations until positive
cash flow is achieved.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">
The Company&#x2019;s access to both public and private capital and
its ability to access financing to support continuing operations
and investments may be further restricted due to uncertainty and
the changing nature of the marijuana regulatory environment in
jurisdictions in which the Company
operates.</font>&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Investments may be pre-revenue.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
The Company has made and may make future investments in entities
that have no significant sources of operating cash flow and no
revenue from operations. As such, the Company&#x2019;s investments
are subject to risks and uncertainties including the risk that the
Company&#x2019;s investments will not be able to:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left">
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</td>
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<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
implement or execute their current business plan, or create a
business plan that is sound;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="text-align: left; width: 100%; font-family: Times New Roman; font-size: 13px; margin: 0px auto 0px 0px;">
<tr>
<td style="vertical-align: top; width: 2%;">
<div style="text-align: justify; margin-left: 48px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: middle; width: 98%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
maintain their anticipated management team; and/or</font></div>
</td>
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</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="text-align: left; width: 100%; font-family: Times New Roman; font-size: 13px; margin: 0px auto 0px 0px;">
<tr>
<td style="vertical-align: top; width: 2%;">
<div style="text-align: justify; margin-left: 48px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: middle; width: 98%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
raise sufficient funds in the capital markets or otherwise to
effectuate their business plan.</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
If the Company&#x2019;s investments cannot execute any one of the
foregoing, their businesses may fail, which could have a materially
adverse impact on the business, financial condition and operating
results of the Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Lack of control over operations of investments.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; font-size: 13px">
The Company relies on its investments to execute on their business
plans and to produce medical and/or recreational cannabis products,
and holds contractual rights and minority equity interests relating
to the operation of the Company&#x2019;s investments. The operators
of the Company&#x2019;s investments have significant influence over
the results of operations of the Company&#x2019;s investments.
Further, the interests of the Company and the operators of the
Company&#x2019;s investments may not always be aligned. As a result,
the cash flows of the Company are dependent upon the activities of
third parties which creates the risk that at any time those third
parties may: (i) have business interests or targets that are
inconsistent with those of the Company; (ii) take action contrary
to the Company&#x2019;s policies or objectives; (iii) be unable or
unwilling to fulfill their obligations under their agreements with
the Company; or (iv) experience financial, operational or other
difficulties, including insolvency, which could limit or suspend a
third party&#x2019;s ability to perform its obligations. In
addition, payments may flow through the Company&#x2019;s
investments, and there is a risk of delay and additional expense in
receiving such revenues. Failure to receive payments in a timely
fashion, or at all, under the agreements to which the Company is
entitled may have a material adverse effect on the Company. In
addition, the Company must rely, in part, on the accuracy and
timeliness of the information it receives from the Company&#x2019;s
investments, and use such information in its analyses, forecasts
and assessments relating to its own business. If the information
provided by investment entities to the Company contains material
inaccuracies or omissions, the Company&#x2019;s ability to
accurately forecast or achieve its stated objectives, or satisfy
its reporting obligations, may be materially
impaired.</font>&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">10</font></div>
</div>
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<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Private companies and illiquid securities.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
The Company may invest in securities of private companies. In some
cases, the Company may be restricted by contract or generally by
applicable securities laws from selling such securities for a
period of time. Such securities may not have a ready market and the
inability to sell such securities or to sell such securities on a
timely basis or at acceptable prices may impair the Company&#x2019;s
ability to exit such investments when the Company considers it
appropriate.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-style: italic; font-family: Times New Roman; font-size: 13px">
Unfavourable publicity or consumer perception.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
The regulated cannabis industry in the United States and Canada is
at an early stage of its development. The Company believes the
medical and recreational cannabis industry is highly dependent on
consumer perception regarding the safety and efficacy of
recreational and medical cannabis. Consumer perceptions regarding
legality, morality, consumption, safety, efficacy and quality of
cannabis are mixed and evolving. Consumer perception can be
significantly influenced by scientific research or findings,
regulatory investigations, litigation, media attention and other
publicity regarding the consumption of cannabis products. There can
be no assurance that future scientific research, findings,
regulatory proceedings, litigation, media attention or other
research findings or publicity will be favourable to the cannabis
market or any particular product, or consistent with earlier
publicity. Future research reports, findings, regulatory
proceedings, litigation, media attention or other publicity that
are perceived as less favourable than, or that question, earlier
research reports, findings or publicity could have a material
adverse effect on the demand for cannabis and on the business,
results of operations, financial condition and cash flows of the
Company. Further, adverse publicity reports or other media
attention regarding cannabis in general, or associating the
consumption of cannabis with illness or other negative effects or
events, could have such a material adverse effect on the business
of the Company. Such adverse publicity reports or other media
attention could arise even if the adverse effects associated with
such products resulted from consumers&#x2019; failure to consumer
such products legally, appropriately or as directed.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-size: 13px; font-family: Times New Roman">
Public opinion and support for medical and recreational cannabis
use has traditionally been inconsistent and varies from
jurisdiction to jurisdiction. Legalization of medical and
recreational cannabis remains a controversial issue subject to
differing opinions surrounding the level of legalization (for
example, legalization of medical marijuana as opposed to
legalization in general).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Limited operating history.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Since March 1997, when it was created by amalgamation, the Company
has had no significant revenues or earnings from operations. The
Company has operated at a loss to date and may continue to sustain
operating losses for the foreseeable future. There is no assurance
that the Company will ever be profitable. Therefore, it is
difficult for investors to evaluate the Company&#x2019;s operations
and prospects which may increase the risks associated with an
investment in the Company.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; font-size: 13px">
Although the Company expects to generate some revenues from its
investments, many of the investments will only start generating
revenues in future periods and, accordingly, the Company is
therefore expected to remain subject to many of the risks common to
early-stage enterprises for the foreseeable future, including
challenges related to laws, regulations, licensing, integrating and
retaining qualified employees; making effective use of limited
resources; achieving market acceptance of existing and future
solutions; competing against companies with greater financial and
technical resources; acquiring and retaining customers; and
developing new solutions. There is no assurance that the Company
will be successful in achieving a return on shareholders&#x2019;
investment and the likelihood of success must be considered in
light of the early stage of operations.</font>&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Competition.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
The Company competes with other companies for financing and
investment opportunities in the cannabis industry. Some of these
companies may possess greater financial resources than the Company.
Such competition may result in the Company being unable to enter
into desirable strategic agreements or similar transactions, to
recruit or retain qualified employees or to acquire the capital
necessary to fund its investments. Existing or future competition
in the cannabis industry, including, without limitation, the entry
of large multinational entities into the industry, could materially
adversely affect the Company&#x2019;s prospects for entering into
additional agreements in the future. In addition, the Company
currently competes with other cannabis streaming and royalty
companies, some of which may possess greater financial resources
than the Company.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
There is potential that the Company will face intense competition
from other companies, some of which can be expected to have longer
operating histories and more financial resources and experience
than the Company. Increased competition by larger and better
financed competitors, including competitors to the Company&#x2019;s
investments, could materially and adversely affect the business,
financial condition and results of operations of the Company. It is
possible that larger competitors could establish price setting and
cost controls which would effectively &#x201C;price out&#x201D;
certain of the Company&#x2019;s investments operating within and in
support of the medical and recreational cannabis
industry.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Because of the early stage of the industry in which the Company
will operate, the Company expects to face additional competition
from new entrants. To become and remain competitive, the Company
will require research and development, marketing, sales and
support. The Company may not have sufficient resources to maintain
research and development, marketing, sales and support efforts on a
competitive basis, which could materially and adversely affect the
business, financial condition and results of operations of the
Company.</font></div>
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">11</font></div>
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</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Banking.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; font-size: 13px">
Since the production and possession of cannabis is currently
illegal under U.S. federal law, it is possible that banks may
refuse to open bank accounts for the deposit of funds from
businesses involved with the cannabis industry. The inability to
open bank accounts with certain institutions could materially and
adversely affect the business of the
Company.</font>&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Currency fluctuations.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; font-size: 13px">
Certain revenues and expenses of the Company are expected to be
denominated in U.S. dollars, and therefore may be exposed to
significant currency exchange fluctuations. Recent events in the
global financial markets have been coupled with increased
volatility in the currency markets. Fluctuations in the exchange
rate between the U.S. dollar and the Canadian dollar may have a
material adverse effect on the Company&#x2019;s business, financial
condition and operating results. CordovaCann may, in the future,
establish a program to hedge a portion of its foreign currency
exposure with the objective of minimizing the impact of adverse
foreign currency exchange movements; however, there can be no
assurance that such a program will effectively mitigate currency
risks.</font>&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Risks associated with strategic transactions.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
As part of the Company&#x2019;s overall business strategy, the
Company intends to pursue select strategic acquisitions, leasing
and lending transactions and licensing agreements which would
provide additional product offerings, vertical integrations,
additional industry expertise, and a stronger industry presence in
both existing and new jurisdictions. The success of any such
strategic transactions will depend, in part, on the ability of the
Company to realize the anticipated benefits and synergies from
integrating the Company&#x2019;s investments into the businesses of
the Company. Future strategic actions may expose it to potential
risks, including risks associated with: (a) the integration of new
operations, services and personnel; (b) unforeseen or hidden
liabilities; (c) the diversion of resources from the
Company&#x2019;s existing business and technology; (d) potential
inability to generate sufficient revenue to offset new costs; (e)
the expenses of acquisitions; and (f) the potential loss of or harm
to relationships with both employees and existing users resulting
from its integration of new businesses. In addition, any proposed
acquisitions may be subject to regulatory approval.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; font-size: 13px">
While the Company intends to conduct reasonable due diligence in
connection with such strategic transactions, there are risks
inherent in any transaction. Specifically, there could be unknown
or undisclosed risks or liabilities of such companies for which the
Company is not sufficiently indemnified. Any such unknown or
undisclosed risks or liabilities could materially and adversely
affect the Company&#x2019;s financial performance and results of
operations. The Company could encounter additional transaction and
integration related costs or other factors such as the failure to
realize all of the benefits from the strategic actions. All of
these factors could cause dilution to the Company&#x2019;s earnings
per share or decrease or delay the anticipated accretive effect of
the transaction and cause a decrease in the market price of the
Company&#x2019;s Common Shares.</font>&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Bankruptcy or insolvency of investments.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; font-size: 13px">
There is no guarantee that the Company will be able to effectively
enforce any interests it may have in the Company&#x2019;s
investments. A bankruptcy or other similar event related to an
investment of CordovaCann that precludes a party from performing
its obligations under an agreement may have a material adverse
effect on the Company. Furthermore, as an equity investor, should
an investment have insufficient assets to pay its liabilities, it
is possible that other liabilities will be satisfied prior to the
liabilities owed to the Company. In addition, bankruptcy or other
similar proceedings are often a complex and lengthy process, the
outcome of which may be uncertain and could result in a material
adverse effect on the Company.</font>&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Research and market development.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Although the Company, itself and through its investments, is
committed to researching and developing new markets and products
and improving existing products, there can be no assurances that
such research and market development activities will prove
profitable or that the resulting markets and/or products, if any,
will be commercially viable or successfully produced and
marketed.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
The Company must rely largely on its own market research to
forecast sales as detailed forecasts are not generally obtainable
from other sources at this early stage of the medical and
recreational cannabis industry in North America.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; font-size: 13px">
The Company is operating its business in a relatively new medical
and recreational cannabis industry and market. Accordingly, there
are no assurances that this industry and market will continue to
exist or grow as currently estimated or anticipated, or function
and evolve in a manner consistent with management&#x2019;s
expectations and assumptions. Any event or circumstance that
affects the recreational or medical cannabis industry or market
could have a material adverse effect on the Company&#x2019;s
business, financial condition and results of operations. Due to the
early stage of the regulated cannabis industry, forecasts regarding
the size of the industry and the sales of products by the
Company&#x2019;s investments are inherently difficult to prepare
with a high degree of accuracy and reliability. A failure in the
demand for products to materialize as a result of competition,
technological change or other factors could have a material adverse
effect on the business, results of operations and financial
condition of the Company&#x2019;s investments, and consequently, the
Company.</font>&#xA0;</font></div>
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</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Reliance on management.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
The success of the Company is dependent upon the ability,
expertise, judgment, discretion and good faith of its senior
management. Qualified individuals are in high demand, and the
Company may incur significant costs to attract and retain them. In
addition, the Company&#x2019;s lean management structure may be
strained as the Company pursues growth opportunities in the future.
The loss of the services of such individuals or an inability to
attract other suitably qualified persons when needed, could have a
material adverse effect on the Company&#x2019;s ability to execute
on its business plan and strategy, and the Company may be unable to
find adequate replacements on a timely basis, or at
all.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; font-size: 13px">
CordovaCann&#x2019;s future success depends substantially on the
continued services of its executive officers, consultants and
advisors. If one or more of its executive officers or key personnel
were unable or unwilling to continue in their present positions,
the Company might not be able to replace them easily or at all. In
addition, if any of its executive officers or key employees joins a
competitor or forms a competing Company, the Company may lose
know-how, key professionals and staff members. These executive
officers and key employees could compete with and take customers
away which could materially and adversely affect the
Company&#x2019;s prospects, financial performance and results of
operations.</font>&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Operation permits and authorizations.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
The Company&#x2019;s investments may not be able to obtain or
maintain the necessary licenses, permits, authorizations or
accreditations, or may only be able to do so at great cost, to
operate their respective businesses. In addition, the
Company&#x2019;s investments may not be able to comply fully with
the wide variety of laws and regulations applicable to the cannabis
industry. Failure to comply with or to obtain the necessary
licenses, permits, authorizations or accreditations could result in
restrictions on an investment&#x2019;s ability to operate in the
cannabis industry, which could have a material adverse effect on
the Company&#x2019;s business.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Litigation.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
CordovaCann may become party to litigation from time to time in the
ordinary course of business which could adversely affect its
business. Should any litigation in which the Company becomes
involved be determined against the Company, such a decision could
adversely affect the Company&#x2019;s ability to continue operating
and the market price for the Common Shares and could use
significant resources. Even if the Company is involved in
litigation and wins, litigation can redirect significant resources.
Litigation may also create a negative perception of the
Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Liability, enforcement complaints, etc.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; font-size: 13px">
CordovaCann&#x2019;s participation in the cannabis industry may lead
to litigation, formal or informal complaints, enforcement actions,
and inquiries by various federal, state, or local governmental
authorities into or against the Company or its investments.
Litigation, complaints, and enforcement actions involving either of
the Company or its investments could consume considerable amounts
of financial and other corporate resources, which could have an
adverse effect on the Company&#x2019;s future cash flows, earnings,
results of operations and financial
condition.</font>&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Product liability.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Certain of the Company&#x2019;s investments manufacture, process
and/or distribute products designed to be ingested by humans, and
therefore face an inherent risk of exposure to product liability
claims, regulatory action and litigation if products are alleged to
have caused significant loss or injury. In addition, previously
unknown adverse reactions resulting from human consumption of
cannabis alone or in combination with other medications or
substances could occur. A product liability claim or regulatory
action against an investment entity of CordovaCann could result in
increased costs, could adversely affect the Company&#x2019;s
reputation, and could have a material adverse effect on the results
of operations and financial condition of the Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Reliance on key inputs.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; font-size: 13px">
The cultivation, extraction and processing of cannabis and
derivative products is dependent on a number of key inputs and
their related costs including raw materials, electricity, water and
other local utilities. Any significant interruption or negative
change in the availability or economics of the supply chain for key
inputs could materially impact the business, financial condition
and operating results of the Company&#x2019;s investments. Some of
these inputs may only be available from a single supplier or a
limited group of suppliers. If a sole source supplier was to go out
of business, the relevant investment entity might be unable to find
a replacement for such source in a timely manner or at all. Any
inability to secure required supplies and services or to do so on
appropriate terms could have a materially adverse impact on the
business, financial condition and operating results of an
investment, and consequently, the
Company.</font>&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div id="ftr">
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">13</font></div>
</div>
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<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-style: italic; color: #000000">
Price volatility of publicly traded securities</font><font style="color: #000000">.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; font-size: 13px">
In recent years, the securities markets in the United States and
Canada have experienced a high level of price and volume
volatility, and the market prices of securities of many companies
have experienced wide fluctuations in price which have not
necessarily been related to the operating performance, underlying
asset values or prospects of such companies. There can be no
assurance that continuing fluctuations in price will not occur. It
may be anticipated that any quoted market for the Common Shares of
CordovaCann will be subject to market trends generally,
notwithstanding any potential success of CordovaCann in creating
revenues, cash flows or earnings. The value of the Common Shares
would be affected by such volatility. An active public market for
the Company&#x2019;s Common Shares might not develop or be
sustained. If an active public market for the Company&#x2019;s
Common Shares does not develop, the liquidity of a
shareholder&#x2019;s investment may be limited and the share price
may decline.</font>&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Management of growth.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
CordovaCann may experience a period of significant growth in the
number of personnel that may place a strain upon its management
systems and resources. Its future will depend in part on the
ability of its officers and other key personnel to implement and
improve financial and management controls, reporting systems and
procedures on a timely basis and to expand, train, motivate and
manage the workforce. CordovaCann&#x2019;s current and planned
personnel, systems, procedures and controls may be inadequate to
support its future operations.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Dividends.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
CordovaCann has not paid dividends in the past and the Company does
not anticipate paying any dividends in the foreseeable future.
Dividends paid by the Company would be subject to tax and,
potentially, withholdings.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; font-size: 13px">
Any decision to declare and pay dividends in the future will be
made at the discretion of the Company&#x2019;s Board of Directors
and will depend on, among other things, financial results, cash
requirements, contractual restrictions and other factors that the
Company&#x2019;s Board of Directors may deem relevant. As a result,
investors may not receive any return on an investment in the Common
Shares unless they sell their Common Shares for a price greater
than that which such investors paid for
them.</font>&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Risk factors related to dilution.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company may issue additional securities in the future, which may
dilute a shareholder&#x2019;s holdings in the Company. The
Company&#x2019;s articles permit the issuance of an unlimited number
of Common Shares. The directors of the Company have discretion to
determine the price and the terms of further issuances. Moreover,
additional Common Shares will be issued by the Company on the
exercise of options under the Company&#x2019;s Option Plan and upon
the exercise of outstanding warrants.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-style: italic; color: #000000">
Intellectual property and proprietary protection</font><font style="color: #000000">.</font></font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
The success of the Company will depend, in part, on the ability of
the Company and the Company&#x2019;s investments to maintain,
enhance and protect its intellectual property, including various
existing and potential proprietary techniques and processes. The
Company and the Company&#x2019;s investments may be vulnerable to
competitors who develop competing technology, whether independently
or as a result of acquiring access to the proprietary products and
trade secrets of the Company or the Company&#x2019;s investments. In
addition, effective future patent, copyright and trade secret
protection may be unavailable or limited in certain foreign
countries and may be unenforceable under the laws of certain
jurisdictions.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; font-size: 13px">
The Company relies on a combination of laws and contractual
provisions to establish and protect its rights in it intellectual
property. There can be no assurance that the steps taken to protect
proprietary rights will be adequate to deter misappropriation of
intellectual property or technology. The Company may face claims
alleging infringement of intellectual property rights held by
others. Such claims, whether or not meritorious, may result in the
expenditure of significant financial and managerial resources,
legal fees, result in injunctions, temporary restraining orders
and/or require the payment of damages. An adverse determination in
legal proceedings, a costly litigation process or a costly
settlement could have a material adverse effect on the
Company&#x2019;s business, prospects, revenues, operating results
and financial condition.</font>&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div id="ftr">
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">14</font></div>
</div>
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</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Insurance coverage.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
CordovaCann currently does not have insurance coverage. The Company
is likely to require insurance coverage in the future. There can be
no assurance that adequate insurance coverage will be available to
the Company in the future, or that if available, that such
insurance will be obtainable by the Company at a commercially
justifiable premium. There also can be no assurance that any
insurance coverage obtained by the Company will be sufficient to
cover claims to which the Company may become subject. If insurance
coverage is unavailable to cover any such claims, the
Company&#x2019;s financial resources, results of operations and
prospects could be adversely affected. If the Company were to incur
substantial liability and such damages were in excess of policy
limits, there could be a material adverse effect on the
Company&#x2019;s business, financial condition and results of
operations.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Operational risks.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
CordovaCann and its investments may be affected by a number of
operational risks and may not be adequately insured for certain
risks, including: labour disputes; catastrophic accidents; fires;
blockades or other acts of social activism; changes in the
regulatory environment; impact of non-compliance with laws and
regulations; natural phenomena, such as inclement weather
conditions, floods, earthquakes and ground movements. There is no
assurance that the foregoing risks and hazards will not result in
damage to, or destruction of, the Company&#x2019;s
investments&#x2019; properties, grow facilities and extraction
facilities, personal injury or death, environmental damage, adverse
impacts on the Company&#x2019;s investments&#x2019; operations,
costs, monetary losses, potential legal liability and adverse
governmental action, any of which could have an adverse impact on
the Company&#x2019;s future cash flows, earnings and financial
condition on the Company. Also, the Company&#x2019;s investments may
be subject to or affected by liability or sustain loss for certain
risks and hazards against which they may elect not to insure
because of the cost. This lack of insurance coverage could have an
adverse impact on the Company&#x2019;s future cash flows, earnings,
results of operations and financial condition.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Costs of maintaining a public listing.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; font-size: 13px">
As a public company, there are costs associated with legal,
accounting and other expenses related to regulatory compliance.
Securities legislation and the rules and policies of securities
exchanges require listed companies to, among other things, adopt
corporate governance and related practices, and to continuously
prepare and disclose material information, all of which add to a
company&#x2019;s legal and financial compliance costs. CordovaCann
may also elect to devote greater resources than it otherwise would
have on communication and other activities typically considered
important by publicly traded companies.</font>&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Holding Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
CordovaCann is a holding Company and essentially all of its assets
are the capital stock of its material subsidiaries. As a result,
investors in CordovaCann are subject to the risks attributable to
its subsidiaries. Consequently, CordovaCann&#x2019;s cash flows and
ability to complete current or desirable future enhancement
opportunities are dependent on the earnings of its subsidiaries and
investments and the distribution of those earnings to CordovaCann.
The ability of these entities to pay dividends and other
distributions will depend on their operating results and will be
subject to applicable laws and regulations which require that
solvency and capital standards be maintained by such companies and
contractual restrictions contained in the instruments governing any
debt arrangements. In the event of a bankruptcy, liquidation or
reorganization of any of CordovaCann&#x2019;s material subsidiaries,
holders of indebtedness and trade creditors may be entitled to
payment of their claims from the assets of those subsidiaries
before CordovaCann.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Difficulty implementing business strategy.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
The growth and expansion of the Company is heavily dependent upon
the successful implementation of its business strategy. There can
be no assurance that the Company will be successful in the
implementation of its business strategy.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Conflicts of interest.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; font-size: 13px">
Certain of the Company&#x2019;s directors and officers are, and may
continue to be, involved in other business ventures through their
direct and indirect participation in, among other things,
corporations, partnerships and joint ventures, that may become
potential competitors of the technologies, products and services
the Company intends to provide. Situations may arise in connection
with potential acquisitions or opportunities where the other
interests of these directors and officers conflict with or diverge
from the Company&#x2019;s interests. In accordance with applicable
corporate law, directors who have a material interest in or who are
parties to a material contract or a proposed material contract with
the Company are required, subject to certain exceptions, to
disclose that interest and generally abstain from voting on any
resolution to approve the transaction. In addition, the directors
and officers are required to act honestly and in good faith with a
view to the Company&#x2019;s best interests. However, in conflict of
interest situations, the Company&#x2019;s directors and officers may
owe the same duty to another Company and will need to balance their
competing interests with their duties to the Company. Circumstances
(including with respect to future corporate opportunities) may
arise that may be resolved in a manner that is unfavourable to the
Company.</font>&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">15</font></div>
</div>
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</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Previous operations.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-size: 13px">
The Company recently changed its focus from the identification and
evaluation of assets for purchase in the media, technology and
consumer industries, to a provider of services and investment
capital to companies in the cannabis sector. The Company also
changed its name on January 3, 2018 from &#x201C;LiveReel Media
Corporation&#x201D; to &#x201C;CordovaCann Corp.&#x201D;. While the
Company has now divested all of its assets relating to its previous
business, there is no guarantee that liabilities relating to the
previous business will not negatively impact the Company&#x2019;s
current or future operations or financial performance. Management
is not aware of any liabilities relating to its previous business
operations.</font>&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Resale of Common Shares.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Although the Common Shares are listed on the CSE and the OTCQB,
there can be no assurance that an active and liquid market for the
Common Shares will develop or be maintained and an investor may
find it difficult to resell any securities of the Company. In
addition, there can be no assurance that the publicly-traded stock
price of the Company will be high enough to create a positive
return for investors. Further, there can be no assurance that the
Common Shares will be sufficiently liquid so as to permit investors
to sell their position in the Company without adversely affecting
the stock price. In such event, the probability of resale of the
Common Shares would be diminished.</font></div>
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
ITEM 4 - INFORMATION ON THE COMPANY</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(A) HISTORY AND DEVELOPMENT OF THE COMPANY</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">CordovaCann
was originally named &#x201C;Biolink Corp.&#x201D; and was formed as
a result of an amalgamation completed between &#x201C;Biolink
Corp.&#x201D;, &#x201C;1149250 Ontario Inc.&#x201D; and &#x201C;I.D.
Investments Inc.&#x201D; under the <font style="font-style: italic">Business Corporation Act</font> (Ontario)
(&#x201C;OBCA&#x201D;) on March 18, 1997. In connection with a number
of corporate reorganizations, the Company changed its name to
&#x201C;First Empire Entertainment.com Inc.&#x201D;, &#x201C;First
Empire Corporation Inc.&#x201D;, &#x201C;Noble House Entertainment
Inc.&#x201D; and &#x201C;Live Reel Media Corporation&#x201D;. On
October 20, 2006, the Company completed its continuance from the
OBCA to the <font style="font-style: italic">Business Corporation
Act</font> (Canada) and concurrently changed its name from
&#x201C;Live Reel Media Corporation&#x201D; to &#x201C;LiveReel Media
Corporation&#x201D;. On January 3, 2018, the Company changed its
name to its current name, &#x201C;CordovaCann
Corp.&#x201D;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company is a &#x201C;reporting issuer&#x201D; in the Province of
Ontario, Canada which is governed by the Ontario Securities
Commission. The Company&#x2019;s common shares are listed for
trading on the Canadian Securities Exchange (the &#x201C;CSE&#x201D;)
under the symbol &#x201C;CDVA&#x201D;. Furthermore, the Company is
also a fully reporting OTC Markets company and its common shares
are currently listed and trade on the OTCQB under the trading
symbol &#x201C;LVRLF&#x201D;. CordovaCann&#x2019;s head office and
registered office is located at 217 Queen Street West, Suite 401,
Toronto, Ontario, M5V 0R2.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">CordovaCann
is a Canadian-domiciled company focused on building a leading,
diversified cannabis products business across multiple
jurisdictions including Canada and the United States. CordovaCann
primarily provides services and investment capital to the
processing and production vertical markets of the cannabis
industry. On January 3, 2018, the Company changed its name from
LiveReel Media Corporation to CordovaCann Corp. to reflect the
Company&#x2019;s new initiative in the cannabis sector. Prior to the
most recent name change, the Company was engaged in the
identification and evaluation of assets for purchase in the media,
technology and consumer industries.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
September 22, 2017, Graham Simmonds resigned as Chief Executive
Officer and was replaced by Thomas (Taz) M. Turner,
Jr.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
November 22, 2017, the Company held its annual and special meeting
of the shareholders (the &#x201C;Meeting&#x201D;). At the Meeting,
shareholders voted in favor of all of the matters submitted before
the meeting as further set out in the notice of annual and special
meeting of the shareholders and management information circular,
both dated October 20, 2017.&#xA0;Furthermore, at the Meeting, the
shareholders elected Graham Simmonds, Henry J. Kloepper, Thomas
(Taz) M. Turner, Jr., Ashish Kapoor, Nathan Nienhuis and Eric Lowy
to serve as Directors of the Company until the next annual
shareholders meeting of the Company.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
January 16, 2018, the Company incorporated CordovaCann Holdings,
Inc., a wholly-owned Delaware corporation (&#x201C;CordovaCann
USA&#x201D;) to act as the Company&#x2019;s parent holding company in
the United States.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">16</font></div>
</div>
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</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
January 17, 2018, the Company incorporated Cordova CO Holdings,
LLC, a Colorado limited liability company (&#x201C;Cordova
CO&#x201D;), as a wholly-owned subsidiary of CordovaCann USA to act
as the Company&#x2019;s primary operating subsidiary in the State of
Colorado.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
February 26, 2018, the Company incorporated Cordova OR Holdings,
LLC, an Oregon limited liability Company (&#x201C;Cordova
OR&#x201D;), as a wholly-owned subsidiary of CordovaCann USA to act
as the Company&#x2019;s primary operating subsidiary in the State of
Oregon.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
April 3, 2018, the Company changed the name of its wholly-owned
Ontario-based subsidiary from &#x201C;LiveReel Productions
Corporation&#x201D; to &#x201C;CordovaCann Holdings Canada,
Inc.&#x201D; (&#x201C;Cordova Canada&#x201D;) to act as the
Company&#x2019;s primary operating subsidiary in
Canada.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On May
17, 2018, Graham Simmonds resigned as a Director of the Company and
Thomas (Taz) M. Turner, Jr. replaced Mr. Simmonds as Chairman of
the Company. Furthermore, the Board of Directors also appointed
Nathan Nienhuis to serve as the Company&#x2019;s Chief Operating
Officer.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
September 4, 2018, the Company incorporated Cordova Investments
Canada, Inc., a wholly-owned Ontario-based subsidiary
(&#x201C;Cordova Investments Canada&#x201D;) to act as the
Company&#x2019;s parent holding company in Canada.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
October 17, 2018, the Company&#x2019;s Board of Directors and Audit
Committee requested that MNP LLP resign as the Company&#x2019;s
auditor to facilitate the appointment of Marcum LLP as the
Company&#x2019;s new auditor until the next annual general meeting,
effective immediately on the date thereof.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
November 6, 2018, the Company incorporated Cordova CA Holdings,
LLC, a California limited liability company (&#x201C;Cordova
CA&#x201D;), as a wholly-owned subsidiary of CordovaCann USA to act
as the Company&#x2019;s primary holding subsidiary in the State of
California.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
November 6, 2018, the Company incorporated CDVA Enterprises, LLC, a
California limited liability company (&#x201C;CDVA
Enterprises&#x201D;), as a wholly-owned subsidiary of CordovaCann
USA, to act as the Company&#x2019;s primary operating subsidiary in
the State of California.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
October 28, 2019, Eric Lowy resigned as a Director of the
Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
April 8, 2020, Ashish Kapoor resigned as a Director of the Company.
Furthermore, Benjamin Higham and Jakob Ripshtein were appointed as
Directors of the Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On May
19, 2020, the Company acquired 50.1% ownership in 2734158 Ontario
Inc., as disclosed below.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On May
16, 2020, Nathan Nienhuis resigned as a Director and chief
operating officer of the Company. Dale Rasmussen was appointed as a
Director of the Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
August 17, 2020, Henry Kloepper resigned as a Director of the
Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
September 21, 2020, the Company acquired an additional 10.35%
equity stake in 2734158 Ontario Inc. bringing its total ownership
of the corporation to 60.45%.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
November 20, 2020, Cannabilt Farms, LLC, a wholly-owned subsidiary
the Company, was granted a Marijuana Production License in
Oregon.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
December 2, 2020, the Company acquired a 51% stake in 10062771
Manitoba Inc.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Transaction Summaries</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Summary of Star Buds Asset Acquisition.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
April 8, 2020, the Company, through its wholly-owned subsidiary,
Cordova Investments Canada, Inc., completed the purchase of certain
real assets and intellectual property (the &#x201C;Assets&#x201D;) of
an arm&#x2019;s length Canadian cannabis corporation (the
&#x201C;Star Buds Transaction&#x201D;). The Assets acquired will
enable the Company to open five recreational cannabis stores and
four medical cannabis clinics in Western Canada under an
established brand name, with the exclusive right to open more
stores in Canada. In conjunction with the Star Buds Transaction,
seasoned industry veterans, Mr. Jakob Ripshtein and Mr. Ben Higham
joined the Company&#x2019;s board of directors.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Starbuds
International Inc., the vendor of the Assets (the
&#x201C;Vendor&#x201D; or &#x201C;Star Buds&#x201D;) is a British
Columbia based cannabis venture that owns one of the most
significant medical cannabis clinic footprints in Western Canada,
in addition to a network of recreational cannabis retail stores
awaiting final provincial regulatory approvals. The Company has
purchased the Assets related to five such recreational stores and
four such medical clinics and expects to have them opened in 2020.
These stores will leverage the Star Buds brand name and proven
business model that has created one of the most profitable cannabis
retail companies in the United States over the last six years.
These stores also expect to be able to utilize the intellectual
property of well-established Star Buds product lines of flower,
concentrates, and edibles. The Company plans on leveraging the Star
Buds business model and the platform to open additional stores
across Canada in 2020 and beyond.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As
consideration to the Vendor for the Star Buds Transaction, the
Company:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="margin-left: 0px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-family: Times New Roman; font-size: 13px">(i)</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">issued twelve
million five hundred thousand (12,500,000) common shares of the
Company at close, in exchange for the Assets held related to five
retail cannabis stores and four medical cannabis
clinics;</font></div>
</div>
</div>
<div style="margin-left: 0px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-family: Times New Roman; font-size: 13px">(ii)</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">issued three
million (3,000,000) common shares of the Company for each
additional lease assignment in Alberta to the Company, for a total
of six million (6,000,000) common shares of the
Company;</font></div>
</div>
</div>
<div style="margin-left: 0px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-family: Times New Roman; font-size: 13px">(iii)</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">agreed to issue
three million (3,000,000) common shares of the Company for the
opening of each retail store, up to a maximum of fifteen million
(15,000,000) common shares of the Company. Each store must be
opened by April 8, 2021 for the Vendor to receive this additional
consideration;</font></div>
</div>
</div>
<div style="margin-left: 0px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-family: Times New Roman; font-size: 13px">(iv)</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">issued a three-year
promissory note for five hundred twenty-seven thousand and three
hundred dollars (CDN $527,967) accruing interest at six percent per
annum payable upon maturity (the &#x201C;Closing Promissory
Note&#x201D;); and</font></div>
</div>
</div>
<div style="margin-left: 0px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-family: Times New Roman; font-size: 13px">(v)</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">issued two
additional three-year promissory notes in amounts of two hundred
twenty-two thousand and five hundred dollars (CDN $222,500) and one
hundred ninety-six thousand and eight hundred (CDN $196,832) for
obtaining assignment of two specific leases to Company. Such
additional notes to have same terms as the Closing Promissory
Note.</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Summary of Investment in 2734158 Ontario Inc.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On May
19, 2020, the Company completed the purchase of its initial stake
of 2734158 Ontario Inc. (&#x201C;273&#x201D;), an arm&#x2019;s length
Ontario-based cannabis retail venture (the &#x201C;Ontario
Transaction&#x201D;). Cordova agreed to invest a total of seven
hundred twenty-three thousand dollars ($723,000) in 273 in exchange
for 50.1% of 273. Cordova invested two hundred thousand dollars
($200,000) for 21.7% of 273 at the close of the Transaction, and
invested (i) two hundred thousand dollars ($200,000) on June 14,
2020, (ii) two hundred thousand dollars ($200,000) on July 14,
2020, and (iii) one hundred twenty-three thousand dollars
($123,000) on August 13, 2020, which collectively gave the Company
ownership of 50.1% of 273 after all payments were made. The
Transaction is subject to approval from the Alcohol and Gaming
Commission of Ontario and compliance with all applicable laws,
rules and regulations. Cordova holds 4 of 7 board seats of 273 and
has a right of first refusal on any future sale of primary or
secondary shares in 273. The retail stores will be operated by 273
under the Star Buds brand name, and Cordova is leveraging its
recently closed assets of Starbuds International Inc. to provide
273 with retail store designs and layouts, standard operating
procedures, staff training, financing resources and systems
support. On September 17, 2020, the Company acquired an additional
10.35% of the common shares of 273 not previously owned by Cordova
(the &#x201C;Additional Shares&#x201D;) bringing its accumulated
ownership of 273 to 60.45%. The total purchase price for the
Additional Shares amounted to $305,267, of which $72,539 was paid
on closing and the remaining amounts are payable within a year from
close.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Summary of Oregon Transaction</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
April 4, 2018, Cordova OR entered into an agreement to acquire
Cordova OR Operations, LLC (&#x201C;OR Operations) for the
acquisition of land and building for a total purchase price of US
$1,440,000. Under the terms of the agreement, Cordova OR acquired a
27.5% membership interest in OR Operations for $534,311 (US
$400,000) on April 4, 2018, and acquired the remaining 72.5%
interest on June 19, 2019 for $1,361,048 (US $1,040,000). The
assets of OR Operations consists of land, building and construction
in progress with the construction in progress funded by Cordova OR.
The total assets acquired through the transaction amounted to
$3,645,389. The Company intends to continue its buildout the Oregon
property to complete the construction and establish cultivation and
processing facilities on the premises. On November 20, 2020,
Cannabilt Farms, LLC, a wholly-owned subsidiary the Company, was
granted a Marijuana Production License in Oregon.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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</div>
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</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Summary of Manitoba Transaction</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
December 2, 2020, the Company, through its wholly owned subsidiary
Cordova Investments Canada, Inc., completed the purchase of a 51%
stake in 10062771 Manitoba Inc. (&#x201C;Manitoba Inc.&#x201D;) a
Manitoba-based cannabis retail venture (the &#x201C;Manitoba
Transaction&#x201D;). The purchase price for the shares is one
hundred fifty thousand dollars ($150,000) payable to Manitoba Inc.
and six million (6,000,000) warrants of the Company to be granted
to the current shareholders of Manitoba Inc., with each warrant
entitling the holder thereof to purchase one common share in the
capital of the Company at an exercise price of $0.32 until November
30, 2022. In addition, the Company has agreed to loan up to one
hundred fifty thousand dollars ($150,000) to Manitoba Inc. to
enable the opening of the second store in Manitoba. The stores will
be operated by Manitoba Inc. under the Star Buds brand name, and
the Company will provide the retail store designs and layouts,
standard operating procedures, staff training, financing resources
and systems support. The Company also has a right of first refusal
regarding any future primary issuance or secondary sale of shares
of Manitoba Inc., and has a call option to purchase all of the
outstanding equity interests of Manitoba Inc. at any time following
the two-year anniversary of the closing date at a valuation
equivalent to four times the trailing twelve months normalized
EBITDA of Manitoba Inc.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(B) BUSINESS OVERVIEW</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
CordovaCann is committed to assembling a premier cannabis business
with a vision to becoming a worldwide industry leader. The Company
is focused on working with leading cannabis production, processing
and retail operators in key jurisdictions that will enable
CordovaCann to serve national and international markets that have
legal and regulated medical and/or recreational cannabis
industries. The Company intends to leverage its production,
processing and retail investments to establish a global
multi-jurisdictional platform that delivers consistent formulations
of best-of-breed brands and predictable consumer
experiences.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
CordovaCann has entered into strategic relationships and
investments with cannabis operators in Canada and the United
States. The Company will provide a variety of resources and
services to these respective operators including, but not limited
to: capital commitments, strategic positioning, brand development,
best operating practices, access to intellectual property,
administrative assistance, and general business consulting. Over
the next twelve months, CordovaCann is focused on growing its
retail operations through its assets acquired as part of the Star
Buds acquisition and the acquisition of 273, as well as expanding
the throughput of its Oregon operations. Moving forward, the
Company will also seek partnerships with cannabis operators in key
legal markets not currently served by CordovaCann, as well as seek
to expand operations in those markets where the Company already has
a presence. CordovaCann plans to develop various end products for
distribution in each of its current markets as well as to service
other brands and intellectual property owners with its growing
processing and manufacturing platforms with a view to allowing
these clients and prospective clients to gain access to our
channels to market and to also generate additional revenue for the
Company. The platform that the Company is building will seek to
ensure that the end products are consistent across all
jurisdictions by maintaining strict and professional standard
operating procedures covering everything from marketing, sales,
packaging, and branding through to the ultimate end user
experience.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
CordovaCann&#x2019;s long-term focus is to continue expanding its
reach into additional legal markets, and the Company expects to
organically build and forge strategic relationships with cannabis
producers, processors and retailers globally. As the Company works
to penetrate new markets with its branded products, the Company
will likely develop and/or acquire new brands and products to
further leverage its channels to market through the broadening of
its product offerings. Additionally, CordovaCann may invest in
additional parts of the cannabis value chain in markets where such
assets are legal and provide a competitive advantage and
significant operating leverage for the Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Competition</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company competes with other companies for financing and investment
opportunities in the cannabis industry. Some of these companies may
possess greater financial resources than the Company. Such
competition may result in the Company being unable to enter into
desirable strategic agreements or similar transactions, to recruit
or retain qualified employees or to acquire the capital necessary
to fund its investments. Existing or future competition in the
cannabis industry, including, without limitation, the entry of
large multinational entities into the industry, could materially
adversely affect the Company&#x2019;s prospects for entering into
additional agreements in the future. In addition, the Company
currently competes with other cannabis streaming and royalty
companies, some of which may possess greater financial resources
than the Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">19</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">There
is potential that the Company will face intense competition from
other companies, some of which can be expected to have longer
operating histories and more financial resources and experience
than the Company. Increased competition by larger and better
financed competitors, including competitors to the Company&#x2019;s
investments, could materially and adversely affect the business,
financial condition and results of operations of the Company. It is
possible that larger competitors could establish price setting and
cost controls which would effectively &#x201C;price out&#x201D;
certain of the Company&#x2019;s investments operating within and in
support of the medical and recreational cannabis
industry.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Because
of the early stage of the industry in which the Company will
operate, the Company expects to face additional competition from
new entrants. To become and remain competitive, the Company will
require research and development, marketing, sales and support. The
Company may not have sufficient resources to maintain research and
development, marketing, sales and support efforts on a competitive
basis, which could materially and adversely affect the business,
financial condition and results of operations of the
Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(C) ORGANIZATIONAL STRUCTURE</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following table presents the corporate subsidiaries and the
respective percentage ownership of the Company (the
&#x201C;Subsidiaries&#x201D;) as at June 30, 2020:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: justify; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Subsidiary
Name</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Jurisdiction
of Incorporation</font></div>
</td>
<td rowspan="1" style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Percentage
of Ownership</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: justify; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">CordovaCann
Holdings Canada, Inc.</font></div>
</td>
<td style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Ontario
(Canada)</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">100</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">%</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: justify; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Cordova Investments
Canada, Inc.</font></div>
</td>
<td style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Ontario
(Canada)</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">100</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: justify; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">2734158 Ontario
Inc.</font></div>
</td>
<td style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Ontario
(Canada)</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">50.1</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">%</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: justify; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">CordovaCann
Holdings, Inc.</font></div>
</td>
<td style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Delaware
(USA)</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">100</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: justify; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Cordova CO
Holdings, LLC</font></div>
</td>
<td style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Colorado
(USA)</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">100</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">%</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: justify; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Cordova CA
Holdings, LLC</font></div>
</td>
<td style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">California
(USA)</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">100</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: justify; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">CDVA Enterprises,
LLC</font></div>
</td>
<td style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">California
(USA)</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">100</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">%</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: justify; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Cordova OR
Holdings, LLC</font></div>
</td>
<td style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Oregon
(USA)</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">100</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: justify; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Cordova OR
Operations, LLC</font></div>
</td>
<td style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Oregon
(USA)</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">100</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">%</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: justify; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Cannabilt Holdings,
Inc.</font></div>
</td>
<td style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Oregon
(USA)</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">100</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: justify; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Cannabilt Farms,
LLC</font></div>
</td>
<td style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Oregon
(USA)</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">100</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">%</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: justify; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Cannabilt OR
Retail, LLC</font></div>
</td>
<td style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Oregon
(USA)</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">100</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: justify; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Future Processing,
LLC</font></div>
</td>
<td style="vertical-align: bottom; width: 44%; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Oregon
(USA)</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 1px;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">100</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">%</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;Note:</font></div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-family: Times New Roman; font-size: 13px">(1)</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">2734158 Ontario Inc
is a 50.1% subsidiary of Cordova Investments Canada, Inc. As at the
date of this Annual Report, 2734158 Ontario Inc is a 60.45%
subsidiary of Cordova Investments Canada, Inc.</font></div>
</div>
</div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-family: Times New Roman; font-size: 13px">(2)</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Cordova CO
Holdings, LLC is a 100% subsidiary of CordovaCann Holdings,
Inc.</font></div>
</div>
</div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-family: Times New Roman; font-size: 13px">(3)</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Cordova CA
Holdings, LLC is a 100% subsidiary of CordovaCann Holdings,
Inc.</font></div>
</div>
</div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-family: Times New Roman; font-size: 13px">(4)</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">CDVA Enterprises,
LLC is a 100% subsidiary of CordovaCann Holdings, Inc.</font></div>
</div>
</div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-family: Times New Roman; font-size: 13px">(5)</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Cordova OR
Holdings, LLC is a 100% subsidiary of CordovaCann Holdings,
Inc.</font></div>
</div>
</div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-family: Times New Roman; font-size: 13px">(6)</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Cordova OR
Operations, LLC is a 100% subsidiary of Cordova OR Holdings,
LLC.</font></div>
</div>
</div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-family: Times New Roman; font-size: 13px">(7)</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Cannabilt Holdings,
Inc. is a 100% subsidiary of CordovaCann Holdings,
Inc.</font></div>
</div>
</div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-family: Times New Roman; font-size: 13px">(8)</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Cannabilt Farms,
LLC is a 100% subsidiary of Cannabilt Holdings, Inc.</font></div>
</div>
</div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-family: Times New Roman; font-size: 13px">(9)</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Cannabilt OR
Retail, LLC is a 100% subsidiary of Cannabilt Holdings,
Inc.</font></div>
</div>
</div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-family: Times New Roman; font-size: 13px">(10)</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Future Processing,
LLC is a 100% subsidiary of Cannabilt Holdings, Inc.</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">20</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(D) PROPERTY PLANTS AND EQUIPMENT</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company&#x2019;s leased property relates to rental leases entered
into during the year ended June 30, 2020 related to the acquisition
of 273 and Star Buds Transaction, as disclosed above.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company, through its wholly-owned subsidiary OR Operations, owns a
premise located at 17551 SE Hwy 224, Damascus, Oregon
97089.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company&#x2019;s registered office is 217 Queen Street West, Suite
401, Toronto, Ontario, Canada, M5V 0R2. It<font style="font-weight: bold">&#xA0;</font>is not charged monthly rent under
this arrangement.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
ITEM 5 - OPERATING AND FINANCIAL REVIEW AND PROSPECTS</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(A) OPERATING RESULTS</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following discussion should be read in conjunction with the audited
consolidated financial statements of the Company and notes thereto
contained elsewhere in this report. The following is stated in
CAD.&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Results of operations</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px; padding-bottom: 2px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">For
the Years Ending June 30,</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font>
<font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2020</font>
<font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font>
<font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2019</font>
<font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font>
<font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2018</font>
<font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Revenue</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">166,773</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Cost of
sales</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">106,742</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">30,529</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">12,770</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Expenses</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3,368,656</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">5,547,863</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">4,880,359</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Other expense
(income)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1,396,624</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">258,144</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(27,196</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Net loss for
year</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(4,705,249</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(5,836,536</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(4,865,933</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Net loss per
share</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(0.10</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(0.15</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(0.15</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Revenues</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended June 30, 2020, the Company recorded $166,773 in
revenue from retail cannabis store operations (June 30, 2019 -
$nil, June 30, 2018 - $nil).</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended June 30, 2020, the Company recorded $106,742 in cost
of sales in relation to the retail cannabis store operations.
During the year ended June 30, 2019 and 2018, the cost of sales
related to cannabis-related equipment rental revenue in the amount
of $30,529 and $12,770, respectively, of which no revenue was
earned.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">21</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Expenses</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company incurred the following operating expenses over the years
ended June 30, 2020, 2019 and 2018:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px; padding-bottom: 2px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><a name="_mon_1344879859"><!--anchor--></a>For the Years Ending June
30,</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font>
<font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2020</font>
<font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font>
<font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2019</font>
<font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font>
<font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2018</font>
<font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Consulting
fees</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1,295,829</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2,448,560</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">977,410</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Share based
compensation</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1,048,661</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1,413,919</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3,447,415</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Professional
fees</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">488,902</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">371,079</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">225,151</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Shareholders
information services</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">135,181</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">379,058</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">52,714</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Salaries and
wages</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">23,039</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Advertising
costs</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2,825</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">88,917</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Office and
general</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">208,484</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">605,334</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">120,274</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Depreciation</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">5,768</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Amortization of
right-of-use assets</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">92,167</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Lease and
utilities</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">67,800</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Financing
costs</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">14,845</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Exclusivity
fee</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">48,367</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">42,550</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Impairment of
promissory note receivable</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">85,114</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="padding-bottom: 2px;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Impairment of
equipment</font></div>
</div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; font-size: 13px; font-family: Times New Roman; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; vertical-align: bottom; width: 5%; font-size: 13px; font-family: Times New Roman; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; vertical-align: bottom; width: 75%; font-size: 13px; font-family: Times New Roman; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; vertical-align: bottom; width: 10%; font-size: 13px; font-family: Times New Roman; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; font-size: 13px; font-family: Times New Roman; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; vertical-align: bottom; width: 5%; font-size: 13px; font-family: Times New Roman; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; vertical-align: bottom; width: 75%; font-size: 13px; font-family: Times New Roman; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">107,515</font><font style="text-align: left; vertical-align: bottom; width: 10%; font-size: 13px; font-family: Times New Roman; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; font-size: 13px; font-family: Times New Roman; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; vertical-align: bottom; width: 5%; font-size: 13px; font-family: Times New Roman; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; vertical-align: bottom; width: 75%; font-size: 13px; font-family: Times New Roman; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; vertical-align: bottom; width: 10%; font-size: 13px; font-family: Times New Roman; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3,368,656</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">5,547,863</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">4,880,359</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
overall analysis of the key operating expenses above is as
follows:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Consulting Fees</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Consulting
fees for the year ended June 30, 2020 were $1,295,829, as compared
to $2,448,560 for the year ended June 30, 2019 and $977,410 for the
year ended June 30, 2018. Consulting fees decreased due to the
decrease in the number of consultants during the year.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Share Based Compensation</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Share
based compensation expense for the year ended June 30, 2020 were
1,048,661 as compared to $1,413,919 for the year ended June 30,
2019 and $3,447,415 for the year ended June 30, 2018. The share
based compensation expense for the year ended June 30, 2020 was a
result of the issuances and vesting of warrants issued to
consultants and the forfeitures of warrants that were issued in the
prior fiscal year.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Professional Fees</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Professional
fees for the year ended June 30, 2020 were $488,902 as compared to
$371,079 for the year ended June 30, 2019 and $225,151 for the year
ended June 30, 2018. Professional fees for the year ended June 30,
2020, 2019 and 2018 were comprised of legal and audit fees and the
increase reflects the increased acquisition activity in
2020.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">22</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Shareholder Information Services</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Shareholder
information services for the year ended June 30, 2020 were
$135,181, as compared to $379,058 for the year ended June 30, 2019
and $52,714 for the year ended June 30, 2018. Shareholder
information services for the year ended June 30, 2020, 2019 and
2018 were comprised of annual general meeting costs and accruals,
transfer agent fees, other filing fees and investor relation
services.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Office and General</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Office
and general costs for the year ended June 30, 2020 were $208,484 as
compared to $605,334 for the year ended June 30, 2019 and $120,274
for the year ended June 30, 2018. Office and general costs were
primarily comprised of administrative, travel and other expenses
incurred by the Company and its employees and consultants. The
decrease in office and general costs for the year ended June 30,
2020 was primarily a result of decreased travel and administrative
expenses.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Amortization of right of use assets</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Amortization
of right of use assets for the year ended June 30, 2020 was $92,167
as compared to $nil for the year ended June 30, 2019 and 2018. The
increase in the expense reflects the new leases entered into
through the Star Buds and 273 acquisitions over the year ended June
30, 2020.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Advertising</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Advertising
costs for the year ended June 30, 2020 were $2,825 as compared to
$88,917 for the year ended June 30, 2019. Advertising costs during
the year ended June 30, 2020 and 2019 were primarily a result of
the Company&#x2019;s efforts to increase traction to potential
investors and other opportunities.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Financing Costs</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Financing
costs for the year ended June 30, 2019 were $nil as compared to
$14,845 for the year ended June 30, 2018. Financing costs were in
relation to accrued interest on the Company&#x2019;s liabilities.
The financing costs during the year ended June 30, 2018 were in
relation to the settlement of a shareholder loan and repayments of
related party loans.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Exclusivity Fee</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
March 7, 2018, the Company entered into a memorandum of
understanding (the &#x201C;MOU&#x201D;) with a third party which
granted the Company exclusivity on a transaction to acquire a
majority stake in real estate and intellectual property assets
owned by the third party. Under the terms of the MOU, the Company
agreed to pay the third party up to USD $100,000 for such
exclusivity until termination by either party. In October 2019, the
Company terminated the MOU. During the year ended June 30, 2019,
the Company paid and expensed $48,367 as compared to $42,550 for
the year ended June 30, 2018 as a result of the exclusivity
fee.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Impairment of Promissory Note Receivable</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended June 30, 2019, the Company impaired a promissory
note receivable in the amount of $85,114 as compared to $nil for
the years ended June 30, 2018. The impairment during the year ended
June 30, 2019 was due to issues related to the collectability of
the principal amount of the promissory note.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">23</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Impairment of Equipment</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended June 30, 2019, the Company recorded an impairment of
equipment of $107,515 as compared to $nil for the year ended June
30, 2018. The impairment of equipment during the year ended June
30, 2019 was in relation to the equipment that was leased to a
third party in the State of Colorado.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Other Expense (Income)</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company incurred the following other expense (income) over the
years ended June 30, 2020, 2019 and 2018:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px; padding-bottom: 2px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">For
the Years Ending June 30,</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font>
<font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2020</font>
<font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font>
<font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2019</font>
<font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font>
<font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2018</font>
<font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Interest
expense</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">564,897</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">39,215</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Interest on lease
obligation</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">46,171</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Accretion
expense</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">249,518</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">24,680</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Loss on settlement
of fees</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">12,700</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Loss on settlement
of other investment</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">184,440</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Impairment of
assets</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">16,316</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Foreign exchange
loss (gain)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">56,225</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">57,121</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(27,196</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Gain on
settlement</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(51,023</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Other
income</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(65,920</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="padding-bottom: 2px;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Loss on
deposit</font></div>
</div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; font-size: 13px; font-family: Times New Roman; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; vertical-align: bottom; width: 5%; font-size: 13px; font-family: Times New Roman; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; vertical-align: bottom; width: 75%; font-size: 13px; font-family: Times New Roman; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">396,000</font><font style="text-align: left; vertical-align: bottom; width: 10%; font-size: 13px; font-family: Times New Roman; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; font-size: 13px; font-family: Times New Roman; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; vertical-align: bottom; width: 5%; font-size: 13px; font-family: Times New Roman; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; vertical-align: bottom; width: 75%; font-size: 13px; font-family: Times New Roman; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">124,428</font><font style="text-align: left; vertical-align: bottom; width: 10%; font-size: 13px; font-family: Times New Roman; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; font-size: 13px; font-family: Times New Roman; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; vertical-align: bottom; width: 5%; font-size: 13px; font-family: Times New Roman; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; vertical-align: bottom; width: 75%; font-size: 13px; font-family: Times New Roman; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; vertical-align: bottom; width: 10%; font-size: 13px; font-family: Times New Roman; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1,396,624</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">258,144</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="width:12%;vertical-align:bottom;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(27,196</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-size: 13px">
&#xA0;</font>&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
overall analysis of the key other expense (income) above is as
follows:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Interest Expense</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended June 30, 2020, the Company recorded interest expense
of $564,897, $39,215 for the year ended June 30, 2019 and $nil for
the year ended June 30, 2018. The interest expense during the year
ended June 30, 2020 was primarily in relation to convertible
debentures, promissory notes and a mortgage issued during the years
ended June 30, 2020 and 2019, as well as the interest related to
the lease obligation.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Accretion Expense</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended June 30, 2020, the Company recorded an accretion
expense of $249,518, as compared to $24,680 for the year ended June
30, 2019 and $nil for the year ended June 30, 2018. The accretion
expenses during the year ended June 30, 2020 was primarily in
relation to a discount on convertible debentures and promissory
notes issued in relation to the Star Buds transaction as noted
above, during the years ended June 30, 2020 and 2019.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">24</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Loss on Settlement of Other Investment</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended June 30, 2020, the Company recorded a loss on
settlement of other investment of $184,440 as compared to $nil for
years ending June 30, 2019 and 2018. The loss in fiscal 2020 was
due to impairment of the Company&#x2019;s investment in NWN Inc.
made on September 18, 2018 for $500,000. The investment was pledged
as security for a promissory note and due to default on such
promissory note, the security was called on October 26, 2020 and as
a result, the investment was fully impaired as part of the
repayment of the promissory note.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Loss on Settlement of Fees</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended June 30, 2019, the Company recorded a loss on
settlement of fees of $12,700 as compared to $nil for the year
ended June 30, 2018. The loss on settlement of fees during the year
ended June 30, 2019 was in relation to outstanding fees that were
settled with the issuance of $250,000 in convertible
debentures.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Foreign Exchange Loss (Gain)</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Foreign
exchange loss (gain) for the year ended June 30, 2020 was $56,225
as compared to a loss (gain) of $57,121 for the year ended June 30,
2019 and $(27,196) for the year ended June 30, 2018. The foreign
exchange losses and gains for the years ended June 30, 2020, 2019
and 2018 were a result of the exchange rate fluctuations related to
transactions based in United States Dollars.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Loss on Deposit</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended June 30, 2020, the Company recorded a loss on
deposit of $396,000 as compared to $124,428 and $nil for the years
ended June 30, 2019 and 2018. The loss on deposit during the year
ended June 30, 2020 relates to a non-refundable deposit made
towards a proposed California asset purchase and that transaction
was effectively terminated. The loss on deposit during the year
ended June 30, 2019 relates to a non-refundable deposit made on a
proposed Oregon asset purchase and that transaction was effectively
terminated.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Net Loss and Comprehensive Loss</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Net
loss for the year ended June 30, 2020 was $4,650,900 as compared to
$5,836,536 for the year ended June 30, 2019 and $4,865,933 for the
year ended June 30, 2018.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Comprehensive
loss for the year ended June 30, 2020 was $4,700,388 as compared to
$5,829,331 for the year ended June 30, 2019 and $4,865,249 for the
year ended June 30, 2018.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">25</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(B) LIQUIDITY AND CAPITAL RESOURCES</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: -36px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Working
Capital</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As at
June 30, 2020, the Company had total assets of $14,693,789 (June
30, 2019 &#x2013; $4,645,132) consisting of the
following:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:76%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">As at</font><br></font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
June 30, 2020</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px;">
<div><font style="font-family: Times New Roman; color: rgb(0, 0, 0);">June 30,
2019</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="margin-left:0px;padding-bottom:2px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-weight: bold; font-size: 11px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 11px; font-weight: bold;">
$</font><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 11px; font-weight: bold;">&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-weight: bold; font-size: 11px;">
&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 11px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 11px;">
$</font><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 11px;">&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 11px;">
&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
ASSETS</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Current</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Cash
and cash equivalents</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">647,739</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">71,849</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Prepaid
expenses and deposits</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">188,674</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">427,894</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Inventory</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">118,682</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Harmonized
sales tax receivable</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">27,118</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Other deposit - current
portion</font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">74,450</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Total
current assets</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">1,056,663</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">499,743</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Other investment</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">500,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Other deposit</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">330,764</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Right-of-use assets</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">2,539,670</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Property and equipment,
net</font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">4,979,813</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,645,389</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Intangible assets</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">5,243,967</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Licenses</font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">542,912</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="padding-bottom: 2px;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:4px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Total
assets</font></div>
</div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; font-weight: bold; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; font-weight: bold; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">14,693,789</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">4,645,132</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;&#xA0;&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
increase in assets from June 30, 2019 to June 30, 2020 was
primarily the result of Star Buds and 273 acquisitions discussed
above.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As at
June 30, 2020, the Company had total liabilities of $8,417,100
(June 30, 2019 &#x2013; $4,282,562) consisting of the
following:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
As at</font>&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px; font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">&#xA0;June 30,
2020<br></font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px; font-weight: bold;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px;">
<div><font style="font-family: Times New Roman;">&#xA0;June 30,
2019<br></font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px; padding-bottom: 2px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
&#xA0;</font> &#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px; font-weight: bold; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px; font-weight: bold; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman; font-weight: bold;">&#xA0;$</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px; font-weight: bold; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman;">$<br></font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Current</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Accounts
payable and accrued liabilities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">2,800,206</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,371,386</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Mortgage payable</font> </font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">766,531</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">657,633</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Debenture unit deposits</font> </font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">594,889</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Convertible debentures</font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">381,678</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Deferred
tax liability</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">4,939</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Lease liability</font> </font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">253,205</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Promissory notes payable</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">1,314,427</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,112,194</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Total
current liabilities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">5,520,986</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,736,102</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Promissory notes payable</font> </font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">566,835</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Lease liability</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">2,329,279</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Convertible debentures</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">546,460</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Total
liabilities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">8,417,100</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">4,282,562</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">26</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
increase in accounts payable and accrued liabilities from June 30,
2019 to June 30, 2020 was a result of the Company&#x2019;s increased
operations due to the Star Buds and 273 acquisitions discussed
above and limited cash flow. During the year ended June 30, 2020,
the Company issued debt through convertible debentures to assist in
financing its operations and investments. During the year ended
June 30, 2019, the Company issued debt through a mortgage payable,
promissory notes payable, convertible debentures and subscriptions
thereto to assist in financing its operations and
investments.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As at
June 30, 2020, the Company had a working capital deficiency of
$4,464,323 as compared to a working capital deficiency of
$3,236,359 as at June 30, 2019. The Company&#x2019;s ability to
continue as a going concern is dependent upon its ability to access
sufficient capital until it has profitable operations and raises a
material concern. To this point, all operational activities and
overhead costs have been funded through equity issuances, debt
issuances and related party advances.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Cash Used in Operating Activities</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company used cash in operating activities in the amount of
$1,037,942 (June 30, 2019 &#x2013; $2,936,734 and June 30, 2018 -
$1,177,474) for the year ending June 30, 2020 due to the reasons as
discussed above.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Cash Used in Investing Activities</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company used cash in investing activities in the amount of $145,587
(June 30, 2019 &#x2013; $3.069,685 and June 30, 2018 - $1,304,415)
for the year ending June 30, 2020. The investing activities during
the year ending June 30, 2020 were primarily attributable to cash
used for the 273 acquisition.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Cash From Financing Activities</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company received proceeds from financing activities in the amount
of $1,723,677 (June 30, 2019 &#x2013; $2,820,366 and June 30, 2018 -
$5,731,902) during the year ending June 30, 2020. The financing
activities proceeds during the year ending June 30, 2020 were in
relation to the proceeds received from the issuance of convertible
debentures that closed on August 14, 2019, issuance of convertible
debentures on April 24, 2020, a common share offering that closed
on May 25, 2020, and a refinancing of a mortgage that was
previously defaulted on.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
(C)</font> <font style="color: #000000">&#xA0;</font><font style="font-weight: bold">RESEARCH AND DEVELOPMENT, PATENTS AND
LICENSES</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company has not spent any funds on research and development during
the fiscal years ended 2020, 2019 and 2018.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
(D)</font> <font style="color: #000000">&#xA0;</font><font style="font-weight: bold">TREND INFORMATION</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">There
are no trends, commitments, events or uncertainties presently known
to management that are reasonably expected to have a material
effect on the Company&#x2019;s business, financial condition or
results of operation other than the nature of the business (Refer
to the heading entitled &#x201C;Risk Factors&#x201D;).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
(E)</font><font style="color: #000000">&#xA0;</font><font style="font-weight: bold">OFF-BALANCE SHEET
ARRANGEMENTS</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As at
June 30, 2020, the Company did not have any off balance sheet
arrangements, including any relationships with unconsolidated
entities or financial partnerships to enhance perceived
liquidity.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
(F)</font><font style="color: #000000">&#xA0;</font><font style="font-weight: bold">CONTRACTUAL OBLIGATIONS</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As at
June 30, 2020, the Company did not have any key contractual
obligations.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
(G)</font><font style="color: #000000">&#xA0;</font><font style="font-weight: bold">SAFE HARBOR</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Statements
in Item 5 of this Annual Report on Form 20-F that are not
statements of historical fact, constitute &#x201C;forward-looking
statements.&#x201D; See &#x201C;Forward-Looking Statements&#x201D; on
page 1 of this Annual Report. The Company is relying on the safe
harbor provided in Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, in making such forward-looking statements.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
ITEM 6 - DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(A) DIRECTORS AND SENIOR MANAGEMENT</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
Mr. Thomas (Taz) M. Turner, Jr.</font> joined the Board of
Directors on November 22, 2017 and as Chief Executive Officer of
the Company on September 22, 2017. Mr. Turner is currently the
Chairman of the Board of Directors. Mr. Turner has over 20 years of
experience in the capital markets focused on both debt and equity
securities in the technology and consumer industries. He founded
Southshore Capital Partners, LP in 2009 and has guided the growth
of Southshore&#x2019;s global equity hedge fund as General Partner.
Through his fund, Mr. Turner has invested in public and private
cannabis companies since 2012. Prior to Southshore, Mr. Turner held
progressive positions at hedge funds and private equity funds with
Tala Investments, Trafelet Delta Funds and ABS Capital Partners,
where he specialized in technology and consumer investments. Mr.
Turner graduated from the University of Virginia with a Bachelor of
Science in both Commerce and Mathematics.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We
believe Mr. Turner is well-qualified to serve as Chairman of the
Board of Directors due to his investment experience, operational
experience and business contacts.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
Mr. Dale Rasmussen</font> joined the Board of Directors on May 15,
2020. Mr. Rasmussen has provided consulting services to growth
companies in a variety of industries. He previously served as
Chairman of Quantum Fuel System Technologies Worldwide and Chairman
of Fisker Automotive. He was also the Senior Vice President and
Secretary of IMPCO Technologies. He has helped facilitate numerous
international transactions including several cross-border
acquisitions and exchange agreements with leading Canadian
companies in solar, wind, battery, and clean technology and
alternative fuel automotive sectors. Prior to these roles, Mr.
Rasmussen was a commercial banker responsible for the bank&#x2019;s
investment portfolio and corporate development
initiatives.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We
believe Mr. Rasmussen is well-qualified to serve as a member of the
Board of Directors and Chairman of the Audit Committee due to his
public company experience, financial markets knowledge and business
contacts.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
Mr. Jakob Ripshtein</font> joined the Board of Directors on April
8, 2020. Mr. Ripshtein previously served as the&#xA0;President of
Aphria, a leading global cannabis company. Mr. Ripshtein&#x2019;s
diverse career began in the Canadian spirits, pharmaceutical, and
financial sectors, where he oversaw business, sales and tax
functions. Joining Diageo in 2008 as VP of Finance, Mr. Ripshtein
operated in a series of senior roles in Canada, the US, and the UK,
becoming President of Diageo Canada, and, in 2016, CFO of Diageo
North America.&#xA0;Mr. Ripshtein holds a CPA and International Tax
designation, and a Bachelor of Business Administration Honours
Degree from York University.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We
believe Mr. Riphstein is well-qualified to serve as a member of the
Board of Directors due to his public company experience, financial
markets knowledge and business contacts.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
Mr. Benjamin Higham</font> joined the Board of Directors on April
8, 2020. Mr. Higham was instrumental in the creation and growth of
Starbuds International and served on its Board of Directors over
the past eight months. Prior to entering business, he practiced law
in Canada and the United States, working in private practice and as
corporate counsel. Mr. Higham brings significant retail cannabis
experience gained from his deep personal network of industry
leaders and proven success as a cannabis entrepreneur. Admitted to
the New York and Massachusetts Bars in 2004 and called to the Bar
of Ontario in 2006, Mr. Higham practiced law in both Canada and
United States in private practice and as corporate counsel to a
large multinational.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We
believe Mr. Higham is well-qualified to serve as a member of the
Board of Directors due to his public company experience, financial
markets knowledge and business contacts.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
Mr. Ashish Kapoor</font> assumed the roles of Chief Financial
Officer and Corporate Secretary of the Company, effective March 10,
2015. Mr. Kapoor has over 20 years of experience in providing
capital markets advisory and assurance services as a finance
professional. After obtaining his Chartered Accountant designation
at Ernst &amp; Young, Mr. Kapoor has gained over 10 years of
experience in investment banking; advising clients across various
industries. As a senior vice president at Macquarie Capital Markets
Canada Ltd., Mr. Kapoor was responsible for the Canadian telecom,
media, entertainment and technology investment banking and
principal investing group. During his 10 years at Macquarie, Mr.
Kapoor completed in excess of $3 billion in successful principal
investments and advised on a further $4 billion of mergers and
acquisitions for third party clients. Mr. Kapoor was formerly the
CFO of DealNet Capital Corp., a consumer finance company, and
Transeastern Power Trust (prior to its current name, Blockchain
Power Trust), an independent power producer focused on renewable
energy sources. Mr. Kapoor was awarded the Gold Medal for first
place in Ontario, and the Bronze Medal for third place in Canada on
the 2000 Chartered Accountancy Uniform Final Examination. Mr.
Kapoor is also a CFA Charter holder and holds a Masters of
Accounting and a Bachelor of Arts degree from University of
Waterloo.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(B) COMPENSATION</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
compensation payable to directors and officers of the Company and
its subsidiary is summarized below:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
1.</font><font style="color: #000000">&#xA0;</font><font style="font-weight: bold">General</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company recognizes that remuneration plays an important role in
attracting, motivating, rewarding and retaining knowledgeable and
skilled individuals to the Company&#x2019;s management team.
However, the Company has not, as yet, generated any significant
income or cash flow from operations. The Board of Directors has to
consider not only the financial situation of the Company at the
time of the determination of executive compensation, but also the
estimated financial situation in the mid and long-term. The Board
of Directors plans to ensure that, at all times, its compensation
arrangements adequately reflect the responsibilities and risks
involved in being an effective Director and/or Officer of the
Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Given
the Issuer&#x2019;s size and stage of operations, the Board does not
have a separate compensation committee and such functions are
addressed by the entire Board.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
November 22, 2017, the Company&#x2019;s shareholders approved and
the Company adopted a new rolling stock option plan (the
&#x201C;Option Plan&#x201D;), under which the Board of Directors may
from time to time, in its discretion, grant to directors, officers,
employees and consultants of the Company. Pursuant to the Option
Plan, the Company may issue options for such period and exercise
price as may be determined by the Board of Directors, and in any
case not exceeding ten (10) years from the date of grant with the
total options issued under the Option Plan not exceeding ten
percent (10%) of the common shares of the Company, outstanding at
the time of the granting of such options. The minimum exercise
price of an option granted under the Option plan must not be less
than the market value of the common shares on the date such option
is granted. The Option Plan is filed as Exhibit 4.(d) to this
Annual Report and is incorporated herein by reference.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
2. Statement of Executive Compensation</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following table and accompanying notes set forth all compensation
expensed by the Company to all persons who served as the
Company&#x2019;s Directors and Officers during the fiscal year ended
June 30, 2020. The information is provided for the fiscal years
ended 2020, 2019 and 2018.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr>
<td style="vertical-align: top; width: 8%; border-left: 0.75pt solid #000000; border-top: 0.75pt solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Name and principal position</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-top: 0.75pt solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Year</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-left: 0.75pt solid #000000; border-top: 0.75pt solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Salary (CAD $)</font></div>
</td>
<td style="vertical-align: top; width: 7%; border-left: 0.75pt solid #000000; border-top: 0.75pt solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Share-based awards</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(CAD $)</font></div>
</td>
<td style="vertical-align: top; width: 10%; border-left: 0.75pt solid #000000; border-top: 0.75pt solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Option-based awards (CAD $)</font></div>
</td>
<td colspan="2" style="vertical-align: top; width: 18%; border-left: 0.75pt solid #000000; border-top: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Non-equity incentive plan compensation (CAD $)</font></div>
</td>
<td style="vertical-align: top; width: 7%; border-left: 0.75pt solid #000000; border-top: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Pension value (CAD $)</font></div>
</td>
<td style="vertical-align: top; width: 13%; border-left: 0.75pt solid #000000; border-top: 0.75pt solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
All other compensation (CAD $)</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-left: 0.75pt solid #000000; border-right: 0.75pt solid #000000; border-top: 0.75pt solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 6px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Total compensation (CAD $)</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 8%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 7%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 10%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Annual incentive plans</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Long-term incentive plans</font></div>
</td>
<td style="vertical-align: top; width: 7%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 13%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-left: 0.75pt solid #000000; border-right: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 8%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Thomas
M, Turner, Jr.,</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Chairman
and Chief Executive Officer</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2020</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2019</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2018</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">204,270</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">264,740</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">141,126</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 7%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 10%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">25,959<font style="font-size: 70%; vertical-align: top">(1)</font></font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">216,694<font style="font-size: 70%; vertical-align: top">(1)</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 7%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 13%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-left: 0.75pt solid #000000; border-right: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">230,229</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">264,740</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">357,820</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 8%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Ashish
Kapoor,</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Director,
Chief Financial Officer and Corporate Secretary</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2020</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2019</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2018</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">204,270</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">264,740</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">141,126</font></div>
</td>
<td style="vertical-align: top; width: 7%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 10%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">12,980<font style="font-size: 70%; vertical-align: top">(1)</font></font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">216,694<font style="font-size: 70%; vertical-align: top">(1)</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 7%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 13%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-left: 0.75pt solid #000000; border-right: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">217,250</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">264,740</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">357,820</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 8%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Nathan
Nienhuis, Former Director and Former Chief Operating
Officer</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2020</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2019</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2018</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">169,270</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">264,740</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">56,574</font></div>
</td>
<td style="vertical-align: top; width: 7%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 10%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">277,004<font style="font-size: 70%; vertical-align: top">(1)</font></font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1,815,029<font style="font-size: 70%; vertical-align: top">(1)</font></font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 7%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 13%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-left: 0.75pt solid #000000; border-right: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">446,274</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">264,740</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1,871,603</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 8%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Henry
J. Kloepper,</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Director</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2020</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2019</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2018</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">31,112</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">31,769</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">7,747</font></div>
</td>
<td style="vertical-align: top; width: 7%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 10%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">6,490<font style="font-size: 70%; vertical-align: top">(1)</font></font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">18,851<font style="font-size: 70%; vertical-align: top">(1)</font></font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 7%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 13%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-left: 0.75pt solid #000000; border-right: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">37,602</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">31,769</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">26,598</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 8%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Jakob
Ripshtein, Director</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2020</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2019</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2018</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">7,500</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 7%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 10%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">184,713<font style="font-size: 70%; vertical-align: top">(1)</font></font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 7%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 13%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-left: 0.75pt solid #000000; border-right: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">192,213</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 8%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Benjamin
Higham, Director</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2020</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2019</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2018</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">7,500</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 7%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 10%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">184,713<font style="font-size: 70%; vertical-align: top">(1)</font></font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 7%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 13%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-left: 0.75pt solid #000000; border-right: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">192,213</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 8%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Dale
Rasmussen, Director</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2020</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2019</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2018</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">3,750</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 7%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 10%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">132,012<font style="font-size: 70%; vertical-align: top">(1)</font></font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 7%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 13%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-left: 0.75pt solid #000000; border-right: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">135,762</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 8%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Eric
Lowy, Former Director</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2020</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2019</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2018</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">8,056</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">31,769</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">7,747</font></div>
</td>
<td style="vertical-align: top; width: 7%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 10%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">18,851<font style="font-size: 70%; vertical-align: top">(1)</font></font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 7%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 13%; border-left: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-left: 0.75pt solid #000000; border-right: 0.75pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">8,056</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">31,769</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">26,598</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;Note:</font></div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-family: Times New Roman; font-size: 13px">(1)</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">See Item 6(E) below
for details of option based awards.</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">30</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Employment Agreements; Termination and Change of Control
Benefits</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As at
the date of this Annual Report, the Company is a party to the
following employment agreements with the Company&#x2019;s Directors
and Officers:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
Thomas (Taz) M. Turner, Jr.</font> Pursuant to the employment
agreement entered into with Mr. Turner, Mr. Turner serves as Chief
Executive Officer of the Company and is entitled to an annual base
salary of CAD $140,000 and is eligible to earn a cash performance
bonus.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Mr.
Turner&#x2019; employment agreement may be terminated by the Company
without notice or payment in lieu of notice for just cause. Mr.
Turner may terminate his employment for any reason by providing at
least two months&#x2019; notice in writing. If the Company elects to
terminate the employment of Mr. Turner without cause, and provided
Mr. Turner is in compliance with the relevant terms and conditions
of his employment agreement, the Company shall be obligated to pay
Mr. Turner eighteen months of his monthly base salary and any
accrued and unpaid expenses and fees.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If
(i)&#xA0;there has been a Change of Control (as defined below) of
the Company, and (ii)&#xA0;the Involuntary Termination (as defined
below) of the employment of Mr. Turner has occurred within twelve
months of the date of the Change of Control, the Company shall pay
Mr. Turner, in a lump sum, an amount equal to the sum of the
following:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="text-align: left; width: 100%; font-family: Times New Roman; font-size: 13px; margin: 0px auto 0px 0px;">
<tr>
<td style="vertical-align: top; width: 3%;">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(a)</font></div>
</td>
<td style="vertical-align: middle; width: 97%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">twenty-four
months of the base salary immediately prior to the date of the
Change of Control;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="text-align: left; width: 100%; font-family: Times New Roman; font-size: 13px; margin: 0px auto 0px 0px;">
<tr>
<td style="vertical-align: top; width: 3%;">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(b)</font></div>
</td>
<td style="vertical-align: middle; width: 97%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">the
annual premium cost to the Company of all the benefits provided to
Mr. Turner by the Company under his employment agreement
immediately prior to the date of the Change of Control;
and</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="text-align: left; width: 100%; font-family: Times New Roman; font-size: 13px; margin: 0px auto 0px 0px;">
<tr>
<td style="vertical-align: top; width: 3%;">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(c)</font></div>
</td>
<td style="vertical-align: middle; width: 97%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">any
other outstanding amounts owed to Mr. Turner under his employment
agreement.</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 3%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 97%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Furthermore,
the Company shall also be required to pay to Mr. Turner the lump
sum of any other outstanding amounts owed to Mr. Turner (including
entities related to or controlled by Mr. Turner) regardless of the
terms of such amounts which will become immediately due and payable
upon Involuntary Termination.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
Ashish Kapoor.</font> Pursuant to the employment agreement entered
into with Mr. Kapoor, Mr. Kapoor serves as Chief Financial Officer
of the Company and is entitled to an annual base salary of CAD
$140,000 and is eligible to earn a cash performance
bonus.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Mr.
Kapoor&#x2019; employment agreement may be terminated by the Company
without notice or payment in lieu of notice for just cause. Mr.
Kapoor may terminate his employment for any reason by providing at
least two months&#x2019; notice in writing. If the Company elects to
terminate the employment of Mr. Kapoor without cause, and provided
Mr. Kapoor is in compliance with the relevant terms and conditions
of his employment agreement, the Company shall be obligated to pay
Mr. Kapoor eighteen months of his monthly base salary and any
accrued and unpaid expenses and fees.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If
(i)&#xA0;there has been a Change of Control (as defined below) of
the Company, and (ii)&#xA0;the Involuntary Termination (as defined
below) of the employment of Mr. Kapoor has occurred within twelve
months of the date of the Change of Control, the Company shall pay
Mr. Kapoor, in a lump sum, an amount equal to the sum of the
following:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="text-align: left; width: 100%; font-family: Times New Roman; font-size: 13px; margin: 0px auto 0px 0px;">
<tr>
<td style="vertical-align: top; width: 3%;">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(a)</font></div>
</td>
<td style="vertical-align: middle; width: 97%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">twenty-four
months of the base salary immediately prior to the date of the
Change of Control;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="text-align: left; width: 100%; font-family: Times New Roman; font-size: 13px; margin: 0px auto 0px 0px;">
<tr>
<td style="vertical-align: top; width: 3%;">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(b)</font></div>
</td>
<td style="vertical-align: middle; width: 97%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">the
annual premium cost to the Company of all the benefits provided to
Mr. Kapoor by the Company under his employment agreement
immediately prior to the date of the Change of Control;
and</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="text-align: left; width: 100%; font-family: Times New Roman; font-size: 13px; margin: 0px auto 0px 0px;">
<tr>
<td style="vertical-align: top; width: 3%;">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(c)</font></div>
</td>
<td style="vertical-align: middle; width: 97%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">any
other outstanding amounts owed to Mr. Kapoor under his employment
agreement.</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Furthermore,
the Company shall also be required to pay to Mr. Kapoor the lump
sum of any other outstanding amounts owed to Mr. Kapoor (including
entities related to or controlled by Mr. Kapoor) regardless of the
terms of such amounts which will become immediately due and payable
upon Involuntary Termination.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">31</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Director Compensation</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company has no formal agreements for compensating its Directors for
their services in their capacity as directors. The Company&#x2019;s
Board of Directors agreed to pay each of the Company&#x2019;s
non-executive directors $2,500 per month for their services. The
payment or non-payment of non-executive director fees is made by
the Board of Directors from time to time. Directors are expected in
the future to receive stock options to purchase Common Shares as
may be awarded by the Board of Directors.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Long Term Incentive Plan (LTIP) Awards</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company does not have a LTIP, pursuant to which cash or non-cash
compensation intended to serve as an incentive for performance
(whereby performance is measured by reference to financial
performance or the price of the Company&#x2019;s securities) was
paid or distributed during the most recently completed fiscal
year.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Defined Benefit or Actuarial Plan Disclosure</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">There
is no pension plan or retirement benefit plan that has been
instituted by the Company and none are proposed at this
time.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(C) BOARD PRACTICES</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Board is currently comprised of four (4) directors; being; Thomas
(Taz) M. Turner, Jr. (Chairman); Dale Rasmussen, Jakob Ripshtein,
and Benjamin Higham; who were each elected by the Company&#x2019;s
shareholders to hold office until the next annual meeting of
shareholders or until a successor is duly elected or appointed,
unless his office is earlier vacated in accordance with the by-laws
of the Company. Mr. Rasmussen, Mr Ripshtein and Mr. Higham are
&#x201C;independent&#x201D; directors. Mr. Turner, the
Company&#x2019;s Chief Executive Officer; is not considered to be
independent. The Board has determined that a board of four (4)
members will be effective in the governance and supervision of the
management of the Company&#x2019;s business and affairs at this
time.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Other
than the Audit Committee, the Board has no other committees. The
directors are regularly informed of or are actively involved in the
operations of the Issuer. The scope and size of the Issuer&#x2019;s
operations and development does not currently warrant an increase
in the size of the Board or the formation of additional committees,
however, the Board periodically examines its size and constitution
and may from time to time establish ad hoc committees to deal with
specific situations.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Mandate of the Board</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Board has adopted a mandate, in which it has explicitly assumed
responsibility for the stewardship of the Company. In carrying out
its mandate the Board holds at least four meetings (or consent
resolutions, where applicable) annually. The frequency of meetings,
as well as the nature of the matters dealt with, will vary from
year to year depending on the state of our business and the
opportunities or risks, which we face from time to time. To assist
in the discharge of its responsibilities, the Board has designated
an Audit Committee, as more particularly discussed
below.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
Audit Committee</font>&#xA0;&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
current members of the Company&#x2019;s Audit Committee are Dale
Rasmussen, who is also the Chair of the Audit Committee, Thomas
(Taz) M. Turner, Jr., Jakob Ripshtein and Benjamin Higham. Mr.
Rasmussen, Mr Ripshtein and Mr. Higham are
&#x201C;independent&#x201D; directors. Mr. Turner, the
Company&#x2019;s Chief Executive Officer; is not considered to be
independent. All members of the Audit Committee are considered to
be financially literate.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Audit Committee&#x2019;s primary function is to assist the Board of
Directors in fulfilling its oversight responsibilities with respect
to accounting and financial reporting processes, the integrity of
the financial statements the Company, compliance with legal and
regulatory requirements, the overall adequacy and maintenance of
the systems of internal controls that management has established
and the overall responsibility for the Company&#x2019;s external and
internal audit processes including the external auditor&#x2019;s
qualifications, independence and performance.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">32</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Audit Committee has the duty to review and ensure that the
Company&#x2019;s financial disclosures are complete and accurate,
are in accordance with generally accepted accounting principles and
fairly present the financial position and risks of the
organization. The Audit Committee should, where it deems
appropriate, review compliance with laws and regulations and the
Company&#x2019;s own policies.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Audit Committee provides the Board of Directors with such
recommendations and reports with respect to the financial
disclosures of the Company as it deems advisable. A copy of the
Audit Committee Charter is filed as Exhibit 14(a)(ii) to this
Annual Report and is incorporated herein by reference.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Corporate Governance Committee</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company does not currently have a Corporate Governance Committee.
The directors determined that, in light of the Company&#x2019;s size
and resources, setting up such a committee would not be practical
for the Company at this time.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Compensation Committee</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company does not currently have a Compensation Committee. The
directors determined that, in light of the Company&#x2019;s size and
resources, setting up such a committee would be too expensive for
the Company at this time.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(D) EMPLOYEES</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company presently has no permanent employees. It uses the services
of consultants from time to time.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(E) SHARE OWNERSHIP</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Corporation had the following plans as at June 30, 2020 and the
date of this Annual Report:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
2017 Stock Option Plan</font> - On November 22, 2017, the
Company&#x2019;s shareholders approved and the Company adopted a new
rolling stock option plan (the &#x201C;Option Plan&#x201D;), under
which the Board of Directors may from time to time, in its
discretion, grant to directors, officers, employees and consultants
of the Company. Pursuant to the Option Plan, the Company may issue
options for such period and exercise price as may be determined by
the Board of Directors, and in any case not exceeding ten (10)
years from the date of grant with the total options issued under
the Option Plan not exceeding ten percent (10%) of the common
shares of the Company, outstanding at the time of the granting of
such options. The minimum exercise price of an option granted under
the Option plan must not be less than the market value of the
common shares on the date such option is granted. The Option Plan
is filed as Exhibit 4.(d) to this Annual Report and is incorporated
herein by reference.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
objective of the Option Plan is to provide for and encourage
ownership of common shares of the Company by its directors,
officers, consultants and employees and those of any subsidiary
companies so that such persons may increase their stake in the
Company and benefit from increases in the value of the common
shares. The Option Plan is designed to be competitive with other
companies in the industry. It is the view of management that the
Option Plan is a significant incentive for the directors, officers,
consultants and employees to continue and to increase their efforts
in promoting the Company&#x2019;s operations to the mutual benefit
of both the Company and such individuals and also allow the Company
to avail of the services of experienced persons with minimum cash
outlay.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">33</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following table sets forth the share ownership of those persons
listed in subsection 6.B above and includes details of all warrants
held by such persons as at June 30, 2020:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr>
<td rowspan="2" style="vertical-align: top; width: 11%; border-left: 1.5pt solid rgb(0, 0, 0); border-top: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Name</font></div>
</td>
<td rowspan="2" style="vertical-align: top; width: 17%; border-left: 1.5pt solid rgb(0, 0, 0); border-top: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Number of</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Shares Held</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 44%; border-left: 1.5pt solid rgb(0, 0, 0); border-top: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Option-Based Awards</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 28%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 1.5pt 1.5pt 2px;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Share-Based Awards</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 19%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Number of securities underlying unexercised options</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(#)</font></div>
</td>
<td style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Option exercised price</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(CAD $)</font></div>
</td>
<td colspan="2" style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Option expiration date</font></div>
</td>
<td style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Number of shares or units of shares that have not
vested</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(#)</font></div>
</td>
<td style="vertical-align: top; width: 16%; border-left: 1.5pt solid rgb(0, 0, 0); border-right: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Market or payout value of share based awards that have not
vested</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(CAD $)</font></div>
</td>
</tr><tr>
<td rowspan="3" style="vertical-align: top; width: 11%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Thomas
M, Turner, Jr.,</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Chairman
and Chief Executive Officer</font></div>
</td>
<td rowspan="3" style="vertical-align: top; width: 17%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2,947,523<font style="font-size: 70%; vertical-align: top">(1)</font></font></div>
</td>
<td style="vertical-align: top; width: 19%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">200,000<font style="font-size: 70%; vertical-align: top">(3)</font></font></div>
</td>
<td style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">0.25</font></div>
</td>
<td colspan="2" style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Feb 24,
2023</font></div>
</td>
<td rowspan="3" style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td rowspan="3" style="vertical-align: top; width: 16%; border-left: 1.5pt solid rgb(0, 0, 0); border-right: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 19%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">150,000<font style="font-size: 70%; vertical-align: top">(3)</font></font></div>
</td>
<td style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">0.40</font></div>
</td>
<td colspan="2" style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Jan 15,
2021</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 19%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">150,000<font style="font-size: 70%; vertical-align: top">(3)</font></font></div>
</td>
<td style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1.15</font></div>
</td>
<td colspan="2" style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Mar 8,
2021</font></div>
</td>
</tr><tr>
<td rowspan="3" style="vertical-align: top; width: 11%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Ashish
Kapoor,</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Chief
Financial Officer and Corporate Secretary, Former
Director</font></div>
</td>
<td rowspan="3" style="vertical-align: top; width: 17%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">5,997,380<font style="font-size: 70%; vertical-align: top">(2)</font></font></div>
</td>
<td style="vertical-align: top; width: 19%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">100,000<font style="font-size: 70%; vertical-align: top">(3)</font></font></div>
</td>
<td style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">0.25</font></div>
</td>
<td colspan="2" style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Feb 24,
2023</font></div>
</td>
<td rowspan="3" style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td rowspan="3" style="vertical-align: top; width: 16%; border-left: 1.5pt solid rgb(0, 0, 0); border-right: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 19%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">150,000<font style="font-size: 70%; vertical-align: top">(3)</font></font></div>
</td>
<td style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">0.40</font></div>
</td>
<td colspan="2" style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Jan 15,
2021</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 19%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">150,000<font style="font-size: 70%; vertical-align: top">(3)</font></font></div>
</td>
<td style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1.15</font></div>
</td>
<td colspan="2" style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Mar 8,
2021</font></div>
</td>
</tr><tr>
<td rowspan="4" style="vertical-align: top; width: 11%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Nathan
Nienhuis, Former Director and Former Chief Operating
Officer</font></div>
</td>
<td rowspan="4" style="vertical-align: top; width: 17%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 19%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1,000,000<font style="font-size: 70%; vertical-align: top">(3)</font></font></div>
</td>
<td style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">0.45</font></div>
</td>
<td colspan="2" style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">May 15,
2023</font></div>
</td>
<td rowspan="4" style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td rowspan="4" style="vertical-align: top; width: 16%; border-left: 1.5pt solid rgb(0, 0, 0); border-right: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 19%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">100,000<font style="font-size: 70%; vertical-align: top">(3)</font></font></div>
</td>
<td style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">0.25</font></div>
</td>
<td colspan="2" style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Feb 24,
2023</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 19%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">150,000<font style="font-size: 70%; vertical-align: top">(3)</font></font></div>
</td>
<td style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">0.40</font></div>
</td>
<td colspan="2" style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Jan 15,
2021</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 19%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">150,000<font style="font-size: 70%; vertical-align: top">(3)</font></font></div>
</td>
<td style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1.15</font></div>
</td>
<td colspan="2" style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Mar 8,
2021</font></div>
</td>
</tr><tr>
<td rowspan="2" style="vertical-align: top; width: 11%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Henry
J. Kloepper,</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Director</font></div>
</td>
<td rowspan="2" style="vertical-align: top; width: 17%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 19%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">50,000<font style="font-size: 70%; vertical-align: top">(3)</font></font></div>
</td>
<td style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">0.25</font></div>
</td>
<td colspan="2" style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Feb 24,
2023</font></div>
</td>
<td rowspan="2" style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td rowspan="2" style="vertical-align: top; width: 16%; border-left: 1.5pt solid rgb(0, 0, 0); border-right: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 19%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">50,000<font style="font-size: 70%; vertical-align: top">(3)</font></font></div>
</td>
<td style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">0.40</font></div>
</td>
<td colspan="2" style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Jan 15,
2021</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 11%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Jakob
Ripshtein, Director</font></div>
</td>
<td style="vertical-align: top; width: 17%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 19%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1,500,000<font style="font-size: 70%; vertical-align: top">(3)</font></font></div>
</td>
<td style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">0.25</font></div>
</td>
<td colspan="2" style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Apr 6,
2023</font></div>
</td>
<td style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 16%; border-left: 1.5pt solid rgb(0, 0, 0); border-right: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 11%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Benjamin
Higham, Director</font></div>
</td>
<td style="vertical-align: top; width: 17%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 19%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1,500,000<font style="font-size: 70%; vertical-align: top">(3)</font></font></div>
</td>
<td style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">0.25</font></div>
</td>
<td colspan="2" style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Apr 6,
2023</font></div>
</td>
<td style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 16%; border-left: 1.5pt solid rgb(0, 0, 0); border-right: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 11%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Dale
Rasmussen, Director</font></div>
</td>
<td style="vertical-align: top; width: 17%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 19%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">500,000<font style="font-size: 70%; vertical-align: top">(3)</font></font></div>
</td>
<td style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">0.45</font></div>
</td>
<td colspan="2" style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">May 15,
2023</font></div>
</td>
<td style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 16%; border-left: 1.5pt solid rgb(0, 0, 0); border-right: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 11%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Eric
Lowy, Former Director</font></div>
</td>
<td style="vertical-align: top; width: 17%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 19%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">50,000<font style="font-size: 70%; vertical-align: top">(3)</font></font></div>
</td>
<td style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">0.40</font></div>
</td>
<td colspan="2" style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Jan 15,
2021</font></div>
</td>
<td style="vertical-align: top; width: 12%; border-left: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
<td style="vertical-align: top; width: 16%; border-left: 1.5pt solid rgb(0, 0, 0); border-right: 1.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">-</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Note:</font></div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-family: Times New Roman; font-size: 13px">(1)</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Includes 2,947,523
Common Shares owned by T3 Research, LLC. Mr. Turner also may be
seen to have control or direction over an additional 2,947,523
Common Shares held by Southshore Capital Partners, LP, a private
investment fund.</font></div>
</div>
</div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-family: Times New Roman; font-size: 13px">(2)</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Includes 5,895,046
Common Shares owned by 2364201 Ontario Corp. and 35,000 Common
Shares held by Mr. Kapoor&#x2019;s spouse.</font></div>
</div>
</div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-family: Times New Roman; font-size: 13px">(3)</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Option-based awards
issued under the Option Plan; all of which are fully vested and
exercisable.</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">There
were 65,948,832 Common Shares issued and outstanding as at June 30,
2020 and 74,973,353 Common Shares issued and outstanding as at the
date of this Annual Report. There were 7,050,000 options and
10,249,500 warrants issued and outstanding as at June 30, 2020 and
7,050,000 options and 15,143,000 warrants issued and outstanding as
at the date of this Annual Report.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">34</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
ITEM 7 - MAJOR SHAREHOLDERS AND RELATED PARTY
TRANSACTIONS</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(A) MAJOR SHAREHOLDERS</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company's securities are recorded on the books of its transfer
agent in registered form. The majority of such shares are, however,
registered in the name of intermediaries such as brokerage houses
and clearing-houses on behalf of their respective clients. The
Company does not have knowledge of the beneficial owners
thereof.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As at
the date of this Annual Report, intermediaries like CDS &amp; Co,
of Toronto, Canada and Cede &amp; Co of New York, USA held
approximately 55% of the issued and outstanding common shares of
the Company on behalf of several beneficial shareholders whose
individual holdings details were not available.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following table shows the record and, where known to us, the
beneficial ownership of our shares by each shareholder holding at
least 5% of our common shares as at June 30, 2020. As used herein,
the term beneficial ownership with respect to a security is defined
by Rule 13d-3 under the Securities Exchange Act of
1934.&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:76%;">
<div style="border-bottom: 2px solid rgb(0, 0, 0);">
<div>
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Name
of Shareholder</font></div>
<div style="text-align: left; margin-right:0px;margin-left:0px;text-indent:0px;width:100%;padding-bottom:2px;"><!--rule below paragraph--></div>
</div>
</div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">No.
of Shares Held</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">% of
Issued Shares</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:76%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">2364201 Ontario
Corp.</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">5,895,046</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">8.94</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Southshore Capital
Partners, LP</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2,947,523</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">4.47</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">T3 Research,
LLC</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2,947,523</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">4.47</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">All of
the Company&#x2019;s shareholders have the same voting
rights.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As at
the date of this Annual Report, the Company had 74,973,353 common
shares outstanding, which, as per the details provided by TSX Trust
Company, the Company&#x2019;s registrar and transfer agent, were
held by approximately 615 record holders (excluding the beneficial
shareholders held through the intermediaries) of which 100
shareholders are based in the United States (including the
beneficial shareholders held through the intermediaries) and hold
an aggregate of 23,428,358 shares or less than 32% of the Common
Shares.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Registrant is a publicly owned Canadian corporation, the shares of
which are owned by Canadian residents, U.S. residents, and
residents of other countries. The Registrant is not owned or
controlled directly or indirectly by another corporation (other
than as indicated in the chart above) or any foreign government.
There are no arrangements, known to the Company, the operation of
which may at a subsequent date result in a change of control of the
Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">35</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(B) RELATED PARTY TRANSACTIONS</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Related
party transactions for the year ended June 30, 2020, 2019 and 2018
and the balances as at those dates, not disclosed elsewhere in the
Company&#x2019;s consolidated financial statements are:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="text-align: left; width: 100%; font-family: Times New Roman; font-size: 13px; margin: 0px auto 0px 0px;">
<tr>
<td style="vertical-align: top; width: 3%;">
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1.</font></div>
</td>
<td style="vertical-align: middle; width: 97%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended June 30, 2020, the Company purchased equipment
valued at $nil (June 30, 2019 - $nil; June 30, 2018 &#x2013;
$44,439) from a corporation related by virtue of a common officer
and a director;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="text-align: left; width: 100%; font-family: Times New Roman; font-size: 13px; margin: 0px auto 0px 0px;">
<tr>
<td style="vertical-align: top; width: 3%;">
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2.</font></div>
</td>
<td style="vertical-align: middle; width: 98%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended June 30, 2020, the Company expensed $662,284 (June
30, 2019 - $1,116,103; June 30, 2018 &#x2013; $508,399), in fees
payable to officers and directors of the Company and in fees
payable to a corporation related by virtue of a common officer and
director. As at June 30, 2020, the Company had fees payable to
officers and directors of the Company of $1,278,106 (June 30, 2019
- $546,653); and</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="text-align: left; width: 100%; font-family: Times New Roman; font-size: 13px; margin: 0px auto 0px 0px;">
<tr>
<td style="vertical-align: top; width: 3%;">
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">3.</font></div>
</td>
<td style="vertical-align: middle; width: 98%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended June 30, 2020, the Company expensed $559,846 (June
30, 2019 - $nil; June 30, 2018 &#x2013; $2,286,120) in share based
compensation related to officers and directors of the
Company.</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Indebtedness to Company of Directors, Executive Officers and Senior
Officers</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">None of
the directors, consultants, executive officers and senior officers
of the Company or any of its subsidiaries, proposed nominees for
election or associates of such persons is or has been indebted to
the Company at any time for any reason whatsoever, including the
purchase of securities of the Company or any of its
subsidiaries.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(C) INTERESTS OF EXPERTS AND COUNSEL</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
ITEM 8 - FINANCIAL INFORMATION</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(A) CONSOLIDATED STATEMENTS AND OTHER FINANCIAL
INFORMATION</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Information
regarding our financial statements is contained under the caption
"Item 18. Financial Statements" below.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Legal Proceedings</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company is not currently involved in any litigation nor is it aware
of any litigation pending or threatened.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Dividend Policy</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Since
its incorporation, the Company has not declared or paid, and has no
present intention to declare or to pay in the foreseeable future,
any cash dividends with respect to its common shares. Earnings will
be retained to finance further growth and development of the
business of the Company. However, if the Board of Directors
declares dividends, all common shares will participate equally in
the dividends, and, in the event of liquidation, in the net assets,
of the Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">36</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(B) SIGNIFICANT CHANGES</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
September 22, 2017, Graham Simmonds resigned as Chief Executive
Officer and was replaced by Thomas M. Turner, Jr., effective
immediately.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
November 22, 2017, the Company&#x2019;s shareholders elected Graham
Simmonds, Henry J. Kloepper, Thomas (Taz) M. Turner, Jr., Ashish
Kapoor, Nathan Nienhuis and Eric Lowy to serve as Directors of the
Company until the next annual shareholders meeting of the
Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On May
17, 2018, Graham Simmonds resigned as a Director of the Company and
Thomas (Taz) M. Turner, Jr. replaced Mr. Simmonds as Chairman of
the Company. Furthermore, the Board of Directors also appointed
Nathan Nienhuis to serve as the Company&#x2019;s Chief Operating
Officer.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
October 28, 2019, Eric Lowy resigned as a Director of the
Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
April 8, 2020, Ashish Kapoor resigned as a Director of the Company.
Furthermore, Benjamin Higham and Jakob Ripshtein were appointed as
Directors of the Company.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On May
16, 2020, Nathan Nienhuis resigned as a Director and chief
operating officer of the Company. Dale Rasmussen was appointed as a
Director of the Company.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
August 17, 2020, Henry Kloepper resigned as a Director of the
Company</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
ITEM 9 - THE OFFER AND LISTING</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(A) OFFER AND LISTING DETAILS</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company&#x2019;s Common Shares are listed for trading on the CSE
under the symbol &#x201C;CDVA&#x201D; and are quoted on the OTCQB
marketplace in the United States under the symbol
&#x201C;LVRLF&#x201D;.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following table sets forth the reported high and low prices and the
trading volume of the Common Shares on the CSE for each month for
the twelve (12) months prior to the date of this Annual
Report.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align: bottom; width: 64%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Date</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">High
($)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Low
($)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Volume</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 64%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">November,
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.39</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.17</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">1,706,834</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 64%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">October,
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.25</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.16</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">790,415</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 64%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">September,
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.27</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.17</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">1,225,004</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 64%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">August,
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.42</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.21</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">989,570</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 64%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">July,
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.40</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.30</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">198,880</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 64%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">June,
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.35</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.25</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">399,562</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 64%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;May,
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.50</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.31</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">115,086</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 64%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">April,
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.47</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.19</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">349,751</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 64%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">March,
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.27</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.13</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">229,062</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 64%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">February,
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.26</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.12</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">704,985</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 64%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">January,
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.21</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.12</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">241,318</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 64%; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">December,
2019</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.22</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.15</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 1px;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">222,100</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">37</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following table sets forth the reported high and low prices and the
trading volume of the Common Shares on the OTCQB marketplace for
each month for the twelve (12) months prior to the date of this
Annual Report.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align: bottom; width: 64%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Date</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">High
(USD $)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Low
(USD $)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="width: 12%; vertical-align: bottom; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Volume</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 64%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">November,
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.30</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.13</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">2,107,500</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 64%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">October,
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.19</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.13</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">978,100</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 64%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">September,
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.22</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.14</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">1,815,900</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 64%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">August,
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.33</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.17</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">1,533,700</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 64%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">July,
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.35</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.21</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">547,900</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 64%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">June,
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.31</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.20</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">563,600</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 64%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">May,
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.36</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.23</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">335,100</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 64%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">April,
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.38</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.12</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">1,184,300</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 64%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">March,
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.22</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.06</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">943,100</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 64%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">February,
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.21</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.08</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">1,156,300</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 64%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">January,
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.22</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.10</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0); border-right: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">1,169,500</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 64%; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">December,
2019</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.23</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: 1px solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0); border-left: 1px solid rgb(0, 0, 0);">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.12</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 1px;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">447,900</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;<font style="font-weight: bold">(B)
PLAN OF DISTRIBUTION</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(C) MARKETS</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company&#x2019;s Common Shares are listed for trading on the CSE
under the symbol &#x201C;CDVA&#x201D; and the OTCQB marketplace in
the United States under the symbol
&#x201C;LVRLF&#x201D;.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(D) SELLING SHAREHOLDERS</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(E) DILUTION</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(F) EXPENSES OF THE ISSUE</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">38</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
ITEM 10 - ADDITIONAL INFORMATION</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
(A) SHARE CAPITAL</font><font style="color: #000000">&#xA0;</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">This
Form 20-F is being filed as an Annual Report under the Exchange Act
and, as such, there is no requirement to provide any information
under this section.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(B) MEMORANDUM AND ARTICLES OF ASSOCIATION</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Following
approval by the shareholders in a special meeting held on October
4, 2006 as explained in item 8(B) above, the Company applied for
authorization to continue from being governed by the OBCA and was
granted approval on October 26, 2006 to continue under the
jurisdiction of the CBCA. An application for authorization to
continue is included in Exhibits 1.1 and 1.2 hereof, which exhibits
have been incorporated by reference into this report.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">New
by-laws were adopted in the special meeting of shareholders on
October 4, 2006 in compliance with the requirements of the CBCA.
The new by-laws were included in Exhibit 1.3 thereof, which exhibit
has been incorporated by reference into this report.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
January 3, 2018, the Company changed its name to its current name,
&#x201C;CordovaCann Corp.&#x201D; The Company&#x2019;s certificate of
amendment is filed as Exhibit 1.16 to this Annual Report and is
incorporated herein by reference.&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(C) MATERIAL CONTRACTS</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Except
as set forth herein, under &#x201C;Item 5(A) &#x2013; Operating and
Financial Review Prospects &#x2013; Operating Results &#x2013;
Overview&#x201D; or &#x201C;Item 7(B) &#x2013; Major Shareholders and
Related Party Transactions &#x2013; Related Party
Transactions&#x201D;, all material contracts entered into in last
two fiscal years were in the ordinary course of its
business.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(D) EXCHANGE CONTROLS</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Limitations
on the ability to acquire and hold shares of the Company may be
imposed by the <font style="font-style: italic">Competition
Act</font> (Canada) (the &#x201C;Competition Act&#x201D;). &#xA0;This
legislation permits the Commissioner of Competition to review any
acquisition of a significant interest in us. &#xA0;This legislation
grants the Commissioner jurisdiction, for up to three years, to
challenge this type of acquisition before the Competition Tribunal
if the Commissioner believes that it would, or would be likely to,
result in a substantial lessening or prevention of competition in
any market in Canada.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Competition Act requires that any person proposing to acquire any
of the assets in Canada of an operating business file a
notification with the Competition Bureau where (a) <font style="color: #000000">"size of the parties" threshold -</font> the
parties to the transaction, together with their respective
affiliates, have (i) assets in Canada the value of which exceeds
$400 million in the aggregate, or (ii) annual gross revenues from
sales in, from or into Canada that exceed $400 million in the
aggregate; <font style="text-decoration: underline">and</font> (b)
<font style="color: #000000">"size of the transaction"
threshold</font> - the aggregate value of those assets, or the
gross revenues from sales in or from Canada generated from those
assets, would exceed <font style="color: #000000">an annually
established threshold (2014 - $82 million), based on the book value
of the subject assets or Company in Canada, or gross revenues from
sales in or from Canada generated from those assets or by the
Company).</font> For the purposes of the Competition Act, asset
values and gross revenues are to be determined as of the last day
of the period covered by the most recent audited financial
statements in which the assets or gross revenues are accounted
for.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">
In the case of share acquisitions, an additional "shareholding
threshold" must be exceeded.</font> This legislation requires any
person who intends to acquire shares to file a notification with
the Competition Bureau if certain financial thresholds are
exceeded, and that person would hold more than 20% of our voting
shares as a result of the acquisition. &#xA0;If a person already
owns 20% or more of our voting shares, a notification must be filed
when the acquisition would bring that person&#x2019;s holdings over
50%. &#xA0;Where a notification is required, the legislation
prohibits completion of the acquisition until the expiration of a
statutory waiting period, unless the Commissioner provides written
notice that he does not intend to challenge the
acquisition.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">39</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">There
are no governmental laws, decrees or regulations in Canada that
restrict the export or import of capital or that affect the
remittance of dividends, interest or other payments to non-resident
holders of our securities. &#xA0;However, any such remittance to a
resident of the United States may be subject to a withholding tax
pursuant to the <font style="font-style: italic">Income Tax
Act</font> (Canada). &#xA0;For further information concerning such
withholding tax, see &#x201C;Taxation" below.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Except
as may be provided under the <font style="font-style: italic">Investment Canada Act</font> (the "ICA"),
there are no specific limitations under the laws of Canada or in
the Articles of the Company with respect to the rights of
non-residents of Canada to hold and/or vote securities of the
Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The ICA
requires each individual, government or agency thereof,
corporation, partnership, trust or joint venture that is not a
&#x201C;Canadian&#x201D; as defined in the ICA (a
&#x201C;non-Canadian&#x201D;) making an investment to acquire control
of a Canadian business, the gross assets of which exceed certain
defined threshold levels, to file an application for review with
the Investment Review Division of Industry Canada. &#xA0;The
threshold level for non-Canadians who are private sector World
Trade Organization investors (as defined in the ICA) is in excess
of $600 million in enterprise value and from non-Canadians who are
state-owned World Trade Organization investors is in excess of $369
million in asset value, subject to an annual adjustment on the
basis of a prescribed formula in the ICA to reflect inflation and
real growth within Canada.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In the
context of the Company, in essence, three methods of acquiring
control of a Canadian business are regulated by the ICA: (i) the
acquisition of all or substantially all of the assets used in
carrying on business in Canada; (ii) the acquisition, directly or
indirectly, of voting shares of a Canadian corporation carrying on
business in Canada; (iii) the acquisition of voting shares of an
entity which controls, directly or indirectly, another entity
carrying on business in Canada. &#xA0;An acquisition of a majority
of the voting interests of an entity, including a corporation, is
deemed to be an acquisition of control under the ICA.
&#xA0;However, under the ICA, there is a rebuttable presumption
that control is acquired if one-third of the voting shares of a
Canadian corporation or an equivalent undivided interest in the
voting shares of such corporation are held by a non-Canadian person
or entity. &#xA0;An acquisition of less than one-third of the
voting shares of a Canadian corporation is deemed not to be an
acquisition of control. &#xA0;An acquisition of less than a
majority, but one-third or more, of the voting shares of a Canadian
corporation is presumed to be an acquisition of control unless it
can be established that on the acquisition the Canadian corporation
is not, in fact, controlled by the acquirer through the ownership
of voting shares. &#xA0;Certain transactions relating to the
acquisition of common shares would be exempt from review from the
ICA, including:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="text-align: left; width: 100%; font-family: Times New Roman; font-size: 13px; margin: 0px auto 0px 0px;">
<tr>
<td style="vertical-align: top; width: 3%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(a)&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 97%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">acquisition
of common shares by a person in the ordinary course of a
person&#x2019;s business as a trader or dealer in
securities;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 48px; margin-right: 0px; text-indent: -48px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="text-align: left; width: 100%; font-family: Times New Roman; font-size: 13px; margin: 0px auto 0px 0px;">
<tr>
<td style="vertical-align: top; width: 3%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(b)&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 97%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">acquisition
of control of a Canadian corporation in connection with the
realization of security granted for a loan or other financial
assistance and not for any purpose related to the provisions of the
ICA; and</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 48px; margin-right: 0px; text-indent: -48px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="text-align: left; width: 100%; font-family: Times New Roman; font-size: 13px; margin: 0px auto 0px 0px;">
<tr>
<td style="vertical-align: top; width: 3%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(c)&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 97%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">acquisition
of control of a Canadian corporation by reason of an amalgamation,
merger, consolidation or corporate reorganization following which
the ultimate direct or indirect control in fact of the corporation,
through the ownership of voting interests, remains
unchanged.</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
addition, if less than a majority of voting interests of a Canadian
corporation are owned by Canadians, the acquisition of control of
any other Canadian corporation by such corporation may be subject
to review unless it can be established that the corporation is not
in fact controlled through the ownership of voting interests and
that two-thirds of the members of the board of directors of the
corporation are Canadians.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Where
an investment is reviewable under the ICA, it may not be
implemented unless it is likely to be of net benefit to Canada.
&#xA0;If an applicant is unable to satisfy the Minister responsible
for Industry Canada that the investment is likely to be of net
benefit to Canada, the applicant may not proceed with the
investment. &#xA0;Alternatively, an acquiror may be required to
divest control of the Canadian business that is the subject of the
investment.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
addition to the foregoing, the ICA requires formal notification to
the Canadian government of all other acquisitions of control of
Canadian businesses by non-Canadians. &#xA0;These provisions
require a foreign investor to give notice in the required form,
which notices are for information, as opposed to review
purposes.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div id="ftr">
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">40</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(E) TAXATION</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Canadian Federal Income Tax Consequences</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We
consider that the following general summary fairly describes the
principal Canadian federal income tax considerations applicable to
holders of our common shares who, for purposes of the <font style="font-style: italic">Income Tax Act</font> (Canada) (the
&#x201C;ITA&#x201D;), deal at arm&#x2019;s length with the Company,
hold such shares as capital property, do not carry on business in
Canada, have not been at any time residents of Canada for purposes
of the ITA and are residents of the United States (&#x201C;U.S.
Residents&#x201D;) under the Canada-United States Income Tax
Convention (1980) (the &#x201C;Convention&#x201D;).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">This
summary is based upon the current provisions of the ITA, the Income
Tax Regulations (the &#x201C;Regulations&#x201D;), the current
publicly announced administrative and assessing policies of the
Canada Revenue Agency (formerly Canada Customs and Revenue Agency),
and all specific proposals (the &#x201C;Tax Proposals&#x201D;) to
amend the ITA and Regulations publicly announced prior to the date
hereof by the Minister of Finance (Canada). &#xA0;This description
is not exhaustive of all possible Canadian federal income tax
consequences and, except for the Tax Proposals, does not take into
account or anticipate any changes in law, whether by legislative,
governmental or judicial action, nor does it take into account
provincial or foreign tax considerations which may differ
significantly from those discussed herein.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following discussion is for general information only and it is not
intended to be, nor should it be construed to be, legal or tax
advice to any holder or prospective holder of our common shares and
no opinion or representation with respect to any Canadian federal,
provincial or foreign tax consequences to any such holder or
prospective holder is made. &#xA0;Accordingly, holders and
prospective holders of our common shares should consult with their
own tax advisors about the Canadian federal, provincial and foreign
tax consequences of purchasing, owning and disposing of our common
shares.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Dividends</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Dividends,
including stock dividends, paid or credited or deemed to be paid or
credited on our common shares to a U.S. Resident will be subject to
withholding tax at a rate of 25%.&#xA0;The Convention provides that
the normal 25% withholding tax rate will generally be reduced to
15% on dividends paid on shares of a corporation resident in Canada
for federal income tax purposes (such as the Company) to U.S.
Residents, and also provides for a further reduction of this rate
to 5% where the beneficial owner of the dividends is a corporation
which is a resident of the United States and owns at least 10% of
the voting shares of the corporation paying the dividend.
&#xA0;These Convention reductions are not available to beneficial
owners who are a U.S. LLC corporation.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Capital Gains</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Convention provides that a U.S. Resident will not be subject to tax
under the ITA in respect of any capital gain on the disposition of
our common shares unless such shares constitute taxable Canadian
property of the U.S. Resident and the U.S. Resident is not entitled
to the benefits of the Convention with regards to capital gains.
&#xA0;Our common shares will constitute taxable Canadian property
if at any time during the five year period immediately preceding
the disposition of our common shares, the U.S. Resident, or persons
with whom the U.S. Resident did not deal at arm&#x2019;s length, or
the U.S. Resident together with persons with whom the U.S. resident
did not deal at arm&#x2019;s length owned 25% or more of the issued
shares of any class of our capital stock.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Where a
U.S. Resident realizes a capital gain on a disposition of shares
that constitute &#x201C;taxable Canadian property&#x201D;, the
Convention relieves the U.S. Resident from liability for Canadian
tax on such capital gains unless:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="text-align: left; width: 100%; font-family: Times New Roman; font-size: 13px; margin: 0px auto 0px 0px;">
<tr>
<td style="vertical-align: top; width: 3%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(a)&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 97%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">the
value of the shares is derived principally from &#x201C;real
property&#x201D; in Canada, including the right to explore for or
exploit natural resources and rights to amounts computed by
reference to production,</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="text-align: left; width: 100%; font-family: Times New Roman; font-size: 13px; margin: 0px auto 0px 0px;">
<tr>
<td style="vertical-align: top; width: 3%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(b)&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 97%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">the
shareholder was resident in Canada for 120 months during any period
of 20 consecutive years preceding the disposition, was resident in
Canada at any time during the 10 years immediately preceding the
disposition and the shares were owned by him when he ceased to be
resident in Canada, or</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 48px; margin-right: 0px; text-indent: -48px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="text-align: left; width: 100%; font-family: Times New Roman; font-size: 13px; margin: 0px auto 0px 0px;">
<tr>
<td style="vertical-align: top; width: 3%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(c)&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 97%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">the
shares formed part of the business property of a &#x201C;permanent
establishment&#x201D; or pertained to a fixed base used for the
purpose of performing independent personal services that the
shareholder has or had in Canada within the 12 months preceding the
disposition.</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">These
Convention benefits are generally not available to beneficial
owners who are a U.S. LLC corporation.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">41</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
U.S. Federal Income Tax Consequences</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following is a summary of the anticipated material U.S. federal
income tax consequences to a U.S. Holder (as defined below) arising
from and relating to the acquisition, ownership, and disposition of
our common shares (&#x201C;Common Shares&#x201D;).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">This
summary is for general information purposes only and does not
purport to be a complete analysis or listing of all potential U.S.
federal income tax consequences that may apply to a U.S. Holder as
a result of the acquisition, ownership, and disposition of Common
Shares. &#xA0;In addition, this summary does not take into account
the individual facts and circumstances of any particular U.S.
Holder that may affect the U.S. federal income tax consequences of
the acquisition, ownership, and disposition of Common Shares.
&#xA0;Accordingly, this summary is not intended to be, and should
not be construed as, legal or U.S. federal income tax advice with
respect to any U.S. Holder. &#xA0;Each U.S. Holder should consult
its own financial advisor, legal counsel, or accountant regarding
the U.S. federal, U.S. state and local, and foreign tax
consequences of the acquisition, ownership, and disposition of
Common Shares.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Scope of this Disclosure</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Authorities</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">This
summary is based on the <font style="font-style: italic">Internal
Revenue Code of 1986</font>, as amended (the &#x201C;Code&#x201D;),
Treasury Regulations (whether final, temporary, or proposed),
published rulings of the Internal Revenue Service
(&#x201C;IRS&#x201D;), published administrative positions of the IRS,
the Convention Between Canada and the United States of America with
Respect to Taxes on Income and on Capital, signed September 26,
1980, as amended (the &#x201C;Canada-U.S. Tax Convention&#x201D;),
and U.S. court decisions that are applicable and, in each case, as
in effect and available, as of the date of this Annual Report.
&#xA0;Any of the authorities on which this summary is based could
be changed in a material and adverse manner at any time, and any
such change could be applied on a retroactive basis. &#xA0;This
summary does not discuss the potential effects, whether adverse or
beneficial, of any proposed legislation that, if enacted, could be
applied on a retroactive basis.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-family: Times New Roman; font-size: 13px">
U.S. Holders</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For
purposes of this summary, a &#x201C;U.S. Holder&#x201D; is a
beneficial owner of Common Shares that, for U.S. federal income tax
purposes, is (a)&#xA0;an individual who is a citizen or resident of
the U.S., (b)&#xA0;a corporation, or any other entity classified as
a corporation for U.S. federal income tax purposes, that is created
or organized in or under the laws of the U.S. or any state in the
U.S., including the District of Columbia, (c)&#xA0;an estate if the
income of such estate is subject to U.S. federal income tax
regardless of the source of such income, or (d)&#xA0;a trust if
(i)&#xA0;such trust has validly elected to be treated as a U.S.
person for U.S. federal income tax purposes or (ii)&#xA0;a U.S.
court is able to exercise primary supervision over the
administration of such trust and one or more U.S. persons have the
authority to control all substantial decisions of such
trust.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Non-U.S. Holders</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For
purposes of this summary, a &#x201C;non-U.S. Holder&#x201D; is a
beneficial owner of Common Shares other than a U.S. Holder.
&#xA0;This summary does not address the U.S. federal income tax
consequences of the acquisition, ownership, and disposition of
Common Shares to non-U.S. Holders. &#xA0;Accordingly, a non-U.S.
Holder should consult its own financial advisor, legal counsel, or
accountant regarding the U.S. federal, U.S. state and local, and
foreign tax consequences (including the potential application of
and operation of any tax treaties) of the acquisition, ownership,
and disposition of Common Shares.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-family: Times New Roman; font-size: 13px">
U.S. Holders Subject to Special U.S. Federal Income Tax Rules Not
Addressed</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">This
summary does not address the U.S. federal income tax consequences
of the acquisition, ownership, and disposition of Common Shares to
U.S. Holders that are subject to special provisions under the Code,
including the following U.S. Holders: &#xA0;(a)&#xA0;U.S. Holders
that are tax-exempt organizations, qualified retirement plans,
individual retirement accounts, or other tax-deferred accounts;
(b)&#xA0;U.S. Holders that are financial institutions, insurance
companies, real estate investment trusts, or regulated investment
companies; (c)&#xA0;U.S. Holders that are dealers in securities or
currencies or U.S. Holders that are traders in securities that
elect to apply a mark-to-market accounting method; (d)&#xA0;U.S.
Holders that have a &#x201C;functional currency&#x201D; other than
the U.S. dollar; (e)&#xA0;U.S. Holders that are liable for the
alternative minimum tax under the Code; (f)&#xA0;U.S. Holders that
own Common Shares as part of a straddle, hedging transaction,
conversion transaction, constructive sale, or other arrangement
involving more than one position; (g)&#xA0;U.S. Holders that
acquired Common Shares in connection with the exercise of employee
stock options or otherwise as compensation for services;
(h)&#xA0;U.S. Holders that hold Common Shares other than as a
capital asset within the meaning of Section&#xA0;1221 of the Code;
or (i)&#xA0;U.S. Holders that own, directly or indirectly, 10% or
more, by voting power or value, of our outstanding shares.
&#xA0;U.S. Holders that are subject to special provisions under the
Code, including U.S. Holders described immediately above, should
consult their own financial advisor, legal counsel or accountant
regarding the U.S. federal, U.S. state and local, and foreign tax
consequences of the acquisition, ownership, and disposition of
Common Shares.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">42</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If an
entity that is classified as partnership (or
&#x201C;pass-through&#x201D; entity) for U.S. federal income tax
purposes holds Common Shares, the U.S. federal income tax
consequences to such partnership (or &#x201C;pass-through&#x201D;
entity) and the partners of such partnership (or owners of such
&#x201C;pass-through&#x201D; entity) generally will depend on the
activities of the partnership (or &#x201C;pass-through&#x201D;
entity) and the status of such partners (or owners). &#xA0;Partners
of entities that are classified as partnerships (or owners of
&#x201C;pass-through&#x201D; entities) for U.S. federal income tax
purposes should consult their own financial advisor, legal counsel
or accountant regarding the U.S. federal income tax consequences of
the acquisition, ownership, and disposition of Common
Shares.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Tax Consequences Other than U.S. Federal Income Tax Consequences
Not Addressed</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">This
summary does not address the U.S. state and local, U.S. federal
estate and gift, or foreign tax consequences to U.S. Holders of the
acquisition, ownership, and disposition of Common Shares.
&#xA0;Each U.S. Holder should consult its own financial advisor,
legal counsel, or accountant regarding the U.S. state and local,
U.S. federal estate and gift, and foreign tax consequences of the
acquisition, ownership, and disposition of Common Shares.
&#xA0;(See &#x201C;Taxation&#x2014;Canadian Federal Income Tax
Consequences&#x201D; above).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
U.S. Federal Income Tax Consequences of the Acquisition, Ownership,
and Disposition of Common Shares</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Distributions on Common Shares</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
General Taxation of Distributions</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A U.S.
Holder that receives a distribution, including a constructive
distribution, with respect to the Common Shares will be required to
include the amount of such distribution in gross income as a
dividend (without reduction for any Canadian income tax withheld
from such distribution) to the extent of our current or accumulated
&#x201C;earnings and profits&#x201D;. &#xA0;To the extent that a
distribution exceeds our current and accumulated &#x201C;earnings
and profits&#x201D;, such distribution will be treated
(a)&#xA0;first, as a tax-free return of capital to the extent of a
U.S. Holder&#x2019;s tax basis in the Common Shares and,
(b)&#xA0;thereafter, as gain from the sale or exchange of such
Common Shares. &#xA0;(See more detailed discussion at
&#x201C;Disposition of Common Shares&#x201D; below).
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Reduced Tax Rates for Certain Dividends</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For
taxable years beginning after December 31, 2002 and before January
1, 2011, a dividend paid by us generally will be taxed at the
preferential tax rates applicable to long-term capital gains if
(a)&#xA0;we are a &#x201C;qualified foreign corporation&#x201D; (as
defined below), (b)&#xA0;the U.S. Holder receiving such dividend is
an individual, estate, or trust, and (c)&#xA0;such dividend is paid
on Common Shares that have been held by such U.S. Holder for at
least 61 days during the 121-day period beginning 60 days before
the &#x201C;ex-dividend date&#x201D; (i.e., the first date that a
purchaser of such Common Shares will not be entitled to receive
such dividend).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We
generally will be a &#x201C;qualified foreign corporation&#x201D;
under Section&#xA0;1(h)(11) of the Code (a &#x201C;QFC&#x201D;) if
(a)&#xA0;we are incorporated in a possession of the U.S.,
(b)&#xA0;we are eligible for the benefits of the Canada-U.S. Tax
Convention, or (c)&#xA0;the Common Shares are readily tradable on
an established securities market in the U.S. &#xA0;However, even if
we satisfy one or more of such requirements, we will not be treated
as a QFC if we are a &#x201C;passive foreign investment
company&#x201D; (as defined below) for the taxable year during which
we pay a dividend or for the preceding taxable year. &#xA0;In 2003,
the U.S. Department of the Treasury (the &#x201C;Treasury&#x201D;)
and the IRS announced that they intended to issue Treasury
Regulations providing procedures for a foreign corporation to
certify that it is a QFC. &#xA0;Although these Treasury Regulations
were not issued in 2004, the Treasury and the IRS have confirmed
their intention to issue these Treasury Regulations. &#xA0;It is
expected that these Treasury Regulations will obligate persons
required to file information returns to report a distribution with
respect to a foreign security issued by a foreign corporation as a
dividend from a QFC if the foreign corporation has, among other
things, certified under penalties of perjury that the foreign
corporation was not a &#x201C;passive foreign investment
company&#x201D; for the taxable year during which the foreign
corporation paid the dividend or for the preceding taxable year.
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We do
not believe that we were a &#x201C;passive foreign investment
company&#x201D; for the taxable year ended June 30, 2008.
&#xA0;&#xA0;(See more detailed discussion at &#x201C;Additional
Rules that May Apply to U.S. Holders&#x201D; below). &#xA0;There can
be no assurance that the IRS will not challenge the determination
made by us concerning our &#x201C;passive foreign investment
company&#x201D; status or that we will not be a &#x201C;passive
foreign investment company&#x201D; for the current or any future
taxable year. &#xA0;Accordingly, there can be no assurances that we
will be a QFC for the current or any future taxable year, or that
we will be able to certify that it is a QFC in accordance with the
certification procedures issued by the Treasury and the
IRS.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If we
are not a QFC, a dividend paid by us to a U.S. Holder, including a
U.S. Holder that is an individual, estate, or trust, generally will
be taxed at ordinary income tax rates (and not at the preferential
tax rates applicable to long-term capital gains). &#xA0;The
dividend rules are complex, and each U.S. Holder should consult its
own financial advisor, legal counsel, or accountant regarding the
dividend rules.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
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</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Distributions Paid in Foreign Currency</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
amount of a distribution paid to a U.S. Holder in foreign currency
generally will be equal to the U.S. dollar value of such
distribution based on the exchange rate applicable on the date of
receipt. &#xA0;A U.S. Holder that does not convert foreign currency
received as a distribution into U.S. dollars on the date of receipt
generally will have a tax basis in such foreign currency equal to
the U.S. dollar value of such foreign currency on the date of
receipt. &#xA0;Such a U.S. Holder generally will recognize ordinary
income or loss on the subsequent sale or other taxable disposition
of such foreign currency (including an exchange for U.S.
dollars).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Dividends Received Deduction</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Dividends
paid on the Common Shares generally will not be eligible for the
&#x201C;dividends received deduction.&#x201D; &#xA0;The availability
of the dividends received deduction is subject to complex
limitations that are beyond the scope of this discussion, and a
U.S. Holder that is a corporation should consult its own financial
advisor, legal counsel, or accountant regarding the dividends
received deduction.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Disposition of Common Shares</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A U.S.
Holder will recognize gain or loss on the sale or other taxable
disposition of Common Shares in an amount equal to the difference,
if any, between (a)&#xA0;the amount of cash plus the fair market
value of any property received and (b)&#xA0;such U.S.
Holder&#x2019;s tax basis in the Common Shares sold or otherwise
disposed of. &#xA0;Any such gain or loss generally will be capital
gain or loss, which will be long-term capital gain or loss if the
Common Shares are held for more than one year. &#xA0;Gain or loss
recognized by a U.S. Holder on the sale or other taxable
disposition of Common Shares generally will be treated as
&#x201C;U.S. source&#x201D; for purposes of applying the U.S. foreign
tax credit rules. &#xA0;&#xA0;(See more detailed discussion at
&#x201C;Foreign Tax Credit&#x201D; below). &#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Preferential
tax rates apply to long-term capital gains of a U.S. Holder that is
an individual, estate, or trust. &#xA0;There are currently no
preferential tax rates for long-term capital gains of a U.S. Holder
that is a corporation. &#xA0;Deductions for capital losses and net
capital losses are subject to complex limitations. &#xA0;For a U.S.
Holder that is an individual, estate, or trust, capital losses may
be used to offset capital gains and up to US$3,000 of ordinary
income. &#xA0;An unused capital loss of a U.S. Holder that is an
individual, estate, or trust generally may be carried forward to
subsequent taxable years, until such net capital loss is exhausted.
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For a
U.S. Holder that is a corporation, capital losses may be used to
offset capital gains, and an unused capital loss generally may be
carried back three years and carried forward five years from the
year in which such net capital loss is recognized.
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Foreign Tax Credit</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A U.S.
Holder who pays (whether directly or through withholding) Canadian
income tax with respect to dividends paid on the Common Shares
generally will be entitled, at the election of such U.S. Holder, to
receive either a deduction or a credit for such Canadian income tax
paid. &#xA0;Generally, a credit will reduce a U.S. Holder&#x2019;s
U.S. federal income tax liability on a dollar-for-dollar basis,
whereas a deduction will reduce a U.S. Holder&#x2019;s income
subject to U.S. federal income tax. &#xA0;This election is made on
a year-by-year basis and applies to all foreign taxes paid (whether
directly or through withholding) by a U.S. Holder during a year.
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Complex
limitations apply to the foreign tax credit, including the general
limitation that the credit cannot exceed the proportionate share of
a U.S. Holder&#x2019;s U.S. federal income tax liability that such
U.S. Holder&#x2019;s &#x201C;foreign source&#x201D; taxable income
bears to such U.S. Holder&#x2019;s worldwide taxable income.
&#xA0;In applying this limitation, a U.S. Holder&#x2019;s various
items of income and deduction must be classified, under complex
rules, as either &#x201C;foreign source&#x201D; or &#x201C;U.S.
source.&#x201D; &#xA0;In addition, this limitation is calculated
separately with respect to specific categories of income (including
&#x201C;passive income,&#x201D; &#x201C;high withholding tax
interest,&#x201D; &#x201C;financial services income,&#x201D;
&#x201C;general income,&#x201D; and certain other categories of
income). &#xA0;Dividends paid by us generally will constitute
&#x201C;foreign source&#x201D; income and generally will be
categorized as &#x201C;passive income&#x201D; or, in the case of
certain U.S. Holders, &#x201C;financial services income.&#x201D;
&#xA0;However, for taxable years beginning after December 31, 2006,
the foreign tax credit limitation categories are reduced to
&#x201C;passive income&#x201D; and &#x201C;general income&#x201D; (and
the other categories of income, including &#x201C;financial services
income,&#x201D; are eliminated). &#xA0;The foreign tax credit rules
are complex, and each U.S. Holder should consult its own financial
advisor, legal counsel, or accountant regarding the foreign tax
credit rules.</font></div>
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</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Information Reporting; Backup Withholding Tax</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Payments
made within the U.S., or by a U.S. payor or U.S. middleman, of
dividends on, and proceeds arising from certain sales or other
taxable dispositions of, Common Shares generally will be subject to
information reporting and backup withholding tax, at the rate of
28%, if a U.S. Holder (a)&#xA0;fails to furnish such U.S.
Holder&#x2019;s correct U.S. taxpayer identification number
(generally on Form W-9), (b)&#xA0;furnishes an incorrect U.S.
taxpayer identification number, (c)&#xA0;is notified by the IRS
that such U.S. Holder has previously failed to properly report
items subject to backup withholding tax, or (d)&#xA0;fails to
certify, under penalty of perjury, that such U.S. Holder has
furnished its correct U.S. taxpayer identification number and that
the IRS has not notified such U.S. Holder that it is subject to
backup withholding tax. &#xA0;However, U.S. Holders that are
corporations generally are excluded from these information
reporting and backup withholding tax rules. &#xA0;Any amounts
withheld under the U.S. backup withholding tax rules will be
allowed as a credit against a U.S. Holder&#x2019;s U.S. federal
income tax liability, if any, or will be refunded, if such U.S.
Holder furnishes required information to the IRS. &#xA0;Each U.S.
Holder should consult its own financial advisor, legal counsel, or
accountant regarding the information reporting and backup
withholding tax rules.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Additional Rules that May Apply to U.S. Holders</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If we
are a &#x201C;controlled foreign corporation,&#x201D; or a
&#x201C;passive foreign investment company&#x201D; (each as defined
below), the preceding sections of this summary may not describe the
U.S. federal income tax consequences to U.S. Holders of the
acquisition, ownership, and disposition of Common
Shares.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Controlled Foreign Corporation</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We
generally will be a &#x201C;controlled foreign corporation&#x201D;
under Section&#xA0;957 of the Code (a &#x201C;CFC&#x201D;) if more
than 50% of the total voting power or the total value of our
outstanding shares are owned, directly or indirectly, by citizens
or residents of the U.S., domestic partnerships, domestic
corporations, domestic estates, or domestic trusts (each as defined
in Section&#xA0;7701(a)(30) of the Code), each of which own,
directly or indirectly, 10% or more of the total voting power of
our outstanding shares (a
&#x201C;10%&#xA0;Shareholder&#x201D;).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If we
are a CFC, a 10%&#xA0;Shareholder generally will be subject to
current U.S. federal income tax with respect to (a)&#xA0;such 10%
Shareholder&#x2019;s pro rata share of the &#x201C;subpart F
income&#x201D; (as defined in Section&#xA0;952 of the Code) of the
Company and (b)&#xA0;such 10%&#xA0;Shareholder&#x2019;s pro rata
share of our earnings invested in &#x201C;United States
property&#x201D; (as defined in Section&#xA0;956 of the Code).
&#xA0;In addition, under Section&#xA0;1248 of the Code, any gain
recognized on the sale or other taxable disposition of Common
Shares by a U.S. Holder that was a 10%&#xA0;Shareholder at any time
during the five-year period ending with such sale or other taxable
disposition generally will be treated as a dividend to the extent
of the &#x201C;earnings and profits&#x201D; of the Company that are
attributable to such Common Shares. &#xA0;If we are both a CFC and
a &#x201C;passive foreign investment company&#x201D; (as defined
below), we generally will be treated as a CFC (and not as a
&#x201C;passive foreign investment company&#x201D;) with respect to
any 10%&#xA0;Shareholder. &#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We do
not believe that the Company has previously been, or currently is a
CFC. &#xA0;However, there can be no assurance that we will not be a
CFC for the current or any future taxable year.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="text-decoration: underline">
Passive Foreign Investment Company</font><font style="font-style: italic">&#xA0;</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We
generally will be a &#x201C;passive foreign investment
company&#x201D; under Section&#xA0;1297 of the Code (a
&#x201C;PFIC&#x201D;) if, for a taxable year, (a)&#xA0;75% or more of
our gross income for such taxable year is passive income or
(b)&#xA0;50% or more of the assets held by us either produce
passive income or are held for the production of passive income,
based on the fair market value of such assets (or on the adjusted
tax basis of such assets, if we are not publicly traded and either
is a &#x201C;controlled foreign corporation&#x201D; or makes an
election). &#xA0;&#x201C;Passive income&#x201D; includes, for
example, dividends, interest, certain rents and royalties, certain
gains from the sale of stock and securities, and certain gains from
commodities transactions. &#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For
purposes of the PFIC income test and asset test described above, if
we own, directly or indirectly, 25% or more of the total value of
the outstanding shares of another foreign corporation, we will be
treated as if it (a)&#xA0;held a proportionate share of the assets
of such other foreign corporation and (b)&#xA0;received directly a
proportionate share of the income of such other foreign
corporation. &#xA0;In addition, for purposes of the PFIC income
test and asset test described above, &#x201C;passive income&#x201D;
does not include any interest, dividends, rents, or royalties that
are received or accrued by us from a &#x201C;related person&#x201D;
(as defined in Section&#xA0;954(d)(3) of the Code), to the extent
such items are properly allocable to the income of such related
person that is not passive income. &#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We do
not believe that the Company has previously been, or currently are
a PFIC. However, there can be no assurance that the IRS will not
challenge our determination concerning our PFIC status or that we
will not be a PFIC for the current or any future taxable
year.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
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</div>
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<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Default PFIC Rules Under Section&#xA0;1291 of the Code</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If we
are a PFIC, the U.S. federal income tax consequences to a U.S.
Holder of the acquisition, ownership, and disposition of Common
Shares will depend on whether such U.S. Holder makes an election to
treat the Company as a &#x201C;qualified electing fund&#x201D; or
&#x201C;QEF&#x201D; under Section&#xA0;1295 of the Code (a &#x201C;QEF
Election&#x201D;) or a mark-to-market election under
Section&#xA0;1296 of the Code (a &#x201C;Mark-to-Market
Election&#x201D;). &#xA0;A U.S. Holder that does not make either a
QEF Election or a Mark-to-Market Election will be referred to in
this summary as a &#x201C;Non-Electing U.S.
Holder.&#x201D;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A
Non-Electing U.S. Holder will be subject to the rules of
Section&#xA0;1291 of the Code with respect to (a)&#xA0;any gain
recognized on the sale or other taxable disposition of Common
Shares and (b)&#xA0;any excess distribution paid on the Common
Shares. &#xA0;A distribution generally will be an &#x201C;excess
distribution&#x201D; to the extent that such distribution (together
with all other distributions received in the current taxable year)
exceeds 125% of the average distributions received during the three
preceding taxable years (or during a U.S. Holder&#x2019;s holding
period for the Common Shares, if shorter).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Under
Section&#xA0;1291 of the Code, any gain recognized on the sale or
other taxable disposition of Common Shares, and any excess
distribution paid on the Common Shares, must be ratably allocated
to each day in a Non-Electing U.S. Holder&#x2019;s holding period
for the Common Shares. &#xA0;The amount of any such gain or excess
distribution allocated to prior years of such Non-Electing U.S.
Holder&#x2019;s holding period for the Class&#xA0;Common Shares
(other than years prior to the first taxable year of the Company
during such Non-Electing U.S. Holder&#x2019;s holding period and
beginning after December 31, 1986 for which we was not a PFIC) will
be subject to U.S. federal income tax at the highest tax applicable
to ordinary income in each such prior year. &#xA0;A Non-Electing
U.S. Holder will be required to pay interest on the resulting tax
liability for each such prior year, calculated as if such tax
liability had been due in each such prior year. &#xA0;Such a
Non-Electing U.S. Holder that is not a corporation must treat any
such interest paid as &#x201C;personal interest,&#x201D; which is not
deductible. &#xA0;The amount of any such gain or excess
distribution allocated to the current year of such Non-Electing
U.S. Holder&#x2019;s holding period for the Common Shares will be
treated as ordinary income in the current year, and no interest
charge will be incurred with respect to the resulting tax liability
for the current year.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If we
are a PFIC for any taxable year during which a Non-Electing U.S.
Holder holds Common Shares, we will continue to be treated as a
PFIC with respect to such Non-Electing U.S. Holder, regardless of
whether we cease to be a PFIC in one or more subsequent years.
&#xA0;A Non-Electing U.S. Holder may terminate this deemed PFIC
status by electing to recognize gain (which will be taxed under the
rules of Section&#xA0;1291 of the Code discussed above) as if such
Common Shares were sold on the last day of the last taxable year
for which the Company was a PFIC.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
QEF Election</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A U.S.
Holder that makes a QEF Election generally will not be subject to
the rules of Section&#xA0;1291 of the Code discussed above.
&#xA0;However, a U.S. Holder that makes a QEF Election will be
subject to U.S. federal income tax on such U.S. Holder&#x2019;s pro
rata share of (a)&#xA0;the net capital gain of the Company, which
will be taxed as long-term capital gain to such U.S. Holder, and
(b)&#xA0;and the ordinary earnings of the Company, which will be
taxed as ordinary income to such U.S. Holder. &#xA0;Generally,
&#x201C;net capital gain&#x201D; is the excess of (a)&#xA0;net
long-term capital gain over (b)&#xA0;net short-term capital loss,
and &#x201C;ordinary earnings&#x201D; are the excess of
(a)&#xA0;&#x201C;earnings and profits&#x201D; over (b)&#xA0;net
capital gain. &#xA0;A U.S. Holder that makes a QEF Election will be
subject to U.S. federal income tax on such amounts for each taxable
year in which we are a PFIC, regardless of whether such amounts are
actually distributed to such U.S. Holder by us. &#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">However,
a U.S. Holder that makes a QEF Election may, subject to certain
limitations, elect to defer payment of current U.S. federal income
tax on such amounts, subject to an interest charge. &#xA0;If such
U.S. Holder is not a corporation, any such interest paid will be
treated as &#x201C;personal interest,&#x201D; which is not
deductible. &#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A U.S.
Holder that makes a QEF Election generally also (a)&#xA0;may
receive a tax-free distribution from us to the extent that such
distribution represents &#x201C;earnings and profits&#x201D; of the
Company that were previously included in income by the U.S. Holder
because of such QEF Election and (b)&#xA0;will adjust such U.S.
Holder&#x2019;s tax basis in the Common Shares to reflect the amount
included in income or allowed as a tax-free distribution because of
such QEF Election. &#xA0;In addition, a U.S. Holder that makes a
QEF Election generally will recognize capital gain or loss on the
sale or other taxable disposition of Common Shares.
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
procedure for making a QEF Election, and the U.S. federal income
tax consequences of making a QEF Election, will depend on whether
such QEF Election is timely. &#xA0;A QEF Election will be treated
as &#x201C;timely&#x201D; if such QEF Election is made for the first
year in the U.S. Holder&#x2019;s holding period for the Common
Shares in which we were a PFIC. &#xA0;A U.S. Holder may make a
timely QEF Election by filing the appropriate QEF Election
documents at the time such U.S. Holder files a U.S. federal income
tax return for such first year. &#xA0;However, if we were a PFIC in
a prior year, then in addition to filing the QEF Election
documents, a U.S. Holder must elect to recognize (a)&#xA0;a gain
(which will be taxed under the rules of Section&#xA0;1291 of the
Code discussed above) as if the Common Shares were sold on the
qualification date or (b)&#xA0;if we were also a CFC, such U.S.
Holder&#x2019;s pro rata share of the post-1986 &#x201C;earnings and
profits&#x201D; of the Company as of the qualification date.
&#xA0;The &#x201C;qualification date&#x201D; is the first day of the
first taxable year in which we were a QEF with respect to such U.S.
Holder. &#xA0;The election to recognize such gain or
&#x201C;earnings and profits&#x201D; can only be made if such U.S.
Holder&#x2019;s holding period for the Common Shares includes the
qualification date. &#xA0;By electing to recognize such gain or
&#x201C;earnings and profits,&#x201D; such U.S. Holder will be deemed
to have made a timely QEF Election. &#xA0;In addition, under very
limited circumstances, a U.S. Holder may make a retroactive QEF
Election if such U.S. Holder failed to file the QEF Election
documents in a timely manner. &#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A QEF
Election will apply to the taxable year for which such QEF Election
is made and to all subsequent taxable years, unless such QEF
Election is invalidated or terminated or the IRS consents to
revocation of such QEF Election. &#xA0;If a U.S. Holder makes a QEF
Election and, in a subsequent taxable year, we cease to be a PFIC,
the QEF Election will remain in effect (although it will not be
applicable) during those taxable years in which we are not a PFIC.
&#xA0;Accordingly, if we become a PFIC in another subsequent
taxable year, the QEF Election will be effective and the U.S.
Holder will be subject to the QEF rules described above during any
such subsequent taxable year in which we qualify as a PFIC.
&#xA0;In addition, the QEF Election will remain in effect (although
it will not be applicable) with respect to a U.S. Holder even after
such U.S. Holder disposes of all of such U.S. Holder&#x2019;s direct
and indirect interest in the Common Shares. &#xA0;Accordingly, if
such U.S. Holder reacquires an interest in the Company, such U.S.
Holder will be subject to the QEF rules described above for each
taxable year in which we are a PFIC.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Each
U.S. Holder should consult its own financial advisor, legal
counsel, or accountant regarding the availability of, and procedure
for making, a QEF Election. &#xA0;U.S. Holders should be aware that
there can be no assurance that we will satisfy record keeping
requirements that apply to a QEF, or that we will supply U.S.
Holders with information that such U.S. Holders require to report
under the QEF rules, in event that we are a PFIC and a U.S. Holder
wishes to make a QEF Election. &#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Mark-to-Market Election</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A U.S.
Holder may make a Mark-to-Market Election only if the Common Shares
are marketable stock. &#xA0;The Common Shares generally will be
&#x201C;marketable stock&#x201D; if the Common Shares are regularly
traded on (a)&#xA0;a national securities exchange that is
registered with the Securities and Exchange Commission,
(b)&#xA0;the national market system established pursuant to section
11A of the Securities and Exchange Act of 1934, or (c)&#xA0;a
foreign securities exchange that is regulated or supervised by a
governmental authority of the country in which the market is
located, provided that (i)&#xA0;such foreign exchange has trading
volume, listing, financial disclosure, and other requirements and
the laws of the country in which such foreign exchange is located,
together with the rules of such foreign exchange, ensure that such
requirements are actually enforced and (ii)&#xA0;the rules of such
foreign exchange ensure active trading of listed
stocks.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A U.S.
Holder that makes a Mark-to-Market Election generally will not be
subject to the rules of Section&#xA0;1291 of the Code discussed
above. &#xA0;However, if a U.S. Holder makes a Mark-to-Market
Election after the beginning of such U.S. Holder&#x2019;s holding
period for the Common Shares and such U.S. Holder has not made a
timely QEF Election, the rules of Section&#xA0;1291 of the Code
discussed above will apply to certain dispositions of, and
distributions on, the Common Shares. &#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A U.S.
Holder that makes a Mark-to-Market Election will include in
ordinary income, for each taxable year in which we are a PFIC, an
amount equal to the excess, if any, of (a)&#xA0;the fair market
value of the Common Shares as of the close of such taxable year
over (b)&#xA0;such U.S. Holder&#x2019;s tax basis in such Common
Shares. &#xA0;A U.S. Holder that makes a Mark-to-Market Election
will be allowed a deduction in an amount equal to the lesser of
(a)&#xA0;the excess, if any, of (i)&#xA0;such U.S. Holder&#x2019;s
adjusted tax basis in the Common Shares over (ii)&#xA0;the fair
market value of such Common Shares as of the close of such taxable
year or (b)&#xA0;the excess, if any, of (i)&#xA0;the amount
included in ordinary income because of such Mark-to-Market Election
for prior taxable years over (ii)&#xA0;the amount allowed as a
deduction because of such Mark-to-Market Election for prior taxable
years. &#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A U.S.
Holder that makes a Mark-to-Market Election generally also will
adjust such U.S. Holder&#x2019;s tax basis in the Common Shares to
reflect the amount included in gross income or allowed as a
deduction because of such Mark-to-Market Election. &#xA0;In
addition, upon a sale or other taxable disposition of Common
Shares, a U.S. Holder that makes a Mark-to-Market Election will
recognize ordinary income or loss (not to exceed the excess, if
any, of (a)&#xA0;the amount included in ordinary income because of
such Mark-to-Market Election for prior taxable years over
(b)&#xA0;the amount allowed as a deduction because of such
Mark-to-Market Election for prior taxable years).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A
Mark-to-Market Election applies to the taxable year in which such
Mark-to-Market Election is made and to each subsequent taxable
year, unless the Common Shares cease to be &#x201C;marketable
stock&#x201D; or the IRS consents to revocation of such election.
&#xA0;Each U.S. Holder should consult its own financial advisor,
legal counsel, or accountant regarding the availability of, and
procedure for making, a Mark-to-Market Election.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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</div>
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</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Other PFIC Rules</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Under
Section&#xA0;1291(f) of the Code, the IRS has issued proposed
Treasury Regulations that, subject to certain exceptions, would
cause a U.S. Holder that had not made a timely QEF Election to
recognize gain (but not loss) upon certain transfers of Common
Shares that would otherwise be tax-deferred (e.g., gifts and
exchanges pursuant to corporate reorganizations). &#xA0;However,
the specific U.S. federal income tax consequences to a U.S. Holder
may vary based on the manner in which Common Shares are
transferred. &#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Certain
additional adverse rules will apply with respect to a U.S. Holder
if we are a PFIC, regardless of whether such U.S. Holder makes a
QEF Election. &#xA0;For example under Section&#xA0;1298(b)(6) of
the Code, a U.S. Holder that uses Common Shares as security for a
loan will, except as may be provided in Treasury Regulations, be
treated as having made a taxable disposition of such Common Shares.
&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
PFIC rules are complex, and each U.S. Holder should consult its own
financial advisor, legal counsel, or accountant regarding the PFIC
rules and how the PFIC rules may affect the U.S. federal income tax
consequences of the acquisition, ownership, and disposition of
Common Shares.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
This summary is of a general nature only and is not intended to be
relied on as legal or tax advice or representations to any
particular investor. &#xA0;Consequently, potential investors are
urged to seek independent tax advice in respect of the consequences
to them of the acquisition of common stock having regard to their
particular circumstances.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(F) DIVIDEND AND PAYING AGENTS</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(G) STATEMENT BY EXPERTS</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(H) DOCUMENTS ON DISPLAY</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
documents concerning the Company referred to in this Annual Report
may be inspected at the Company's office at 217 Queen Street West,
Suite 401, Toronto, Ontario, Canada, M5V 0R2. The Company may be
reached at (917) 843-2169. Documents filed with the Securities and
Exchange Commission ("SEC") may also be read and copied at the
SEC's public reference room at 100 F Street, N.E., Washington, D.C.
20549. Please call the SEC at 1-800-SEC-0330 for further
information on the public reference rooms.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company is subject to reporting requirements as a &#x201C;reporting
issuer&#x201D; under applicable securities legislation in Canada and
as a &#x201C;foreign private issuer&#x201D; under the Securities
Exchange Act of 1934 (the &#x201C;Exchange Act&#x201D;). As a result,
we must file periodic reports and other information with the
Canadian securities regulatory authorities and the Securities and
Exchange Commission.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A copy
of this Form 20-F Annual Report and certain other documents
referred to in this Annual Report and other documents filed by us
may be retrieved from the system for electronic document analysis
and retrieval (&#x201C;SEDAR&#x201D;) system maintained by the
Canadian securities regulatory authorities at www.sedar.ca or from
the Securities and Exchange Commission electronic data gathering,
analysis and retrieval system (&#x201C;EDGAR&#x201D;) at <font style="text-decoration: underline; color: #0000FF">www.sec.gov/edgar</font>.</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
(I) SUBSIDIARY INFORMATION</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
documents concerning the Company&#x2019;s subsidiaries referred to
in this Annual Report may be inspected at the Company's office at
217 Queen Street West, Suite 401, Toronto, Ontario, Canada, M5V
0R2.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; text-decoration: underline">
ITEM 11 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK</font>&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company, through its financial assets and liabilities, is exposed
to various risks. The Company has established policies and
procedures to manage these risks, with the objective of minimizing
any adverse effect that changes in these variables could have on
these consolidated financial statements. The following analysis
provides a measurement of risks as at June 30, 2020:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Credit
risk is the risk of financial loss to the Company if a customer or
counterparty to a financial instrument fails to meet its
contractual obligations. The Company is not exposed to any
significant credit risk.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Liquidity
risk is the risk that the Company will not be able to meet its
financial obligations as they fall due within one year. The
Company&#x2019;s approach to managing liquidity risk is to ensure,
as far as possible, that it will have sufficient liquidity to meet
its liabilities when due, under both normal and stressed
conditions, without incurring unacceptable losses or risking damage
to the Company&#x2019;s reputation. As at June 30, 2020, there is
substantial doubt about the Company&#x2019;s ability to continue as
a going concern primarily due to its history of losses and negative
working capital. Liquidity risk continues to be a key concern in
the development of future operations.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Interest
rate risk is the risk that the fair value or future cash flows of a
financial instrument will fluctuate because of changes in market
interest rates. The interest rates on all of the Company&#x2019;s
existing debt are fixed, and therefore it is not currently subject
to any significant interest rate risk.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company is exposed to foreign currency risk from fluctuations in
foreign exchange rates and the degree of volatility in these rates
due to the timing of their accounts payable balances. The risk is
mitigated by timely payment of creditors and monitoring of foreign
exchange fluctuations by management. As at June 30, 2020, the
Company did not use derivative instruments to hedge its exposure to
foreign currency risk.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company&#x2019;s operations do not involve the direct input or
output of any commodities and therefore it is not subject to any
significant commodity price risk. In addition, the Company does not
have any equity investment in other listed public companies, and
therefore it is not subject to any significant stock market price
risk.</font></div>
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<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
ITEM 12 - DESCRIPTION OF SECURITIES OTHER THAN EQUITY
SECURITIES</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
required since this is an annual report.&#xA0;</font></div>
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<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
PART II</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
ITEM 13 - DEFAULTS, DIVIDEND ARREARAGES AND
DELINQUENCIES</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">None.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
ITEM 14 - MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS
AND USE OF PROCEEDS</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">No
modifications or qualifications have been made to the instruments
defining the rights of the holders of our Common Shares and no
material amount of assets securing our securities has been
withdrawn or substituted by us or anyone else (other than in the
ordinary course of business).</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As
explained earlier, we have moved the jurisdiction of our company
from the OBCA to the CBCA and have revised the by-laws which govern
rights of the security holders. We do not believe that these
changes have materially affected or modified the said
rights.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
January 3, 2018, the Company changed its name to its current name,
&#x201C;CordovaCann Corp.&#x201D; The Company&#x2019;s certificate of
amendment is filed as Exhibit 1.16 to this Annual Report and is
incorporated herein by reference.&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
ITEM 15 - CONTROLS AND PROCEDURES</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A.&#xA0;&#xA0;&#xA0;&#xA0;Evaluation
of Our Disclosure Controls and Internal Controls</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Under
the supervision and with the participation of our senior
management, including our Chief Executive Officer and Chief
Financial Officer, we conducted an evaluation of the effectiveness
of the design and operation of our disclosure controls and
procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the
<font style="font-style: italic">Securities Exchange Act of
1934</font>, as amended, (the &#x201C;Exchange Act&#x201D;) as of the
end of the period covered by this annual report (the
&#x201C;Evaluation Date&#x201D;).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
disclosure controls and procedures include controls and procedures
designed to ensure that information required to be disclosed in
reports filed or submitted under the Exchange Act is accumulated
and communicated to our management, including our Interim Chief
Executive Officer and Chief Financial Officer, as appropriate, to
allow timely decisions regarding required disclosure. Based on that
evaluation, our Interim Chief Executive Officer and our Chief
Financial Officer concluded that our disclosure controls and
procedures were not effective as of June 30, 2020.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">B.
Management&#x2019;s Annual Report on Internal Control over Financial
Reporting</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
internal control over financial reporting is a process designed to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes of International Financial Reporting Standards as issued
by the International Accounting Standards Board. It is our
management&#x2019;s responsibility to establish and maintain
adequate internal control over financial reporting for the Company.
Because of its inherent limitations, internal control over
financial reporting may not prevent or detect misstatements.
Therefore, even those systems determined to be effective can
provide only reasonable assurance of achieving their control
objectives. In evaluating the effectiveness of our internal control
over financial reporting, our management used the criteria set for
the by the 2013 framework in Internal Control &#x2013; Integrated
Framework issued by the Committee of Sponsoring Organizations of
the Treadway Commission (&#x201C;2013 COSO&#x201D;). Based on the
Company&#x2019;s evaluation and the material weaknesses described
below, management concluded that the Company did not maintain
effective internal control over financial reporting as at June 30,
2020 based on the 2013 COSO framework criteria. Management has
identified control deficiencies regarding the: (i) lack of
segregation of duties; (ii) reliance on independent consultants for
review of critical accounting areas and disclosures; and (iii) lack
of sufficient financial and personnel resources to design, document
and effectuate internal controls over financial reporting.
Management of the Company believes that these material weaknesses
are due to the small size of the Company&#x2019;s accounting staff.
The small size of the Company&#x2019;s accounting staff may prevent
adequate controls in the future, such as segregation of duties, due
to the cost/benefit of such remediation. To mitigate the current
limited resources and limited staff, the Company relies heavily on
direct management oversight of transactions, along with the use of
legal and accounting professionals. As the Company grows, the
number of employees is expected to increase, which will enable the
Company to implement adequate segregation of duties within the
internal control framework.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">These
control deficiencies could result in a misstatement of account
balances that would result in a reasonable possibility that a
material misstatement to the Company&#x2019;s consolidated financial
statements may not be prevented or detected on a timely basis.
Accordingly, the Company has determined that these control
deficiencies as described above together constitute a material
weakness.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
light of these material weaknesses, the Company performed
additional analyses and procedures in order to conclude that its
consolidated financial statements for the year ended June 30, 2020
included in this Annual Report on Form 20-F were fairly stated in
accordance with the accounting principles generally accepted in
Canada. Accordingly, management believes that despite the
Company&#x2019;s material weaknesses, its consolidated financial
statements for the year ended June 30, 2020 are fairly stated, in
all material respects, in accordance with the accounting principles
generally accepted in Canada.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">This
Annual Report does not include an attestation report of our
independent registered public accounting firm regarding internal
control over financial reporting. Management&#x2019;s report was not
subject to attestation by our independent registered public
accounting firm pursuant to temporary rules of the SEC that permit
us to provide only management&#x2019;s report in this
report.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company&#x2019;s management, including its Chief Executive Officer
and Chief Financial Officer, does not expect that the
Company&#x2019;s disclosure controls and procedures or internal
controls will prevent all errors and all fraud. A control system,
no matter how well conceived and operated, can provide only
reasonable, not absolute, assurance that the objectives of the
control system are met. Further, the design of a control system
must reflect the fact that there are resource constraints and the
benefits of controls must be considered relative to their costs.
Because of the inherent limitations in all control systems, no
evaluation of controls can provide absolute assurance that all
control issues and instances of fraud, if any, within the Company
have been detected. These inherent limitations include, but are not
limited to, the realities that judgments in decision-making can be
faulty and that breakdowns can occur because of simple error or
mistake. Additionally, controls can be circumvented by the
individual acts of some persons, by collusion of two or more
people, or by management override of the control. The design of any
system of controls also is based in part upon certain assumptions
about the likelihood of future events and there can be no assurance
that any design will succeed in achieving its stated goals under
all potential future conditions. Over time, controls may become
inadequate because of changes in conditions, or the degree of
compliance with the policies or procedures may deteriorate. Because
of the inherent limitations in a cost-effective control system,
misstatements due to error or fraud may occur and not be
detected.&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">C.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Changes
in Internal Controls</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">There
have been no changes in the Company's internal controls over
financial reporting that occurred during the year ended June 30,
2020 that have materially affected or are reasonably likely to
materially affect the Company&#x2019;s internal control over
financial reporting.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
ITEM 16 - [RESERVED]</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
ITEM 16A - AUDIT COMMITTEE FINANCIAL EXPERTS</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As at
the Company&#x2019;s financial year ended June 30, 2020 the audit
committee consisted of four directors, all of whom would be
qualified as an audit committee financial expert, as that term is
defined under Section 407 of the Sarbanes-Oxley Act of 2002. The
background of the directors is described under Item 6(A) Directors
and senior management.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
current members of the Company&#x2019;s Audit Committee are Dale
Rasmussen, who is also the Chair of the Audit Committee, Thomas
(Taz) M. Turner, Jr., Jakob Ripshtein and Benjamin Higham. Mr.
Rasmussen, Mr. Ripshtein, and Mr. Higham are
&#x201C;independent&#x201D; members of the Audit Committee. Mr.
Turner, the Company&#x2019;s Chief Executive Officer is not
considered to be independent members of the Audit Committee;
however, the Board of Directors has made a subjective determination
that no relationships exist which would interfere with the exercise
of independent judgment in Mr. Turner carrying out the
responsibilities of a director.&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
ITEM 16B CODE OF ETHICS</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
February 9, 2007, the Company adopted a Code of Ethics that applies
to its principal executive officer and principal financial officer,
or persons performing similar functions. A copy of our Code of
Ethics will be provided to any person requesting same without
charge. To request a copy of our Code of Ethics, please make a
written request to our Chief Financial Officer at 217 Queen Street
West, Suite 401, Toronto, Ontario, M5V 0R2.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">51</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
ITEM 16C PRINCIPAL ACCOUNTANT&#x2019;S FEES AND
SERVICES</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following outlines the expenditures for accounting fees for the
last two fiscal years ended:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:76%;">
<div style="margin-left:0px;padding-bottom:2px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">June
30,</font></div>
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2020</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">June
30,</font></div>
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2019</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:76%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Audit
Fees</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">80,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">115,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;"><font style="font-size: 70%; vertical-align: top">(1)</font></font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Audit Related
Fees</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Tax
Fees</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">All Other
Fees</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-size: 13px">
&#xA0;</font>&#xA0;</font></div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 70%; vertical-align: top; font-family: Times New Roman">
(1)</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">The accounting fees
for the year ended June 30, 2019 were expressed in United States
Dollars.</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Under
our existing policies, the audit committee must pre-approve all
audit and non-audit related services provided by the
auditors.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
ITEM 16D EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT
COMMITTEES</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
ITEM 16E PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND
AFFILIATED PURCHASERS</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
ITEM 16F CHANGE IN REGISTRANT&#x2019;S CERTIFYING
ACCOUNTANT</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
October 15, 2020, the Company&#x2019;s Board of Directors and Audit
Committee requested that Marcum LLP (the &#x201C;Former
Auditor&#x201D;) resign as the Company&#x2019;s auditor to facilitate
the appointment of Kreston GTA LLP (the &#x201C;Successor
Auditor&#x201D;) as the Company&#x2019;s new auditor until the next
annual general meeting, effective immediately on the date
thereof.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
audit report of the Former Auditor on the Company&#x2019;s
consolidated financial statements as of and for the years ended
June 30, 2019 and 2018 did not contain any adverse opinion or
disclaimer of opinion, nor were they qualified or modified as to
uncertainty, audit scope, or accounting principles. During the two
fiscal years ended June 30, 2019 and June 30, 2018 and through
October 15, 2020, there were no (i) disagreements with the Former
Auditor on any matter of accounting principles or practices,
financial statement disclosure, or auditing scope or procedures,
which disagreements if not resolved to their satisfaction would
have caused them to make reference in connection with their report
to the subject matter of the disagreement, or (ii) reportable
events as described in Item 16F(a)(1)(v) of Form 20-F. The Company
has provided the Former Auditor with a copy of the foregoing
disclosure and has requested that they furnish the Company with a
letter addressed to the SEC stating whether they agree with such
disclosure and, if not, stating the respects in which they do not
agree.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
ITEM 16G CORPORATE GOVERNANCE</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
securities are listed on the CSE and with the OTC Markets Group and
trade on the OTC QB marketplace. There are no significant ways in
which our corporate governance practices differ from those followed
by domestic companies under the listing standards of that exchange
except for proxy delivery requirements. The CSE and the OTC
marketplace requires the solicitation of proxies and delivery of
proxy statements for all shareholder meetings, and requires that
these proxies be solicited pursuant to a proxy statement that
conforms to the proxy rules of the U.S. Securities and Exchange
Commission. As a foreign private issuer, the Company is exempt from
the proxy rules set forth in Sections 14(a), 14(b), 14(c) and 14(f)
of the Act. The Company solicits proxies in accordance with
applicable rules and regulations in Canada.</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">52</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
PART III</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
ITEM 17 - FINANCIAL STATEMENTS</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
ITEM 18 - FINANCIAL STATEMENTS</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">See the
Consolidated Financial Statements and Exhibits listed in Item 19
hereof and filed as part of this Annual Report.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">These
Consolidated Financial Statements of the Company have been prepared
in Canadian Dollars in accordance with International Financial
Reporting Standards (&#x201C;IFRS&#x201D;) as promulgated by the
International Accounting Standards Board (&#x201C;IASB&#x201D;) on a
going concern basis which presumes the realization of assets and
discharge of liabilities in the normal course of business for the
foreseeable future. For a history of exchange rates in effect for
Canadian Dollars as against United States Dollars, see Item 3(A)
Exchange Rates of this Annual Report.&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
ITEM 19 - EXHIBITS</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
(a)</font><font style="color: #000000">&#xA0;</font><font style="font-weight: bold">Financial Statements -</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr>
<td style="vertical-align: top; width: 88%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Description of Document</font></div>
</td>
<td style="vertical-align: top; width: 12%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Page No.</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 88%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Cover
Sheet</font></div>
</td>
<td style="vertical-align: top; width: 12%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">F-1</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 88%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Index</font></div>
</td>
<td style="vertical-align: top; width: 12%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">F-1</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 88%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Reports
of Independent Registered Public Accounting Firms</font></div>
</td>
<td style="vertical-align: top; width: 12%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">F-2
&#x2013; F-4</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 88%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Consolidated
Statements of Financial Position as at June 30, 2020 and
2019</font></div>
</td>
<td style="vertical-align: top; width: 12%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">F-5</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 88%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Consolidated
Statements of Operations and Comprehensive Loss for the Years Ended
June 30, 2020, 2019 and 2018</font></div>
</td>
<td style="vertical-align: top; width: 12%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">F-6</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 88%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Consolidated
Statements of Changes in Equity (Deficiency) for the Years Ended
June 30, 2020, 2019 and 2018</font></div>
</td>
<td style="vertical-align: top; width: 12%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">F-7</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 88%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Consolidated
Statements of Cash Flows for the Years Ended June 30, 2020, 2019
and 2018</font></div>
</td>
<td style="vertical-align: top; width: 12%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">F-8</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 88%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to the Consolidated Financial Statements</font></div>
</td>
<td style="vertical-align: top; width: 12%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">F-9 -
F-36</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">53</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
b)</font><font style="color: #000000">&#xA0;</font><font style="font-weight: bold">Exhibits</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following documents are filed as part of this Annual Report on Form
20-F</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 7%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
<a href="http://www.sec.gov/Archives/edgar/data/1168981/000114036106018754/livereel20fex11_12222006.htm">
<font style="color: #0000FF">1.1</font></a></font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Application
for Authorization to continue in another jurisdiction dated October
20, 2006.- <font style="font-weight: bold">Incorporated herein by
reference</font> to Exhibit 1.1 to the Company&#x2019;s Registration
Statement on Form 20-F filed on December 26, 2006.</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 7%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 7%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
<a href="http://www.sec.gov/Archives/edgar/data/1168981/000116898104000005/fe0011.htm">
<font style="color: #0000FF">1.2</font></a></font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Articles
of Incorporation of the Company - <font style="font-weight: bold">Incorporated herein by reference</font> to
Exhibit 1.1 to the Company&#x2019;s Registration Statement on Form
20-F filed on March 12, 2004.</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 7%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 7%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
<a href="http://www.sec.gov/Archives/edgar/data/1168981/000114036106018754/livereel20fex13_12222006.htm">
<font style="color: #0000FF">1.3</font></a></font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">By-Laws
of the Company - <font style="font-weight: bold">Incorporated
herein by reference</font> to Exhibit 1.3 to the Company&#x2019;s
Registration Statement on Form 20-F filed on December 26,
2006.</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 7%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 7%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
<a href="http://www.sec.gov/Archives/edgar/data/1168981/000116898104000005/fe0013.htm">
<font style="color: #0000FF">1.4</font></a></font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Certificate
of name change from Minedel Mining &amp; Development Company
Limited to Minedel Mines Limited - <font style="font-weight: bold">Incorporated herein by reference</font> to
Exhibit 1.3 to the Company&#x2019;s Registration Statement on Form
20-F filed on March 12, 2004.</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 7%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 7%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
<a href="http://www.sec.gov/Archives/edgar/data/1168981/000116898104000005/fe0014.htm">
<font style="color: #0000FF">1.5</font></a></font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Certificate
of name change from Minedel Mines Limited to Havelock Energy &amp;
Resources Inc. - <font style="font-weight: bold">Incorporated
herein by reference</font> to Exhibit 1.4 to the Company&#x2019;s
Registration Statement on Form 20-F filed on March 12,
2004.</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 7%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 7%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
<a href="http://www.sec.gov/Archives/edgar/data/1168981/000116898104000005/fe0016.htm">
<font style="color: #0000FF">1.6</font></a></font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Certificate
of name change from Havelock energy &amp; Resources Inc. to
Municipal Ticket Corporation - <font style="font-weight: bold">Incorporated herein by reference</font> to
Exhibit 1.5 to the Company&#x2019;s Registration Statement on Form
20-F filed on March 12, 2004.</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 7%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;
<font style="font-weight: bold">&#xA0;</font> &#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 7%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
<a href="http://www.sec.gov/Archives/edgar/data/1168981/000116898104000005/fe0016.htm">
<font style="color: #0000FF">1.7</font></a></font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Certificate
of name change from Municipal Ticket Corporation to I.D. Investment
Inc. - <font style="font-weight: bold">Incorporated herein by
reference</font> to Exhibit 1.6 to the Company&#x2019;s Registration
Statement on Form 20-F filed on March 12, 2004.</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 7%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 7%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
<a href="http://www.sec.gov/Archives/edgar/data/1168981/000116898104000005/fe0017.htm">
<font style="color: #0000FF">1.8</font></a></font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Certificate
of Amalgamation. to Biolink Corporation - <font style="font-weight: bold">Incorporated herein by reference</font> to
Exhibit 1.7 to the Company&#x2019;s Registration Statement on Form
20-F filed on March 12, 2004.</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 7%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 7%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
<a href="http://www.sec.gov/Archives/edgar/data/1168981/000116898104000005/fe0018.htm">
<font style="color: #0000FF">1.9</font></a></font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Certificate
of name change from Biolink Corp. to First Empire Entertainment.com
Inc. - <font style="font-weight: bold">Incorporated herein by
reference</font> to Exhibit 1.8 to the Company&#x2019;s Registration
Statement on Form 20-F filed on March 12, 2004.</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 7%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 7%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
<a href="http://www.sec.gov/Archives/edgar/data/1168981/000116898104000005/fe0019.htm">
<font style="color: #0000FF">1.10</font></a></font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Certificate
of name change from First Empire Entertainment.com Inc. to First
Empire Corporation Inc. - <font style="font-weight: bold">Incorporated herein by reference</font> to
Exhibit 19 to the Company&#x2019;s Annual Report on Form 20-F filed
on March 12, 2004.</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 7%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
<a href="http://www.sec.gov/Archives/edgar/data/1168981/000116898105000017/exhibit110.htm">
<font style="color: #0000FF">1.11</font></a></font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Certificate
of name change from First Empire Corporation Inc. to Noble House
Entertainment Inc. dated November 4, 2004 - <font style="font-weight: bold">Incorporated herein by reference</font> to
Exhibit 1.10 to the Company&#x2019;s Annual Report on Form 20-F
filed on December 1, 2005.</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 7%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 7%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
<a href="http://www.sec.gov/Archives/edgar/data/1168981/000116898105000017/exhibit111.htm">
<font style="color: #0000FF">1.12</font></a></font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Articles
of Amendment dated November 19, 2004 consolidating the common
shares of the Company on the basis of one new common share in
exchange for every two old common shares - <font style="font-weight: bold">Incorporated herein by reference</font> to
Exhibit 1.11 to the Company&#x2019;s Annual Report on Form 20-F
filed on December 1, 2005.</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 7%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 7%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
<a href="http://www.sec.gov/Archives/edgar/data/1168981/000116898105000017/exhibit112.htm">
<font style="color: #0000FF">1.13</font></a></font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Certificate
of name change from First Empire Music Corp. to Noble house Film
&amp; Television Inc. dated January 21, 2005 - <font style="font-weight: bold">Incorporated herein by reference</font> to
Exhibit 1.12 to the Company&#x2019;s Annual Report on Form 20-F
filed on December 1, 2005.</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 7%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 7%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
<a href="http://www.sec.gov/Archives/edgar/data/1168981/000114036106018754/livereel20fex114_12222006.htm">
<font style="color: #0000FF">1.14</font></a></font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Certificate
of name change from Noble House Film &amp; Television Inc. to
LiveReel Productions Corporation dated August 10, 2006 -
<font style="font-weight: bold">Incorporated herein by
reference</font> to Exhibit 1.14 to the Company&#x2019;s
Registration Statement on Form 20-F filed on December 26,
2006.</font></div>
</td>
</tr></table>
</div>
<div style="null"><font>&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">54</font></div>
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<div>
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<tr>
<td style="vertical-align: top; width: 7%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 7%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
<a href="http://www.sec.gov/Archives/edgar/data/1168981/000114036106018754/livereel20fex115_12222006.htm">
<font style="color: #0000FF">1.15</font></a></font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Certificate
of name change from Noble House Entertainment Inc. to LiveReel
Media Corporation dated October 12, 2006 - <font style="font-weight: bold">Incorporated herein by reference</font> to
Exhibit 1.15 to the Company&#x2019;s Registration Statement on Form
20-F filed on December 26, 2006.</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 7%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 7%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
1.16</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Certificate
of name change from LiveReel Media Corporation to CordovaCann Corp.
dated January 3, 2018 - <font style="font-weight: bold">Incorporated herein by reference</font> to
Exhibit 1.16 to the Company&#x2019;s Annual Report on Form 20-F
filed on December 13, 2018.</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 7%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 7%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
4.(d)</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2017
Stock Option Plan dated November 22, 2017 - <font style="font-weight: bold">Incorporated herein by reference</font> to
Exhibit 4.(d) to the Company&#x2019;s Annual Report on Form 20-F
filed on December 13, 2018.</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 7%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 7%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">11.</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Code of
Ethics - <font style="font-weight: bold">Incorporated herein by
reference</font> to Exhibit 11 to the Company&#x2019;s Annual Report
on Form 20-F filed on October 29, 2015.</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 7%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 7%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
12.</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
certifications required by Rule 13a-14(a) (17 CFR 240.13a-14(a)) or
Rule 15d-14(a) (17 CFR 240.15d-14(a)).</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 7%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 7%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
13.(a)</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Certifications Pursuant to 18 U.S.C. Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 7%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 7%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">14(a)(i)</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Corporate
Governance Charter - <font style="font-weight: bold">Incorporated
herein by reference</font> to Exhibit 14 (a)(i) to the
Company&#x2019;s Registration Statement on Form 20-F filed on
December 26, 2006.</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 7%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;
<font style="font-weight: bold">&#xA0;</font> &#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 7%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #0000FF; font-family: Times New Roman; font-size: 13px">
14(a)(ii)</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Audit
Committee Charter dated November 5, 2018 - <font style="font-weight: bold">Incorporated herein by reference</font> to
Exhibit 14(a)(ii) to the Company&#x2019;s Annual Report on Form 20-F
filed on December 13, 2018.</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 7%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 7%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;"><a href="cdva_ex991.htm">
99.1</a></font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">Press
Release dated November 23, 2020 from CordovaCann Corp.</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 7%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 7%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;"><a href="cdva_ex992.htm">
99.2</a></font></div>
</td>
<td style="vertical-align: top; width: 93%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">Press
Release dated December 2, 2020 from CordovaCann Corp.</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">55</font></div>
</div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
SIGNATURE</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company hereby certifies that it meets all of the requirements for
filing on Form 20-F and has duly caused and authorized the
undersigned to sign this Annual Report on its behalf.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Dated
at Toronto, Ontario, Canada, this December <font style="background-color: #FFFF00">14</font>, 2020.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
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<tr>
<td style="vertical-align: top; width: 49%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="2" style="vertical-align: bottom; width: 38%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
CORDOVACANN CORP.</font></div>
</td>
<td style="vertical-align: top; width: 12%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 49%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 3%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 35%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 12%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 49%; border-bottom: 4px double #ffffff">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 3%; border-bottom: 4px double #ffffff">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">By:&#xA0;&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 35%; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">/s/
Ashish Kapoor</font></div>
</td>
<td style="vertical-align: top; width: 12%; border-bottom: 4px double #ffffff">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 49%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 3%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 35%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Name:
Ashish Kapoor</font></div>
</td>
<td style="vertical-align: top; width: 12%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 49%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 3%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 35%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Title:
Chief Financial Officer</font></div>
</td>
<td style="vertical-align: top; width: 12%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr></table>
</div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div id="ftr">
<div style="text-align: center; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;<font style="font-size: 13px">56</font></font></div>
</div>
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<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 24px">
CordovaCann Corp.</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 16px">(formerly
LiveReel Media Corporation)</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Consolidated Financial Statements</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
For the years ended June 30, 2020, 2019 and 2018</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;(Expressed in Canadian Dollars)</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
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<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
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<br>
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<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><img src="auditreport-1000.jpg"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><br></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
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<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-1</font></div>
</div>
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<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><img src="auditreport-1001.jpg"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
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<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-2</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
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</div>
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<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><img src="auditreport-1002.jpg"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
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<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-3</font></div>
</div>
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</div>
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<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><img src="auditreport-1003.jpg"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-4</font></div>
</div>
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<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
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<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;"><br></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Consolidated
Statements of Financial Position</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">As at June 30, 2020
and 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">
&#xA0;</font><font style="vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px;">
<div style="text-align: center"><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
2020</font></div>
</font><font style="vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">
&#xA0;</font><font style="vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px;">
<div style="text-align: center"><font style="font-family: Times New Roman; color: rgb(0, 0, 0);">2019</font></div>
</font><font style="vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:5%;border-bottom:solid 2px #000000;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:75%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
ASSETS</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Current</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Cash
and cash equivalents</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">647,739</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">71,849</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Prepaid
expenses and deposits</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">188,674</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">427,894</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Inventory</font> <font style="font-style: italic; color: #000000">(Note 9)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">118,682</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Harmonized
sales tax receivable</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">27,118</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:12px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Other deposit - current portion</font>
<font style="font-style: italic; color: #000000">(Note
22(d))</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">74,450</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Total
current assets</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">1,056,663</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">499,743</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Other investment (</font><font style="font-style: italic; color: #000000">Note 6</font><font style="color: #000000">)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">500,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Other deposit</font> <font style="font-style: italic; color: #000000">(Note
22(d))</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">330,764</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Right-of-use assets</font> <font style="font-style: italic; color: #000000">(Note 7)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">2,539,670</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Property and equipment, net</font> <font style="font-style: italic; color: #000000">(Note 8)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">4,979,813</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,645,389</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Intangible assets (</font><font style="font-style: italic; color: #000000">Note 11)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">5,243,967</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:12px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Licenses</font> <font style="font-style: italic; color: #000000">(Note 12)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">542,912</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Total
assets</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">14,693,789</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">4,645,132</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
LIABILITIES</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Current</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Accounts
payable and accrued liabilities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">2,800,206</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,371,386</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Mortgage payable (</font><font style="font-style: italic; color: #000000">Note 14</font><font style="color: #000000">)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">766,531</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">657,633</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Debenture unit deposits (</font><font style="font-style: italic; color: #000000">Note 16)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">594,889</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Convertible debentures</font> <font style="font-style: italic; color: #000000">(Note 17)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">381,678</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Deferred
tax liability</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">4,939</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Lease liability</font> <font style="font-style: italic; color: #000000">(Note 13)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">253,205</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:12px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Promissory notes payable</font> <font style="font-style: italic; color: #000000">(Note 15)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">1,314,427</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,112,194</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Total
current liabilities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">5,520,986</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,736,102</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Promissory notes payable</font> <font style="font-style: italic; color: #000000">(Note 15)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">566,835</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Lease liability</font> <font style="font-style: italic; color: #000000">(Note 13)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">2,329,279</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:12px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Convertible debentures</font> <font style="font-style: italic; color: #000000">(Note 17)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">546,460</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Total
liabilities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">8,417,100</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">4,282,562</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
SHAREHOLDERS' EQUITY</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Share capital</font> <font style="font-style: italic; color: #000000">(Note 18)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">19,697,180</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">14,636,828</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Contingently issuable shares (</font><font style="font-style: italic; color: #000000">Note 18)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">2,040,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Shares to be issued (</font><font style="font-style: italic; color: #000000">Note 18)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">510,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Contributed
surplus</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">6,709,782</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">5,226,156</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Equity
portion of convertible debentures</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">862,913</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">62,498</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Accumulated
deficit</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">(24,159,690</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(19,570,801</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:12px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Accumulated
other comprehensive income</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">(41,599</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">7,889</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Total shareholders' equity attributable to Cordova
shareholders</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">5,618,586</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">362,570</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Non-controlling interest</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">658,103</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Total equity</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">6,276,689</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">362,570</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Total liabilities and shareholders' equity</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">14,693,789</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">4,645,132</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Nature
of operations and going concern (<font style="font-style: italic">Note 1</font>)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Commitments
(<font style="font-style: italic">Note 22</font>)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Related
party transactions (<font style="font-style: italic">Note
3</font>)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Subsequent
events (<font style="font-style: italic">Note
28</font>)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr>
<td colspan="2" style="vertical-align: top; width: 53%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Approved
on behalf of the Board:</font></div>
</td>
<td style="vertical-align: top; width: 3%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 44%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 6%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 47%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 3%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 44%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 6%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 47%; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-style: italic">&#x201C;Dale
Rasmussen&#x201D;</font>,<font style="font-weight: bold">&#xA0;</font>Director</font></div>
</td>
<td style="vertical-align: top; width: 3%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 44%; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-style: italic">&#x201C;Thomas M. Turner,
Jr.&#x201D;</font>,<font style="font-weight: bold">&#xA0;</font>Director</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 6%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 47%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(signed)</font></div>
</td>
<td style="vertical-align: top; width: 3%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 44%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(signed)</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The accompanying
notes are an integral part of these consolidated financial
statements.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-5</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Consolidated
Statements of Operations and Comprehensive Loss</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the years ended
June 30, 2020, 2019 and 2018</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;(Expressed in
Canadian Dollars)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;font-size:11px;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;font-size:11px;display:inline-block;">
<div><font style="font-weight:bold;font-family:Times New Roman;color:#000;">2020</font></div>
</font><font style="vertical-align:bottom;width:10%;font-size:11px;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;font-size:11px;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;font-size:11px;display:inline-block;">
<div><font style="font-family:Times New Roman;color:#000;">2019</font></div>
</font><font style="vertical-align:bottom;width:10%;font-size:11px;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;font-size:11px;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;font-size:11px;display:inline-block;">
<div><font style="font-family:Times New Roman;color:#000;">2018</font></div>
</font><font style="vertical-align:bottom;width:10%;font-size:11px;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:11px;">&#xA0;</font><font style="text-align: left; color:#000;font-family:Times New Roman;vertical-align:bottom;font-size:11px;display:inline-block;font-weight:bold;width:5%;border-bottom:solid 2px #000000;">$</font><font style="text-align: right; color:#000;font-family:Times New Roman;vertical-align:bottom;font-size:11px;display:inline-block;font-weight:bold;width:75%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:11px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:11px;">&#xA0;</font><font style="text-align: left; color:#000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:11px;">$</font><font style="text-align: right; color:#000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:11px;">&#xA0;</font><font style="text-align: left; color:#000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:11px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:11px;">&#xA0;</font><font style="text-align: left; color:#000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:11px;">$</font><font style="text-align: right; color:#000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:11px;">&#xA0;</font><font style="text-align: left; color:#000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:11px;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Revenue</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">166,773</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold; color: #000000">Cost of sales</font>
<font style="font-style: italic; color: #000000">(Note
8)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">(106,742</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">30,529</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">12,770</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Gross profit</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">60,031</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(30,529</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(12,770</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">)</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Expenses</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Consulting
fees</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">1,295,829</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">2,448,560</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">977,410</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Share based compensation (</font><font style="font-style: italic; color: #000000">Note 19, 20</font><font style="color: #000000">)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">1,048,661</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,413,919</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,447,415</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Professional
fees</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">488,902</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">371,079</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">225,151</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Shareholders
information services</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">135,181</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">379,058</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">52,714</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Salaries
and wages</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">23,039</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Advertising
costs</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">2,825</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">88,917</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Office
and general</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">208,484</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">605,334</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">120,274</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Depreciation</font> <font style="font-style: italic; color: #000000">(Note 8)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">5,768</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Amortization of right-of-use assets
(</font><font style="font-style: italic; color: #000000">Note
7)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">92,167</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Leases
and utilities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">67,800</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Financing
costs</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">14,845</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Exclusivity fee (</font><font style="font-style: italic; color: #000000">Note 22(a)</font><font style="color: #000000">)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">48,367</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">42,550</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-size: 13px; font-family: Times New Roman">Impairment of
promissory note receivable <font style="font-style: italic">(Note
5)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">85,114</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-size: 13px; font-family: Times New Roman">Impairment of
equipment <font style="font-style: italic">(Note
8)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">107,515</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">3,368,656</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">5,547,863</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">4,880,359</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Loss before other income</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">(3,308,625</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(5,578,392</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(4,893,129</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Interest expense (</font><font style="font-style: italic; color: #000000">Note 14, 15,
17)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">564,897</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">39,215</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Interest on lease obligation</font> <font style="font-style: italic; color: #000000">(Note 13)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">46,171</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Accretion expense (</font><font style="font-style: italic; color: #000000">Note 15,
17)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">249,518</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">24,680</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Loss on settlement of fees</font> <font style="font-style: italic; color: #000000">(Note 17)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">12,700</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Loss
on settlement of other investment</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">184,440</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Impairment
of assets</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">16,316</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Foreign
exchange loss (gain)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">56,225</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">57,121</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(27,196</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Gain
on settlement</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">(51,023</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Other
income</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">(65,920</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; padding-bottom: 2px; margin-left: 12px;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Loss on deposit</font> <font style="font-style: italic; color: #000000">(Note
22(e))</font></font></div>
</div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">396,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">124,428</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Loss before income taxes</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">(4,705,249</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(5,836,536</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(4,865,933</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px;"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Deferred tax recovery (</font><font style="font-style: italic; color: #000000">Note 26)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">54,349</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Net loss and comprehensive loss</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">(4,650,900</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(5,836,536</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(4,865,933</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">)</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Loss per share - basic and diluted</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">(0.10</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(0.15</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(0.15</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Weighted average number of outstanding common shares - basic and
diluted</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">45,424,867</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">40,149,242</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">32,255,112</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Net loss</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">(4,650,900</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(5,836,536</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(4,865,933</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Foreign
exchange translation adjustment</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">(49,488</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">7,205</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">684</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Total comprehensive loss</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">(4,700,388</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(5,829,331</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(4,865,249</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">)</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Net loss from continuing operations attributable to:</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">(4,588,889</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(5,836,536</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(4,865,933</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Non-controlling
interest</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">(62,011</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The accompanying
notes are an integral part of these consolidated financial
statements.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-6</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 60px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Consolidated
Statements of Changes in Equity (Deficiency)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">As at June 30, 2019
and 2018</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">&#xA0;</font>(Expressed in Canadian
Dollars)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr>
<td colspan="2" rowspan="1" style="vertical-align:bottom;width:20%;">
<div><font style="width: 5%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="vertical-align: bottom; width: 90%; display: inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;"><br></font></div>
</font><font style="width: 5%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-size:11px;"><font style="font-family:Times New Roman;font-weight:bold;">&#xA0; Number
of</font></font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-size:11px;"><font style="font-family:Times New Roman;font-weight:bold;">&#xA0;<br></font></font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-size:11px;"><font style="font-family:Times New Roman;font-weight:bold;">&#xA0;<br></font></font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-size:11px;"><font style="font-family:Times New Roman;font-weight:bold;">&#xA0; Equity
Portion<br></font></font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-size:11px;"><font style="font-family:Times New Roman;font-weight:bold;">&#xA0;
Contingently<br></font></font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-size:11px;"><font style="font-family:Times New Roman;font-weight:bold;">&#xA0;<br></font></font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-size:11px;"><font style="font-family:Times New Roman;font-weight:bold;">&#xA0;<br></font></font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-size:11px;"><font style="font-family:Times New Roman;font-weight:bold;">&#xA0; Accumulated
Other<br></font></font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-size:11px;"><font style="font-family:Times New Roman;font-weight:bold;">&#xA0;<br></font></font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-size:11px;"><font style="font-family:Times New Roman;font-weight:bold;">&#xA0;<br></font></font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="2" style="vertical-align:bottom;width:20%;">
<font style="width: 5%; vertical-align: bottom; display: inline-block;">
<div style="padding-bottom: 2px;">&#xA0;</div>
</font></td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:11px;"><font style="font-family:Times New Roman;font-weight:bold;">&#xA0; Common
Shares<br></font></font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-size:11px;"><font style="font-family:Times New Roman;font-weight:bold;">&#xA0; Share
Capital<br></font></font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-size:11px;"><font style="font-family:Times New Roman;font-weight:bold;">&#xA0; Contributed
Surplus<br></font></font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-size:11px;"><font style="font-family:Times New Roman;font-weight:bold;">&#xA0; of
Convertible Debentures<br></font></font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-size:11px;"><font style="font-family:Times New Roman;font-weight:bold;">&#xA0; issuable
shares<br></font></font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-size:11px;"><font style="font-family:Times New Roman;font-weight:bold;">&#xA0; Shares to be
issued<br></font></font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-size:11px;"><font style="font-family:Times New Roman;font-weight:bold;">&#xA0; Accumulated
Deficit<br></font></font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-size:11px;"><font style="font-family:Times New Roman;font-weight:bold;">&#xA0;
Comprehensive Income<br></font></font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-size:11px;"><font style="font-family:Times New Roman;font-weight:bold;">&#xA0;
Non-controlling interests<br></font></font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-size:11px;"><font style="font-family:Times New Roman;font-weight:bold;">&#xA0;
Shareholders' Equity<br></font></font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="2" style="vertical-align:bottom;width:20%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="vertical-align:bottom;padding-bottom:2px;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size: 13px; font-family: Times New Roman"><br></font></div>
</font><font style="vertical-align:bottom;padding-bottom:2px;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 8%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><font style="font-family: Times New Roman; font-weight: bold; font-size: 11px;">
&#xA0; &#xA0; #<br></font></div>
</td>
<td style="vertical-align: bottom; width: 8%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><font style="font-family: Times New Roman; font-weight: bold; font-size: 11px;">
&#xA0; $<br></font></div>
</td>
<td style="vertical-align: bottom; width: 8%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><font style="font-family: Times New Roman; font-weight: bold; font-size: 11px;">
&#xA0; $<br></font></div>
</td>
<td style="vertical-align: bottom; width: 8%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><font style="font-family: Times New Roman; font-weight: bold; font-size: 11px;">
&#xA0; $</font></div>
</td>
<td style="vertical-align: bottom; width: 8%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><font style="font-family: Times New Roman; font-weight: bold; font-size: 11px;">
&#xA0; $<br></font></div>
</td>
<td style="vertical-align: bottom; width: 8%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><font style="font-family: Times New Roman; font-weight: bold; font-size: 11px;">
&#xA0; $<br></font></div>
</td>
<td style="vertical-align: bottom; width: 8%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><font style="font-family: Times New Roman; font-weight: bold; font-size: 11px;">
&#xA0; $<br></font></div>
</td>
<td style="vertical-align: bottom; width: 8%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><font style="font-family: Times New Roman; font-weight: bold; font-size: 11px;">
&#xA0; $<br></font></div>
</td>
<td style="vertical-align: bottom; width: 8%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><font style="font-family: Times New Roman; font-weight: bold; font-size: 11px;">
&#xA0; $<br></font></div>
</td>
<td style="vertical-align: bottom; width: 8%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><font style="font-family: Times New Roman; font-weight: bold; font-size: 11px;">
&#xA0; $<br></font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Balance,
June 30, 2017</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="vertical-align:bottom;padding-bottom:2px;width:10%;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Note #</font></div>
</font><font style="vertical-align:bottom;padding-bottom:2px;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">23,521,744</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">7,880,660</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">361,196</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">(8,868,332</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">(626,476</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">Common shares
issued for settlement of loan</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;font-style:italic;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;font-style:italic;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;font-style:italic;">18</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;font-style:italic;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">7,681,110</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">384,055</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">384,055</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">Common shares
issued for private placement</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;font-style:italic;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;font-style:italic;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;font-style:italic;">18</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;font-style:italic;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">5,532,500</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">553,250</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">553,250</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">Common shares
issued for private placement</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;font-style:italic;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;font-style:italic;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;font-style:italic;">18</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;font-style:italic;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">890,074</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">959,251</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">959,251</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">Issuance of
options</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;font-style:italic;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;font-style:italic;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;font-style:italic;">19</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;font-style:italic;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,177,727</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,177,727</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">Issuance of
warrants</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;font-style:italic;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;font-style:italic;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;font-style:italic;">20</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;font-style:italic;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">2,269,688</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">2,269,688</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">Common shares
issued for private placement</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;font-style:italic;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;font-style:italic;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;font-style:italic;">18</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;font-style:italic;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2,410,800</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">4,703,025</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">4,703,025</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">Foreign currency
translation gain</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">684</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">684</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">Net loss for the
year</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(4,865,933</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(4,865,933</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Balance,
June 30, 2018</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">40,036,228</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">14,480,241</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">3,808,611</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(13,734,265</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">684</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">4,555,271</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">Issuance of
warrants</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;font-style:italic;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;font-style:italic;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;font-style:italic;">20</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;font-style:italic;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,413,919</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,413,919</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">Equity portion of
convertible debentures</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;font-style:italic;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;font-style:italic;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;font-style:italic;">17</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;font-style:italic;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">29,063</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">62,498</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">91,561</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">Warrant portion of
promissory note payable</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;font-style:italic;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;font-style:italic;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;font-style:italic;">15</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;font-style:italic;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">18,650</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">18,650</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">Common shares
issued for exercise of warrants</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;font-style:italic;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;font-style:italic;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;font-style:italic;">18</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;font-style:italic;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">750,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">156,587</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(44,087</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">112,500</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">Foreign currency
translation gain</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">7,205</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">7,205</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">Net loss for the
year</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%; padding-bottom: 2px;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(5,836,536</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(5,836,536</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Balance,
June 30, 2019</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%; padding-bottom: 2px;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">40,786,228</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">14,636,828</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">5,226,156</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">62,498</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(19,570,801</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">7,889</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">362,570</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 60px"><font style="font-size: 13px; font-family: Times New Roman">The accompanying
notes are an integral part of these consolidated financial
statements.</font></div>
<br>
<font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-7</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 60px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Consolidated
Statements of Changes in Equity (Deficiency)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">As at June 30,
2020</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">&#xA0;</font>(Expressed in Canadian
Dollars)</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 11px;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:8%;">
<div><font style="font-size: 11px"><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-family: Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:8%;">
<div><font style="font-size: 11px"><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-family: Times New Roman;">&#xA0;</font><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">Number
of</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:8%;">
<div><font style="font-size: 11px"><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-family: Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:8%;">
<div><font style="font-size: 11px"><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-family: Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:8%;">
<div><font style="font-size: 11px"><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-family: Times New Roman;">&#xA0;
<font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
Equity portion of</font></font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:8%;">
<div><font style="font-size: 11px"><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-family: Times New Roman;">&#xA0;
<font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
Contingently</font></font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:8%;">
<div><font style="font-size: 11px"><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-family: Times New Roman;">&#xA0;
<font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
Shares to</font></font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:8%;">
<div><font style="font-size: 11px"><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-family: Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:8%;">
<div><font style="font-size: 11px"><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-family: Times New Roman;">&#xA0;
<font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
Accumulated Other</font></font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:8%;">
<div><font style="font-size: 11px"><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-family: Times New Roman;">&#xA0;
<font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
Non-controlling</font></font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:8%;">
<div><font style="font-size: 11px"><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-family: Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:12%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 11px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="font-size: 11px"><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-family: Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="font-size: 11px"><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
&#xA0; Common Shares</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="font-size: 11px"><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
&#xA0; Share Capital</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="font-size: 11px"><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
&#xA0; Contributed Surplus</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="font-size: 11px"><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
&#xA0; Convertible Debentures</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="font-size: 11px"><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
&#xA0; issuable shares</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="font-size: 11px"><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
&#xA0; be issued</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="font-size: 11px"><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
&#xA0; Accumulated Deficit&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="font-size: 11px"><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
Comprehensive</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="font-size: 11px"><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
interests &#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="font-size: 11px"><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
Shareholders' Equity &#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></font></div>
</td>
</tr><tr>
<td colspan="2" style="vertical-align:bottom;width:20%;">
<div style="margin-left: 0px; padding-bottom: 2px;"><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;display:inline-block;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 8%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-weight: bold; font-size: 11px;">
&#xA0; &#xA0; #&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 8%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-weight: bold; font-size: 11px;">
&#xA0; $&#xA0; &#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 8%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-weight: bold; font-size: 11px;">
&#xA0; $&#xA0; &#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 8%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-weight: bold; font-size: 11px;">
&#xA0; $&#xA0; &#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 8%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-weight: bold; font-size: 11px;">
&#xA0; $&#xA0; &#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 8%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-weight: bold; font-size: 11px;">
&#xA0; $&#xA0; &#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 8%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-weight: bold; font-size: 11px;">
&#xA0; $&#xA0; &#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 8%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-weight: bold; font-size: 11px;">
&#xA0; $&#xA0; &#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 8%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-weight: bold; font-size: 11px;">
&#xA0; $&#xA0; &#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 8%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-weight: bold; font-size: 11px;">
&#xA0; $&#xA0; &#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:12%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Balance, June 30, 2019</font></font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div style="margin-left:0px;"><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;display:inline-block;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
&#xA0;Note</font></div>
</font><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0; #</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">40,786,228</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">14,636,828&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">5,226,156</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">62,498</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">(19,570,801</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">7,889&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">362,570</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Issuance
of warrants</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-style:italic;font-size:13px;">20</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">631,336</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">631,336</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Issuance
of options</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-style:italic;font-size:13px;">19</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">869,299</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">869,299</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Forfeiture
of warrants</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-style:italic;font-size:13px;">20</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(451,976</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(451,976</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Equity
portion of convertible debentures</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-style:italic;font-size:13px;">17</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">33,816</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">74,989</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">108,805</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Conversion
of convertible debenture</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-style:italic;font-size:13px;">17</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">271,164</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">290,304</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(19,140</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">271,164</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Warrant
portion of promissory note payable</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-style:italic;font-size:13px;">15</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">8,995</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">8,995</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Conversion
of convertible debenture</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-style:italic;font-size:13px;">17</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(36,434</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(36,434</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Equity
portion of convertible debentures</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-style:italic;font-size:13px;">17</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">415,010</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">748,990</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,164,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Interest
on equity portion of convertible debentures</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-style:italic;font-size:13px;">17</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">32,010</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">32,010</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Issuance
of shares for asset acquisition</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-style:italic;font-size:13px;">18</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">12,500,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">2,125,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">2,125,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Contingent
consideration for asset acquisition</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-style:italic;font-size:13px;">11</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,570,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,570,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Shares
issued as part of contingent consideration</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-style:italic;font-size:13px;">18</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">6,000,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,020,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(1,020,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Shares
issued as part of settlement</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-style:italic;font-size:13px;">15</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">181,250</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">72,500</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">72,500</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Shares
to be issued as part of contingent consideration</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-style:italic;font-size:13px;">18</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(510,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">510,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Common
shares issued for private placement</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-style:italic;font-size:13px;">18</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">6,210,190</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,552,548</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,552,548</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Acquisition
of 273 Ontario</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-style:italic;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-style:italic;font-size:13px;">12</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-style:italic;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">720,114</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">720,114</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Deduction
of deferred tax liabilities</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(22,854</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(22,854</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Foreign
currency translation gain</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(49,488</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(49,488</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Net
loss for the year</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div style="padding-bottom: 2px;"><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">(4,588,889</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">(62,011</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">(4,650,900</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Balance, June 30, 2020</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div style="padding-bottom: 2px;"><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">65,948,832</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">19,697,180</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">6,709,782</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">862,913</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">2,040,000</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">510,000</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">(24,159,690</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">(41,599</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">658,103</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:8%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">6,276,689</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="margin-left: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 60px"><font style="font-size: 13px; font-family: Times New Roman">The accompanying
notes are an integral part of these consolidated financial
statements.</font><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<br>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-8</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: -42px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: -42px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Consolidated
Statements of Cash Flows</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the years ended
June 30, 2020, 2019 and 2018</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;(Expressed in
Canadian Dollars)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;font-size:11px;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;font-size:11px;display:inline-block;">
<div><font style="font-weight:bold;font-family:Times New Roman;color:#000;">2020</font></div>
</font><font style="vertical-align:bottom;width:10%;font-size:11px;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;font-size:11px;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;font-size:11px;display:inline-block;">
<div><font style="font-family:Times New Roman;color:#000;">2019</font></div>
</font><font style="vertical-align:bottom;width:10%;font-size:11px;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;font-size:11px;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;font-size:11px;display:inline-block;">
<div><font style="font-family:Times New Roman;color:#000;">2018</font></div>
</font><font style="vertical-align:bottom;width:10%;font-size:11px;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:11px;">&#xA0;</font><font style="text-align: left; color:#000;font-family:Times New Roman;vertical-align:bottom;font-size:11px;display:inline-block;font-weight:bold;width:5%;border-bottom:solid 2px #000000;">$</font><font style="text-align: right; color:#000;font-family:Times New Roman;vertical-align:bottom;font-size:11px;display:inline-block;font-weight:bold;width:75%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:11px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:11px;">&#xA0;</font><font style="text-align: left; color:#000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:11px;">$</font><font style="text-align: right; color:#000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:11px;">&#xA0;</font><font style="text-align: left; color:#000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:11px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:11px;">&#xA0;</font><font style="text-align: left; color:#000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:11px;">$</font><font style="text-align: right; color:#000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:11px;">&#xA0;</font><font style="text-align: left; color:#000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:11px;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Operating activities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Net
loss for the year</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(4,650,900</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(5,836,536</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(4,865,933</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Adjusted
for non-cash items:</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Shares
issued on consulting agreement</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">27,550</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">322,862</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Share
based compensation</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,048,661</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1,413,919</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3,447,415</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Impairment
of promissory note receivable</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">85,114</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Impairment
of equipment</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">107,515</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Amortization
of right-of-use assets</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">92,167</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Depreciation</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">5,768</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">30,529</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">12,770</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Loss
on deposit</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">396,000</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Loss
on settlement of other investment</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">184,440</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Impairment
of assets</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">16,316</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Interest
expense</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">531,545</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">39,215</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Interest
on lease obligation</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">46,171</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Deferred
tax recovery</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(54,349</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Gain
on settlement</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(51,023</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Accretion
expense</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">249,518</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">24,680</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">Convertible
debentures issued for settlement of fees</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">250,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">Share issued on
settlement of fees</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">140,680</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Transaction
costs</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(7,591</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; font-style: italic; color: #000000; font-size: 13px; font-family: Times New Roman">
Changes in non-cash working capital items:</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Prepaid
expenses and deposits</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(188,674</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(102,235</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(318,903</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Inventory</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(118,682</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Payment
of lease liabilities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(91,034</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Harmonized
sales tax receivable</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(27,118</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 24px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Accounts
payable and accrued liabilities</font></div>
</div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,405,022</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">1,051,065</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">231,906</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Cash
used in operating activities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(1,037,942</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">(2,936,734</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">(1,177,474</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Investing activities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Purchase
of property and equipment</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(145,587</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(2,500,373</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(151,188</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Investment
in OR Operations</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(526,720</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Advances
to OR Operations</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(610,705</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Investment
in related party</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(500,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 36px"><font style="font-size: 13px; font-family: Times New Roman">Promissory note
receivable</font></div>
</div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">(69,312</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">(15,802</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Cash
used in investing activities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(145,587</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">(3,069,685</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">(1,304,415</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Financing activities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Advances
from (repayments to) related parties</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(117,081</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Issuance
of mortgage payable</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">34,929</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">654,350</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Debenture
unit deposits</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">594,889</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">(Repayments)
issuance of promissory notes payable</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(180,043</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1,108,627</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Issuance
of convertible debentures</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">457,111</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">350,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Proceeds
from the exercise of warrants</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">112,500</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Repayments
of related party notes payable</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(43,681</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 24px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Proceeds
from issuance of common shares</font></div>
</div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,411,680</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">5,892,664</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Proceeds
from financing activities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,723,677</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">2,820,366</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">5,731,902</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Effect
of exchange rate changes on cash</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">35,742</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">7,205</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">684</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Net increase (decrease) in cash and cash equivalents</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">575,890</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(3,178,848</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3,250,697</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Cash and cash equivalents, beginning of year</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">71,849</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">3,250,697</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Cash and cash equivalents, end of year</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">647,739</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">71,849</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">3,250,697</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The accompanying
notes are an integral part of these consolidated financial
statements.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-9</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Notes to the
Consolidated Financial Statements</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the years ended
June 30, 2020, 2019 and 2018</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars)</font></div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">1.</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">NATURE
OF OPERATIONS AND GOING CONCERN</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><a name="_Hlk526110311">&#xA0;</a>CordovaCann Corp.
(formerly LiveReel Media Corporation) (the &#x201C;Company&#x201D; or
&#x201C;CordovaCann&#x201D;) is a Canadian-domiciled company focused
on building a leading, diversified cannabis products business
across multiple jurisdictions including Canada and the United
States. CordovaCann primarily provides services and investment
capital to the processing, production and retail vertical markets
of the cannabis industry. On January 3, 2018, the Company changed
its name from LiveReel Media Corporation to CordovaCann Corp. The
Company&#x2019;s principal address is 217 Queen Street West, Suite
401, Toronto, Ontario, M5V 0R2.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company&#x2019;s
common shares currently trade on the Canadian Securities Exchange
under the symbol &#x201C;CDVA&#x201D; and in the United States on the
OTCQB under the symbol &#x201C;LVRLF&#x201D;.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">These consolidated
financial statements of the Company have been prepared in
accordance with International Financial Reporting Standards
(&#x201C;IFRS&#x201D;) as promulgated by the International Accounting
Standards Board (&#x201C;IASB&#x201D;) on a going concern basis which
presumes the realization of assets and discharge of liabilities in
the normal course of business for the foreseeable future. There is
substantial doubt about the Company's ability to continue as a
going concern as the Company incurred a comprehensive loss of
$4,700,388 (June 30, 2019 &#x2013; $5,829,331) during the year ended
June 30, 2020 and has a total accumulated deficit of $24,182,178
(June 30, 2019 &#x2013; $19,570,801) as at June 30, 2020. The
Company&#x2019;s ability to continue as a going concern is dependent
upon its ability to access sufficient capital until it has
profitable operations and it raises a material concern. To this
point, all operational activities and overhead costs have been
funded through equity issuances, debt issuances and related party
advances.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company
believes that continued funding from equity and debt issuances will
provide sufficient cash flow for it to continue as a going concern
in its present form until its operations become profitable and cash
flow positive, however, there can be no assurances that the Company
will achieve this. Accordingly, these consolidated financial
statements do not include any adjustments related to the
recoverability and classification of recorded asset amounts or the
amount and classification of liabilities or any other adjustments
that might be necessary should the Company be unable to continue as
a going concern.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">2.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">BASIS
OF PREPARATION</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">(a)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Statement
of Compliance</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">These consolidated
financial statements of the Company and its subsidiaries were
prepared using accounting policies consistent with IFRS as issued
by the IASB and interpretations of the IFRS Interpretations
Committee (&#x201C;IFRIC&#x201D;).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">These consolidated
financial statements were authorized for issue by the Board of
Directors on October 28, 2020.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">(b)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Basis
of Presentation</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">These consolidated
financial statements have been prepared on a historical cost basis,
except where otherwise disclosed. Historical cost is based on the
fair value of the consideration given in exchange for assets. In
addition, these consolidated financial statements have been
prepared using the accrual basis of accounting, except for cash
flow information.</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<br>
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-10</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Notes to the
Consolidated Financial Statements</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the years ended
June 30, 2020, 2019 and 2018</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars)</font></div>
</div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font>&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold">2.</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">BASIS
OF PREPARATION (continued)</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">(c)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Functional
and Presentation Currency</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">These consolidated
financial statements are presented in Canadian dollars, which is
the Company&#x2019;s presentation currency.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Translation of
foreign-currency transactions</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Transactions in
foreign currencies are translated to the respective functional
currencies of each subsidiary at exchange rates at the dates of the
transactions. Monetary assets and liabilities denominated in
foreign currencies at the reporting date are translated to the
functional currency at the exchange rate at that date. The foreign
currency gain or loss resulting from the settlement of such
transactions and from the translation at the reporting date of
monetary assets and liabilities denominated in foreign currencies
are recognized in profit or loss.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Translation of
financial statements of subsidiaries</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">In translating the
financial statements of the Company's foreign subsidiaries from
their functional currencies into the Company's presentation
currency of Canadian dollars, statement of financial position
accounts are translated using the closing exchange rate in effect
at the statement of financial position date and income and expense
accounts are translated using an average exchange rate prevailing
during the reporting period. Adjustments resulting from the
translation, if any, are included in accumulated other
comprehensive income (loss) in shareholders' equity
(deficiency).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">(d)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Use
of Estimates and Judgements</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The preparation of
these consolidated financial statements in accordance with IFRS
requires management to make judgements, estimates and assumptions
that affect the application of accounting policies and reported
amounts of assets and liabilities at the date of the consolidated
financial statements and reported amounts of expenses during the
reporting period. Actual outcomes could differ from these
estimates. These consolidated financial statements include
estimates, which, by their nature, are uncertain. The impacts of
such estimates are pervasive throughout these consolidated
financial statements, and may require accounting adjustments based
on future occurrences. The estimates and underlying assumptions are
reviewed on a regular basis. Revisions to accounting estimates are
recognized in the period in which the estimate is revised and in
any future periods affected. The key assumptions concerning the
future, and other key sources of estimation uncertainty as of the
date of the statement of financial position that have a significant
risk of causing material adjustment to the carrying amounts of
assets and liabilities within the next fiscal year arise in
connection with the valuation of financial instruments, valuation
of acquired assets, fair value of share purchase warrants,
share-based payments and deferred tax assets.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">(e)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Basis
of Consolidation</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">These consolidated
financial statements include those of the Company and of the
entities controlled by the Company (the
&#x201C;subsidiaries&#x201D;). Control over an investee is achieved
when the Company has power over the investee, has exposure or
rights to variable returns from its involvement with the investee
and</font></div>
<br>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-11</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Notes to the
Consolidated Financial Statements</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the years ended
June 30, 2020, 2019 and 2018</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars)</font></div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">2.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">BASIS
OF PREPARATION (continued)</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">(e)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Basis
of Consolidation</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">has the ability to
use its power over the investee to affect the amount of its
returns.. The financial statements of subsidiaries are included in
the consolidated financial statements from the date that control
commences until the date that control ceases.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The following table
lists the Company&#x2019;s subsidiaries and their functional
currencies:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr>
<td colspan="2" style="vertical-align: bottom; width: 34%; border-top: solid 1px #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-weight: bold; font-size: 13px; font-family: Times New Roman">
Name of Subsidaries</font></div>
</td>
<td style="vertical-align: bottom; width: 17%; border-top: solid 1px #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Place of Incorporation</font></div>
</td>
<td style="vertical-align: bottom; width: 15%; border-top: solid 1px #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Proportion of Ownership Interest</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-top: solid 1px #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Direct /Indirect</font></div>
</td>
<td style="vertical-align: bottom; width: 22%; border-top: solid 1px #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Currency</font></div>
</td>
</tr><tr>
<td colspan="2" style="vertical-align: bottom">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 17%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 15%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 22%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="2" style="vertical-align: bottom; width: 34%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">CordovaCann
Holdings Canada, Inc.</font></div>
</td>
<td style="vertical-align: bottom; width: 17%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Ontario,
Canada</font></div>
</td>
<td style="vertical-align: bottom; width: 15%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">100%</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Direct</font></div>
</td>
<td style="vertical-align: bottom; width: 22%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Canadian
Dollars</font></div>
</td>
</tr><tr>
<td colspan="2" style="vertical-align: bottom; width: 34%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Cordova
Investments Canada, Inc.</font></div>
</td>
<td style="vertical-align: bottom; width: 17%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Ontario,
Canada</font></div>
</td>
<td style="vertical-align: bottom; width: 15%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">100%</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Direct</font></div>
</td>
<td style="vertical-align: bottom; width: 22%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Canadian
Dollars</font></div>
</td>
</tr><tr>
<td colspan="2" style="vertical-align: bottom; width: 34%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2734158
Ontario Inc.</font></div>
</td>
<td style="vertical-align: bottom; width: 17%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Ontario,
Canada</font></div>
</td>
<td style="vertical-align: bottom; width: 15%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">50.1%</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Indirect</font></div>
</td>
<td style="vertical-align: bottom; width: 22%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Canadian
Dollars</font></div>
</td>
</tr><tr>
<td colspan="2" style="vertical-align: bottom; width: 34%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">CordovaCann
Holdings, Inc.</font></div>
</td>
<td style="vertical-align: bottom; width: 17%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Delaware,
USA</font></div>
</td>
<td style="vertical-align: bottom; width: 15%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">100%</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Direct</font></div>
</td>
<td style="vertical-align: bottom; width: 22%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Canadian
Dollars</font></div>
</td>
</tr><tr>
<td colspan="2" style="vertical-align: bottom; width: 34%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Cordova
CO Holdings, LLC</font></div>
</td>
<td style="vertical-align: bottom; width: 17%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Colorado,
USA</font></div>
</td>
<td style="vertical-align: bottom; width: 15%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">100%</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Indirect</font></div>
</td>
<td style="vertical-align: bottom; width: 22%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">United States
Dollars</font></div>
</td>
</tr><tr>
<td colspan="2" style="vertical-align: bottom; width: 34%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Cordova
OR Holdings, LLC</font></div>
</td>
<td style="vertical-align: bottom; width: 17%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Oregon,
USA</font></div>
</td>
<td style="vertical-align: bottom; width: 15%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">100%</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Indirect</font></div>
</td>
<td style="vertical-align: bottom; width: 22%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">United States
Dollars</font></div>
</td>
</tr><tr>
<td colspan="2" style="vertical-align: bottom; width: 34%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">CDVA
Enterprises, LLC</font></div>
</td>
<td style="vertical-align: bottom; width: 17%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">California,
USA</font></div>
</td>
<td style="vertical-align: bottom; width: 15%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">100%</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Indirect</font></div>
</td>
<td style="vertical-align: bottom; width: 22%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">United States
Dollars</font></div>
</td>
</tr><tr>
<td colspan="2" style="vertical-align: bottom; width: 34%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Cordova
CA Holdings, LLC</font></div>
</td>
<td style="vertical-align: bottom; width: 17%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">California,
USA</font></div>
</td>
<td style="vertical-align: bottom; width: 15%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">100%</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Indirect</font></div>
</td>
<td style="vertical-align: bottom; width: 22%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">United States
Dollars</font></div>
</td>
</tr><tr>
<td colspan="2" style="vertical-align: bottom; width: 34%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Cordova
OR Operations, LLC</font></div>
</td>
<td style="vertical-align: bottom; width: 17%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Oregon,
USA</font></div>
</td>
<td style="vertical-align: bottom; width: 15%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">100%</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Indirect</font></div>
</td>
<td style="vertical-align: bottom; width: 22%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">United States
Dollars</font></div>
</td>
</tr><tr>
<td colspan="2" style="vertical-align: bottom; width: 34%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Cannabilt
Farms, LLC</font></div>
</td>
<td style="vertical-align: bottom; width: 17%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Oregon,
USA</font></div>
</td>
<td style="vertical-align: bottom; width: 15%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">100%</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Indirect</font></div>
</td>
<td style="vertical-align: bottom; width: 22%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">United States
Dollars</font></div>
</td>
</tr><tr>
<td colspan="2" style="vertical-align: bottom; width: 34%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Cannabilt
OR Retail, LLC</font></div>
</td>
<td style="vertical-align: bottom; width: 17%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Oregon,
USA</font></div>
</td>
<td style="vertical-align: bottom; width: 15%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">100%</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Indirect</font></div>
</td>
<td style="vertical-align: bottom; width: 22%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">United States
Dollars</font></div>
</td>
</tr><tr>
<td colspan="2" style="vertical-align: bottom; width: 34%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Cannabilt
Holdings, Inc.</font></div>
</td>
<td style="vertical-align: bottom; width: 17%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Oregon,
USA</font></div>
</td>
<td style="vertical-align: bottom; width: 15%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">100%</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Indirect</font></div>
</td>
<td style="vertical-align: bottom; width: 22%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">United States
Dollars</font></div>
</td>
</tr><tr>
<td colspan="2" style="vertical-align: bottom; width: 34%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Future
Processing, LLC</font></div>
</td>
<td style="vertical-align: bottom; width: 17%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Oregon,
USA</font></div>
</td>
<td style="vertical-align: bottom; width: 15%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">100%</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Indirect</font></div>
</td>
<td style="vertical-align: bottom; width: 22%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">United States
Dollars</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The significant
accounting policies used in the preparation of these consolidated
financial statements are described below.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Cash
and cash equivalents</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Cash consists of
bank balances and cash held in trust. Cash equivalents consist of
short-term deposits with original maturities of three months or
less. As at June 30, 2020 and June 30, 2019, there were no cash
equivalents.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<br>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-12</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Notes to the
Consolidated Financial Statements</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the years ended
June 30, 2020, 2019 and 2018</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars)</font></div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Related
party transactions</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Parties are
considered to be related if one party has the ability, directly or
indirectly, to control the other party or exercise significant
influence over the other party in making financial and operating
policy decisions. Parties are also considered to be related if they
are subject to common control. Related parties may be individuals
or corporate entities. A transaction is considered to be a related
party transaction when there is a transfer of resources or
obligations between related parties.</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">3.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">SIGNIFICANT
ACCOUNTING POLICIES (continued)</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Share-based
payments</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Share-based
payments to employees are measured at the fair value of the
instruments issued and recognized over the expected service
periods. Share-based payments to non-employees are measured at the
fair value of goods or services received or the fair value of the
equity instruments issued, if it is determined the fair value of
the goods or services cannot be reliably measured, and are recorded
at the date the goods or services are received. The corresponding
amount is recorded to the stock options reserve. The fair value of
options is determined using the Black-Scholes Option Pricing Model
which incorporates all market vesting conditions. The number of
shares and options expected to vest is reviewed and adjusted at the
end of each reporting period such that the amount recognized for
services received as consideration for the equity instruments
granted shall be based on the number of equity instruments that
will eventually vest.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Compound
financial instruments</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Compound financial
instruments issued by the Company are comprised of convertible
debentures that can be converted into common shares and promissory
notes payable attached with warrants. The Compound financial
instruments are segregated into their debt and equity components or
derivative liability components at the date of issue, in accordance
with the substance of the contractual agreements. The conversion
feature of the convertible promissory notes is presumed to be
classified as a derivative financial liability unless it meets all
the criteria to recognize as equity instrument. One of criteria is
that the conversion option exchanges a fixed amount of shares for a
fixed amount of cash ("fixed for fixed").</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">If the conversion
feature meets the fixed for fixed criteria, the conversion option
will be classified as equity components. Equity instruments are
instruments that evidence a residual interest in the assets of an
entity after deducting all of its liabilities. Therefore, when the
initial carrying amount of the compound financial instruments is
allocated to its equity and liability components, the equity
component is assigned the residual amount after deducting from the
fair value of the instrument as a whole the amount separately
determined for the liability component. The sum of the carrying
amounts assigned to the liability and equity components on initial
recognition is always equal to the fair value that would be
ascribed to the instrument as a whole. No gain or loss arises from
initially recognizing the components of the instrument
separately.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">If the conversion
feature does not meet the fixed for fixed criteria, the conversion
option will be recorded as derivative financial liability, which
must be separately accounted for at fair value on initial
recognition. The carrying amount of the debt component, on initial
recognition, is recalculated as the difference between the proceeds
of the convertible promissory notes as a whole and the fair value
of the derivative financial liabilities. Subsequent to initial
recognition, the derivative financial liability is re-measured at
fair value at the end of each reporting period with changes in fair
value recognized in the statement of operation for each reporting
period, while the debt component is accreted to the face value of
the debt using the effective interest method.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Transaction costs
are allocated to the debt and equity components in proportion to
the allocation of the proceeds on initial recognition. Transaction
costs allocated to equity components will be accounted for as a
deduction from equity, net of any related income tax benefit; cost
allocated to the derivative financial liability component are
expensed; and cost allocated to the debt component are offset
against the carrying amount of the liability and included in the
determination of the effective interest rate.</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<br>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-13</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-weight: bold">CordovaCann Corp</font>.<br>
(formerly LiveReel Media Corporation)<br>
Notes to the Consolidated Financial Statements<br>
For the years ended June 30, 2020, 2019 and 2018<br>
(Expressed in Canadian Dollars)</font></div>
&#xA0; </div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">3.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">SIGNIFICANT
ACCOUNTING POLICIES (continued)</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Compound
financial instruments (continued)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The liability
component of a compound financial instrument is recognized
initially at the fair value of a similar liability that does not
have an equity conversion option. The equity component is
recognized initially as the difference between the fair value of
the computed financial instrument as a whole and the fair value of
the liability component. Any directly attributable transaction
costs are allocated to the liability and equity components in
proportion to their initial carrying amounts. Subsequent to initial
recognition, the liability component of a compound financial
instrument is measured at amortized cost using the effective
interest method. The equity component of a compound financial
instrument is not re-measured subsequent to initial recognition
except on conversion or upon expiration, when the carrying value of
the equity portion is transferred to common shares or contributed
surplus.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Financial
instruments</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company
recognizes a financial asset or a financial liability when it
becomes a party to the contractual provisions of the instrument.
Under IFRS 9, such financial assets or financial liabilities are
initially recognized at fair value and the subsequent measurement
depends on their classification.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Financial assets</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">IFRS 9 uses a
single approach to determine whether a financial asset is
classified and measured at amortized cost or at fair value. The
classification and measurement of financial assets is based on the
Company&#x2019;s business models for managing its financial assets
and whether the contractual cash flows represent solely payments of
principal and interest (&#x201C;SPPI&#x201D;). Financial assets are
initially measured at fair value and are subsequently measured at
either (i) amortized cost; (ii) fair value through other
comprehensive income (&#x201C;FVTOCI&#x201D;); or (iii) at fair value
through profit or loss (&#x201C;FVTPL&#x201D;).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px;"><font style="font-size: 13px; font-family: Times New Roman">Amortized cost -
Financial assets classified and measured at amortized cost are
those assets that are held within a business model whose objective
is to hold financial assets in order to collect contractual cash
flows, and the contractual terms of the financial asset give rise
to cash flows that are SPPI. Financial assets classified at
amortized cost are measured using the effective interest
method.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Fair value through
other comprehensive income - Financial assets classified and
measured at FVTOCI are those assets that are held within a business
model whose objective is achieved by both collecting contractual
cash flows and selling financial assets, and the contractual terms
of the financial asset give rise to cash flows that are SPPI. This
classification includes certain equity instruments where IFRS 9
allows an entity to make an irrevocable election to classify the
equity instruments, on an instrument-by-instrument basis, that
would otherwise be measured at FVTPL to present subsequent changes
in FVTOCI.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">FVTPL - Financial
assets classified and measured at FVTPL are those assets that do
not meet the criteria to be classified at amortized cost or at
FVTOCI. This category includes debt instruments whose cash flow
characteristics are not SPPI or are not held within a business
model whose objective is either to collect contractual cash flows,
or to both collect contractual cash flows and sell the financial
asset.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font><font>&#xA0;
<font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman"><br>
</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-14</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-weight: bold">CordovaCann Corp</font>.<br>
(formerly LiveReel Media Corporation)<br>
Notes to the Consolidated Financial Statements<br>
For the years ended June 30, 2020, 2019 and 2018<br>
(Expressed in Canadian Dollars)</font></div>
&#xA0; </div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">3.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">SIGNIFICANT
ACCOUNTING POLICIES (continued)</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Financial
instruments (continued)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Financial liabilities</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Under IFRS 9,
financial liabilities are primarily classified at amortized cost
with limited exceptions. Financial liabilities are derecognized
when the obligation specified in the contract is discharged,
cancelled or expires. The Company's accounting policy for each
category is as follows:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">FVTPL - This
category comprises derivatives, liabilities acquired or incurred
principally for the purpose of selling or repurchasing it in the
near term, and certain financial liabilities that were designated
at FVTPL from inception.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Amortized cost -
Financial liabilities are recognized initially at fair value net of
directly attributable transaction costs. They are subsequently
recognized at amortized cost using effective interest method with
interest expense recognized on an effective yield
basis.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Financial assets
and liabilities are offset and the net amount is presented in the
statement of financial position when the Company has a legal right
to offset the amounts and it intends to either settle on a net
basis or realize the asset and settle the liability
simultaneously.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font>&#xA0; <font style="font-size: 13px; font-family: Times New Roman"><br>
</font></font></div>
<br>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-15</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-weight: bold">CordovaCann Corp</font>.<br>
(formerly LiveReel Media Corporation)<br>
Notes to the Consolidated Financial Statements<br>
For the years ended June 30, 2020, 2019 and 2018<br>
(Expressed in Canadian Dollars)</font></div>
&#xA0; </div>
<div style="text-align: left; margin-left: 0px; margin-right: 7px; text-indent: 0px;"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">3.&#xA0;
SIGNIFICANT ACCOUNTING POLICIES (continued)</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font>&#xA0;
</div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The following table
summarizes the classification of the Company&#x2019;s financial
instruments:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><br></font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;margin-left: 0px; margin-right: 0px; width: 100%;">
<tr>
<td rowspan="1" style="vertical-align: bottom; width: 11%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 27%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 4%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 9%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 25%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 23%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
IFRS 9</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 27%; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 4%; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 9%; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 25%; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 23%; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Classification</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 11%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 27%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 4%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 9%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 25%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 23%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="2" style="vertical-align: bottom; width: 39%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-style: italic; color: #000000; font-size: 13px; font-family: Times New Roman">
Financial assets</font></div>
</td>
<td style="vertical-align: bottom; width: 4%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 9%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 25%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 23%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #cceeff">
<td colspan="2" style="vertical-align: bottom; width: 39%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Cash
and cash equivalents</font></div>
</td>
<td style="vertical-align: bottom; width: 4%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 9%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 25%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 23%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Amortized
cost</font></div>
</td>
</tr><tr>
<td colspan="2" style="vertical-align: bottom; width: 39%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Promissory
note receivable</font></div>
</td>
<td style="vertical-align: bottom; width: 4%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 9%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 25%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 23%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Amortized
cost</font></div>
</td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 11%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Other
deposit</font></div>
</td>
<td style="vertical-align: bottom; width: 27%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 4%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 9%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 25%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 23%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Amortized
cost</font></div>
</td>
</tr><tr>
<td colspan="2" style="vertical-align: bottom; width: 39%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Other
investment</font></div>
</td>
<td style="vertical-align: bottom; width: 4%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 9%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 25%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 23%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Amortized
cost<br></font></div>
</td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 11%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 27%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 4%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 9%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 25%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 23%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="2" style="vertical-align: bottom; width: 39%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-style: italic; color: #000000; font-size: 13px; font-family: Times New Roman">
Financial liabilities</font></div>
</td>
<td style="vertical-align: bottom; width: 4%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 9%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 25%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 23%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #cceeff">
<td colspan="2" style="vertical-align: bottom; width: 39%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Accounts
payable and accrued liabilities</font></div>
</td>
<td style="vertical-align: bottom; width: 4%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 9%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 25%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 23%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Amortized
cost</font></div>
</td>
</tr><tr>
<td colspan="2" style="vertical-align: bottom; width: 39%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Convertible
debentures</font></div>
</td>
<td style="vertical-align: bottom; width: 4%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 9%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 25%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 23%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Amortized
cost</font></div>
</td>
</tr><tr style="background-color: #cceeff">
<td colspan="2" style="vertical-align: bottom; width: 39%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Mortgage
payable</font></div>
</td>
<td style="vertical-align: bottom; width: 4%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 9%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 25%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 23%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Amortized
cost</font></div>
</td>
</tr><tr>
<td colspan="2" style="vertical-align: bottom; width: 39%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Debenture
unit deposits</font></div>
</td>
<td style="vertical-align: bottom; width: 4%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 9%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 25%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 23%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Amortized
cost</font></div>
</td>
</tr><tr style="background-color: #cceeff">
<td colspan="2" style="vertical-align: bottom; width: 39%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Promissory
notes payable</font></div>
</td>
<td style="vertical-align: bottom; width: 4%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 9%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 25%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 23%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Amortized
cost</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 27%; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 4%; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 9%; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 25%; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 23%; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The adoption of
IFRS 9 did not have an impact on the Company&#x2019;s classification
and measurement of financial assets and liabilities. On adoption of
IFRS 9 on July 1, 2018, there was no change in the carrying value
of the financial instruments on transition from IAS 39. IFRS 9 uses
an expected credit loss impairment model as</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-16</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-weight: bold">CordovaCann Corp</font>.<br>
(formerly LiveReel Media Corporation)<br>
Notes to the Consolidated Financial Statements<br>
For the years ended June 30, 2020, 2019 and 2018<br>
(Expressed in Canadian Dollars)</font></div>
&#xA0; </div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">3.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">SIGNIFICANT
ACCOUNTING POLICIES (continued)</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Financial
instruments (continued)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">opposed to an
incurred credit loss model under IAS 39. The impairment model is
applicable to financial assets measured at amortized cost where any
expected future credit losses are provided for, irrespective of
whether a loss event has occurred as at the reporting date. For
accounts receivable excluding taxes receivable, the Company
utilized a provision matrix, as permitted under the simplified
approach, and has measured the expected credit losses based on
lifetime expected credit losses taking into consideration
historical credit loss experience and financial factors specific to
the debtors and other factors. The carrying amount of
trade</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">receivables is
reduced for any expected credit losses through the use of an
allowance account. Changes in the carrying amount of the allowance
account are recognized in the statement of comprehensive income. At
the point when the Company is satisfied that no recovery of the
amount owing is possible, the amount is considered not recoverable
and the financial asset is written off. The adoption of the new
expected credit loss impairment model had a negligible impact on
the carrying amounts of financial assets at amortized
cost.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Impairment
of long-lived assets</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Long-lived assets,
including property, plant and equipment and intangible assets are
reviewed for impairment at each statement of financial position
date or whenever events or changes in circumstances indicate that
the carrying amount of an asset exceeds its recoverable amount. For
the purpose of impairment testing, assets that cannot be tested
individually are grouped together into the smallest group of assets
that generates cash inflows from continuing use that are largely
independent of the cash inflows of other assets or groups of assets
(the cash-generating unit, or "CGU").</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The recoverable
amount of an asset or a CGU is the higher of its fair value, less
costs to sell, and its value in use. If the carrying amount of an
asset exceeds its recoverable amount, an impairment charge is
recognized immediately in profit or loss equal to the amount by
which the carrying amount exceeds the recoverable amount. Where an
impairment loss subsequently reverses, the carrying amount of the
asset is increased to the lesser of the revised estimate of
recoverable amount, and the carrying amount that would have been
recorded had no impairment loss been recognized
previously.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Inventories</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Inventories for
finished cannabis goods are initially valued at cost, and
subsequently at the lower of cost and net realizable value. Cost is
determined using the average costing method. Net realizable value
is determined as the estimated selling price in the ordinary course
of business less the estimated costs of completion and the
estimated costs necessary to make the sale. The Company reviews
inventory for obsolete, redundant and slow-moving goods and any
such inventories identified are written down to net realizable
value.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Revenue</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Revenue from the
sale of cannabis goods is recognized when the significant risks and
rewards of ownership have been transferred, generally at the date
of transfer of ownership title. Revenue from the sale of goods is
measured at the fair value of the consideration
received.</font></div>
<br>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-17</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-weight: bold">CordovaCann Corp</font>.<br>
(formerly LiveReel Media Corporation)<br>
Notes to the Consolidated Financial Statements<br>
For the years ended June 30, 2020, 2019 and 2018<br>
(Expressed in Canadian Dollars)</font></div>
&#xA0; </div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">3.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">SIGNIFICANT
ACCOUNTING POLICIES (continued)</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Equity</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Common shares are
classified as equity. Transaction costs directly attributable to
the issue of common shares and share purchase options are
recognized as a deduction from equity, net of any tax effects. When
share capital recognized as equity is repurchased, the amount of
the consideration paid, including directly attributable costs, is
recognized as a deduction from total equity.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Property
and equipment, net</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Equipment is stated
at cost, less accumulated depreciation and any accumulated
impairment losses. The gain or loss arising on the disposal or
retirement of an item of equipment is determined as the difference
between the sales proceeds and the carrying amount of the asset and
is recognized in the statement of operations. Expenditures to
replace a component of an item of equipment that is accounted for
separately are capitalized and the existing carrying amount of the
component written off. Other subsequent expenditures are
capitalized if future economic benefits will arise from the
expenditure. All other expenditures, including repair and
maintenance, are recognized in the statement of operations as
incurred.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Depreciation is
charged to the income statement based on the cost, less estimated
residual value, of the asset on a straight-line basis over the
estimated useful life. Depreciation commences when the assets are
available for use. The estimated useful lives are as
follows:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;margin-left: 0px; margin-right: 0px; width: 100%;">
<tr>
<td rowspan="1" style="vertical-align: top; width: 35%; padding-bottom: 2px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: top; width: 27%; padding-bottom: 2px; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Method:</font></div>
</td>
<td rowspan="1" style="vertical-align: top; width: 38%; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Rate:</font></div>
</td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: top; width: 35%">
<div style="text-align: left; margin-left: 0px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Equipment</font></div>
</td>
<td style="vertical-align: top; width: 27%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Straight-line</font></div>
</td>
<td style="vertical-align: top; width: 38%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">5
years</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 35%">
<div style="text-align: left; margin-left: 0px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Furnitures and
fixtures</font></div>
</td>
<td style="vertical-align: top; width: 27%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Straight-line</font></div>
</td>
<td style="vertical-align: top; width: 38%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">5
years</font></div>
</td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: top; width: 35%">
<div style="text-align: left; margin-left: 0px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Leasehold
improvements</font></div>
</td>
<td style="vertical-align: top; width: 27%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Straight-line</font></div>
</td>
<td style="vertical-align: top; width: 38%">
<div style="text-align: left; margin-left: 0px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Over the lease
term</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 35%">
<div style="text-align: left; margin-left: 0px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Computer
equipment</font></div>
</td>
<td style="vertical-align: top; width: 27%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Straight-line</font></div>
</td>
<td style="vertical-align: top; width: 38%">
<div style="text-align: left; margin-left: 0px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">2
years</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Property and
equipment, excluding land, not yet ready for use are not amortized
until they are available for use.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Loss
per share</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Basic loss per
share is calculated by dividing net loss by the weighted average
number of common shares outstanding during the period. Diluted loss
per share reflects the dilution that would occur if outstanding
stock options and share purchase warrants were exercised or
converted into common shares using the treasury stock method and
are calculated by dividing net loss applicable to common shares by
the sum of the weighted average number of common shares outstanding
and all additional common shares that would have been outstanding
if</font> <font style="font-size: 13px; font-family: Times New Roman">potentially
dilutive common shares had been issued.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The inclusion of
the Company&#x2019;s stock options and share purchase warrants in
the computation of diluted loss per share would have an
anti-dilutive effect on loss per share and are therefore excluding
from the computation. Consequently, there is no difference between
basic loss per share and diluted loss per share.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-18</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-weight: bold">CordovaCann Corp</font>.<br>
(formerly LiveReel Media Corporation)<br>
Notes to the Consolidated Financial Statements<br>
For the years ended June 30, 2020, 2019 and 2018<br>
(Expressed in Canadian Dollars)</font></div>
<font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">3.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">SIGNIFICANT
ACCOUNTING POLICIES (continued)</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Business
combinations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">A business
combination is a transaction or event in which an acquirer obtains
control of one or more businesses and is accounted for using the
acquisition method. The total consideration paid for the
acquisition is the aggregate of the fair values of assets given,
liabilities incurred or assumed, and equity instruments issued in
exchange for control of the acquiree at the acquisition date. The
acquisition date is the date where the Company obtains control of
the acquiree.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The identifiable
assets acquired, and liabilities assumed are recognized at their
acquisition date fair values, except for deferred taxes and
share-based payment awards where IFRS provides exceptions to
recording the amounts at fair value. Acquisition costs are expensed
in statement of operations and comprehensive income (loss).
Contingent consideration, if any, is measured at its acquisition
date fair value and included as part of the consideration
transferred in a business combination.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Contingent
consideration that is classified as equity is not remeasured at
subsequent reporting dates and its subsequent settlement is
accounted for within equity. Contingent consideration that is
classified as an asset or a liability is remeasured at subsequent
reporting dates with the corresponding gain or loss being
recognized in profit or loss.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Non-controlling
interest in the acquiree, if any, is recognized either at fair
value or at the non-controlling interest&#x2019;s proportionate
share of the acquiree&#x2019;s net assets, determined on an
acquisition-by-acquisition basis. For each acquisition, the excess
of total consideration, the fair value of previously held equity
interest prior to obtaining control and the non-controlling
interest in the acquiree, over the fair value of the identifiable
net assets acquired or net liabilities assumed, is recorded as
goodwill. Certain fair values may be estimated at the acquisition
date pending confirmation or completion of the valuation process.
Where provisional values are used in accounting for a business
combination, they may be adjusted retrospectively in subsequent
periods. The measurement period is the period from the acquisition
date to the date complete information about facts and circumstances
that existed as of the acquisition date is received. However, the
measurement period does not exceed one year from the acquisition
date</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Goodwill</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Goodwill is
initially measured at cost and is calculated as the excess of the
purchase price for an acquired business over the fair value of
acquired net identifiable assets and liabilities and is allocated
to the cash-generating units (&#x201C;CGU&#x201D;) to which it
relates. Goodwill is not amortized but is evaluated for impairment
against the carrying amount of the CGU annually or more often if
events or circumstances indicate that there may be an impairment.
The carrying amount of a CGU includes the carrying amount of
assets, liabilities and goodwill allocated to the CGU. If the
recoverable amount is less than the carrying value, the impairment
loss is first allocated to reduce the carrying amount of any
goodwill allocated to the CGU and then to the other non-financial
assets of the CGU proportionately based on the carrying amount of
each asset. Any impairment loss is charged to income in the period
in which the impairment is identified. Goodwill is stated at cost
less accumulated impairment losses. Subsequent reversals of
goodwill impairment are prohibited.</font></div>
<br>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
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<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-19</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-weight: bold">CordovaCann Corp</font>.<br>
(formerly LiveReel Media Corporation)<br>
Notes to the Consolidated Financial Statements<br>
For the years ended June 30, 2020, 2019 and 2018<br>
(Expressed in Canadian Dollars)</font></div>
&#xA0; </div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">3.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">SIGNIFICANT
ACCOUNTING POLICIES (continued)</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Intangible
assets</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Intangible assets
acquired are measured on initial recognition at cost. The cost of
an intangible asset acquired in a business combination is the fair
value at the date of acquisition. The useful lives of intangible
assets are assessed as either finite or indefinite. Intangible
assets with finite lives are amortized over the useful economic
life and assessed for impairment whenever there is an indication
that the intangible asset may be impaired. The amortization expense
on intangible assets with finite lives is recognised in the
consolidated statement of operations and comprehensive loss.
Intangible assets with indefinite useful lives are not amortized,
but are tested for impairment annually or more frequently when
circumstances indicate that the carrying value may not be
recoverable.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr>
<td style="vertical-align: bottom; width: 40%; border-top: solid 2px #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Asset
type</font></font></div>
</td>
<td style="vertical-align: bottom; width: 27%; border-top: solid 2px #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Amortization
method</font></font></div>
</td>
<td style="vertical-align: bottom; width: 32%; border-top: solid 2px #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Amortization
term</font></font></div>
</td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 40%">
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Intellectual
Property - Licenses</font></div>
</td>
<td style="vertical-align: bottom; width: 27%">
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Straight-line</font></div>
</td>
<td style="vertical-align: bottom; width: 32%">
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">5
years</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 40%">
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Brand
Name</font></div>
</td>
<td style="vertical-align: bottom; width: 27%">
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">N/A</font></div>
</td>
<td style="vertical-align: bottom; width: 32%">
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Indefinite</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Estimated useful
lives of intangible assets are shorter of the economic life and the
year the right is legally enforceable. The estimated useful life,
residual value and amortization method are reviewed at the end of
each reporting period, with the effect of any changes in estimate
being accounted for on a prospective basis.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Following initial
recognition, intangible assets with indefinite useful lives are
carried at cost less any accumulated impairment
losses.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Income
taxes</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Income tax expense
is comprised of current and deferred tax. Income tax expense is
recognized in profit or loss except to the extent that it relates
to items recognized in equity, in which case it is recognized in
equity. Current income tax is the expected tax payable on the
taxable income for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustments to
tax payable in respect of previous years.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Deferred tax
liabilities or assets are recognized using the balance sheet
method, providing for temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes
and amounts used for taxation purposes. Deferred tax is not
recognized on the initial recognition of assets or liabilities in a
transaction that is not a business combination.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Deferred tax is
measured at the tax rates that are expected to be applied to
temporary differences when they reverse, based on the laws that
have been enacted or substantively enacted by the reporting date.
Deferred tax assets and liabilities are offset if there is a
legally enforceable right to offset, and they relate to income
taxes</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">levied by the same
tax authority on the same taxable entity, or on different tax
entities, but they intend to settle current tax liabilities and
assets on a net basis or their tax assets and liabilities will be
realized simultaneously.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">A deferred tax
asset is recognized to the extent that it is probable that future
taxable profits will be available against which the temporary
difference can be utilized. Deferred tax assets are reviewed at
each reporting date and are reduced to the extent that it is no
longer probable that the related tax benefit will be
realized.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-20</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Notes to the
Consolidated Financial Statements</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the years ended
June 30, 2020, 2019 and 2018</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars)</font></div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">3.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">SIGNIFICANT
ACCOUNTING POLICIES (continued)</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Leases</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company adopted
IFRS 16 &#x2013; Leases (&#x201C;IFRS 16&#x201D;) on July 1, 2019. The
Company has applied IFRS 16 using the modified retrospective
approach, under which the Company will not restate its comparative
figures but will recognize the cumulative effect of adopting IFRS
16 as an adjustment to opening retained earnings. Additionally, the
Company has elected not to recognize right-of use assets and lease
liabilities for short-term leases that have a lease term of 12
months or less and leases of low-value assets. The following are
the significant accounting policies which have been amended as a
result of IFRS 16, and applied as at July 1, 2019:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Right-of use assets</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">At inception of a
contract, the Company assesses whether a contract is, or contains,
a lease. A contract is, or contains, a lease if the contract
conveys the right to control the use of an identified asset of a
period of time in exchange for consideration. At inception or on
reassessment of a contract that contains a lease component, the
Company allocates the consideration in the contract to each lease
component on the basis of their relative stand-alone
prices.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Lease obligations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company
recognized lease obligation and right-of-use asset for its leased
equipment at the date of adoption of IFRS 16. The lease obligation
is measured at the present value of the remaining lease payments as
of July 1, 2019, discounted using the interest rate implicit in the
lease terms. If that rate cannot be readily determined, the Company
will use its incremental borrowing rate. The Company did not have
any outstanding leases as at July 1, 2019.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Lease term
determined by the Company comprises:</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#x25CF; The
non-cancellable period of lease contracts, including a rent-free
period if applicable;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#x25CF; Periods
covered by an option to extend the lease if the Company is
reasonably certain to exercise that option;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#x25CF; Periods
covered by an option to terminate the lease if the Company is
reasonably certain not to exercise that option.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For leases entered
into after July 1, 2019, the commencement date of the lease begins
on the date on which the lessor makes the underlying asset
available for use to the Company. Lease payments included in the
measurement of the lease obligation are comprised of the
following:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#x25CF; Fixed lease
payments, including in-substance fixed payments;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#x25CF; Variable
lease payments that depend on an index or rate, initially measured
using the index or rate at the commencement date;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#x25CF; Amounts
expected to be payable under a residual value
guarantee;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#x25CF; The
exercise price of purchase options that the Company is reasonably
certain to exercise;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#x25CF; Lease
payments in an option renewal period if the Company is reasonably
certain to exercise the extension option;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font>&#xA0; <font style="font-size: 13px; font-family: Times New Roman"><br>
</font></font></div>
<br>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-21</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Notes to the
Consolidated Financial Statements</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the years ended
June 30, 2020, 2019 and 2018</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars)</font></div>
&#xA0; <font style="font-size: 13px; font-family: Times New Roman"><br></font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">3.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">SIGNIFICANT
ACCOUNTING POLICIES (continued)</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#x25CF; Penalties
for early termination of the lease unless the Company is reasonably
certain not to terminate early; and</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#x25CF; Less any
lease incentives receivable;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Variable payments
for leases that do not depend on an index or rate are not included
in the measurement of the lease obligations. The variable payments
are recognized as an expense in the period in which they are
incurred. The Company accounts for any leases and associated
non-lease components separately, as opposed to a single
arrangement, which is permitted under IFRS 16. The Company records
non-lease components such as an expense in the period in which they
are incurred.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Interest on the
lease obligations is calculated using the effective interest method
and increases the lease obligation while rent payments reduce the
obligation. The lease obligation is remeasured whenever a lease
contract is modified, and the lease modification is not accounted
for as a separate lease, or there is a change in the assessment of
the exercise of an extension option. The lease obligation is
remeasured by discounting the revised lease payments using a
revised discount rate resulting in a corresponding adjustment to
the right-of-use asset or is recorded in gain or loss if the
carrying amount of the right-of-use asset has been reduced to zero
or the modification results in a reduction in the scope of the
lease.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">As at July 1, 2019,
the right-of-use asset have been initially calculated at an amount
equal to the initial value of the lease obligation. There is no
impact on retained earnings. For leases entered into, on or after
July 1, 2019, the right-of-use asset will be initially calculated
at an amount equal to the initial value of the lease liability,
adjusted for the following items:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#x25CF; Any lease
payments made at or before the commencement date, less any lease
incentives received;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#x25CF; Any initial
direct costs incurred by the Company;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#x25CF; An estimate
of costs to dismantle and remove the underlying asset or to restore
the site on which the asset is located.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For short-term
leases that have a lease term of 12 months or less and low-value
assets, the Company has elected to not recognize a lease obligation
and right-of-use asset and instead will recognize a lease expense
as permitted under IFRS 16.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The right-of-use
assets will be depreciated using the straight-line from the date of
adoption to the earlier of the end of the useful life of the asset
or the end of the lease term as determined under IFRS 16. For
leases entered into after July 1, 2019, the right-of-use assets
will be depreciated from the date of commencement to the earlier of
the end of the useful life of the asset or the end of the lease
term.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Under IFRS 16,
right-of-use assets are tested for impairment in accordance with
IAS 36, Impairment of Assets which replaces the previous
requirement to recognize a provision for onerous lease contracts
under IAS 37, Provisions, Contingent liabilities and Contingent
assets.</font></div>
<br>
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<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-22</font></div>
</div>
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<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Notes to the
Consolidated Financial Statements</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the years ended
June 30, 2020, 2019 and 2018</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars)</font></div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">3.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">SIGNIFICANT
ACCOUNTING POLICIES (continued)</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Significant
accounting judgement and estimates</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Information about
critical judgments in applying accounting policies and estimates
that have the most significant effect on the amounts recognized in
these consolidated financial statements is included in the
following notes:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Determination of control</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The control
principle in IFRS 10 sets out the three elements of control: power
over the investee; exposure, or rights, to variable returns from
involvement with the investee; and the ability to use power over
the investee to affect the amount of those returns. Judgement is
required in assessing these three elements and reaching a
conclusion on obtaining of control of a business.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Purchase price allocation</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The purchase price
allocation for business combination and assets acquisition is based
on the valuation of the assets acquired, liabilities assumed, and
intangible assets identified, including management&#x2019;s process
for developing the estimates and the significant assumptions
underlying the estimates.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Impairment of long-lived assets</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Assets, including
property and equipment, are reviewed for impairment whenever events
or changes in circumstances indicate that their carrying amounts
exceed their recoverable amounts. If an impairment assessment is
required, the assessment of fair value often requires estimates and
assumptions such as discount rates, exchange rates, commodity
prices, rehabilitation and restoration costs, future capital
requirements and future operating performance. Changes in such
estimates could impact recoverable values of these assets.
Estimates are reviewed regularly by management.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Useful lives of depreciable assets</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company
estimates the useful lives for an item of depreciable assets to its
significant parts and depreciates separately each such part.
Management reviews the useful lives of depreciable assets and their
significant parts at each reporting date based on the expected
utility of the assets to the Company. Actual results, however, may
vary due to a variety of factors including technical
obsolescence.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Share-based payment transactions</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company
measures the cost of equity-settled transactions with goods and
services received by reference to the fair value of the equity
instruments at the date at which they are granted. Estimating fair
value for share-based payment transactions requires determining the
most appropriate valuation model, which is dependent on the terms
and conditions of the grant. This estimate also requires
determining the most appropriate inputs to the valuation model
including the expected life of the stock option, volatility and
dividend yield and making assumptions about them. The assumptions
and models used for estimating fair value for share-based payment
transactions are disclosed in Note 19 and Note 20.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font>&#xA0;<font style="font-size: 13px; font-family: Times New Roman"><br></font></font></div>
<br>
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<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-23</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Notes to the
Consolidated Financial Statements</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the years ended
June 30, 2020, 2019 and 2018</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars)</font></div>
&#xA0; <font style="font-size: 13px; font-family: Times New Roman"><br></font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">3.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">SIGNIFICANT
ACCOUNTING POLICIES (continued)</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Provisions and contingencies</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The amount
recognized as provision, including legal, contractual, constructive
and other exposures or obligations, is the best estimate of the
consideration required to settle the related liability, including
any related interest charges, taking into account the risks and
uncertainties surrounding the obligation. In addition,
contingencies will only be resolved when one or more future events
occur or fail to occur. Therefore assessment of contingencies
inherently involves the exercise of significant judgment and
estimates of the outcome of future events. The Company assesses its
liabilities and contingencies based upon the best information
available, relevant tax laws and other appropriate
requirements.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Valuation of Convertible Debentures</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The convertible
debentures were separated into their liability and equity
components or derivative liability component at the date of issue,
in accordance with the substance of the contractual agreements. The
conversion options require an estimation of the fair value of a
similar liability that doesn&#x2019;t have an associated equity
component by using a suitable discount rate at initial recognition
and each extension date. The carrying amount of the conversion
options is then determined by deducting the fair value of the
financial liability from the fair value of the convertible
debenture as a whole.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">4.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">STANDARDS
NOT YET EFFECTIVE JULY 1, 2019</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">New
standards not yet adopted and interpretations issued but not yet
effective</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The following IFRS
standards have been recently issued by the IASB. Pronouncements
that are irrelevant or not expected to have a significant impact
have been excluded.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">IFRS 10 -
Consolidated Financial Statements ("IFRS 10")</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">IFRS 10 and IAS 28
&#x2013; Investments in Associates and Joint Ventures (&#x201C;IAS
28&#x201D;) were amended in September 2014 to address a conflict
between the requirements of IAS 28 and IFRS 10 and clarify that in
a transaction involving an associate or joint venture, the extent
of gain or loss recognition depends on whether the assets sold or
contributed constitute a business. The effective date of these
amendments is yet to be determined, however early adoption is
permitted.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Amendments to IFRS
3: Definition of a Business</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">In October 2018,
the IASB issued &#x201C;Definition of a Business (Amendments to IFRS
3)&#x201D;. The amendments clarify the definition of a business,
with the objective of assisting entities to determine whether a
transaction should be accounted for as a business combination or as
an asset acquisition. The amendment provides an assessment
framework to determine when a series of integrated activities is
not a business. The amendments are effective for business
combinations occurring on or after the beginning of the first
annual reporting period beginning on or after January&#xA0;1, 2020.
The Company has evaluated the potential impact of these amendments
and concluded that there is no impact to the Company&#x2019;s
consolidated financial statements.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 7px; text-indent: 24px"><font style="font-size: 13px; font-family: Times New Roman">Amendments to IAS
1: Classification of Liabilities as Current or
Non-current</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 7px; text-indent: 24px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
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<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-24</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Notes to the
Consolidated Financial Statements</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the years ended
June 30, 2020, 2019 and 2018</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars)</font></div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">&#xA0;4.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">STANDARDS
NOT YET EFFECTIVE JULY 1, 2019 (continued)</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The amendment
clarifies the requirements relating to determining if a liability
should be presented as current or non-current in the statement of
financial position. Under the new requirement, the assessment of
whether a liability is presented as current or non-current is based
on the contractual arrangements in place as at the reporting date
and does not impact the amount or timing of recognition. The
amendment applies retrospectively for annual reporting periods
beginning on or after January 1, 2022. The Company is currently
evaluating the potential impact of these amendments on the
Company&#x2019;s consolidated financial statements.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Amendments to IAS
37: Onerous Contracts and the cost of Fulfilling a
Contract</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The amendment
specifies that &#x2018;cost of fulfilling&#x2019; a contract
comprises the &#x2018;costs that relate directly to the
contract&#x2019;. Costs that relate directly to a contract can
either be incremental costs of fulfilling that contract or an
allocation of other costs that relate directly to fulfilling
contracts. The amendment is effective for annual periods beginning
on or after January 1, 2022 with early application permitted. The
Company is currently evaluating the potential impact of these
amendments on the Company&#x2019;s consolidated financial
statements.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: -12px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">5.
PROMISSORY NOTE RECEIVABLE</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
June 7, 2018, the Company entered into a revolving promissory note
with a customer (the &#x201C;Promissory Note&#x201D;). The Promissory
Note was unsecured, bearing interest at 8% per annum and due twelve
months from the date of issuance. Due to issues related to the
expected collectability of the Promissory Note, the total amount of
the promissory note amounting to $85,114 was impaired during the
year ended June 30, 2019 (2018 - $nil). As at June 30, 2020 and
2019, $nil was outstanding under the Promissory Note.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: -12px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">6.
OTHER INVESTMENT</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
September 18, 2018, the Company subscribed for 500,000 convertible
preferred shares of NWN Inc. (&#x201C;NWN&#x201D;) at a price of
$1.00 per preferred share (each, a &#x201C;Preferred Share&#x201D;)
for a total consideration of $500,000. Each Preferred Share is
convertible into one common share of NWN, subject to appropriate
adjustments for any stock splits, consolidations or other
recapitalizations. The Company has pledged the Preferred Shares of
NWN as security for Promissory Note B as disclosed in Note 15. Due
to the default provisions of Promissory Note B, the pledged
Preferred Shares for NWN were called on October 26, 2020 as
described on Note 28, and resulted in loss on the settlement of
debt in the amount of $184,540.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: -12px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">7.
RIGHT-OF-USE ASSETS</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
Company recognized the right-of-use asset for it leased properties
as follows:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:5%;border-bottom:solid 2px #000000;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:75%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Balance, June 30, 2019</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Additions</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2,631,837</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Depreciation
for the year</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">(92,167</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Balance, June 30, 2020</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">2,539,670</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Leased properties
are amortized over the terms of their respective
leases.</font></div>
<br>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-25</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Notes to the
Consolidated Financial Statements</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the years ended
June 30, 2020, 2019 and 2018</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars)</font></div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: -12px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">8.
PROPERTY AND EQUIPMENT, NET</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Property and
equipment, net consists of the following:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="margin-left: 24px;">
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:20%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
&#xA0; Equipment</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
&#xA0; Land</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
&#xA0; Building</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
&#xA0; Construction in progress</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
&#xA0; Leasehold improvements</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
&#xA0; Computer equipment</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
&#xA0; Furnitures and fixtures</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
&#xA0; Total&#xA0;</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:20%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px; font-weight: bold;">
<div><font style="font-family: Times New Roman; color: rgb(0, 0, 0); font-weight: bold;">
$<br></font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px; font-weight: bold;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px; font-weight: bold;">
<div><font style="font-family: Times New Roman; color: rgb(0, 0, 0); font-weight: bold;">
<font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-weight: bold;"><font style="font-family: Times New Roman; color: rgb(0, 0, 0); font-weight: bold;">
$</font></font>&#xA0;</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px; font-weight: bold;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px; font-weight: bold;">
<div><font style="font-family: Times New Roman; color: rgb(0, 0, 0); font-weight: bold;">
<font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-weight: bold;"><font style="font-family: Times New Roman; color: rgb(0, 0, 0); font-weight: bold;">
$</font></font>&#xA0;</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px; font-weight: bold;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
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</td>
</tr><tr>
<td style="vertical-align:bottom;width:20%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Cost</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
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</td>
<td style="vertical-align:bottom;width:10%;">
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</td>
<td style="vertical-align:bottom;width:10%;">
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</td>
<td style="vertical-align:bottom;width:10%;">
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</td>
<td style="vertical-align:bottom;width:10%;">
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</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
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</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:20%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
As at June 30, 2018</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">151,188</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
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</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">151,188</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:20%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Additions</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">523,480</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,361,048</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,760,861</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,645,389</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:20%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Translation
adjustment</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:20%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px; padding-bottom: 2px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Impairment
charge</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">(151,188</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">(151,188</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:20%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
As at June 30, 2019</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">523,480</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,361,048</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,760,861</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,645,389</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:20%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Additions</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,130,183</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">44,645</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">30,984</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,205,812</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:20%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Translation
adjustment</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">21,640</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">56,264</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">72,792</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">150,696</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:20%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px; padding-bottom: 2px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Impairment
charge</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">(16,316</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">- 16,316</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:20%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
As at June 30, 2020</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">545,120</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">1,417,312</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">1,833,653</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">1,113,867</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">44,645</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">30,984</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">4,985,581</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:20%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:20%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Accumulated depreciation</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:20%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
As at June 30, 2018</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">12,770</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">12,770</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:20%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Depreciation</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">30,529</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">30,529</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:20%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px; padding-bottom: 2px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Impairment
charge</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">(43,299</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">(43,299</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px; padding-bottom: 2px;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:20%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
As at June 30, 2019</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:20%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Depreciation</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(2,027</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(2,708</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(1,033</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(5,768</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:20%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Impairment
charge</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:20%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px; padding-bottom: 2px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
As at June 30, 2020</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">(2,027</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">(2,708</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">(1,033</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">(5,768</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:20%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
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</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
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</td>
<td style="vertical-align:bottom;width:10%;">
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</td>
<td style="vertical-align:bottom;width:10%;">
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</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:20%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Net book value ($)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:20%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">At
June 30, 2019</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">523,480</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,361,048</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,760,861</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,645,389</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:20%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px; padding-bottom: 2px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
At June 30, 2020</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">545,120</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">1,417,312</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">1,833,653</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">1,111,840</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">41,937</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">29,951</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 5%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 75%; font-size: 13px; border-bottom: 2px solid rgb(0, 0, 0);">4,979,813</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; font-weight: bold; width: 10%; font-size: 13px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">During
the year ended June 30, 2020, the Company incurred a depreciation
expense in the amount of $5,768 (2019 - $30,529 and 2018 - $12,770,
included in cost of sales).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font>&#xA0; <font style="font-size: 13px; font-family: Times New Roman"><br>
</font></font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Equipment</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">During
the year ended June 30, 2019, the Company expensed $30,529 in
depreciation (June 30, 2018 &#x2013; $12,770) which has been
recorded as cost of sales in relation to the below lease agreement.
The equipment during the year ended June 30, 2019 was deemed
impaired by management and an impairment charge was recorded in the
amount of $107,515 which included a foreign translation adjustment
of $374.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company entered
into an operating lease (the &#x201C;Lease&#x201D;) on February 1,
2018, under which the lessee (the &#x201C;Lessee&#x201D;) agreed to
lease the above equipment for an initial period of twelve months.
On February 1, 2019, the Lease was automatically extended for an
additional period of twelve months. The Lessee shall make monthly
payments of US $5,040 due on or before the first day of each
respective month. <font style="color: #000000">During the year
ended June 30, 2019</font>, the Company had unrecognized rental
revenue in the amount of $80,057 (June 30, 2018 &#x2013; $24,159),
as a result of the Lease. The Company has not recorded rental
revenue pending a determination by the Company that collectability
is reasonably assured. The Company will recognize revenue upon
receipt.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Land, building and construction in progress</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On April 4, 2018,
the Company entered into an agreement to acquire a 27.5% interest
of Cordova OR Operations, LLC (&#x201C;OR Operations&#x201D;) for the
acquisition of land and buildings. Under the terms of the
agreement, the Company acquired a 27.5% membership interest in OR
Operations for $534,311 (US $400,000). On June 19, 2019, the
Company purchased the remaining 72.5% interest in OR Operations for
$1,361,048 (US$1,040,000) <font style="font-style: italic">(Note
10</font>). The Company spent $1,760,861 for the construction in
progress during the year ended June 30, 2019. Depreciation on these
assets will be recorded from the date when these assets are
available for use. As at June 30, 2020, the value of land, building
and construction in progress amounted to $3,796,085 (June 30, 2019
- $3,645,389), reflecting a change in value due to foreign currency
translation in the amount of $150,696. As at June 30, 2020, these
assets were not available for use.</font></div>
</div>
<br>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-26</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Notes to the
Consolidated Financial Statements</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the years ended
June 30, 2020, 2019 and 2018</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars)</font></div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: -12px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">8.
PROPERTY AND EQUIPMENT, NET (continued)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Leasehold improvements</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Leasehold
improvements include those acquired as part of the asset
acquisition of Star Buds International Inc., as disclosed in Note
11 in the amount of 1,060,224. As at June 30, 2020, these assets
were not available for use. Management assessed the indicators of
impairment and determined that the leasehold improvements were
impaired and resulted of impairment of assets in the amount of
$16,316 during the year ended June 30, 2020.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: -12px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">9.
INVENTORY</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company&#x2019;s
inventory only includes purchased products. The Company&#x2019;s
purchased inventory during the year ended June 30, 2020 amounted to
$225,424 (June 30, 2019 - $nil). During the year ended June 30,
2020, there was no impairment of inventory (June 30, 2019 - $Nil).
Inventory recognized as cost of goods sold amounted to
$106,742.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">10.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">ACQUISITION
OF CORDOVA OR OPERATIONS, LLC</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On April 4, 2018,
the Company entered into an agreement to acquire a 27.5% interest
of Cordova OR Operations, LLC (&#x201C;OR Operations&#x201D;) for the
acquisition of land and buildings. Under the terms of the
agreement, the Company acquired a 27.5% membership interest in OR
Operations for $534,311 (US $400,000). On June 19, 2019, the
Company purchased the remaining 72.5% interest in OR Operations for
$1,361,048 (US$1,040,000) <font style="font-style: italic">(Note
8).</font> The acquisition of OR Operations did not meet the
minimum requirements of a business and therefore the Company has
accounted for the transaction as an asset acquisition.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On June 19, 2019,
the total asset acquisition amounted to $3,645,389, comprised of
land, building and construction in progress, which were transferred
to property and equipment, net (<font style="font-style: italic">Note 8</font>).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">11.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">ASSET
ACQUISITION OF STAR BUDS INTERNATIONAL INC.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
April 8, 2020 (the &#x201C;Closing date&#x201D;), the Company
completed the purchase of certain tangible assets and intellectual
property (the &#x201C;Assets&#x201D;) of an arm&#x2019;s length
Canadian cannabis corporation (the &#x201C;Transaction&#x201D;), Star
Buds International Inc. (the &#x201C;Vendor&#x201D; or &#x201C;Star
Buds&#x201D;).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">&#xA0;To
acquire the Assets from the Vendor, the Company:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 48px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="color: #000000; font-size: 13px; font-family: Times New Roman">(i)</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">issued
12,500,000 common shares of the Company on the Closing date of the
Transaction, in exchange for the Assets held and related to five
retail cannabis stores and four medical cannabis
clinics;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 48px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="color: #000000; font-size: 13px; font-family: Times New Roman">(ii)</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">agreed
to issue 3,000,000 common shares of the Company for each additional
lease assignment in Alberta to the Company, up to a maximum of
6,000,000 common shares of the Company;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 48px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="color: #000000; font-size: 13px; font-family: Times New Roman">(iii)</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">agreed
to issue 3,000,000 common shares of the Company for the opening of
each retail store, up to a maximum of 15,000,000 common shares of
the Company. Each store must be opened by April 8, 2021 for the
Vendor to receive this additional consideration;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 48px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="color: #000000; font-size: 13px; font-family: Times New Roman">(iv)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">issued a three-year promissory note for $527,967
with interest at 6% per annum payable upon maturity (the
&#x201C;Closing Promissory Note&#x201D;). The fair value of the
promissory notes was determined to be $381,093 (</font><font style="font-style: italic; color: #000000">Note 15
(e))</font><font style="color: #000000">;</font></font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 48px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="color: #000000; font-size: 13px; font-family: Times New Roman">(v)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">agreed to issue two additional three-year
promissory notes in amounts $222,500 and $196,832 upon obtaining
assignment of two specific leases to the Company. Such additional
notes to have same terms as the Closing Promissory Note. The fair
values of the promissory notes were determined to be $160,603 and
$142,075 (</font><font style="font-style: italic; color: #000000">Note 15
(e)).</font></font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The consideration
payables as per note (ii) and (iii) above are considered a
contingent consideration. Management assessed the probability of
the issuance of shares noted in (ii) and (iii) above to be highly
probable. The total fair value of the 21,000,000 contingently
issuable shares is estimated to be $3,570,000. The Company has
referred to IFRS 3 by analogy and accordingly, the contingent
consideration has been recorded as part of the cost of the
purchase. The Contingent consideration of shares has been
classified as equity, as the number of shares to be issued has been
fixed based on the Company&#x2019;s share price a day prior to the
closing date.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On May 8, 2020, the
Company obtained two additional lease assignments in Alberta and
issued 6,000,000 common shares of the Company to the Vendor.
Accordingly, the value of the 6,000,000 common shares amounting to
$1,020,000 was transferred from contingently issuable shares to
share capital.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">As at June 30,
2020, the Company had opened a retail store in Barrie under the
Star Buds&#x2019;s brand name, resulting in the Company required to
issue additional 3,000,000 common shares to the Vendor.
Accordingly, the value of the 3,000,000 common shares amounting to
$510,000 was transferred from contingently issuable shares to
shares to be issued.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<br>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-27</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Notes to the
Consolidated Financial Statements</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the years ended
June 30, 2020, 2019 and 2018</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars)</font></div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">11.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">ASSET
ACQUISITION OF STAR BUDS INTERNATIONAL INC.
(continued)</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:5%;border-bottom:solid 2px #000000;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:75%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Consideration paid</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">33,500,000
common shares at $0.17 per share</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">5,695,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Initial
promissory note (iv)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">381,093</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Additional
promissory notes (v)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">302,678</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">6,378,771</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Liabilities
assumed</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">55,000</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">6,433,771</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Amount allocated to:</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Leasehold
improvements</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1,060,224</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Rental
deposits</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">129,580</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Intangible
asset - Star Buds trade name</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">5,243,967</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Balance, June 30, 2020</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">6,433,771</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">12.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">ACQUISITION
OF 2734158 ONTARIO INC.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On May 15, 2020,
the Company entered into a subscription agreement to acquire 50.1%
ownership interest in 2734158 Ontario Inc. (&#x201D;273
Ontario&#x201D;) by subscribing to 501,000 common shares of 273
Ontario for a total consideration of $723,000 (the
&#x201C;Acquisition&#x201D;).&#xA0;Pursuant to the subscription
agreement, the subscription price (the &#x201C;Subscription
Price&#x201D;) will be paid as follows:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">payment of $200,000
on May 15, 2020 and issuance of 138,589 common
shares;&#xA0;&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">payment of $200,000
on June 15, 2020 and issuance of 138,589 common
shares;&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">payment of $200,000
on July 15, 2020 and issuance of 138,589 common shares;
and&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">payment of $123,000
on August 15, 2020 and issuance of 85,233 common
shares.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The following table
summarises the recognized amounts of assets acquired and
liabilities assumed at the date of acquisition.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-top:0px;margin-left:0px;width:100%;margin-bottom:0px;font-size:inherit;">
<tr style="background-color:#cceeff;">
<td rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="margin-left:0px;"><font style="font-size: 13px;">Cash</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="font-size: 13px;"><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;display:inline-block;">48,850</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="margin-left:0px;"><font style="font-size: 13px;">Other
assets<br></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="font-size: 13px;"><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;display:inline-block;">59,040</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="margin-left:0px;"><font style="font-size: 13px;">Computer equipment<br></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="font-size: 13px;"><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;display:inline-block;">16,337</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="margin-left:0px;"><font style="font-size: 13px;">Furniture and fixture<br></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="font-size: 13px;"><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;display:inline-block;">27,222</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="margin-left:0px;"><font style="font-size: 13px;">Leasehold improvement<br></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="font-size: 13px;"><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;display:inline-block;">46,081</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="margin-left: 0px; padding-bottom: 2px;"><font style="font-size: 13px;">Liabilities assumed<br></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="font-size: 13px;"><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; vertical-align: bottom; width: 5%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; vertical-align: bottom; width: 75%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">(20,328</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">)</font></font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="margin-left: 0px; padding-bottom: 2px;"><font style="font-size: 13px;">Total identifiable net assets
acquired<br></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="font-size: 13px;"><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: left; vertical-align: bottom; width: 5%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; vertical-align: bottom; width: 75%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">177,202</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font></font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-28</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Notes to the
Consolidated Financial Statements</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the years ended
June 30, 2020, 2019 and 2018</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars)</font></div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">12.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">ACQUISITION
OF 2734158 ONTARIO INC. (continued)</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The subscription
amount payable of $323,000 outstanding to 2734158 Ontario Inc. as
at year end was paid subsequent to the year ended June 30,
2020.&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The non-controlling
interest is calculated as follow.</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="margin-left: 24px;">
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="margin-left:0px;padding-bottom:2px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:5%;border-bottom:solid 2px #000000;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:75%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Consideration</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">723,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Ownership</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">50.1</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Fair
value of assets acquired</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,443,114</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Consideration</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(723,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">)&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Non-controlling
interest</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">720,114</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Licenses allocated
from the acquisition has been recognized as follows.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="margin-left: 24px;">
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr style="background-color:#cceeff;">
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Consideration
transferred</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">723,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Consideration
received by 273 Ontario</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(723,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Non-controlling
interest</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">720,114</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Fair
value of identifiable net assets</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(177,202</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">)&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Fair value of licenses</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">542,912</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">13.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">LEASE
LIABILITY</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The following table
represents the lease obligations for the Company as at June 30,
2020:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:5%;border-bottom:solid 2px #000000;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:75%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Balance, June 30, 2019</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Additions</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2,631,837</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Interest
expense</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">46,171</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Lease
payments</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">(95,524</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Balance, June 30, 2020</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">2,582,484</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<br>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-29</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Notes to the
Consolidated Financial Statements</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the years ended
June 30, 2020, 2019 and 2018</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars)</font></div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">13.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">LEASE
LIABILITY (continued)</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Allocated
as:</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;font-size:11px;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;font-size:11px;display:inline-block;">
<div style="text-align: center"><font style="font-weight:bold;font-family:Times New Roman;color:#000;">As at
June 30, 2020</font></div>
</font><font style="vertical-align:bottom;width:10%;font-size:11px;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;font-size:11px;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;font-size:11px;display:inline-block;">
<div style="text-align: center"><font style="font-family:Times New Roman;color:#000;">As at June 30,
2019</font></div>
</font><font style="vertical-align:bottom;width:10%;font-size:11px;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:11px;">&#xA0;</font><font style="text-align: left; color:#000;font-family:Times New Roman;vertical-align:bottom;font-size:11px;display:inline-block;font-weight:bold;width:5%;border-bottom:solid 2px #000000;">$</font><font style="text-align: right; color:#000;font-family:Times New Roman;vertical-align:bottom;font-size:11px;display:inline-block;font-weight:bold;width:75%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:11px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:11px;">&#xA0;</font><font style="text-align: left; color:#000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:11px;">$</font><font style="text-align: right; color:#000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:11px;">&#xA0;</font><font style="text-align: left; color:#000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:11px;">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Current</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">253,205</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Long-term</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">2,329,279</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Total</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">2,582,484</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The following table
presents the contractual undiscounted cash flows for lease
obligations as at June 30, 2020:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:5%;border-bottom:solid 2px #000000;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:75%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Less
than one year</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">423,429</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">One
to five years</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,722,465</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">More
than five years</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,094,038</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Total
undiscounted lease obligation</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,239,932</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">When
measuring the lease obligation, the Company discounted the lease
payments using the implicit interest rate in the lease terms. The
Company has a lease with a term less than 12 months and recorded
$12,330 rent expense attributed to short-term leases during the
year ended June 30, 2020.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">14.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">MORTGAGE
PAYABLE</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
June 16, 2019, the Company obtained financing through a mortgage
(the &#x201C;Mortgage&#x201D;) in the amount of $696,117 (US
$531,915) against a property that has title to 6 acres of real
estate in Clackamas County, Oregon (the &#x201C;Property&#x201D;).
The Mortgage was due in six months from the date of the agreement
at an initial draw of $654,350 (US $500,000), implying interest at
a rate of 12.77% per annum. The Mortgage after the date of default
bears interest at 12% per annum, payable monthly, until the
repayment of the outstanding amount. The Mortgage was secured by a
first charge on the Property.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
June 12, 2020, the Company entered into a new mortgage (the
&#x201C;New Mortgage&#x2019;), in the amount of $815,760 (US
$600,000), and paid off the existing Mortgage and accrued interest
of $724,894 (USD$531,914). The New Mortgage bears interest at 12%,
is secured by a first charge on the Property and matures on
December 15, 2020. The transaction cost of $52,045 was deducted
from the initial carrying value of the mortgage payable and was
recognized into profit and loss over the term of the mortgage
payable.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">The mortgage payable outstanding as at June 30,
2020 was $766,531 (June 30, 2019</font> &#x2013; <font style="color: #000000">$657,633). Total interest expense in relation to
the mortgage payable for the year ended June 30, 2020 amounted to
$88,667 (June 30, 2019</font> &#x2013; <font style="color: #000000">$3,002).</font></font></div>
<br>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
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<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-30</font></div>
</div>
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<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Notes to the
Consolidated Financial Statements</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the years ended
June 30, 2020, 2019 and 2018</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars)</font></div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">15.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">PROMISSORY
NOTES PAYABLE</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
a)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Promissory Note A &#x2013; February 1, 2019</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On February 1,
2019, the Company issued an unsecured promissory note (the
&#x201C;Promissory Note A&#x201D;) in the principal amount of
$196,425 (US $150,000). The Promissory Note A matured on May 1,
2019 and bears interest at a rate of 10% per annum, accrued monthly
and due at maturity. As at the date of these financial statements,
the Promissory Note A is in default and remains outstanding. In
connection with the Promissory Note A, the Company also issued
warrants for the purchase of 150,000 common shares of the Company
exercisable until January 31, 2020 at a price of $1.00 per
share.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Promissory Note
A was determined to be a compound instrument, comprising a
liability and warrants. The initial carrying amount of the
financial liability was determined by discounting the stream of
future payments of interest and principal at a market interest rate
of 19% which is estimated to be the borrowing rate available to the
Company for similar instruments of debt having no warrants. Using
the residual method, the carrying amount of the warrants issued is
the difference between the principal amount and the initial fair
value of the financial liability. The fair value of the liability
was determined to be $192,142 (US $146,729). The residual value of
$4,283 (US $3,271) was allocated to warrants. The carrying value of
the Promissory Note A, net of the warrant component, has been
accreted using the effective interest rate method over the term of
the Promissory Note A, such that the carrying amount of the
financial liability will equal the principal balance at
maturity.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">During the year
ended June 30, 2020, the Company repaid $68,140 (US $50,000) to the
lender. As at June 30, 2020, the principal amount of $136,280 (US
$100,000) and accrued interest of $28,062 (US $20,591) were
outstanding (June 30, 2019 &#x2013; $204,484). Accretion expense of
$nil (June 30, 2019 - $8,715) and interest expense of $19,227 (June
30, 2019 - $8,340) was recorded for the year ended June 30,
2020.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
b)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Promissory Note B &#x2013; June 12, 2019</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On June 12, 2019,
the Company issued a secured promissory note (the &#x201C;Promissory
Note B&#x201D;) in the principal amount of $261,740 (US $200,000).
The Promissory Note B matured on March 31, 2020 and bears interest
at a rate of 15% per annum, accrued monthly and due at maturity.
The Promissory Note B was secured by the convertible preferred
shares investment in NWN (<font style="font-style: italic">Note
6</font>). <font style="color: #000000">Due to the default
provisions of Promissory Note B, the pledged Preferred Shares for
NWN were called and resulted the loss on the settlement of debt in
the amount of $184,540.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">As at June 30,
2020, the value of the Promissory Note B amounted to $nil (June 30,
2019 &#x2013; $263,690). Interest expense in the amount of $40,280
was recorded for the year ended June 30, 2020 (June 30, 2019 -
$1,950).</font></div>
<br>
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<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-31</font></div>
</div>
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<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Notes to the
Consolidated Financial Statements</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the years ended
June 30, 2020, 2019 and 2018</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars)</font></div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">15.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">PROMISSORY
NOTES PAYABLE (continued)</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
c)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Promissory Note C &#x2013; June 19, 2019</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On June 19, 2019,
the Company issued secured promissory notes (the &#x201C;Promissory
Note C&#x201D;) in the aggregate principal amount of $654,350 (US
$500,000). The Promissory Note C matured on December 18, 2019 and
bears interest at a rate of 15% per annum, accrued monthly and due
at maturity. The Promissory Note C is secured by a general security
interest over all the assets of Cordova OR Holdings, LLC, a wholly
owned subsidiary of the Company and parent to OR Operations. In
connection with the Promissory Note C, the Company issued warrants
for the purchase of 200,000 common shares of the Company
exercisable until June 18, 2021 at a price of $1.00 per
share.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Promissory Note
C was determined to be a compound instrument, comprising of a
liability and warrants. The initial carrying amount of the
financial liability was determined by discounting the stream of
future payments of interest and principal at a market interest rate
of 19% which is estimated to be the borrowing rate available to the
Company for similar instruments of debt having no warrants. Using
the residual method, the carrying amount of the warrants issued is
the difference between the principal amount and the initial fair
value of the financial liability.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The fair value of
the liability was determined to be $652,675 (US $489,152). The
residual value of $14,367 (US $10,848) was allocated to warrants.
The carrying value of the Promissory Note C, net of the warrant
component, has been accreted using the effective interest rate
method over the term of the Promissory Note C, such that the
carrying amount of the financial liability will equal the principal
balance at maturity.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On December 16,
2019, the Company extended the maturity date of the Promissory Note
C to March 19, 2020 (the &#x201C;Extension&#x201D;) in exchange for a
one-time fee in the amount $13,142 (US $10,000), due at maturity
and the issuance of additional warrants for the purchase of 200,000
common shares of the Company exercisable until June 18, 2021 at a
price of $0.30 per share.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On the date of the
Extension, the fair value of the liability was determined to be
$696,151 (US $530,643). The residual value of $8,995 (US $6,857)
was allocated to warrants. The carrying value of Promissory Note C,
as a result of the Extension, net of the warrant component, has
been accreted using the effective interest rate method over the
term of the Promissory Note C, such that the carrying amount of the
financial liability will equal the principal balance at
maturity.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On March 16, 2020,
the Company extended the maturity date of the Promissory Note C to
June 19, 2020 in exchange for a fee in the amount $13,142 (US
$10,000), due at maturity. On June 15, 2020, the Company extended
the maturity date of the Promissory Note C to December 19, 2020 in
exchange for a fee in the amount $40,472 (US $29,750), due at
maturity.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">As at June 30,
2020, the value of the Promissory Note C amounted to $817,935 (US
$600,188) (June 30, 2019 - $644,020). Accretion expense of $22,671
(June 30, 2019 - $847) and interest expense $131,893 (June 30, 2019
- $3,020) was recorded for the year ended June 30,
2020.</font></div>
<br>
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<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-32</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Notes to the
Consolidated Financial Statements</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the years ended
June 30, 2020, 2019 and 2018</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars)</font></div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">15.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">PROMISSORY
NOTES PAYABLE (continued)</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
d)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Promissory Note D &#x2013; October 28, 2019</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On October 28,
2019, the Company issued a promissory note (the &#x201C;Promissory
Note D&#x201D;) in the principal amount of $391,680 (US $300,000).
The Promissory Note D matured on December 31, 2019 and bears
interest at a rate of 5% per annum, accrued monthly and due at
maturity. Subsequent to the issuance, <font style="color: #000000">the Promissory Note D was extended until October
31, 2020 for a one-time fee of US $40,000. Interest on the
Promissory Note D subsequent to the maturity date bears interest at
15% per annum.</font> The Promissory Note D is secured by a
personal guarantee of vendors.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On May 25, 2020,
the Company issued 453,720 common shares of the Company at a price
of $0.25 per share for $113,317 (US $78,150) of Promissory Note D
(<font style="font-style: italic">Note 18</font>). As at June 30,
2020, the value of the Promissory Note D amounted to $332,149 (June
30, 2019 - $nil). Interest expense of $92,165 was recorded for the
year ended June 30, 2020 (June 30, 2019 &#x2013; $nil).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
e)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Promissory Note E &#x2013; April 8, 2020&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">On April 28, 2020, the Company issued a promissory
note (the &#x201C;Promissory Note E-1&#x201D;) in the principal
amount of $527,967.49</font> <font style="font-style: italic; color: #000000">(Note 11).</font> <font style="color: #000000">The Promissory Note E-1 matures on April 8, 2023
and bears interest at a rate of 6% per annum, calculated in
arrears, compounded annually and payable at maturity. The fair
value of $381,093 for the Promissory Note E-1 was determined by
discounting the stream of future payments of interest and principal
at a market interest rate of 19% which is estimated to be the
borrowing rate available to the Company for similar instruments of
debt.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
May 8, 2020, the Company repaid $90,803 of the principal in cash
and issued 181,250 of its common shares to settle $72,500 of the
principal outstanding. Further, on June 30, 2020 the Company repaid
$20,000 of the principal.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">As
at June 30, 2020, the value of the Promissory Note E-1 amounted to
$260,988 (June 30, 2019 - $nil). Interest and accretion expense of
$6,454 and $6,851 respectively was recorded for the year ended June
30, 2020 (June 30, 2019 &#x2013; $nil).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">On June 8, 2020, the Company issued a promissory
note (the &#x201C;Promissory Note E-2&#x201D;) in the principal
amount of $225,000</font> <font style="font-style: italic; color: #000000">(Note 11).</font><font style="color: #000000">. The Promissory Note E-2 matures on April 8, 2023
and bears interest at a rate of 6% per annum, calculated in
arrears, compounded annually and payable at maturity. The fair
value of $160,603 for the Promissory Note E-2 was determined by
discounting the stream of future payments of interest and principal
at a market interest rate of 19% which is estimated to be the
borrowing rate available to the Company for similar instruments of
debt.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">As
at June 30, 2020, the value of the Promissory Note E-2 amounted to
$162,868 (June 30, 2019 - $nil). Interest and accretion expense of
$1,461 and $805 respectively was recorded for the year ended June
30, 2020 (June 30, 2019 &#x2013; $nil).</font></div>
<br>
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<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-33</font></div>
</div>
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<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Notes to the
Consolidated Financial Statements</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the years ended
June 30, 2020, 2019 and 2018</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars)</font></div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">15.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">PROMISSORY
NOTES PAYABLE (continued)</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">On June 8, 2020, the Company issued a promissory
note (the &#x201C;Promissory Note E-3&#x201D;) in the principal
amount of $196,832</font> <font style="font-style: italic; color: #000000">(Note 11)</font><font style="color: #000000">. The Promissory Note E-3 matures on April 8, 2023
and bears interest at a rate of 6% per annum, calculated in
arrears, compounded annually and payable at maturity. The fair
value of $142,075</font></font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">for
the Promissory Note E-3 was determined by discounting the stream of
future payments of interest and principal at a market interest rate
of 19% which is estimated to be the borrowing rate available to the
Company for similar instruments of debt.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">As
at June 30, 2020, the value of the Promissory Note E-3 amounted to
$144,079 (June 30, 2019 - $nil). Interest and accretion expense of
$1,292 and $771.83 respectively was recorded for the year ended
June 30, 2020 (June 30, 2019 &#x2013; $nil).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: -12px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">16.
DEBENTURE UNIT DEPOSITS</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">During the year
ended June 30, 2019, the Company received a total of $594,889 in
deposits related to subscriptions for a convertible debenture unit
offering (the &#x201C;Offering&#x201D;). Each $1,000 unit of the
Offering shall be comprised of a $1,000 principal amount of 10%
unsecured subordinated convertible debenture and 500 common share
purchase warrants. The debentures shall mature twenty-four months
from the date of issuance and shall be exercisable into common
shares of the Company at a price of $1.00 per share any time prior
to maturity by the holder and at the option of the Company in
certain circumstances. The warrants shall be exercisable for a
period of twenty-four months from the date of issuance and
exercisable at a price of $1.20 per share. The Offering was closed
on August 14, 2019 and the convertible debentures <font style="font-style: italic">(Note 17 (b)).</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">17.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CONVERTIBLE
DEBENTURES</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
a)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Convertible Debentures Series A-1 &#x2013; March 13,
2019</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On March 13, 2019,
the Company closed a non-brokered private placement of unsecured
subordinated convertible debenture units (the &#x201C;Debenture
Units of Series A-1&#x201D;) of the Company for gross proceeds of
$600,000; of which $350,000 was received in cash and $250,000 was
issued in settlement of outstanding fees with a fair value
amounting to $237,300. The balance of $12,700 has been recorded as
a loss on settlement of fees.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Each Debenture Unit
of Series A-1 consists of $1,000 principal amount of unsecured
subordinated convertible debentures (the &#x201C;Debentures of
Series A-1&#x201D;) and 500 common share purchase warrants (the
&#x201C;Warrants of Series A-1&#x201D;) of the Company. The
Debentures of Series A-1 mature on March 12, 2021 and bear interest
at a rate of 10% per annum, accrued monthly and payable at
maturity. The outstanding principal amount of the Debentures of
Series A-1 and any accrued interest is convertible into common
shares of the Company at the option of the holder at any time prior
to the maturity date at a conversion price of $1.00 per share. The
Company also has the option to force conversion of the Debentures
of Series A-1 and any accrued interest at the same conversion price
if the Company&#x2019;s common shares trade above $2.50 per share
for ten consecutive trading days on the Canadian Securities
Exchange. Each full Warrant of Series A-1 entitles the holder to
purchase one common share of the Company until March 12, 2021 at an
exercise price of $1.20 per share. 300,000 Warrants of Series A-1
were issued related to the Debenture Units of Series
A-1.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<br>
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<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-34</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Notes to the
Consolidated Financial Statements</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the years ended
June 30, 2020, 2019 and 2018</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars)</font></div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">17.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CONVERTIBLE
DEBENTURES (continued)</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Debenture Units
of Series A-1 are determined to be a compound instrument,
comprising a liability, a conversion feature and warrants. Both
conversion feature and warrants met the fixed for fixed criteria
and were therefore presented as equity instruments in accordance
with IAS 32. The fair value of the debt component was determined by
discounting the stream of future payments of interest and principal
at a market interest rate of 19% which is estimated to be the
borrowing rate available to the Company for similar instruments of
debt having no conversion rights. Using the residual method, the
carrying amount of the conversion feature and the warrants issued
is the difference between the principal amount and the initial fair
value of the financial liability.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The fair value of
the liability was determined to be $508,439. The residual value of
$91,561 was allocated to the equity portion of convertible debt and
warrants based on their pro-rata fair values of $62,498 and
$29,063, respectively. The carrying value of the Debentures of
Series A-1, net of the equity components, have been accreted using
the effective interest rate method over the term of the debentures,
such that the carrying amount of the financial liability will equal
the principal balance at maturity.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The equity
component from the initial recognition resulted taxable temporary
difference. The Company recognized the deferred tax liabilities of
24,264, which was charged directly to the carrying amount of the
two equity components. Subsequent changes in the deferred tax
liability are recognized in profit and loss as deferred tax
recovery.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On January 16,
2020, the Company issued 271,164 common shares at $1.00 per share
as a result of a partial conversion of the outstanding Debentures
of Series A-1 with a face value of principal $250,000 and accrued
interest of $21,164. The debt in the amount of $271,164 and the
equity in the amount of $21,979, were transferred to share capital
upon conversion.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">As at June 30,
2020, the value of the Debentures of Series A-1 amounted to
$381,678 (June 30, 2019 &#x2013; $546,460). Accretion expense of
$57,806 (June 30, 2019 - $15,118) and interest expense of $48,275
(June 30, 2019 - $22,903) were recorded for the year ended June 30,
2020. Accordingly, the Company recorded deferred tax recovery of
$15,316 for the year ended June 30, 2020 (2019 -
$nil).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
b)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Convertible Debentures Series A-2 &#x2013; August 14,
2019</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On August 14, 2019,
the Company closed a non-brokered private placement of unsecured
subordinated convertible debenture units (the &#x201C;Debenture
Units of Series A-2&#x201D;) of the Company for gross proceeds of
$713,000 (<font style="font-style: italic">Note
16</font>).</font></div>
<br>
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<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-35</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Notes to the
Consolidated Financial Statements</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the years ended
June 30, 2020, 2019 and 2018</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars)</font></div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">17.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CONVERTIBLE
DEBENTURES (continued)</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Each Debenture Unit
of Series A-2 consists of $1,000 principal amount of unsecured
subordinated convertible debentures (the &#x201C;Debentures of
Series A-2&#x201D;) and 500 common share purchase warrants (the
&#x201C;Warrants of Series A-2&#x201D;) of the Company. The
Debentures of Series A-2 mature on August 13, 2021 and bear
interest at a rate of 10% per annum, accrued monthly and payable at
maturity. The outstanding principal amount of the Debentures of
Series A-2 and any accrued interest is convertible into common
shares of the Company at the option of the holder at any time prior
to the maturity date at a conversion price of $1.00 per share. The
Company also has the option to force conversion of the Debentures
of Series A-2 and any accrued interest at the same conversion price
if the Company&#x2019;s common shares trade above $2.50 per share
for ten consecutive trading days on the Canadian Securities
Exchange. Each full Warrant of Series A-2 entitles the holder to
purchase one</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">common share of the
Company until August 13, 2021 at an exercise price of $1.20 per
share. As a result, 356,500 Warrants of Series A-2 were issued
related to the Debenture Units of Series A-2.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Debenture Units
of Series A-2 were determined to be a compound instrument,
comprising a liability, a conversion feature and warrants. The fair
value of debt component was determined by discounting the stream of
future payments of interest and principal at a market interest rate
of 19% which is estimated to be the borrowing rate available to the
Company for similar instruments of debt having no conversion
rights. Using the residual method, the carrying amount of the
conversion feature and the warrants issued is the difference
between the principal amount and the initial fair value of the
financial liability.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The fair value of
the liability was determined to be $604,195. The residual value of
$108,805 was allocated to the equity portion of convertible debt
and warrants based on their pro-rata fair values of $74,989 and
$33,816, respectively. The deferred tax liability of $28,833 was
charged directly to the carrying amount of these two equity
components. The carrying value of the Debentures of Series A-2, net
of the equity components, have been accreted using the effective
interest rate method over the term of the debentures, such that the
carrying amount of the financial liability will equal the principal
balance at maturity.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px;"><font style="font-size: 13px; font-family: Times New Roman">On April 22, 2020,
the Debenture Units of Series A-2 were converted into the
Convertible Debentures Series A-3 offering. The principal amount of
$713,000, the accrued interest of 49,614 and a small loss of
$1,614, for total transfer of $761,000 were transferred to
Convertible Debentures Series A-3. The total amount of interest and
accretion amounted to $49,614 and 33,454, respectively. The Company
recorded deferred tax recovery of $28,833 for the year ended June
30, 2020.</font></div>
<br>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
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<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-36</font></div>
</div>
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<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-weight: bold">CordovaCann Corp</font>.<br>
(formerly LiveReel Media Corporation)<br>
Notes to the Consolidated Financial Statements<br>
For the years ended June 30, 2020, 2019 and 2018<br>
(Expressed in Canadian Dollars)</font></div>
&#xA0; </div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">17.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CONVERTIBLE
DEBENTURES (continued)</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
c)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Convertible Debentures Series A-3 &#x2013; April 22,
2020</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On April 22, 2020,
the Company closed a non-brokered private placement of unsecured
subordinated convertible debenture units (the &#x201C;Debenture
Units of Series A-3&#x201D;) of the Company for gross proceeds of
$1,164,000.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Each Debenture Unit
of Series A-3 consists of $1,000 principal amount of unsecured
subordinated convertible debentures (the &#x201C;Debentures of
Series A-3&#x201D;) and 2,000 common share purchase warrants (the
&#x201C;Warrants of Series A-3&#x201D;) of the Company. The
Debentures of Series A-3 mature on April 21, 2021 and bear interest
at a rate of 15% per annum, accrued monthly and payable at
maturity. The outstanding principal amount of the Debentures of
Series A-3 and any accrued interest is convertible into common
shares of the Company at the option of the holder at any time prior
to the maturity date at a conversion price of $0.25 per share. The
Company also has the option to force conversion of the Debentures
of Series A-3 and any accrued interest at the same conversion price
if the Company&#x2019;s common shares trade above $0.50 per share
for ten consecutive trading days on the Canadian Securities
Exchange. Furthermore, the Debentures of Series A-3 and accrued
interest shall automatically convert into common shares of the
Company at maturity. Each full Warrant of Series A-3 entitles the
holder to purchase one common share of the Company until April 21,
2022 at an exercise price of $0.30 per share. As a result,
2,328,000 Warrants of Series A-3 were issued related to the
Debenture Units of Series A-3.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Prior to closing of
the Offering, the Company exercised its rights of early repayment
in respect of certain of the Convertible Debentures of Series A-2
of the Company issued on August 14, 2019 and, in connection with
its election for early repayment, holders of the Convertible
Debentures of Series A-2 directed the Company to retain the funds
representing such repayment and to apply such funds towards
satisfaction of the purchase price for the respective Debenture of
Series A-3. The Company issued an aggregate of 761 Debenture Units
to the subscribers of the Debentures of Series A-2.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Debenture Units
of Series A-3 were determined to be an equity instrument,
comprising a conversion feature and warrants as a result of the
Company being able to avoid a contractual obligation to pay cash
related to the principal and interest at maturity. The subscription
amount of $1,164,000 was allocated to the equity portion of
convertible debt and warrants based on their pro-rata fair values
of $748,990 and $415,010, respectively. The interest expense
related to the Debenture Units of Series A-3 are added to the
equity portion of convertible debt as accrued.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">During the year
ended June 30, 2020, interest of $32,010 was recorded in the equity
portion of the convertible debt (June 30, 2019 -
$Nil).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<br>
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<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-37</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Notes to the
Consolidated Financial Statements</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the years ended
June 30, 2020, 2019 and 2018</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars)</font></div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">18.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">SHARE
CAPITAL</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The authorized
share capital of the Company consists of an unlimited number of
common shares. During the year ended June 30, 2020, the Company had
the following common share transactions:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 48px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On May 25, 2020,
the Company issued 6,210,190 common shares of the Company at a
price of $0.25 per share for gross proceeds of $1,552,548; of which
$1,411,680 was received in cash and $140,868 was issued in
settlement of outstanding fees and debt; and</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 48px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On May 8, 2020, the
Company issued 6,000,000 common shares of the Company at a price of
$0.17 per share in relation to the contingent consideration issued
for the asset acquisition of Star Buds.</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 48px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On May 8, 2020, the
Company issued 181,250 common shares of the Company at a price of
$0.40 per share for the settlement of a portion of Promissory Note
E.</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 48px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On April 8, 2020,
the Company issued 12,500,000 common shares of the Company at a
price of $0.17 per share in relation to the asset acquisition of
Star Buds.</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 48px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On January 16,
2020, the Company issued 271,164 common shares of the Company at a
price of $1.00 per share as a result of a partial conversion of the
Debentures of Series A-1, as disclosed in Note 17.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Shares to be issued</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">As at June 30,
2020, 3,000,000 common shares of the Company at a price of $0.17
per share were to be issued in relation to the contingent
consideration issued for the asset acquisition of Star Buds,
amounting to $510,000.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Contingently issuable shares</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">As at June 30,
2020, 12,000,000 common shares of the Company were contingently
issuable shares in relation to the asset acquisition of Star Buds,
at $0.17 per share amounting to $2,040,000.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">During the year
ended June 30, 2019, the Company had the following common share
transactions:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 48px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On May 4, 2019, and
in connection with warrants previously issued to a consultant,
warrants were exercised for the purchase of 750,000 common shares
of the Company at an exercise price of $0.15 per share for total
gross proceeds of $112,500. As a result of this exercise,
contributed surplus in the amount of $44,087 was transferred into
share capital.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;During
the year ended June 30, 2018, the Company had the following common
share transactions:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 48px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On October 19,
2017, an outstanding shareholder loan in the amount of $384,055 was
settled with the issuance of 7,681,110 common shares of the Company
at a price of $0.05 per share;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 48px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On December 14,
2017, the Company issued 5,532,500 common shares valued at $0.10
per share as part of a private placement for total gross proceeds
of $553,250; of which $533,250 was received in cash and $20,000 was
issued pursuant to a consulting agreement;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 48px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On March 12, 2018,
the Company issued 890,074 common shares valued at $1.08 per share
as part of a private placement for total gross proceeds of
$959,251; all of which was received in cash; and</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<br>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-38</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Notes to the
Consolidated Financial Statements</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the years ended
June 30, 2020, 2019 and 2018</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars)</font></div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">18.</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">SHARE
CAPITAL (continued)</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 48px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On June 12, 2018
and June 15, 2018, the Company issued 2,390,800 and 20,000 common
shares, respectively, valued at $1.95 per share as part of a
private placement for total gross proceeds of $4,703,025; of which
$4,400,163 was received in cash and $302,862 was received in
services provided by consultants.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">19.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">OPTIONS</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: -24px"><font style="font-size: 13px; font-family: Times New Roman">On November 22,
2018, the Company&#x2019;s shareholders approved and the Company
adopted a new rolling stock option plan (the &#x201C;Option
Plan&#x201D;), under which the Board of Directors may from time to
time, in its discretion, grant to directors, officers, employees
and consultants of the Company. Pursuant to the Option Plan,
the</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: -24px"><font style="font-size: 13px; font-family: Times New Roman">Company may issue
options for such period and exercise price as may be determined by
the Board of Directors, and in any case not exceeding ten (10)
years from the date of grant with the total options issued under
the Option Plan not exceeding ten percent (10%) of the common
shares of the Company, outstanding at the time of the granting of
such options. The minimum exercise price of an option granted under
the Option plan must not be less than the market value of the
common shares on the date such option is granted.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: -24px"><font style="font-size: 13px; font-family: Times New Roman">Outstanding options
as at June 30, 2020 are as follows:</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: -24px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman;">Options
Outstanding</font></div>
</font><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman;">Weighted Average
Exercise Price</font></div>
</font><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman;">Weighted Average
Life Remaining (yrs)</font></div>
</font><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:24px;"><font style="font-size: 13px; font-family: Times New Roman">Executive
Officers</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">900,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.60</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.30</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:24px;"><font style="font-size: 13px; font-family: Times New Roman">Directors</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3,600,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.28</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2.75</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:24px;"><font style="font-size: 13px; font-family: Times New Roman">Consultants</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">2,550,000</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">$</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">0.53</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">1.86</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:4px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:double 4px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:double 4px #000000;">7,050,000</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:double 4px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:double 4px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:double 4px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:double 4px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<br>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-39</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CordovaCann
Corp.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(formerly LiveReel
Media Corporation)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Notes to the
Consolidated Financial Statements</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the years ended
June 30, 2020, 2019 and 2018</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars)</font></div>
&#xA0; <font style="font-size: 13px; font-family: Times New Roman"><br></font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">19.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">OPTIONS
(continued)</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-size: 11px"><font style="font-weight: bold; font-family: Times New Roman;">Grant
Date</font></font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-size: 11px"><font style="font-weight: bold; font-family: Times New Roman;">Expiry
Date</font></font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="font-size: 11px"><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight: bold; font-family: Times New Roman;">Options
Outstanding</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="font-size: 11px"><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight: bold; font-family: Times New Roman;">Options
Exercisable</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="font-size: 11px"><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight: bold; font-family: Times New Roman;">Exercise
Price</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="font-size: 11px"><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight: bold; font-family: Times New Roman;">Fair
Value</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:-12px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">Jan. 16,
2018<font style="vertical-align: top; font-size: 70%">(i)</font></font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">Jan. 15,
2021</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1,000,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1,000,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.40</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">377,024</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">Mar. 9,
2018<font style="vertical-align: top; font-size: 70%">(ii)</font></font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">Mar. 8,
2021</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">750,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">750,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.15</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">800,703</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">Feb. 25,
2020<font style="vertical-align: top; font-size: 70%">(iii)</font></font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">Feb. 24,
2023</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">800,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">800,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.25</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">103,838</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">Apr. 7,
2020<font style="vertical-align: top; font-size: 70%">(iv)</font></font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">Apr. 6,
2023</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3,000,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3,000,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.25</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">369,426</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">May 16,
2020<font style="vertical-align: top; font-size: 70%">(v)</font></font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">May 5,
2023</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1,500,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1,500,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.45</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">396,036</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">(i)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">The options fully
vested on issuance and the fair value of $377,024 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr style="background-color:#cceeff;">
<td rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Stock
price</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.40</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Risk-free interest
rate</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.78</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Expected
life</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3 years&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Estimated
volatility in the market price of the common shares</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">218</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Dividend
yield</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;"><font style="font-size: 13px; font-family: Times New Roman">Nil</font>&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px; font-family: Times New Roman">(ii)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">The options fully
vested on issuance and the fair value of $800,703 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr style="background-color:#cceeff;">
<td rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Stock
price</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.14</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Risk-free interest
rate</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.83</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Expected
life</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3 years&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Estimated
volatility in the market price of the common shares</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">213</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Dividend
yield</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;"><font style="font-size: 13px; font-family: Times New Roman">Nil</font>&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><br></font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-40</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-weight: bold">CordovaCann Corp</font>.<br>
(formerly LiveReel Media Corporation)<br>
Notes to the Consolidated Financial Statements<br>
For the years ended June 30, 2020, 2019 and 2018<br>
(Expressed in Canadian Dollars)<br></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">19.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">OPTIONS
(continued)</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-size: 13px; font-family: Times New Roman">(iii)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">The options fully
vested on issuance and the fair value of $103,838 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr style="background-color:#cceeff;">
<td rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Stock
price</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.19</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Risk-free interest
rate</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.37</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Expected
life</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3 years&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Estimated
volatility in the market price of the common shares</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">124</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Dividend
yield</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;"><font style="font-size: 13px; font-family: Times New Roman">Nil</font></font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-size: 13px; font-family: Times New Roman">(iv)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">The options fully
vested on issuance and the fair value of $369,426 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr style="background-color:#cceeff;">
<td rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Stock
price</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.19</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Risk-free interest
rate</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.62</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Expected
life</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3 years&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Estimated
volatility in the market price of the common shares</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">117</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Dividend
yield</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;"><font style="font-size: 13px; font-family: Times New Roman">Nil</font></font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-size: 13px; font-family: Times New Roman">(v)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">The options fully
vested on issuance and the fair value of $396,036 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr style="background-color:#cceeff;">
<td rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Stock
price</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.405</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Risk-free interest
rate</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.33</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Expected
life</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3 years&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Estimated
volatility in the market price of the common shares</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">112</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Dividend
yield</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;"><font style="font-size: 13px; font-family: Times New Roman">Nil</font></font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: -24px"><font style="font-size: 13px; font-family: Times New Roman">During the year
ended June 30, 2020 the Company expensed $869,299 (June 30, 2019
&#x2013; $nil, June 30, 2018 - $1,177,727) of the fair value of the
options.</font></div>
<br>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-41</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-weight: bold">CordovaCann Corp</font>.<br>
(formerly LiveReel Media Corporation)<br>
Notes to the Consolidated Financial Statements<br>
For the years ended June 30, 2020, 2019 and 2018<br>
(Expressed in Canadian Dollars)</font></div>
&#xA0; </div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: -12px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">20.
WARRANTS</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: -12px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;padding-bottom:2px;width:10%;font-size:11px;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;font-size:11px;border-bottom:solid 2px #000;display:inline-block;">
<div><font style="font-family:Times New Roman;font-weight:bold;">Warrants
Outstanding</font></div>
</font><font style="vertical-align:bottom;padding-bottom:2px;width:10%;font-size:11px;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;padding-bottom:2px;width:10%;font-size:11px;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;font-size:11px;border-bottom:solid 2px #000;display:inline-block;">
<div><font style="font-family:Times New Roman;font-weight:bold;">Weighted Average
Exercise Price</font></div>
</font><font style="vertical-align:bottom;padding-bottom:2px;width:10%;font-size:11px;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;padding-bottom:2px;width:10%;font-size:11px;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;font-size:11px;border-bottom:solid 2px #000;display:inline-block;">
<div><font style="font-family:Times New Roman;font-weight:bold;">Weighted Average
Life Remaining (years)</font></div>
</font><font style="vertical-align:bottom;padding-bottom:2px;width:10%;font-size:11px;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">June
30, 2018</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">6,650,000</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.54</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1.37</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;&#xA0;Issued</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3,725,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1.69</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1.65</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;&#xA0;Exercised</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(750,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.15</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.00</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;&#xA0;Forfeited</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(1,000,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">2.00</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.00</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;&#xA0;Expired</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">(250,000</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.10</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.00</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">June
30, 2019</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">8,375,000</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.93</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1.05</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;&#xA0;Issued</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">8,424,500</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.33</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">2.23</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;&#xA0;Forfeited</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(750,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">2.00</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.00</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;&#xA0;Expired</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">(5,800,000</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.62</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.00</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:4px;margin-left:0px;"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">June
30, 2020</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:4px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">10,249,500</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:4px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:4px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.53</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:4px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:4px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">2.00</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:4px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
a)</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
November 1, 2017 and in connection to a consulting agreement with a
director and officer of the Company, the Company issued warrants
for the purchase of 3,000,000 common shares of the Company
exercisable until October 31, 2019 at an exercise price of $0.10
per share. On issuance, warrants for the purchase of 1,000,000
common shares vested immediately and the remaining 2,000,000 vested
during the three months ended June 30, 2018. The warrants were not
exercised as of October 31, 2019 and expired.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
fair value of these issued warrants of $261,401 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr style="background-color:#cceeff;">
<td rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Stock
price</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.10</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Risk-free interest
rate</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.41</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Expected
life</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2 years&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Estimated
volatility in the market price of the common shares</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">214</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Dividend
yield</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;"><font style="font-size: 13px; font-family: Times New Roman">Nil</font>&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">For
the year ended June 30, 2020, the Company expensed $nil (June 30,
2019 - $nil, June 30, 2018 &#x2013; $261,401) of the fair value of
the warrants as share based compensation.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px; font-family: Times New Roman">b)</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
November 1, 2017 and in connection to a consulting agreement, the
Company issued warrants for the purchase of 750,000 common shares
of the Company exercisable until April 30, 2019 at an exercise
price of $0.15 per share. On issuance, warrants for the purchase of
250,000 common shares vested immediately and the remaining 500,000
vested during the three months ended June 30, 2018. On April 30,
2019, the warrants were exercised.</font></div>
</div>
</div>
<br>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-42</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-weight: bold">CordovaCann Corp</font>.<br>
(formerly LiveReel Media Corporation)<br>
Notes to the Consolidated Financial Statements<br>
For the years ended June 30, 2020, 2019 and 2018<br>
(Expressed in Canadian Dollars)</font></div>
&#xA0; </div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: -12px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">20.
WARRANTS (continued)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
fair value of these issued warrants of $44,087 was determined using
the Black-Scholes Option Pricing Model with the following
assumptions:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr style="background-color:#cceeff;">
<td rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Stock
price</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.10</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Risk-free interest
rate</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.41</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Expected
life</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.5 years&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Estimated
volatility in the market price of the common shares</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">155</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Dividend
yield</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;"><font style="font-size: 13px; font-family: Times New Roman">Nil</font>&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">For
the year ended June 30, 2020, the Company expensed $nil (June 30,
2019 - $Nil, June 30, 2018 &#x2013; $44,087) of the fair value of
the warrants as share based compensation.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px; font-family: Times New Roman">c)</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
November 1, 2017 and in connection to a consulting agreement, the
Company issued warrants for the purchase of 250,000 common shares
of the Company exercisable until April 30, 2019 at an exercise
price of $0.10 per share, such warrants vesting upon the consultant
meeting certain deliverables as set forth in the consulting
agreement. On April 30, 2019, the deliverables were not met and the
warrants expired.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
fair value of these issued warrants of $16,499 was determined using
the Black-Scholes Option Pricing Model with the following
assumptions:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr style="background-color:#cceeff;">
<td rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Stock
price</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.10</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Risk-free interest
rate</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.41</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Expected
life</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.5 years</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Estimated
volatility in the market price of the common shares</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">155</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Dividend
yield</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;"><font style="font-size: 13px; font-family: Times New Roman">Nil</font></font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">For
the year ended June 30, 2020, the Company expensed $nil (June 30,
2019 - $nil, June 30, 2018 &#x2013; $4,125) of the fair value of the
warrants as share based compensation.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px; font-family: Times New Roman">d)</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
March 9, 2018 and in connection to a consulting agreement with a
director and officer of the Company, the Company issued warrants
for the purchase of 1,500,000 common shares of the Company
exercisable until March 8, 2020 at an exercise price of $1.15 per
share, such warrants vesting immediately upon issuance. The
warrants were not exercised as of March 8, 2020 and
expired.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
fair value of these issued warrants of $1,336,934 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr style="background-color:#cceeff;">
<td rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Stock
price</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.14</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Risk-free interest
rate</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.83</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Expected
life</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2 years&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Estimated
volatility in the market price of the common shares</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">173</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Dividend
yield</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;"><font style="font-size: 13px; font-family: Times New Roman">Nil</font></font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>

<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-43</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<font style="font-family: Times New Roman; font-size: 13px;"><font style="font-weight: bold">CordovaCann Corp</font>.<br>
(formerly LiveReel Media Corporation)<br>
Notes to the Consolidated Financial Statements<br>
For the years ended June 30, 2020, 2019 and 2018<br>
(Expressed in Canadian Dollars)</font>&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: -12px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">20.
WARRANTS (continued)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">For
the year ended June 30, 2020, the Company expensed $nil (June 30,
2019 -$nil, June 30, 2018 &#x2013; $1,336,934) of the fair value of
the warrants as share based compensation.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px; font-family: Times New Roman">e)</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
March 9, 2018 and in connection to a consulting agreement, the
Company issued warrants for the purchase of 750,000 common shares
of the Company exercisable until March 8, 2020 at an exercise price
of $1.15 per share, such warrants vesting upon the consultant
meeting certain deliverables as set forth in the consulting
agreement. As at March 8, 2020, the deliverables were not met and
warrants expired.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
fair value of these issued warrants of $668,467 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr style="background-color:#cceeff;">
<td rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Stock
price</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.14</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Risk-free interest
rate</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.83</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Expected
life</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2 years&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Estimated
volatility in the market price of the common shares</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">173</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Dividend
yield</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;"><font style="font-size: 13px; font-family: Times New Roman">Nil</font>&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">For
the year ended June 30, 2020, the Company expensed $nil (June 30,
2019 - $nil, June 30, 2018 &#x2013; $501,350) of the fair value of
the warrants as share based compensation.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px; font-family: Times New Roman">f)</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
March 15, 2018 and in connection to a consulting agreement, the
Company issued warrants for the purchase of 400,000 common shares
of the Company exercisable until September 14, 2019 at an exercise
price of $1.45 per share, such warrants vesting upon the consultant
meeting certain deliverables as set forth in the consulting
agreement. As at September 14, 2019, the deliverables were not met
and warrants expired.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
fair value of these issued warrants of $324,775 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr style="background-color:#cceeff;">
<td rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Stock
price</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.42</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Risk-free interest
rate</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.75</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Expected
life</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.5 years&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Estimated
volatility in the market price of the common shares</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">129</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Dividend
yield</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;"><font style="font-size: 13px; font-family: Times New Roman">Nil</font></font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">For
the year ended June 30, 2020, the Company expensed $nil (June 30,
2019 - $nil, June 30, 2018 &#x2013; $121,791) of the fair value of
the warrants as share based compensation.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
g)</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
October 1, 2018 and in connection to a consulting agreement, the
Company issued warrants for the purchase of 250,000 common shares
of the Company exercisable until September 30, 2020 at an exercise
price of $1.50 per share. Of these issued warrants, 100,000 vested
immediately upon issuance while the remaining 150,000 warrants
shall vest in six equal tranches of 25,000 warrants every three
months from the date of issuance.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
fair value of these issued warrants of $207,833 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr style="background-color:#cceeff;">
<td rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Stock
price</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.35</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Risk-free interest
rate</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2.27</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Expected
life</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2 years&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Estimated
volatility in the market price of the common shares</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">126</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Dividend
yield</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;"><font style="font-size: 13px; font-family: Times New Roman">Nil</font></font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">For
the year ended June 30, 2020 the Company expensed $23,901 (June 30,
2019 &#x2013; $183,932) of these fair value of the warrants as share
based compensation.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px; font-family: Times New Roman">h)</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
October 15, 2018 and in connection to a consulting agreement, the
Company issued warrants for the purchase of 250,000 common shares
of the Company exercisable until October 14, 2020 at an exercise
price of $2.00 per share. The warrants shall vest in four equal
tranches of 62,500 warrants every three months from the date of
issuance.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><br></font></div>
<br>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-44</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-weight: bold">CordovaCann Corp</font>.<br>
(formerly LiveReel Media Corporation)<br>
Notes to the Consolidated Financial Statements<br>
For the years ended June 30, 2020, 2019 and 2018<br>
(Expressed in Canadian Dollars)</font></div>
&#xA0; </div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: -12px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">20.
WARRANTS (continued)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
fair value of these issued warrants of $131,421 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr style="background-color:#cceeff;">
<td rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Stock
price</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.05</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Risk-free interest
rate</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2.25</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Expected
life</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2 years&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Estimated
volatility in the market price of the common shares</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">124</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Dividend
yield</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;"><font style="font-size: 13px; font-family: Times New Roman">Nil</font></font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">For
the year ended June 30, 2020 the Company expensed $11,467 (June 30,
2019 &#x2013; $119,954) of these fair value of the warrants as share
based compensation.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px; font-family: Times New Roman">i)</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
October 31, 2018 and in connection to a consulting agreement, the
Company issued warrants for the purchase of 1,000,000 common shares
of the Company exercisable until October 30, 2022 at a price of
$2.00 per share. The warrants shall vest in equal tranches of
250,000 every six months from the date of issuance.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
fair value of these issued warrants of $1,251,625 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr style="background-color:#cceeff;">
<td rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Stock
price</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.30</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Risk-free interest
rate</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2.41</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Expected
life</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">4 years&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Estimated
volatility in the market price of the common shares</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">215</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Dividend
yield</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;"><font style="font-size: 13px; font-family: Times New Roman">Nil</font></font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">During
the year ended June 30, 2020, 750,000 of the 1,000,000 warrants
previously issued to the consultant were forfeited. As a result,
the Company reversed $451,976 of the previously recorded share
based compensation expense during the year ended June 30, 2020
(June 30, 2019 &#x2013; expense of $764,874).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px; font-family: Times New Roman">j)</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
October 31, 2018 and in connection to a consulting agreement, the
Company issued warrants for the purchase of 1,000,000 common shares
of the Company exercisable until October 30, 2022 at a price of
$2.00 per share. The warrants shall vest in equal tranches of
250,000 every six months from the date of issuance.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
fair value of these issued warrants of $1,251,625 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr style="background-color:#cceeff;">
<td rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Stock
price</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.30</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Risk-free interest
rate</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2.41</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Expected
life</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">4 years&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Estimated
volatility in the market price of the common shares</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">215</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Dividend
yield</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;"><font style="font-size: 13px; font-family: Times New Roman">Nil</font>&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
February 15, 2019, all 1,000,000 warrants previously issued to the
consultant were forfeited. As a result, the Company reversed the
previously recorded share based compensation expense during the
year ended June 30, 2019. For the year ended June 30, 2020, the
Company expensed $nil (June 30, 2019 &#x2013; $nil) of the fair
value of these warrants as share based compensation.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px; font-family: Times New Roman">k)</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
December 1, 2018 and in connection to a consulting agreement, the
Company issued warrants for the purchase of 250,000 common shares
of the Company exercisable until November 30, 2020 at a price of
$1.50 per share. Of these issued warrants, 100,000 vested
immediately upon issuance while the remaining 150,000 warrants
shall vest in three equal tranches of 50,000 warrants every three
months from the date of issuance.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
fair value of these issued warrants of $138,853 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr style="background-color:#cceeff;">
<td rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Stock
price</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.06</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Risk-free interest
rate</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2.14</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Expected
life</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2 years&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Estimated
volatility in the market price of the common shares</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">116</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Dividend
yield</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;"><font style="font-size: 13px; font-family: Times New Roman">Nil</font></font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">For
the year ended June 30, 2020 the Company expensed $6,171 (June 30,
2019 &#x2013; $132,682) of the fair value of these warrants as share
based compensation.</font></div>
<br>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-45</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-weight: bold">CordovaCann Corp</font>.<br>
(formerly LiveReel Media Corporation)<br>
Notes to the Consolidated Financial Statements<br>
For the years ended June 30, 2020, 2019 and 2018<br>
(Expressed in Canadian Dollars)</font></div>
&#xA0; </div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: -12px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">20.
WARRANTS (continued)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px; font-family: Times New Roman">l)</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
February 1, 2019 and in connection to a consulting agreement, the
Company issued warrants for the purchase of 325,000 common shares
of the Company exercisable until January 31, 2022 at a price of
$1.00 per share. Of these issued warrants, 81,250 vested
immediately while the remaining 243,750 warrants shall vest in
three equal tranches of 81,250 warrants every three months from the
date of issuance.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
fair value of these issued warrants of $250,793 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr style="background-color:#cceeff;">
<td rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Stock
price</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.95</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Risk-free interest
rate</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.83</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Expected
life</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3 years&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Estimated
volatility in the market price of the common shares</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">152</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Dividend
yield</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;"><font style="font-size: 13px; font-family: Times New Roman">Nil</font></font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">For
the year ended June 30, 2020 the Company expensed $38,316 (June 30,
2019 &#x2013; $212,477) of the fair value of these warrants as share
based compensation.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
m)</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
February 25, 2020 and in connection to a consulting agreement, the
Company issued warrants for the purchase of 3,000,000 common shares
of the Company exercisable until February 23, 2023 at a price of
$0.25 per share. Of these issued warrants, 500,000 vested
immediately and the remainder shall vest over time as certain
acquisition and duration milestones are met.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
fair value of these issued warrants of $389,390 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr style="background-color:#cceeff;">
<td rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Stock
price</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.19</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Risk-free interest
rate</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.37</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Expected
life</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3 years&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Estimated
volatility in the market price of the common shares</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">124</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Dividend
yield</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">Nil</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">For
the year ended June 30, 2020 the Company expensed $338,914 of the
fair value of these warrants as share based
compensation.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
n)</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
April 1, 2020 and in connection to a consulting agreement, the
Company issued warrants for the purchase of 540,000 common shares
of the Company exercisable until March 31, 2023 at a price of $0.30
per share. These warrants vest in equal tranches of 30,000 each
month from the date of issuance.</font></div>
</div>
</div>
<br>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-46</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-weight: bold">CordovaCann Corp</font>.<br>
(formerly LiveReel Media Corporation)<br>
Notes to the Consolidated Financial Statements<br>
For the years ended June 30, 2020, 2019 and 2018<br>
(Expressed in Canadian Dollars)</font></div>
&#xA0; </div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: -12px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">20.
WARRANTS (continued)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
fair value of these issued warrants of $78,427 was determined using
the Black-Scholes Option Pricing Model with the following
assumptions:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr style="background-color:#cceeff;">
<td rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Stock
price</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.225</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Risk-free interest
rate</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.53</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Expected
life</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3 years&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Estimated
volatility in the market price of the common shares</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">117</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Dividend
yield</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;"><font style="font-size: 13px; font-family: Times New Roman">Nil</font></font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">For
the year ended June 30, 2020 the Company expensed $34,793 of the
fair value of these warrants as share based
compensation.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
o)</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
April 1, 2020 and in connection to a consulting agreement, the
Company issued warrants for the purchase of 1,000,000 common shares
of the Company exercisable until March 31, 2023 at a price of $0.30
per share. Of these issued warrants, 250,000 vested immediately
while the remaining 750,000 warrants shall vest in three equal
tranches of 250,000 warrants every three months from the date of
issuance.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
fair value of these issued warrants of $145,235 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr style="background-color:#cceeff;">
<td rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Stock
price</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.225</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Risk-free interest
rate</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.53</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Expected
life</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3 years&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Estimated
volatility in the market price of the common shares</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">117</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Dividend
yield</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;"><font style="font-size: 13px; font-family: Times New Roman">Nil</font>&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">For
the year ended June 30, 2020 the Company expensed $102,875 of the
fair value of these warrants as share based
compensation.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px; font-family: Times New Roman">p)</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
April 15, 2020, and in connection to a consulting agreement, the
Company issued warrants for the purchase of 1,000,000 common shares
of the Company exercisable until April 14, 2022 at a price of $0.35
per share. Of these issued warrants, 250,000 vested immediately
while the remaining 750,000 warrants shall vest in three equal
tranches of 250,000 warrants every six months from the date of
issuance.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
fair value of these issued warrants of $169,849 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr style="background-color:#cceeff;">
<td rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Stock
price</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.30</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Risk-free interest
rate</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.42</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Expected
life</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2 years&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Estimated
volatility in the market price of the common shares</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">118</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:36px;"><font style="font-size: 13px; font-family: Times New Roman">Dividend
yield</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;"><font style="font-size: 13px; font-family: Times New Roman">Nil</font></font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<br>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-47</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-weight: bold">CordovaCann Corp</font>.<br>
(formerly LiveReel Media Corporation)<br>
Notes to the Consolidated Financial Statements<br>
For the years ended June 30, 2020, 2019 and 2018<br>
(Expressed in Canadian Dollars)</font></div>
&#xA0; </div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: -12px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">20.
WARRANTS (continued)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">For
the year ended June 30, 2020 the Company expensed $74,899 of the
fair value of these warrants as share based
compensation.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px; font-family: Times New Roman">q)</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
February 1, 2019 and in connection with the Promissory Note A, the
Company issued warrants for the purchase of 150,000 common shares
of the Company exercisable until January 31, 2020 at a price of
$1.00 per share. The fair value of these issued warrants of $4,283
was determined by the residual method as noted in Note 15. For the
year ended June 30, 2019, $4,283 (June 30, 2018 &#x2013; $nil) of
the fair value of the warrants was included in contributed
surplus.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px; font-family: Times New Roman">r)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">On March 13, 2019 and in connection with the
private placement of Debenture Units of Series
A-1</font><font style="font-style: italic; color: #000000">,</font>
<font style="color: #000000">the Company issued warrants for the
purchase of 300,000 common shares of the Company exercisable until
March 12, 2021 at a price of $1.20 per share. The fair value of
these issued warrants of $29,063 was determined by the residual
method as noted in Note 17. For the year ended June 30, 2019,
$29,063 (June 30, 2018 &#x2013; $nil) of the fair value of the
warrants was included in contributed surplus.</font></font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px; font-family: Times New Roman">s)</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
June 19, 2019 and in connection with the Promissory Note C, the
Company issued warrants for the purchase of 200,000 common shares
of the Company exercisable until June 18, 2021 at a price of $1.00
per share. The fair value of these issued warrants of $14,367 was
determined by the residual method as noted in Note 15. For the year
ended June 30, 2019, $14,367 (June 30, 2018 &#x2013; $nil) of the
fair value of the warrants was included in contributed
surplus.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px; font-family: Times New Roman">t)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">On August 14, 2019 and in connection with the
private placement of Debenture Units of Series
A-2</font><font style="font-style: italic; color: #000000">,</font>
<font style="color: #000000">the Company issued warrants for the
purchase of 356,500 common shares of the Company exercisable until
August 13, 2020 at a price of $1.20 per share. The fair value of
these issued warrants of $33,816 was determined by the residual
method as noted in Note 17. For the year ended June 30, 2020,
$33,816 (June 30, 2019 &#x2013; $nil) of the fair value of the
warrants was included in contributed surplus.</font></font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px; font-family: Times New Roman">u)</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
December 16, 2019 and in connection with the amendment of
Promissory Note C, the Company issued warrants for the purchase of
200,000 common shares of the Company exercisable until June 18,
2021 at a price of $0.30 per share. The fair value of these issued
warrants of $8,995 was determined by the residual method as noted
in Note 15. For the year ended June 30, 2020, $8,995 (June 30, 2019
&#x2013; $nil) of the fair value of the warrants was included in
contributed surplus.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px; font-family: Times New Roman">v)</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
April 24, 2020 and in connection with the private placement of
Debenture Units of Series A-3, the Company issued warrants for the
purchase of 2,328,000 common shares of the Company exercisable
until April 23, 2022 at a price of $0.30 per share. The fair value
of these issued warrants of $415,010 was determined by the relative
fair value method as noted in Note 17. For the year ended June 30,
2020, $415,010 (June 30, 2019 &#x2013; $nil) of the fair value of
the warrants was included in contributed surplus.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">During the year
ended June 30, 2020 the Company expensed $631,335 in the fair value
of warrants as a result of the issuances which have been recorded
as share based compensation and reversed $451,976 of stock based
compensation expense as a result of forfeitures (June 30, 2019
&#x2013; $1,413,919).</font></div>
<br>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-48</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-weight: bold">CordovaCann Corp</font>.<br>
(formerly LiveReel Media Corporation)<br>
Notes to the Consolidated Financial Statements<br>
For the years ended June 30, 2020, 2019 and 2018<br>
(Expressed in Canadian Dollars)</font></div>
&#xA0; </div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: -12px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">21.
LOSS ON DEPOSIT</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On June 19, 2019,
the Company entered into an asset purchase agreement to acquire
certain assets and licenses. The Company made non-refundable
payments of $124,428 (US $94,000), with the balance of US $246,000
to be paid within 45 days. The Company did not make the subsequent
payment of US $246,000 and has recorded a loss on deposit in the
amount of $124,428 for the year ended June 30, 2019.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: -12px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">22.
COMMITMENTS</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">(a)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Exclusivity
Fee</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On March 7, 2018,
the Company entered into a memorandum of understanding (the
&#x201C;MOU&#x201D;) with a third party which granted the Company an
exclusivity option on a transaction to acquire a majority stake in
real estate and intellectual property owned by the third party.
Under the terms of the MOU, the Company agreed to pay the third
party up to US $100,000 for such exclusivity until termination by
either party. In October 2019, the Company terminated the MOU.
During the year ended June 30, 2020, the Company paid and expensed
a total of $nil (June 30, 2019 - $48,367, June 30, 2018 -
$42,550).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">(b)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Employment
Agreements</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: -24px"><font style="font-size: 13px; font-family: Times New Roman">The Company is
party to certain employments agreements with key executives of the
Company that contain clauses requiring additional payments of up to
two times the annual entitlements under these agreements upon
occurrence of certain events, such as a change of control. As a
triggering event has not taken place, the contingent payments have
not been reflected in these consolidated financial
statements.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">(c)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Commitments</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">During the year
ended June 30, 2020,&#xA0;the Company received a notice of
termination letter (the "Termination Letter") from the landlord of
a leased property, who&#xA0;subsequently repossessed the premises.
The landlord of leased property has notified the Company that to
the extent applicable, it intends to seek recovery of damages
incurred including without limitation, the costs of recovering the
leased property, solicitor fees, arrears and all future rental
payments&#xA0;following the notice of
termination.&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company has
expensed its rental deposit as a result of the&#xA0;Termination
Letter. As of the date of these consolidated financial statements,
the Company has not received any claims from the landlord as a
result of the&#xA0;Termination Letter.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">(d)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Deposit
in Joint Forces</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On November 7,
2019, the Company advanced CDN $408,840 (US $300,000) to a
non-arm&#x2019;s length party in exchange for Promissory Note D (the
&#x201C;Joint Forces Deposit&#x201D;).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On October 12,
2020, the Company entered into a settlement agreement (the
&#x201C;Settlement&#x201D;), settling the outstanding Joint Forces
Deposit for a payment term over 2 years for a total of US $338,000.
The proceeds of the Settlement will be received by the
beneficiaries of Promissory Note D. As a result, a gain on
Settlement has been recorded in the amount of $51,023 (US
$38,000).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;<br></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font><br></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-49</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-weight: bold">CordovaCann Corp</font>.<br>
(formerly LiveReel Media Corporation)<br>
Notes to the Consolidated Financial Statements<br>
For the years ended June 30, 2020, 2019 and 2018<br>
(Expressed in Canadian Dollars)</font></div>
&#xA0; </div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: -12px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">22.
COMMITMENTS (continued)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Accordingly, the
Joint Forces Deposit was determined to be a financial instrument
and recorded at amortized cost. The initial carrying amount of the
financial asset was determined by discounting the stream of future
payments of interest and principal at a market interest rate of 8%
which is estimated to be the lending rate available to the Company
for similar instruments. The balance as at June 30, 2020 was
$405,214 (US $297,340), and interest expense amounted to $54,595.
The current portion of the Joint Forces Deposit as at June 30, 2020
amounted to $74,450 (US $54,630).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">(e)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Loss
on Deposit</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">During the year
ended June 30, 2019, the Company made certain non-refundable
deposits towards a transaction in California (the &#x201C;California
Transaction&#x201D;). During the year ended June 30, 2020, the
Company terminated the California Transaction and recorded a loss
on the deposit in the amount of $396,000.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">(f)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">COVID-19</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On March 11, 2020,
the World Health Organization declared the outbreak of the novel
strain of coronavirus (&#x201C;COVID-19&#x201D;) a pandemic, which
has resulted in governments worldwide enacting emergency measures
to combat the spread of the virus. These measures, which include
the implementation of travel bans, self-imposed quarantine periods
and social distancing, have caused material disruption to
businesses globally resulting in an economic slowdown. Global
equity markets have experienced significant volatility and
weakness. Governments and central banks have reacted with
significant monetary and fiscal interventions designed to stabilize
economic conditions. The duration and impact of the COVID-19
outbreak is unknown at this time, as is the efficacy of the
government and central bank interventions. It is not possible to
reliably estimate the length and severity of these developments and
the impact on the financial results and condition of the Company
and its operating subsidiaries in future periods as well as the
Company&#x2019;s ability to find new business opportunities, raise
capital or restructure the Company&#x2019;s finances</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">(g)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Contingencies</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On August 28, 2020,
a subsidiary of the Company was identified as a defendant to a
complaint in the Superior Court of California, County of Mendocino
alleging breach of contract for unspecified damages. The Company
intends on defending such complaint, however, it is not practical
to estimate the potential effect of this complaint at such
time.</font></div>
<br>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-50</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-weight: bold">CordovaCann Corp</font>.<br>
(formerly LiveReel Media Corporation)<br>
Notes to the Consolidated Financial Statements<br>
For the years ended June 30, 2020, 2019 and 2018<br>
(Expressed in Canadian Dollars)</font></div>
&#xA0; </div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: -12px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">23.
RELATED PARTY TRANSACTIONS</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Related party
transactions for the year ended June 30, 2020 and 2019 and the
balances as at those dates, not disclosed elsewhere in these
consolidated financial statements are:</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px; font-family: Times New Roman">a)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">During the year
ended June 30, 2020, the Company purchased equipment valued at $nil
(June 30, 2019 - $nil; June 30, 2018 &#x2013; $44,439) from a
corporation related by virtue of a common officer and a
director;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px; font-family: Times New Roman">b)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">During the year
ended June 30, 2020, the Company expensed $662,284 (June 30, 2019 -
$1,116,103; June 30, 2018 &#x2013; $508,399), in fees payable to
officers and directors of the Company and in fees payable to a
corporation related by virtue of a common officer and director. As
at June 30, 2020, the Company had fees payable to officers and
directors of the Company of $1,278,106 (June 30, 2019 - $546,653);
and</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px; font-family: Times New Roman">c)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">During the year
ended June 30, 2020, the Company expensed $559,846 (June 30, 2019 -
$nil; June 30, 2018 &#x2013; $2,286,120) in share based compensation
related to officers and directors of the Company.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: -12px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">24.
FINANCIAL INSTRUMENTS AND RISK FACTORS</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
fair value hierarchy that reflects the significance of inputs used
in making fair value measurements is as follows:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 94px">
<font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Level 1:</font><br></font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">quoted
prices in active markets for identical assets or
liabilities;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 96px">
<font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Level 2:</font>&#xA0;&#xA0;<br></font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">inputs
other than quoted prices included in Level 1 that are observable
for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. from derived prices); and</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 94px">
<font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Level 3:</font><br></font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">inputs
for the asset or liability that are not based upon observable
market data.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Assets
are classified in their entirety based on the lowest level of input
that is significant to the fair value measurement.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The fair values of
the Company&#x2019;s financial instruments consisting of cash and
cash equivalents, promissory note and accounts payable and accrued
liabilities approximate their carrying value due to the relatively
short term maturities of these instruments.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Risk Management Policies</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
Company, through its financial assets and liabilities, is exposed
to various risks. The Company has established policies and
procedures to manage these risks, with the objective of minimizing
any adverse effect that changes in these variables could have on
these consolidated financial statements. The following analysis
provides a measurement of risks as at June 30, 2020:</font></div>
<br>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-51</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-weight: bold">CordovaCann Corp</font>.<br>
(formerly LiveReel Media Corporation)<br>
Notes to the Consolidated Financial Statements<br>
For the years ended June 30, 2020, 2019 and 2018<br>
(Expressed in Canadian Dollars)</font></div>
&#xA0; </div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: -12px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">24.
FINANCIAL INSTRUMENTS AND RISK FACTORS (continued)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Credit
Risk</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
Company's maximum exposure to credit risk, which will cause a
financial loss to the Group due to failure to discharge an
obligation by the counterparties, totals the carrying amount of
these assets as stated in the consolidated statements of financial
position. The Company's principal financial assets are cash,
restricted investments and accounts receivable, which represent the
Company's exposure to credit risk in relation to financial assets.
The credit risk on cash and restricted investments is mitigated by
transacting with banks with high credit ratings assigned by
international credit-rating agencies. An allowance for expected
credit losses is established based upon factors surrounding the
credit risk of specific accounts, historical trends and other
information when necessary.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Liquidity Risk</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Liquidity
risk is the risk that the Company will not be able to meet its
financial obligations as they fall due within one year. The
Company&#x2019;s approach to managing liquidity risk is to ensure,
as far as possible, that it will have sufficient liquidity to meet
its liabilities when due, under both normal and stressed
conditions, without incurring unacceptable losses or risking damage
to the Company&#x2019;s reputation.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">As
at June 30, 2020, there is substantial doubt about the
Company&#x2019;s ability to continue as a going concern primarily
due to its history of losses and negative working capital.
Liquidity risk continues to be a key concern in the development of
future operations.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Market Risk</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">(i)
Interest Rate Risk</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Interest
rate risk is the risk that the fair value or future cash flows of a
financial instrument will fluctuate because of changes in market
interest rates. The interest rates on all of the Company&#x2019;s
existing debt are fixed, and therefore it is not currently subject
to any significant interest rate risk.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(ii) Foreign
Currency Risk</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
Company is exposed to foreign currency risk from fluctuations in
foreign exchange rates and the degree of volatility in these rates
due to the timing of their accounts payable balances. The risk is
mitigated by timely payment of creditors and monitoring of foreign
exchange fluctuations by management. As at June 30, 2020, the
Company did not use derivative instruments to hedge its exposure to
foreign currency risk.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">(iii)
Price Risk</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
Company&#x2019;s operations do not involve the direct input or
output of any commodities and therefore it is not subject to any
significant commodity price risk. In addition, the Company does not
have any equity investment in other listed public companies, and
therefore it is not subject to any significant stock market price
risk.</font></div>
<br>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-52</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-weight: bold">CordovaCann Corp</font>.<br>
(formerly LiveReel Media Corporation)<br>
Notes to the Consolidated Financial Statements<br>
For the years ended June 30, 2020, 2019 and 2018<br>
(Expressed in Canadian Dollars)</font></div>
&#xA0; </div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: -12px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">25.
CAPITAL MANAGEMENT</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company
includes equity comprised of issued share capital, contributed
surplus, deficit in the definition of capital and accumulated other
comprehensive loss. As at June 30, 2020, the Company&#x2019;s
shareholders&#x2019; equity was $6,276,689 (June 30, 2019 &#x2013;
shareholders&#x2019; equity of $362,570). The Company&#x2019;s
objectives when managing capital are as follows:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px; font-family: Times New Roman">(i)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">to safeguard the
Company&#x2019;s ability to continue as a going concern;
and</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px; font-family: Times New Roman">(ii)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">to raise sufficient
capital to meet its business objectives.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company manages
its capital structure and makes adjustments to it, based on the
general economic conditions, the Company&#x2019;s long-term and
short-term capital requirements. To secure the additional capital
necessary to pursue these plans, the Company may attempt to raise
additional funds through the issuance of equity or
debt.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: -12px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman"><font style="color: #000000">
26</font>. INCOME TAXES</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Canadian</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Income Taxes</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The major factors
that cause variations from the Company&#x2019;s combined federal and
provincial statutory Canadian income tax rates were the
following:</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-size: 11px;">
&#xA0;</font><font style="vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman;">June
30,</font></div>
<div><font style="font-weight: bold; font-family: Times New Roman;">2020</font></div>
</font><font style="padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-size: 11px;">
&#xA0;</font><font style="vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman;">June
30,</font></div>
<div><font style="font-weight: bold; font-family: Times New Roman;">2019</font></div>
</font><font style="padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-size: 11px;">
&#xA0;</font><font style="vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block; font-size: 11px;">
<div><font style="font-family: Times New Roman;">June
30,</font></div>
<div><font style="font-family: Times New Roman;">2018</font></div>
</font><font style="padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:7px;margin-left:24px;"><font style="font-size: 13px; font-family: Times New Roman">Loss from Canadian
operations</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(4,254,121</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(5,057,042</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(4,860,659</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:7px;padding-bottom:2px;margin-left:24px;"><font style="font-size: 13px; font-family: Times New Roman">Combined Canadian
statutory income tax rates</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">26.50</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">%</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">26.50</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">%</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">26.50</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:7px;margin-left:24px;"><font style="font-size: 13px; font-family: Times New Roman">Income tax recovery
at statutory income tax rates</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(1,127,342</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(1,340,116</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(1,288,075</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:7px;margin-left:24px;"><font style="font-size: 13px; font-family: Times New Roman">Increase (decrease)
in taxes resulting from:</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:7px;margin-left:24px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;&#xA0;&#xA0;Stock-based
compensation expense</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">277,895</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">374,689</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">913,565</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:7px;margin-left:24px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;&#xA0;&#xA0;Other</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">26,336</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">11,671</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">4,790</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:7px;padding-bottom:2px;margin-left:24px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;&#xA0;&#xA0;Unrecognized
benefit of non-capital losses</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">672,781</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">953,756</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">369,720</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:7px;padding-bottom:4px;margin-left:24px;"><font style="font-size: 13px; font-family: Times New Roman">Provision for
income taxes</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:4px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(54,349</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:4px;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:4px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:4px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:4px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:4px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Deferred
Income Taxes</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Deferred tax assets
have not been recognized in respect of the following deductible
temporary differences:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;padding-bottom:2px;width:10%;font-size:11px;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;font-size:11px;border-bottom:solid 2px #000;display:inline-block;">
<div><font style="font-family:Times New Roman;font-weight:bold;">June
30,</font></div>
<div><font style="font-family:Times New Roman;font-weight:bold;">2020</font></div>
</font><font style="vertical-align:bottom;padding-bottom:2px;width:10%;font-size:11px;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;padding-bottom:2px;width:10%;font-size:11px;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;font-size:11px;border-bottom:solid 2px #000;display:inline-block;">
<div><font style="font-family:Times New Roman;">June
30,</font></div>
<div><font style="font-family:Times New Roman;">2019</font></div>
</font><font style="vertical-align:bottom;padding-bottom:2px;width:10%;font-size:11px;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Amounts
related to tax loss carry forwards $</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">11,898,000</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">8,467,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">A deferred tax
asset has not been recognized in respect of the above because it is
not probable that future taxable profits will be available against
which the temporary difference can be utilized.</font></div>
<br>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-53</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-weight: bold">CordovaCann Corp</font>.<br>
(formerly LiveReel Media Corporation)<br>
Notes to the Consolidated Financial Statements<br>
For the years ended June 30, 2020, 2019 and 2018<br>
(Expressed in Canadian Dollars)</font></div>
&#xA0; </div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: -12px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman"><font style="color: #000000">
26</font>. INCOME TAXES (continued)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 575px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Deferred
Tax
Liabilities&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: left; display: table-cell; width: 37px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">June
30, 2020</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 575px">
<font style="font-size: 13px; font-family: Times New Roman">Convertible
debt&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: left; display: table-cell; width: 37px">
<font style="font-size: 13px; font-family: Times New Roman">&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">$
4,939</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 24px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Non-capital
Losses</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">As at June 30,
2020, the Company has accumulated non-capital tax loss carry
forwards for income tax purposes of carry-forward of approximately
$11,399,000 which may be applied against future Canadian taxable
income and expire as detailed below. No deferred taxes have been
recognized in these consolidated financial statements in respect of
the following as the probability that future taxable profit will
allow the deferred tax asset to be recognized cannot be predicted
at this time.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The net operating
losses for these years will not be available to reduce future
taxable income until the returns are filed.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;padding-top:0px;margin-left:0px;width:100%;padding-bottom:0px;font-size:inherit;">
<tr style="background-color:#cceeff;">
<td rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">2027</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">536,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">2028</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">868,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">2029</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1,047,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">2030</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">627,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">2031</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">251,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">2032</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">161,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">2033</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">52,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">2034</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">115,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">2035</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">177,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">2036</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">74,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">2037</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">88,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">2038</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; font-size: 13px; font-family: Times New Roman; display: inline-block;">&#xA0;</font><font style="text-align: left; vertical-align: bottom; width: 5%; font-size: 13px; font-family: Times New Roman; display: inline-block;">&#xA0;</font><font style="text-align: right; vertical-align: bottom; width: 75%; font-size: 13px; font-family: Times New Roman; display: inline-block;">1,399,000</font><font style="text-align: left; vertical-align: bottom; width: 10%; font-size: 13px; font-family: Times New Roman; display: inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">2039</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 13px;">&#xA0;</font><font style="text-align: left; vertical-align: bottom; width: 5%; display: inline-block; font-size: 13px;">&#xA0;</font><font style="text-align: right; vertical-align: bottom; width: 75%; display: inline-block; font-size: 13px;">3,602,000</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;2040</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-size: 13px;">&#xA0;</font><font style="text-align: left; vertical-align: bottom; width: 5%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block; font-size: 13px;">&#xA0;</font><font style="text-align: right; vertical-align: bottom; width: 75%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block; font-size: 13px;">2,901,000</font><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:4px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 4px; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; border-bottom: 4px double rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px;">$</font><font style="text-align: right; font-family: Times New Roman; border-bottom: 4px double rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px;">11,399,000</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 4px; font-size: 13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">United
States</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Income Taxes</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The major factors
that cause variations from the Company&#x2019;s combined United
States federal and state level income tax rates were the
following:</font></div>
<br>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-54</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-weight: bold">CordovaCann Corp</font>.<br>
(formerly LiveReel Media Corporation)<br>
Notes to the Consolidated Financial Statements<br>
For the years ended June 30, 2020, 2019 and 2018<br>
(Expressed in Canadian Dollars)</font></div>
&#xA0; </div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: -12px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman"><font style="color: #000000">
26</font>. INCOME TAXES (continued)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><br></font></div>
<div style="margin-left: 24px;">
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:76%;">
<div style="margin-left:0px;padding-bottom:2px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:11px;"><font style="font-family:Times New Roman;color:#000;">June 30,
2020</font></font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:11px;"><font style="font-family:Times New Roman;color:#000;">June 30,
2019</font></font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:76%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Loss
on US Operations</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(420,578</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(772,238</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Combined
federal and state taxes</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">29.71</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">%</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">26.64</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(124,941</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(205,724</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Temproary
difference, Equipment</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">34,826</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Unrecognized
benefit of non-capital losses</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">124941</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">170,898</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Provision
of income taxes (recovery)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Deferred
Income Taxes</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Deferred tax assets
have not been recognized in respect of the following United States
deductible temporary differences:</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;padding-bottom:2px;width:10%;font-size:11px;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;font-size:11px;border-bottom:solid 2px #000;display:inline-block;">
<div><font style="font-family:Times New Roman;font-weight:bold;">June
30,</font></div>
<div><font style="font-family:Times New Roman;font-weight:bold;">2020</font></div>
</font><font style="vertical-align:bottom;padding-bottom:2px;width:10%;font-size:11px;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;padding-bottom:2px;width:10%;font-size:11px;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;font-size:11px;border-bottom:solid 2px #000;display:inline-block;">
<div><font style="font-family:Times New Roman;">June
30,</font></div>
<div><font style="font-family:Times New Roman;">2019</font></div>
</font><font style="vertical-align:bottom;padding-bottom:2px;width:10%;font-size:11px;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Amounts
related to tax loss carry forwards $</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,199,000</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">778,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">A deferred tax
asset has not been recognized in respect of the above because it is
not probable that future taxable profits will be available against
which the temporary difference can be utilized.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 24px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Non-capital
Losses</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">As at June 30,
2020, the Company has accumulated non-capital tax loss carry
forwards for income tax purposes of carry-forward of approximately
$1,199,000 which may be applied against future United States
taxable income and expire as detailed below.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 7px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">No deferred taxes
have been recognized in these consolidated financial statements in
respect of the following as the probability that future taxable
profit will allow the deferred tax asset to be recognized cannot be
predicted at this time.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><br></font></div>
<div style="margin-left: 24px;">
<table cellpadding="0" cellspacing="0" style="font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr style="background-color:#cceeff;">
<td rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">2038</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">144,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
</font><font style="color: #000; font-family: Times New Roman; font-size: 13px">2039</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">634,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">2040</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000;border-bottom:solid 2px #000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000;border-bottom:solid 2px #000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">421,000</font><font style="text-align: left; color:#000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="padding-bottom:2px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000;border-bottom:solid 2px #000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000;border-bottom:solid 2px #000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,199,000</font><font style="text-align: left; color:#000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">27.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">COMPARATIVE
AMOUNTS</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Certain comparative
figures have been reclassified to conform to the consolidated
financial statement presentation adopted for the current period.
Such reclassifications did not have an impact on previously
reported net and comprehensive loss.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
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<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-55</font></div>
</div>
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<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-weight: bold">CordovaCann Corp</font>.<br>
(formerly LiveReel Media Corporation)<br>
Notes to the Consolidated Financial Statements<br>
For the years ended June 30, 2020, 2019 and 2018<br>
(Expressed in Canadian Dollars)</font></div>
&#xA0; </div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">28.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">SUBSEQUENT
EVENTS</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
July 24, 2020, the Company issued six million (6,000,000) common
shares of the Company to Star Buds International Inc. for the
opening of two cannabis retail stores under the Star Buds trade
name. Of the 6,000,000 common shares issued, 3,000,000 were related
to shares to be issued as at June 30, 2020.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
August 17, 2020, the Company closed a non-brokered private
placement of common shares of the Company for gross proceeds of
$967,846; of which $552,501 was received in cash and $415,345 was
issued in settlement of outstanding fees and debt.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On October 12,
2020, the Company entered into a settlement agreement (the
&#x201C;Settlement&#x201D;), settling the outstanding Joint Forces
Deposit as disclosed in <font style="font-style: italic">Note 22
(d).</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">F-56</font></div>
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[{"type": "20-F", "sequence": "1", "filename": "cdva_20f.htm", "description": "FORM 20-F", "secsgml_size_bytes": 2541062}]
{"company-data": {"conformed-name": "CordovaCann Corp.", "cik": "0001168981", "assigned-sic": "7900", "irs-number": "000000000", "state-of-incorporation": "A6", "fiscal-year-end": "0630"}, "filing-values": {"form-type": "20-F", "act": "34", "file-number": "000-50492", "film-number": "201387085"}, "business-address": {"street1": "217 QUEEN STREET WEST", "street2": "SUITE 401", "city": "TORONTO", "state": "A6", "zip": "M5V 0R2", "phone": "(416) 843-2881"}, "mail-address": {"street1": "217 QUEEN STREET WEST", "street2": "SUITE 401", "city": "TORONTO", "state": "A6", "zip": "M5V 0R2"}, "former-company": [{"former-conformed-name": "LiveReel Media CORP", "date-changed": "20061201"}, {"former-conformed-name": "NOBLE HOUSE ENTERTAINMENT INC.", "date-changed": "20041115"}, {"former-conformed-name": "FIRST EMPIRE CORP INC.", "date-changed": "20040507"}]}
cdva_20f
UNITED
STATES
SECURITIES AND EXCHANGE
COMMISSION
WASHINGTON,
D.C. 20549
FORM 20-F
[ ]
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE
SECURITIES EXCHANGE ACT OF 1934
OR
[X]
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended June 30, 2020
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the
transition period from ______________ to
__________________
OR
[ ]
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15D OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of
event requiring this shell company report
Commission
file number: 000-50492
CORDOVACANN CORP.
(Exact
name of Registrant as specified in its charter)
Canada
(Jurisdiction
of incorporation or organization)
217 Queen Street West, Suite 401,
Toronto, Ontario, M5V 0R2, Canada
(Address
of principal executive offices)
Thomas M. Turner, Jr., T: 917-843-2169, F:
416-640-3183,
217 Queen Street West, Suite 401,
Toronto, Ontario, M5V 0R2, Canada
(Name,
Telephone, Facsimile number and Address of Company Contact
Person)
Securities
registered or to be registered pursuant to Section 12(b) of the
Act:
None
Securities
registered or to be registered pursuant to Section 12(g) of the
Act.
Common shares without par value
(Title
of Class)
Securities
for which there is a reporting obligation pursuant to Section 15(d)
of the Act:
None
Indicate
the number of outstanding shares of each of the Issuer's
classes of capital or common stock as of the close of the period
covered by the annual report
Common shares without par value – 65,948,832 as at June 30,
2020
Indicate
by check mark if the registrant is a well-known seasoned issuer, as
defined in Rule 405 of the Securities Act.
[ ] Yes
[X] No
If this
report is an annual or transition report, indicate by check mark if
the registrant is not required to file reports pursuant to Section
13 or 15(d) of the Securities Exchange Act of 1934.
[X] Yes
[ ] No
Note -
Checking the box above will not relieve any registrant required to
file reports pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 from their obligations under those
Sections.
Indicate
by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such
report) and (2) has been subject to such filing requirements for
the past 90 days.
[X]Yes
[ ] No
Indicate
by check mark whether the registrant has submitted electronically
and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405
of Regulation S-T (Section 232.405 of this chapter) during the
preceding 12 months (or such shorter period that the registrant was
required to submit and post such files).
[X]Yes
[] No
Indicate
by check mark whether the registrant is a large accelerated filer,
an accelerated filer, or a non-accelerated filer. See definition of
"accelerated filer and large accelerated filer" in Rule 12b-2 of
the Exchange Act. (Check one):
Large
accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer
[X]
Indicate
by check mark which basis of accounting the registrant has used to
prepare the financial statements included in this
filing:
US GAAP
[
]                                 
International Financial Reporting
Standards
as
issued by the International Accounting
Standards
Board                                           
[X]
If
"Other" has been checked in response to the previous
question, indicate by check mark which financial statement item the
registrant has elected to follow.
[ ]
Item 17 [ ] Item 18
If this
is an annual report, indicate by check mark whether the registrant
is a shell company (as defined in Rule 12b-2 of the Exchange
Act).
[ ] Yes
[X] No
TABLE OF CONTENTS
Page No.
Forward-Looking
Statements
1
Foreign
Private Issuer Status and Currencies and Exchange
Rates
1
Part I
Item 1.
Identity of Directors, Senior Management and Advisors
2
Item 2.
Offer Statistics and Expected Timetable
2
Item 3.
Key Information
2
Item 4.
Information on the Company
16
Item 5.
Operating and Financial Review and Prospects
21
Item 6.
Directors, Senior Management and Employees
28
Item 7.
Major Shareholders and Related Party Transactions
35
Item 8.
Financial Information
36
Item 9.
The Offer and Listing
37
Item
10. Additional Information
39
Item
11. Quantitative and Qualitative Disclosures About Market
Risk
49
Item
12. Description of Securities Other Than Equity
Securities
49
Part II
Item
13. Defaults, Dividend Arrearages and Delinquencies
50
Item
14. Material Modifications to the Rights of Security Holders and
Use of Proceeds
50
Item
15. Controls and Procedures
50
Item
16. Audit Committee, Code of Ethics, and Principal Accountant's
Fees, and Services
51
Part III
Item
17. Financial Statements
53
Item
18. Financial Statements
53
Item
19. Exhibits
53
Signature
FORWARD-LOOKING STATEMENTS
This
annual report on Form 20-F (this "Annual Report")
includes "forward-looking statements." All statements, other than
statements of historical facts, included in this Annual Report that
address activities, events or developments, which we expect or
anticipate, will or may occur in the future are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended and Section 21E of the Securities Exchange Act
of 1934, as amended.
The
words "believe", "intend", "expect", "anticipate", "project",
"estimate", "predict" and similar expressions are also intended to
identify forward-looking statements.
These
forward-looking statements address, among others, such issues
as:
-
Future earnings and cash flow;
-
Expansion and growth of our business and operations;
and
- Our
prospective operational and financial information.
These
statements are based on assumptions and analyses made by us in
light of our experience and our perception of historical trends,
current conditions and expected future developments, as well as
other factors we believe are appropriate in particular
circumstances. However, whether actual results and developments
will meet our expectations and predictions depends on a number of
risks and uncertainties, which could cause actual results to differ
materially from our expectations, including the risks set forth in
"Item 3 - Key Information - Risk Factors" and the
following:
- Fluctuations in prices of our products and services;
- Potential investments, acquisitions or other business
opportunities;
-
Availability of financing opportunities, legal and regulatory
risks;
- General economic, market and business conditions;
and
- Other risks and factors beyond our control.
Consequently,
all of the forward-looking statements made in this Annual Report
are qualified by these cautionary statements. We cannot assure you
that the actual results or developments anticipated by us will be
realized or, even if substantially realized, that they will have
the expected effect on us or our business or
operations.
Unless
the context indicates otherwise, the terms "CordovaCann Corp.",
"the "Company", "CordovaCann", "we",
"us", "our" and "Registrant"
are used interchangeably in this Annual Report and mean CordovaCann
Corp. and its subsidiaries.
FOREIGN PRIVATE ISSUER STATUS AND CURRENCIES AND EXCHANGE
RATES
Foreign Private Issuer Status
CordovaCann
Corp. (formerly, LiveReel Media Corporation) is a Canadian
corporation governed under the
Canada Business Corporations Act
of
Canada. Approximately 71% of its common shares is held by
approximately 372 non-United States citizens and residents as of
the day of its most recently completed fiscal year and our business
is administered principally outside the United States. As a result,
we believe that we qualify as a "foreign private issuer" for
continuing to report regarding the registration of our common
shares using this Annual Report on Form 20-F format.
Currency
The
financial information presented in this Annual Report is expressed
in Canadian Dollars ("CDN" or "$") and the financial
data in this Annual Report is presented in accordance with
International Financial Reporting Standards ("IFRS") as
issued by the International Accounting Standards Board
("IASB").
All
dollar amounts set forth in this report are in Canadian Dollars,
except where otherwise indicated.
1
PART I
ITEM 1 - IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND
ADVISORS
Not
applicable.
ITEM 2 - OFFER STATISTICS AND EXPECTED TIMETABLE
Not
applicable.
ITEM 3 - KEY INFORMATION
(A) SELECTED FINANCIAL DATA
This
Report includes audited consolidated financial statements of the
Company for the years ended June 30, 2020, 2019 and 2018. These
audited consolidated financial statements have been prepared in
accordance with IFRS as issued by the IASB.
The
following is selected financial data for the Company for each of
the last three fiscal years ended 2018 through 2020 on a
consolidated basis. The data is extracted from the audited
consolidated financial statements of the Company for each of the
said years.
Summary of Financial Information in Accordance with International
Financial Reporting Standards (IFRS) (CDN)
Operating data – Fiscal year ended June 30
For
the Years Ending June 30,
2020
2019
2018
$
$
$
Revenue
166,773
-
-
Net loss for
year
(4,650,900
)
(5,836,536
)
(4,865,933
)
Net loss per
share
(0.10
)
(0.15
)
(0.15
)
Working capital
(deficit)
(4,464,323
)
(3,236,359
)
3,882,542
Total
assets
14,693,789
4,645,132
4,875,592
Total
liabilities
8,417,100
4,282,562
320,321
Capital
stock
19,697,180
14,636,828
14,480,241
Contingently
issuable shares
2,040,000
-
-
Shares to be
issued
510,000
-
-
Contributed
surplus
6,709,782
5,226,156
3,808,611
Equity portion of
convertible debentures
862,913
62,498
-
Accumulated
deficit
(24,159,690
)
(19,570,801
)
(13,734,265
)
Accumulated other
comprehensive income
(41,599
)
7,889
684
Non-controlling
interest
658,103
-
-
Shareholders'
equity (deficiency)
6,276,789
362,570
4,555,271
2
Summary of Financial Information in Accordance with U.S. GAAP
(CDN)
Operating data – Fiscal year ended June 30
For
the Years Ending June 30,
2020
2019
2018
$
$
$
Revenue
166,773
-
-
Net loss for
year
(4,650,900
)
(5,836,536
)
(4,865,933
)
Net loss per
share
(0.10
)
(0.15
)
(0.15
)
Working capital
(deficit)
(4,464,323
)
(3,236,359
)
3,882,542
Total
assets
14,693,789
4,645,132
4,875,592
Total
liabilities
8,417,100
4,282,562
320,321
Capital
stock
19,697,180
14,636,828
14,480,241
Contingently
issuable shares
2,040,000
-
-
Shares to be
issued
510,000
-
-
Contributed
surplus
6,709,782
5,226,156
3,808,611
Equity portion of
convertible debentures
862,913
62,498
-
Accumulated
deficit
(24,159,690
)
(19,570,801
)
(13,734,265
)
Accumulated other
comprehensive income
(41,599
)
7,889
684
Non-controlling
interest
658,103
-
-
Shareholders'
equity (deficiency)
6,276,789
362,570
4,555,271
The
Company has not declared or paid any dividends in any of its last
three fiscal years.
Exchange Rates
In this
Annual Report on Form 20-F, unless otherwise specified, all
monetary amounts are expressed in Canadian Dollars. The exchange
rates used herein were obtained from Bank of Canada; however, they
cannot be guaranteed.
On
November 30, 2020, being the last day of November 2019, the
exchange rate, based on the daily buying rates, for the conversion
of Canadian Dollars into United States Dollars (the "Daily
Rate of Exchange") was $0.7713.
The
following table sets out the high and low exchange rates for each
of the last six months.
2020
November
October
September
August
July
June
High for
period
$
0.7713
$
0.7621
$
0.7660
$
0.7668
$
0.7485
$
0.7472
Low for
period
$
0.7543
$
0.7491
$
0.7465
$
0.7476
$
0.7344
$
0.7309
The
following table sets out the average exchange rates for the five
most recent financial years calculated by using the average of the
Daily Rate of Exchange on the last day of each month during the
period.
Year Ended June
30,
2020
2019
2018
2017
2016
Average for the
year
$
0.7453
$
0.7556
$
0.7855
$
0.7564
$
0.7540
(B) CAPITALIZATION AND INDEBTEDNESS
Not
applicable.
(C) REASONS FOR THE OFFER AND USE OF PROCEEDS
Not
applicable.
3
(D) RISK FACTORS
The
following is a brief discussion of those distinctive or special
characteristics of the Company's operations and industry that
may have a material adverse impact on, or constitute risk factors
in respect of, the Company's future financial
performance.
Summary of Regulatory Environment
Although
cannabis is federally illegal in the U.S., the U.S. federal
government's approach to enforcement of such laws has trended
toward non-enforcement. On August 29, 2013, the
U.S. Department of Justice (the
"DOJ")
, issued a memorandum known as the
"Cole Memorandum" to all U.S. Attorneys' offices
(federal prosecutors). The Cole Memorandum generally directed U.S.
Attorneys not to prioritize the enforcement of federal cannabis
laws against individuals and businesses that comply with state laws
legalizing cannabis. While not legally binding, and merely
prosecutorial guidance, the Cole Memorandum laid a framework for
managing the tension between state and federal laws concerning
state regulated cannabis businesses.
On
January 4, 2018, the Cole Memorandum was revoked by Attorney
General Jeff Sessions, an opponent of state-regulated medical and
recreational cannabis. While this did not create a change in
federal law, as the Cole Memorandum was not itself legally binding
upon federal prosecutors, the revocation removed the DOJ's
guidance to U.S. Attorneys that state-regulated cannabis industries
substantively in compliance with the Cole Memorandum's
guidelines should not be a prosecutorial priority.
In
addition to his revocation of the Cole Memorandum, Attorney General
Sessions also issued a one-page memorandum known as the
"Sessions Memorandum." The Sessions Memorandum
confirmed the rescission of the Cole Memorandum and explained the
rationale for such rescission. According to the Sessions
Memorandum, the Cole Memorandum was "unnecessary" due
to existing general enforcement guidance set forth in the U.S.
Attorney's Manual (the "USAM"). The USAM enforcement
priorities, similar to the Cole Memorandum priorities, consider the
"seriousness" of the alleged crimes, the
"deterrent effect of criminal prosecution" and
"the cumulative impact of particular crimes on the
community". Accordingly, U.S. Attorneys presently possess the
same prosecutorial discretion they held while the Cole Memorandum
was in place.
U.S.
legal counsel continuously monitors all U.S. Attorney comments
related to regulated medical and recreational cannabis laws to
assess various risks and enforcement priorities within each
jurisdiction. Dozens of U.S. Attorneys across the U.S. have
affirmed that their prosecutorial discretion and/or federal
enforcement priorities have not changed.
In
addition, federal money laundering statutes may be violated in the
event that financial institutions take any proceeds from cannabis
sales or any other Schedule I substance, and Canadian banks are
hesitant to deal with cannabis companies, due to the uncertain
legal and regulatory framework of the industry. Banks and other
financial institutions could be prosecuted and possibly convicted
of money laundering for providing services to cannabis businesses.
Under U.S. federal law, banks or other financial institutions that
provide a cannabis business with a checking account, debit or
credit card, small business loan, or any other service could be
found guilty of money laundering or conspiracy. Nevertheless, the
U.S. Department of the Treasury issued a memorandum in February of
2014 (the "FinCEN Memorandum") outlining the pathways
for financial institutions to bank state-sanctioned cannabis
businesses. Under these guidelines, financial institutions must
submit a "suspicious activity report"
("SAR") as required by federal money laundering laws.
These cannabis related SARs are divided into three categories:
cannabis limited, cannabis priority, and cannabis terminated, based
on the financial institution's belief that the cannabis
business follows state law, is operating out of compliance with
applicable state law, or where the banking relationship has been
terminated.
Attorney
General Sessions' revocation of the Cole Memorandum and the
2014 Cole Memo has not affected the status of the FinCEN
Memorandum, nor has the Department of the Treasury given any
indication that it intends to rescind the FinCEN
Memorandum.
Despite
the revocation of the Cole Memorandum, a legislative safeguard for
the medical cannabis industry remains in place. Congress utilized a
rider provision in the FY 2015, 2016 and 2017 Consolidated
Appropriations Acts (currently the "Leahy Amendment")
to prevent the federal government from using congressionally
appropriated funds to enforce federal cannabis laws against
regulated medical cannabis actors operating in compliance with
applicable state law. The Leahy Amendment was included in the FY
2018 budget passed on March 23, 2018, meaning that, the Leahy
Amendment is still in effect as of today's date and will
remain in effect until September 30, 2018, when FY 2019
begins.
Compliance with Applicable State Law
Each
licensee of the Intellectual Property complies with applicable U.S.
state licensing requirements as follows: (1) each licensee is
licensed pursuant to applicable U.S. state law to cultivate,
possess and/or distribute cannabis in such state; (2) renewal dates
for such licenses are docketed by legal counsel and/or other
advisors; (3) random internal audits of the licensee's
business activities are conducted by the applicable state regulator
and by the respective investee to ensure compliance with applicable
state law; (4) each employee is provided with an employee handbook
that outlines internal standard operating procedures in connection
with the cultivation, possession and distribution of cannabis to
ensure that all cannabis inventory and proceeds from the sale of
such cannabis are properly accounted for and tracked, using
scanners to confirm each customer's legal age and the
validity of each customer's drivers' license; (5) each
room that cannabis inventory and/or proceeds from the sale of such
inventory enter is monitored by video surveillance; (6) software is
used to track cannabis inventory from seed-to-sale; and (7) each
licensee is contractually obligated to comply with applicable state
law in connection with the cultivation, possession and/or
distribution of cannabis. CordovaCann's U.S. legal counsel
reviews, from time to time, the licenses and documents referenced
above in order to confirm such information and identify any
deficiencies.
4
Colorado's Cannabis Regulatory Environment
For the
purposes of Staff Notice 51-352, the assets and interests held by
CordovaCann in Colorado are classified as "ancillary"
involvement in the U.S. cannabis industry.
Colorado authorized the cultivation, possession and distribution of
cannabis by certain licensed Colorado cannabis businesses. The
Colorado Marijuana Enforcement Division regulates Colorado's
cannabis regulatory program. CordovaCann is advised by U.S. legal
counsel and/or other advisors in connection with Colorado's
cannabis regulatory program. CordovaCann only engages in
transactions with Colorado cannabis businesses that hold licenses
that are in good standing to cultivate, possess and/or distribute
cannabis in Colorado in compliance with Colorado's cannabis
regulatory program. To the extent required by Colorado's
cannabis regulatory program, CordovaCann has fully disclosed and/or
registered each financial interest CordovaCann holds in such
Colorado cannabis business.
Oregon's Cannabis Regulatory Environment
For the
purposes of Staff Notice 51-352, the assets and interests held by
CordovaCann in Oregon are classified as "ancillary"
involvement in the U.S. cannabis industry.
Oregon
authorized the cultivation, possession and distribution of cannabis
by certain licensed Oregon cannabis businesses. The Oregon Liquor
Control Commission regulates Oregon's cannabis regulatory
program. CordovaCann is advised by U.S. legal counsel and/or other
advisors in connection with Oregon's cannabis regulatory
program. CordovaCann only engages in transactions with Oregon
cannabis businesses that hold licenses that are in good standing to
cultivate, possess and/or distribute cannabis in Oregon in
compliance with Oregon's cannabis regulatory program. To the
extent required by Oregon's cannabis regulatory program,
CordovaCann has fully disclosed and/or registered each financial
interest CordovaCann holds in such Oregon cannabis
business.
California's Cannabis Regulatory Environment
For the
purposes of Staff Notice 51-352, the assets and interests
contemplated to be held by CordovaCann in California are classified
as "ancillary" involvement in the U.S. cannabis
industry.
California authorized the cultivation, possession and distribution
of cannabis by certain licensed California cannabis businesses. The
California Bureau of Cannabis Control regulates California's
cannabis regulatory program. CordovaCann is advised by U.S. legal
counsel and/or other advisors in connection with California's
cannabis regulatory program. CordovaCann only engages in
transactions with California cannabis businesses that hold licenses
that are in good standing to cultivate, possess and/or distribute
cannabis in California in compliance with California's
cannabis regulatory program. To the extent required by
California's cannabis regulatory program, CordovaCann has
fully disclosed and/or registered each financial interest
CordovaCann holds in such California cannabis
business.
The
following are certain risk factors relating to the business carried
on by the Company that prospective holders of Common Shares should
carefully consider.
Risks specifically related to the United States regulatory
system.
The Company's investments operate in a new industry which is
highly regulated, highly competitive and evolving rapidly. As such,
new risks may emerge, and management may not be able to predict all
such risks or be able to predict how such risks may result in
actual results differing from the results contained in any
forward-looking statements.
The Company's investments incur ongoing costs and obligations
related to regulatory compliance. Failure to comply with
regulations may result in additional costs for corrective measures,
penalties or in restrictions of operations. In addition, changes in
regulations, more vigorous enforcement thereof or other
unanticipated events could require extensive changes to operations,
increased compliance costs or give rise to material liabilities,
which could have a material adverse effect on the business, results
of operations and financial condition of the Company's
investments and, therefore, on the Company's prospective
returns. Further, the Company may be subject to a variety of claims
and lawsuits. Adverse outcomes in some or all of these claims may
result in significant monetary damages or injunctive relief that
could adversely affect our ability to conduct our business.
Litigation and other claims are subject to inherent uncertainties
and management's view of these matters may change in the
future. A material adverse impact on our financial statements could
also occur for the period in which the effect of an unfavorable
final outcome becomes probable and reasonably capable of being
estimated. The industry is subject to extensive controls and
regulations which may significantly affect the financial condition
of market participants. The marketability of any product may be
affected by numerous factors that are beyond the control of the
Company's investments and which cannot be predicted, such as
changes to government regulations, including those relating to
taxes and other government levies which may be imposed. Changes in
government levies, including taxes, could reduce the
Company's investments' earnings and could make future
capital investments or the Company's investments'
operations uneconomic. The industry is also subject to numerous
legal challenges, which may significantly affect the financial
condition of market participants and which cannot be reliably
predicted.
CordovaCann is expected to continue to derive a portion of its
revenues from the cannabis industry in certain states of the United
States, which is illegal under United States federal law. While the
Company's business activities are compliant with applicable
state and local laws, such activities remain illegal under United
States federal law. CordovaCann is involved in the cannabis
industry in the United States where local and state laws permit
such activities or provide limited defenses to criminal
prosecutions. The enforcement of relevant laws is a significant
risk.
5
Over half of the U.S. states have enacted comprehensive legislation
to regulate the sale and use of medical cannabis. Notwithstanding
the permissive regulatory environment of medical cannabis at the
state level, cannabis continues to be categorized as a Schedule 1
controlled substance under the United States Controlled Substances
Act of 1970. As such, cannabis-related practices or activities,
including without limitation, the cultivation, manufacture,
importation, possession, use or distribution of cannabis, are
illegal under United States federal law. Strict compliance with
state laws with respect to cannabis will neither absolve the
Company of liability under United States federal law, nor will it
provide a defense to any federal proceeding which may be brought
against the Company. Any such proceedings brought against the
Company may adversely affect the Company's operations and
financial performance.
Because
of the conflicting views between state legislatures and the federal
government of the United States regarding cannabis, investments in
cannabis businesses in the United States are subject to
inconsistent legislation, regulation, and enforcement. Unless and
until the United States Congress amends the United States
Controlled Substances Act with respect to cannabis or the Drug
Enforcement Agency reschedules or de-schedules cannabis (and as to
the timing or scope of any such potential amendments there can be
no assurance), there is a risk that federal authorities may enforce
current federal law, which would adversely affect the current and
future investments of the Company in the United States. As a result
of the tension between state and federal law, there are a number of
risks associated with the Company's existing and future
investments in the United States.
For the reasons set forth above, the Company's existing
interests in the United States cannabis market may become the
subject of heightened scrutiny by regulators, stock exchanges,
clearing agencies and other authorities in Canada. It has been
reported by certain publications in Canada that the Canadian
Depository for Securities Limited may implement policies that would
see its subsidiary, CDS Clearing and Depository Services Inc.
("CDS"), refuse to settle trades for cannabis companies
that have investments in the United States. CDS is Canada's
central securities depository, clearing and settlement hub settling
trades in the Canadian equity, fixed income and money markets. The
TMX Group, the owner and operator of CDS, subsequently issued a
statement on August 17, 2017 reaffirming that there is no CDS ban
on the clearing of securities of companies with cannabis-related
activities in the United States, despite media reports to the
contrary and that the TMX Group was working with regulators to
arrive at a solution that will clarify this matter, which would be
communicated at a later time.
On February 8, 2018, following discussions with the Canadian
Securities Administrators ("CSA") and recognized
Canadian securities exchanges, the TMX Group announced the signing
of a Memorandum of Understanding ("TMX MOU") with
Aequitas NEO Exchange Inc., the Canadian Securities Exchange
("CSE"), the Toronto Stock Exchange, and the TSX
Venture Exchange. The TMX MOU outlines the parties'
understanding of Canada's regulatory framework applicable to
the rules, procedures, and regulatory oversight of the exchanges
and CDS as it relates to companies with cannabis-related activities
in the United States. The TMX MOU confirms, with respect to the
clearing of listed securities, that CDS relies on the exchanges to
review the conduct of listed companies. As a result, there is no
CDS ban on the clearing of securities of companies with
cannabis-related activities in the United States. However, there
can be no guarantee that this approach to regulation will continue
in the future. If such a ban were to be implemented, it would have
a material adverse effect on the ability of holders of Common
Shares to make and settle trades. In particular, the Common Shares
would become highly illiquid as until an alternative was
implemented, investors would have no ability to effect a trade of
the Common Shares through the facilities of a stock exchange. The
Company has obtained eligibility with the Depository Trust Company
("DTC") for its Common Share quotation on the OTCQB and
such DTC eligibility provides another possible avenue to clear
Common Shares in the event of a CDS ban.
The activities of CordovaCann's investments are, and will
continue to be, subject to evolving regulation by governmental
authorities. The Company's investments are directly or
indirectly engaged in the medical and recreational cannabis
industry in the United States and Canada, where local state laws
permit such activities. The legality of the production, extraction,
distribution and use of cannabis differs among each North American
jurisdictions.
CordovaCann's investments have been focused in three states
that have legalized the medical and/or recreational use of
cannabis, being Oregon, Colorado and California. Over half of the
U.S. states have enacted legislation to legalize and regulate the
sale and use of medical cannabis. However, the U.S. federal
government has not enacted similar legislation. As such, the
cultivation, manufacture, distribution, sale and use of cannabis
remains illegal under U.S. federal law.
Further, on January 4, 2018, U.S. Attorney General, Jeff Sessions,
formally rescinded the standing DOJ federal policy guidance
governing enforcement of marijuana laws, as set forth in a series
of memos and guidance from 2009-2014, principally the Cole
Memorandum. The Cole Memorandum generally directed U.S. Attorneys
not to enforce the federal marijuana laws against actors who are
compliant with state laws, provided enumerated enforcement
priorities were not implicated. The rescission of this memo and
other Obama-era prosecutorial guidance did not create a change in
federal law as the Cole Memorandums were never legally binding;
however, the revocation removed the DOJ's guidance to U.S.
Attorneys that state-regulated cannabis industries substantively in
compliance with the Cole Memorandum's guidelines should not
be a prosecutorial priority. The federal government of the United
States has always reserved the right to enforce federal law
regarding the sale and disbursement of medical or recreational
marijuana, even if state law sanctioned such sale and disbursement.
Although the rescission of the above memorandums does not
necessarily indicate that marijuana industry prosecutions are now
affirmatively a priority for the DOJ, there can be no assurance
that the federal government will not enforce such laws in the
future.
6
Additionally, there can be no assurance that state laws legalizing
and regulating the sale and use of cannabis will not be repealed or
overturned, or that local governmental authorities will not limit
the applicability of state laws within their respective
jurisdictions. It is also important to note that local and city
ordinances may strictly limit and/or restrict the distribution of
cannabis in a manner that could make it extremely difficult or
impossible to transact business in the cannabis industry. If the
federal government begins to enforce federal laws relating to
cannabis in states where the sale and use of cannabis is currently
legal, or if existing state laws are repealed or curtailed, the
Company's investments in such businesses would be materially
and adversely affected notwithstanding the fact that the Company is
not directly engaged in the sale or distribution of cannabis.
Federal actions against any individual or entity engaged in the
marijuana industry or a substantial repeal of marijuana related
legislation could adversely affect the Company, its business and
its investments.
In light of the political and regulatory uncertainty surrounding
the treatment of U.S. cannabis-related activities, including the
rescission of the Cole Memorandum discussed above, on February 8,
2018, the CSA published Staff Notice 51-352 setting out the
CSA's disclosure expectations for specific risks facing
companies with cannabis-related activities in the United States.
Staff Notice 51-352 confirms that a disclosure-based approach
remains appropriate for companies with U.S. cannabis-related
activities. Staff Notice 51-352 includes additional disclosure
expectations that apply to all companies with U.S. cannabis-related
activities, including those with direct and indirect involvement in
the cultivation and distribution of cannabis, as well as companies
that provide goods and services to third parties involved in the
U.S. cannabis industry. The Company views Staff Notice 51-352
favourably, as it provides increased transparency and greater
certainty regarding the views of the exchanges and the regulators
regarding the Company's existing operations and strategic
business plan as well as the Company's ability to pursue
further investments and opportunities in the United
States.
The Company's investments in the United States are subject to
applicable anti-money laundering laws and regulations.
The Company is subject to a variety of laws and regulations
domestically and in the United States that involve money
laundering, financial recordkeeping and proceeds of crime,
including the U.S. Currency and Foreign Transactions Reporting Act
of 1970 (commonly known as the Bank Secrecy Act), as amended by
Title III of the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act
of 2001 (USA PATRIOT Act), the Proceeds of Crime (Money Laundering)
and Terrorist Financing Act (Canada), as amended and the rules and
regulations thereunder, and any related or similar rules,
regulations or guidelines, issued, administered or enforced by
governmental authorities in the United States and Canada. Further,
under U.S. federal law, banks or other financial institutions that
provide a cannabis business with a checking account, debit or
credit card, small business loan, or any other service could be
found guilty of money laundering, aiding and abetting, or
conspiracy.
Despite these laws, FinCEN issued a memorandum on February 14, 2014
outlining the pathways for financial institutions to bank marijuana
businesses in compliance with federal enforcement priorities. The
FinCEN Memorandum states that in some circumstances, it is
permissible for banks to provide services to cannabis-related
businesses without risking prosecution for violation of federal
money laundering laws. It refers to supplementary guidance that
Deputy Attorney General Cole issued to federal prosecutors relating
to the prosecution of money laundering offenses predicated on
cannabis-related violations of the United States Controlled
Substances Act on the same day (the "2014 Cole Memo").
The 2014 Cole Memo has been rescinded as of January 4, 2018, along
with the Cole Memorandum, removing guidance that enforcement of
applicable financial crimes was not a DOJ priority.
Attorney General Sessions' revocation of the Cole Memorandum
and the 2014 Cole Memo has not affected the status of the FinCEN
Memorandum, nor has the Department of the Treasury given any
indication that it intends to rescind the FinCEN Memorandum itself.
Though it was originally intended for the 2014 Cole Memo and the
FinCEN Memorandum to work in tandem, the FinCEN Memorandum appears
to remain in effect as a standalone document which explicitly lists
the eight enforcement priorities originally cited in the rescinded
Cole Memorandum. Although the FinCEN Memorandum remains intact,
indicating that the Department of the Treasury and FinCEN intend to
continue abiding by its guidance, it is unclear whether the current
administration will continue to follow the guidelines of the FinCEN
Memorandum.
The Company's investments, and any proceeds thereof, are
considered proceeds of crime due to the fact that cannabis remains
illegal federally in the United States. This restricts the ability
of the Company to declare or pay dividends, effect other
distributions or subsequently repatriate such funds back to Canada.
Furthermore, while the Company has no current intention to declare
or pay dividends on its Common Shares in the foreseeable future,
the Company may decide or be required to suspend declaring or
paying dividends without advance notice and for an indefinite
period of time.
7
The Company's investments in the United States may be subject
to heightened scrutiny by Canadian authorities.
For the reasons set forth above, the Company's existing
investments in the United States, and any future investments, may
become the subject of heightened scrutiny by regulators, stock
exchanges and other authorities in Canada. As a result, the Company
may be subject to significant direct and indirect interaction with
public officials. There can be no assurance that this heightened
scrutiny will not in turn lead to the imposition of certain
restrictions on the Company's ability to invest in the United
States or any other jurisdiction, in addition to those described
herein.
Although the TMX MOU has confirmed that there is currently no CDS
ban on the clearing of securities of companies with
cannabis-related activities in the United States, there can be no
guarantee that this approach to regulation will continue in the
future. If such a ban were to be implemented, it would have a
material adverse effect on the ability of holders of Common Shares
to make and settle trades. In particular, the Common Shares would
become highly illiquid as until an alternative was implemented,
investors would have no ability to effect a trade of the Common
Shares through the facilities of a stock
exchange.
Change in laws, regulations and guidelines.
Each investment's current and proposed operations are subject
to a variety of laws, regulations and guidelines, including, but
not limited to, those relating to the manufacture, management,
transportation, storage and disposal of cannabis, as well as laws
and regulations relating to health and safety (including those for
consumable products), the conduct of operations and the protection
of the environment. These laws and regulations are broad in scope
and subject to evolving interpretations. If any changes to such
laws, regulations and guidelines occur, which are matters beyond
the control of the Company, the Company may incur significant costs
in complying with such changes or it may be unable to comply
therewith, which in turn may result in a material adverse effect on
the Company's business, financial condition and results of
operation. In addition, violations of these laws, or allegations of
such violations, could disrupt certain aspects of the
Company's business plan and result in a material adverse
effect on certain aspects of its planned operations.
Changes in regulations, more vigorous enforcement thereof, the
imposition of restrictions on the Company's ability to
operate in the U.S. as a result of the federally illegal nature of
cannabis in the U.S. or other unanticipated events could require
extensive changes to the Company's operations, increased
compliance costs or give rise to material liabilities, which could
have a material adverse effect on the business, results of
operations and financial condition of the
Company.
United States tax residence of the Company.
The
Company, which is and will continue to be a Canadian corporation
generally would be classified as a non-United States corporation
(and, therefore, as a non-United States tax resident) under general
rules of United States federal income taxation. Section 7874 of the
United States Tax Code, however, contains rules that can cause a
non-United States corporation to be taxed as a United States
corporation for United States federal income tax purposes. The
rules described in this paragraph are relatively new, their
application is complex and there is little guidance regarding their
application. Under section 7874 of the United States Tax Code, a
corporation created or organized outside the United States (i.e., a
non-United States corporation) will nevertheless be treated as a
United States corporation for United States federal income tax
purposes (such treatment is referred to as an
"Inversion") if each of the following three conditions
are met (i) the non-United States corporation acquires, directly or
indirectly, or is treated as acquiring under applicable United
States Treasury Regulations, substantially all of the assets held,
directly or indirectly, by a United States corporation, (ii) after
the acquisition, the former stockholders of the acquired United
States corporation hold at least 80% (by vote or value) of the
shares of the non-United States corporation by reason of holding
shares of the United States acquired corporation, and (iii) after
the acquisition, the non-United States corporation's expanded
affiliated group does not have substantial business activities in
the non-United States corporation's country of organization
or incorporation when compared to the expanded affiliated
group's total business activities (clauses (i) – (iii),
collectively, the "Inversion Conditions"). For this
purpose, "expanded affiliated group" means a group of
corporations where (i) the non-United States corporation owns stock
representing more than 50% of the vote and value of at least one
member of the expanded affiliated group, and (ii) stock
representing more than 50% of the vote and value of each member is
owned by other members of the group. The definition of an
"expanded affiliated group" includes partnerships where
one or more members of the expanded affiliated group own more than
50% (by vote and value) of the interests of the
partnership.
If the
Company is treated as a United States corporation for United States
federal income tax purposes under section 7874 of the United States
Tax Code (which is considered likely, although no definitive
determination of this matter has been reached, and no tax ruling
has been sought or obtained in this regard), the Company would be
considered a United States tax resident and subject to United
States federal income tax on its worldwide income. However, for
Canadian tax purposes, the Company is expected, regardless of any
application of section 7874 of the United States Tax Code, to be
treated as a Canadian resident Company (as defined in the Tax Act)
for Canadian income tax purposes. As a result, if the Company is
considered a United States corporation under section 7874, the
Company would be subject to taxation both in Canada and the United
States which could have a material adverse effect on its financial
condition and results of operations. In addition, any distributions
paid by the Company to a holder of Common Shares may be subject to
United States withholding tax as well as any applicable Canadian
withholding tax. A Non-United States Holder may also be subject to
United States tax, including withholding tax, on disposition of its
Common Shares.
8
Passive Foreign Investment Company.
There is a risk that the Company may, in the future, be construed
as a passive foreign investment Company ("PFIC"). If
the Company is a PFIC, its shareholders in the U.S. are likely
subject to adverse U.S. tax consequences. Under U.S. federal income
tax laws, if a Company is a PFIC for any year, it could have
adverse U.S. federal income tax consequences to a U.S. shareholder
with respect to its investment in Common Shares. The Company may
earn royalty and franchise revenue which may be treated as passive
income unless the royalty and franchise revenue is derived in the
active conduct of a trade or business. Assessing whether royalty or
franchise revenue received by the Company and its subsidiaries is
derived in the active conduct of a trade or business involves
substantial factual and legal ambiguity. Based on current business
plans and financial expectations, the Company expects that it will
not be a PFIC for its current tax year. PFIC classification is
fundamentally factual in nature, generally cannot be determined
until the close of the tax year in question, and is determined
annually. Furthermore, because PFIC determinations are made
annually, it is possible that the Company will meet the
requirements to be treated as a PFIC in one or more years, but not
meet such requirements in other years. U.S. shareholders should
consult their own tax advisors regarding the potential adverse tax
consequences to owning PFIC stock, and whether they are able to and
should make any elections or take other actions to mitigate such
potential adverse tax consequences.
If the Company is deemed to be an investment Company under the
United States Investment Company Act of 1940, as amended (the
"Investment Company Act"), it may be required to
institute burdensome compliance requirements and its activities may
be restricted.
The Company intends to conduct its operations so that it is not
required to register as an investment Company under the Investment
Company Act. Section 3(a)(1)(C) of the Investment Company Act
defines an investment Company as any Company that is engaged or
proposes to engage in the business of investing, reinvesting,
owning, holding or trading in securities and owns or proposes to
acquire investment securities having a value exceeding 40.0% of the
value of the Company's total assets (exclusive of government
securities and cash items) on an unconsolidated basis. However, any
Company primarily engaged, directly or through a wholly-owned
subsidiary or subsidiaries, in a business or businesses other than
that of investing, reinvesting, owning, holding, or trading in
securities is exempt from the requirements of the Investment
Company Act under Section 3(b)(1).
If the Company is deemed to be an investment Company under the
Investment Company Act, its activities may be restricted, including
restrictions on the nature of the Company's investments and
restrictions on the issuance of securities. In addition, the
Company may have imposed upon it burdensome requirements,
including:
●
registration as an investment Company;
●
adoption of a specific form of corporate structure;
and
●
reporting, record keeping, voting, proxy and disclosure
requirements and other rules and regulations.
In sum, if the Company were to be characterized as an investment
Company, the inability of the Company to satisfy such regulatory
requirements, whether on a timely basis or at all, could, under
certain circumstances, have a material adverse effect on the
Company and its ability to continue pursuing its business plan
could be limited.
9
The Company's Common Shares are considered to be penny stock, which
may adversely affect the liquidity of its Common
Shares.
The capital stock of the Company would be classified as
"penny stock" as defined in Reg. § 240.3a51-1
promulgated under the Securities Exchange Act of 1934 (the
"1934 Act"). In response to perceived abuse in the
penny stock market generally, the 1934 Act was amended in 1990 to
add new requirements in connection with penny stocks. In connection
with effecting any transaction in a penny stock, a broker or dealer
must give the customer a written risk disclosure document that (a)
describes the nature and level of risk in the market for penny
stocks in both public offerings and secondary trading, (b)
describes the broker's or dealer's duties to the
customer and the rights and remedies available to such customer
with respect to violations of such duties, (c) describes the dealer
market, including "bid" and "ask" prices
for penny stock and the significance of the spread between the bid
and ask prices, (d) contains a toll-free telephone number for
inquiries on disciplinary histories of brokers and dealers, and (e)
define significant terms used in the disclosure document or the
conduct of trading in penny stocks. In addition, the broker-dealer
must provide to a penny stock customer a written monthly account
statement that discloses the identity and number of shares of each
penny stock held in the customer's account, and the estimated
market value of such shares. The extensive disclosure and other
broker-dealer compliance related to penny stocks may result in
reducing the level of trading activity in the secondary market for
such stocks, thus limiting the ability of the holder to sell such
stock.
Additional financing.
The continued development of the Company will require additional
financing. There is no guarantee that the Company will be able to
achieve its business objectives. The Company intends to fund its
future business activities by way of additional offerings of equity
and/or debt financing as well as through anticipated positive cash
flow from operations in the future. The failure to raise or procure
such additional funds or the failure to achieve positive cash flow
could result in the delay or indefinite postponement of current
business objectives. There can be no assurance that additional
capital or other types of financing will be available if needed or
that, if available, will be on terms acceptable to the Company. If
additional funds are raised by offering equity securities, existing
shareholders could suffer significant dilution. Any debt financing
secured in the future could involve the granting of security
against assets of the Company and also contain restrictive
covenants relating to capital raising activities and other
financial and operational matters, which may make it more difficult
for the Company to obtain additional capital and to pursue business
opportunities, including potential acquisitions. The Company will
require additional financing to fund its operations until positive
cash flow is achieved.
The Company's access to both public and private capital and
its ability to access financing to support continuing operations
and investments may be further restricted due to uncertainty and
the changing nature of the marijuana regulatory environment in
jurisdictions in which the Company
operates.
Investments may be pre-revenue.
The Company has made and may make future investments in entities
that have no significant sources of operating cash flow and no
revenue from operations. As such, the Company's investments
are subject to risks and uncertainties including the risk that the
Company's investments will not be able to:
●
implement or execute their current business plan, or create a
business plan that is sound;
●
maintain their anticipated management team; and/or
●
raise sufficient funds in the capital markets or otherwise to
effectuate their business plan.
If the Company's investments cannot execute any one of the
foregoing, their businesses may fail, which could have a materially
adverse impact on the business, financial condition and operating
results of the Company.
Lack of control over operations of investments.
The Company relies on its investments to execute on their business
plans and to produce medical and/or recreational cannabis products,
and holds contractual rights and minority equity interests relating
to the operation of the Company's investments. The operators
of the Company's investments have significant influence over
the results of operations of the Company's investments.
Further, the interests of the Company and the operators of the
Company's investments may not always be aligned. As a result,
the cash flows of the Company are dependent upon the activities of
third parties which creates the risk that at any time those third
parties may: (i) have business interests or targets that are
inconsistent with those of the Company; (ii) take action contrary
to the Company's policies or objectives; (iii) be unable or
unwilling to fulfill their obligations under their agreements with
the Company; or (iv) experience financial, operational or other
difficulties, including insolvency, which could limit or suspend a
third party's ability to perform its obligations. In
addition, payments may flow through the Company's
investments, and there is a risk of delay and additional expense in
receiving such revenues. Failure to receive payments in a timely
fashion, or at all, under the agreements to which the Company is
entitled may have a material adverse effect on the Company. In
addition, the Company must rely, in part, on the accuracy and
timeliness of the information it receives from the Company's
investments, and use such information in its analyses, forecasts
and assessments relating to its own business. If the information
provided by investment entities to the Company contains material
inaccuracies or omissions, the Company's ability to
accurately forecast or achieve its stated objectives, or satisfy
its reporting obligations, may be materially
impaired.
10
Private companies and illiquid securities.
The Company may invest in securities of private companies. In some
cases, the Company may be restricted by contract or generally by
applicable securities laws from selling such securities for a
period of time. Such securities may not have a ready market and the
inability to sell such securities or to sell such securities on a
timely basis or at acceptable prices may impair the Company's
ability to exit such investments when the Company considers it
appropriate.
Unfavourable publicity or consumer perception.
The regulated cannabis industry in the United States and Canada is
at an early stage of its development. The Company believes the
medical and recreational cannabis industry is highly dependent on
consumer perception regarding the safety and efficacy of
recreational and medical cannabis. Consumer perceptions regarding
legality, morality, consumption, safety, efficacy and quality of
cannabis are mixed and evolving. Consumer perception can be
significantly influenced by scientific research or findings,
regulatory investigations, litigation, media attention and other
publicity regarding the consumption of cannabis products. There can
be no assurance that future scientific research, findings,
regulatory proceedings, litigation, media attention or other
research findings or publicity will be favourable to the cannabis
market or any particular product, or consistent with earlier
publicity. Future research reports, findings, regulatory
proceedings, litigation, media attention or other publicity that
are perceived as less favourable than, or that question, earlier
research reports, findings or publicity could have a material
adverse effect on the demand for cannabis and on the business,
results of operations, financial condition and cash flows of the
Company. Further, adverse publicity reports or other media
attention regarding cannabis in general, or associating the
consumption of cannabis with illness or other negative effects or
events, could have such a material adverse effect on the business
of the Company. Such adverse publicity reports or other media
attention could arise even if the adverse effects associated with
such products resulted from consumers' failure to consumer
such products legally, appropriately or as directed.
Public opinion and support for medical and recreational cannabis
use has traditionally been inconsistent and varies from
jurisdiction to jurisdiction. Legalization of medical and
recreational cannabis remains a controversial issue subject to
differing opinions surrounding the level of legalization (for
example, legalization of medical marijuana as opposed to
legalization in general).
Limited operating history.
Since March 1997, when it was created by amalgamation, the Company
has had no significant revenues or earnings from operations. The
Company has operated at a loss to date and may continue to sustain
operating losses for the foreseeable future. There is no assurance
that the Company will ever be profitable. Therefore, it is
difficult for investors to evaluate the Company's operations
and prospects which may increase the risks associated with an
investment in the Company.
Although the Company expects to generate some revenues from its
investments, many of the investments will only start generating
revenues in future periods and, accordingly, the Company is
therefore expected to remain subject to many of the risks common to
early-stage enterprises for the foreseeable future, including
challenges related to laws, regulations, licensing, integrating and
retaining qualified employees; making effective use of limited
resources; achieving market acceptance of existing and future
solutions; competing against companies with greater financial and
technical resources; acquiring and retaining customers; and
developing new solutions. There is no assurance that the Company
will be successful in achieving a return on shareholders'
investment and the likelihood of success must be considered in
light of the early stage of operations.
Competition.
The Company competes with other companies for financing and
investment opportunities in the cannabis industry. Some of these
companies may possess greater financial resources than the Company.
Such competition may result in the Company being unable to enter
into desirable strategic agreements or similar transactions, to
recruit or retain qualified employees or to acquire the capital
necessary to fund its investments. Existing or future competition
in the cannabis industry, including, without limitation, the entry
of large multinational entities into the industry, could materially
adversely affect the Company's prospects for entering into
additional agreements in the future. In addition, the Company
currently competes with other cannabis streaming and royalty
companies, some of which may possess greater financial resources
than the Company.
There is potential that the Company will face intense competition
from other companies, some of which can be expected to have longer
operating histories and more financial resources and experience
than the Company. Increased competition by larger and better
financed competitors, including competitors to the Company's
investments, could materially and adversely affect the business,
financial condition and results of operations of the Company. It is
possible that larger competitors could establish price setting and
cost controls which would effectively "price out"
certain of the Company's investments operating within and in
support of the medical and recreational cannabis
industry.
Because of the early stage of the industry in which the Company
will operate, the Company expects to face additional competition
from new entrants. To become and remain competitive, the Company
will require research and development, marketing, sales and
support. The Company may not have sufficient resources to maintain
research and development, marketing, sales and support efforts on a
competitive basis, which could materially and adversely affect the
business, financial condition and results of operations of the
Company.
11
Banking.
Since the production and possession of cannabis is currently
illegal under U.S. federal law, it is possible that banks may
refuse to open bank accounts for the deposit of funds from
businesses involved with the cannabis industry. The inability to
open bank accounts with certain institutions could materially and
adversely affect the business of the
Company.
Currency fluctuations.
Certain revenues and expenses of the Company are expected to be
denominated in U.S. dollars, and therefore may be exposed to
significant currency exchange fluctuations. Recent events in the
global financial markets have been coupled with increased
volatility in the currency markets. Fluctuations in the exchange
rate between the U.S. dollar and the Canadian dollar may have a
material adverse effect on the Company's business, financial
condition and operating results. CordovaCann may, in the future,
establish a program to hedge a portion of its foreign currency
exposure with the objective of minimizing the impact of adverse
foreign currency exchange movements; however, there can be no
assurance that such a program will effectively mitigate currency
risks.
Risks associated with strategic transactions.
As part of the Company's overall business strategy, the
Company intends to pursue select strategic acquisitions, leasing
and lending transactions and licensing agreements which would
provide additional product offerings, vertical integrations,
additional industry expertise, and a stronger industry presence in
both existing and new jurisdictions. The success of any such
strategic transactions will depend, in part, on the ability of the
Company to realize the anticipated benefits and synergies from
integrating the Company's investments into the businesses of
the Company. Future strategic actions may expose it to potential
risks, including risks associated with: (a) the integration of new
operations, services and personnel; (b) unforeseen or hidden
liabilities; (c) the diversion of resources from the
Company's existing business and technology; (d) potential
inability to generate sufficient revenue to offset new costs; (e)
the expenses of acquisitions; and (f) the potential loss of or harm
to relationships with both employees and existing users resulting
from its integration of new businesses. In addition, any proposed
acquisitions may be subject to regulatory approval.
While the Company intends to conduct reasonable due diligence in
connection with such strategic transactions, there are risks
inherent in any transaction. Specifically, there could be unknown
or undisclosed risks or liabilities of such companies for which the
Company is not sufficiently indemnified. Any such unknown or
undisclosed risks or liabilities could materially and adversely
affect the Company's financial performance and results of
operations. The Company could encounter additional transaction and
integration related costs or other factors such as the failure to
realize all of the benefits from the strategic actions. All of
these factors could cause dilution to the Company's earnings
per share or decrease or delay the anticipated accretive effect of
the transaction and cause a decrease in the market price of the
Company's Common Shares.
Bankruptcy or insolvency of investments.
There is no guarantee that the Company will be able to effectively
enforce any interests it may have in the Company's
investments. A bankruptcy or other similar event related to an
investment of CordovaCann that precludes a party from performing
its obligations under an agreement may have a material adverse
effect on the Company. Furthermore, as an equity investor, should
an investment have insufficient assets to pay its liabilities, it
is possible that other liabilities will be satisfied prior to the
liabilities owed to the Company. In addition, bankruptcy or other
similar proceedings are often a complex and lengthy process, the
outcome of which may be uncertain and could result in a material
adverse effect on the Company.
Research and market development.
Although the Company, itself and through its investments, is
committed to researching and developing new markets and products
and improving existing products, there can be no assurances that
such research and market development activities will prove
profitable or that the resulting markets and/or products, if any,
will be commercially viable or successfully produced and
marketed.
The Company must rely largely on its own market research to
forecast sales as detailed forecasts are not generally obtainable
from other sources at this early stage of the medical and
recreational cannabis industry in North America.
The Company is operating its business in a relatively new medical
and recreational cannabis industry and market. Accordingly, there
are no assurances that this industry and market will continue to
exist or grow as currently estimated or anticipated, or function
and evolve in a manner consistent with management's
expectations and assumptions. Any event or circumstance that
affects the recreational or medical cannabis industry or market
could have a material adverse effect on the Company's
business, financial condition and results of operations. Due to the
early stage of the regulated cannabis industry, forecasts regarding
the size of the industry and the sales of products by the
Company's investments are inherently difficult to prepare
with a high degree of accuracy and reliability. A failure in the
demand for products to materialize as a result of competition,
technological change or other factors could have a material adverse
effect on the business, results of operations and financial
condition of the Company's investments, and consequently, the
Company.
12
Reliance on management.
The success of the Company is dependent upon the ability,
expertise, judgment, discretion and good faith of its senior
management. Qualified individuals are in high demand, and the
Company may incur significant costs to attract and retain them. In
addition, the Company's lean management structure may be
strained as the Company pursues growth opportunities in the future.
The loss of the services of such individuals or an inability to
attract other suitably qualified persons when needed, could have a
material adverse effect on the Company's ability to execute
on its business plan and strategy, and the Company may be unable to
find adequate replacements on a timely basis, or at
all.
CordovaCann's future success depends substantially on the
continued services of its executive officers, consultants and
advisors. If one or more of its executive officers or key personnel
were unable or unwilling to continue in their present positions,
the Company might not be able to replace them easily or at all. In
addition, if any of its executive officers or key employees joins a
competitor or forms a competing Company, the Company may lose
know-how, key professionals and staff members. These executive
officers and key employees could compete with and take customers
away which could materially and adversely affect the
Company's prospects, financial performance and results of
operations.
Operation permits and authorizations.
The Company's investments may not be able to obtain or
maintain the necessary licenses, permits, authorizations or
accreditations, or may only be able to do so at great cost, to
operate their respective businesses. In addition, the
Company's investments may not be able to comply fully with
the wide variety of laws and regulations applicable to the cannabis
industry. Failure to comply with or to obtain the necessary
licenses, permits, authorizations or accreditations could result in
restrictions on an investment's ability to operate in the
cannabis industry, which could have a material adverse effect on
the Company's business.
Litigation.
CordovaCann may become party to litigation from time to time in the
ordinary course of business which could adversely affect its
business. Should any litigation in which the Company becomes
involved be determined against the Company, such a decision could
adversely affect the Company's ability to continue operating
and the market price for the Common Shares and could use
significant resources. Even if the Company is involved in
litigation and wins, litigation can redirect significant resources.
Litigation may also create a negative perception of the
Company.
Liability, enforcement complaints, etc.
CordovaCann's participation in the cannabis industry may lead
to litigation, formal or informal complaints, enforcement actions,
and inquiries by various federal, state, or local governmental
authorities into or against the Company or its investments.
Litigation, complaints, and enforcement actions involving either of
the Company or its investments could consume considerable amounts
of financial and other corporate resources, which could have an
adverse effect on the Company's future cash flows, earnings,
results of operations and financial
condition.
Product liability.
Certain of the Company's investments manufacture, process
and/or distribute products designed to be ingested by humans, and
therefore face an inherent risk of exposure to product liability
claims, regulatory action and litigation if products are alleged to
have caused significant loss or injury. In addition, previously
unknown adverse reactions resulting from human consumption of
cannabis alone or in combination with other medications or
substances could occur. A product liability claim or regulatory
action against an investment entity of CordovaCann could result in
increased costs, could adversely affect the Company's
reputation, and could have a material adverse effect on the results
of operations and financial condition of the Company.
Reliance on key inputs.
The cultivation, extraction and processing of cannabis and
derivative products is dependent on a number of key inputs and
their related costs including raw materials, electricity, water and
other local utilities. Any significant interruption or negative
change in the availability or economics of the supply chain for key
inputs could materially impact the business, financial condition
and operating results of the Company's investments. Some of
these inputs may only be available from a single supplier or a
limited group of suppliers. If a sole source supplier was to go out
of business, the relevant investment entity might be unable to find
a replacement for such source in a timely manner or at all. Any
inability to secure required supplies and services or to do so on
appropriate terms could have a materially adverse impact on the
business, financial condition and operating results of an
investment, and consequently, the
Company.
13
Price volatility of publicly traded securities
.
In recent years, the securities markets in the United States and
Canada have experienced a high level of price and volume
volatility, and the market prices of securities of many companies
have experienced wide fluctuations in price which have not
necessarily been related to the operating performance, underlying
asset values or prospects of such companies. There can be no
assurance that continuing fluctuations in price will not occur. It
may be anticipated that any quoted market for the Common Shares of
CordovaCann will be subject to market trends generally,
notwithstanding any potential success of CordovaCann in creating
revenues, cash flows or earnings. The value of the Common Shares
would be affected by such volatility. An active public market for
the Company's Common Shares might not develop or be
sustained. If an active public market for the Company's
Common Shares does not develop, the liquidity of a
shareholder's investment may be limited and the share price
may decline.
Management of growth.
CordovaCann may experience a period of significant growth in the
number of personnel that may place a strain upon its management
systems and resources. Its future will depend in part on the
ability of its officers and other key personnel to implement and
improve financial and management controls, reporting systems and
procedures on a timely basis and to expand, train, motivate and
manage the workforce. CordovaCann's current and planned
personnel, systems, procedures and controls may be inadequate to
support its future operations.
Dividends.
CordovaCann has not paid dividends in the past and the Company does
not anticipate paying any dividends in the foreseeable future.
Dividends paid by the Company would be subject to tax and,
potentially, withholdings.
Any decision to declare and pay dividends in the future will be
made at the discretion of the Company's Board of Directors
and will depend on, among other things, financial results, cash
requirements, contractual restrictions and other factors that the
Company's Board of Directors may deem relevant. As a result,
investors may not receive any return on an investment in the Common
Shares unless they sell their Common Shares for a price greater
than that which such investors paid for
them.
Risk factors related to dilution.
The
Company may issue additional securities in the future, which may
dilute a shareholder's holdings in the Company. The
Company's articles permit the issuance of an unlimited number
of Common Shares. The directors of the Company have discretion to
determine the price and the terms of further issuances. Moreover,
additional Common Shares will be issued by the Company on the
exercise of options under the Company's Option Plan and upon
the exercise of outstanding warrants.
Intellectual property and proprietary protection
.
The success of the Company will depend, in part, on the ability of
the Company and the Company's investments to maintain,
enhance and protect its intellectual property, including various
existing and potential proprietary techniques and processes. The
Company and the Company's investments may be vulnerable to
competitors who develop competing technology, whether independently
or as a result of acquiring access to the proprietary products and
trade secrets of the Company or the Company's investments. In
addition, effective future patent, copyright and trade secret
protection may be unavailable or limited in certain foreign
countries and may be unenforceable under the laws of certain
jurisdictions.
The Company relies on a combination of laws and contractual
provisions to establish and protect its rights in it intellectual
property. There can be no assurance that the steps taken to protect
proprietary rights will be adequate to deter misappropriation of
intellectual property or technology. The Company may face claims
alleging infringement of intellectual property rights held by
others. Such claims, whether or not meritorious, may result in the
expenditure of significant financial and managerial resources,
legal fees, result in injunctions, temporary restraining orders
and/or require the payment of damages. An adverse determination in
legal proceedings, a costly litigation process or a costly
settlement could have a material adverse effect on the
Company's business, prospects, revenues, operating results
and financial condition.
14
Insurance coverage.
CordovaCann currently does not have insurance coverage. The Company
is likely to require insurance coverage in the future. There can be
no assurance that adequate insurance coverage will be available to
the Company in the future, or that if available, that such
insurance will be obtainable by the Company at a commercially
justifiable premium. There also can be no assurance that any
insurance coverage obtained by the Company will be sufficient to
cover claims to which the Company may become subject. If insurance
coverage is unavailable to cover any such claims, the
Company's financial resources, results of operations and
prospects could be adversely affected. If the Company were to incur
substantial liability and such damages were in excess of policy
limits, there could be a material adverse effect on the
Company's business, financial condition and results of
operations.
Operational risks.
CordovaCann and its investments may be affected by a number of
operational risks and may not be adequately insured for certain
risks, including: labour disputes; catastrophic accidents; fires;
blockades or other acts of social activism; changes in the
regulatory environment; impact of non-compliance with laws and
regulations; natural phenomena, such as inclement weather
conditions, floods, earthquakes and ground movements. There is no
assurance that the foregoing risks and hazards will not result in
damage to, or destruction of, the Company's
investments' properties, grow facilities and extraction
facilities, personal injury or death, environmental damage, adverse
impacts on the Company's investments' operations,
costs, monetary losses, potential legal liability and adverse
governmental action, any of which could have an adverse impact on
the Company's future cash flows, earnings and financial
condition on the Company. Also, the Company's investments may
be subject to or affected by liability or sustain loss for certain
risks and hazards against which they may elect not to insure
because of the cost. This lack of insurance coverage could have an
adverse impact on the Company's future cash flows, earnings,
results of operations and financial condition.
Costs of maintaining a public listing.
As a public company, there are costs associated with legal,
accounting and other expenses related to regulatory compliance.
Securities legislation and the rules and policies of securities
exchanges require listed companies to, among other things, adopt
corporate governance and related practices, and to continuously
prepare and disclose material information, all of which add to a
company's legal and financial compliance costs. CordovaCann
may also elect to devote greater resources than it otherwise would
have on communication and other activities typically considered
important by publicly traded companies.
Holding Company.
CordovaCann is a holding Company and essentially all of its assets
are the capital stock of its material subsidiaries. As a result,
investors in CordovaCann are subject to the risks attributable to
its subsidiaries. Consequently, CordovaCann's cash flows and
ability to complete current or desirable future enhancement
opportunities are dependent on the earnings of its subsidiaries and
investments and the distribution of those earnings to CordovaCann.
The ability of these entities to pay dividends and other
distributions will depend on their operating results and will be
subject to applicable laws and regulations which require that
solvency and capital standards be maintained by such companies and
contractual restrictions contained in the instruments governing any
debt arrangements. In the event of a bankruptcy, liquidation or
reorganization of any of CordovaCann's material subsidiaries,
holders of indebtedness and trade creditors may be entitled to
payment of their claims from the assets of those subsidiaries
before CordovaCann.
Difficulty implementing business strategy.
The growth and expansion of the Company is heavily dependent upon
the successful implementation of its business strategy. There can
be no assurance that the Company will be successful in the
implementation of its business strategy.
Conflicts of interest.
Certain of the Company's directors and officers are, and may
continue to be, involved in other business ventures through their
direct and indirect participation in, among other things,
corporations, partnerships and joint ventures, that may become
potential competitors of the technologies, products and services
the Company intends to provide. Situations may arise in connection
with potential acquisitions or opportunities where the other
interests of these directors and officers conflict with or diverge
from the Company's interests. In accordance with applicable
corporate law, directors who have a material interest in or who are
parties to a material contract or a proposed material contract with
the Company are required, subject to certain exceptions, to
disclose that interest and generally abstain from voting on any
resolution to approve the transaction. In addition, the directors
and officers are required to act honestly and in good faith with a
view to the Company's best interests. However, in conflict of
interest situations, the Company's directors and officers may
owe the same duty to another Company and will need to balance their
competing interests with their duties to the Company. Circumstances
(including with respect to future corporate opportunities) may
arise that may be resolved in a manner that is unfavourable to the
Company.
15
Previous operations.
The Company recently changed its focus from the identification and
evaluation of assets for purchase in the media, technology and
consumer industries, to a provider of services and investment
capital to companies in the cannabis sector. The Company also
changed its name on January 3, 2018 from "LiveReel Media
Corporation" to "CordovaCann Corp.". While the
Company has now divested all of its assets relating to its previous
business, there is no guarantee that liabilities relating to the
previous business will not negatively impact the Company's
current or future operations or financial performance. Management
is not aware of any liabilities relating to its previous business
operations.
Resale of Common Shares.
Although the Common Shares are listed on the CSE and the OTCQB,
there can be no assurance that an active and liquid market for the
Common Shares will develop or be maintained and an investor may
find it difficult to resell any securities of the Company. In
addition, there can be no assurance that the publicly-traded stock
price of the Company will be high enough to create a positive
return for investors. Further, there can be no assurance that the
Common Shares will be sufficiently liquid so as to permit investors
to sell their position in the Company without adversely affecting
the stock price. In such event, the probability of resale of the
Common Shares would be diminished.
ITEM 4 - INFORMATION ON THE COMPANY
(A) HISTORY AND DEVELOPMENT OF THE COMPANY
CordovaCann
was originally named "Biolink Corp." and was formed as
a result of an amalgamation completed between "Biolink
Corp.", "1149250 Ontario Inc." and "I.D.
Investments Inc." under the
Business Corporation Act
(Ontario)
("OBCA") on March 18, 1997. In connection with a number
of corporate reorganizations, the Company changed its name to
"First Empire Entertainment.com Inc.", "First
Empire Corporation Inc.", "Noble House Entertainment
Inc." and "Live Reel Media Corporation". On
October 20, 2006, the Company completed its continuance from the
OBCA to the
Business Corporation
Act
(Canada) and concurrently changed its name from
"Live Reel Media Corporation" to "LiveReel Media
Corporation". On January 3, 2018, the Company changed its
name to its current name, "CordovaCann
Corp."
The
Company is a "reporting issuer" in the Province of
Ontario, Canada which is governed by the Ontario Securities
Commission. The Company's common shares are listed for
trading on the Canadian Securities Exchange (the "CSE")
under the symbol "CDVA". Furthermore, the Company is
also a fully reporting OTC Markets company and its common shares
are currently listed and trade on the OTCQB under the trading
symbol "LVRLF". CordovaCann's head office and
registered office is located at 217 Queen Street West, Suite 401,
Toronto, Ontario, M5V 0R2.
CordovaCann
is a Canadian-domiciled company focused on building a leading,
diversified cannabis products business across multiple
jurisdictions including Canada and the United States. CordovaCann
primarily provides services and investment capital to the
processing and production vertical markets of the cannabis
industry. On January 3, 2018, the Company changed its name from
LiveReel Media Corporation to CordovaCann Corp. to reflect the
Company's new initiative in the cannabis sector. Prior to the
most recent name change, the Company was engaged in the
identification and evaluation of assets for purchase in the media,
technology and consumer industries.
On
September 22, 2017, Graham Simmonds resigned as Chief Executive
Officer and was replaced by Thomas (Taz) M. Turner,
Jr.
On
November 22, 2017, the Company held its annual and special meeting
of the shareholders (the "Meeting"). At the Meeting,
shareholders voted in favor of all of the matters submitted before
the meeting as further set out in the notice of annual and special
meeting of the shareholders and management information circular,
both dated October 20, 2017. Furthermore, at the Meeting, the
shareholders elected Graham Simmonds, Henry J. Kloepper, Thomas
(Taz) M. Turner, Jr., Ashish Kapoor, Nathan Nienhuis and Eric Lowy
to serve as Directors of the Company until the next annual
shareholders meeting of the Company.
On
January 16, 2018, the Company incorporated CordovaCann Holdings,
Inc., a wholly-owned Delaware corporation ("CordovaCann
USA") to act as the Company's parent holding company in
the United States.
16
On
January 17, 2018, the Company incorporated Cordova CO Holdings,
LLC, a Colorado limited liability company ("Cordova
CO"), as a wholly-owned subsidiary of CordovaCann USA to act
as the Company's primary operating subsidiary in the State of
Colorado.
On
February 26, 2018, the Company incorporated Cordova OR Holdings,
LLC, an Oregon limited liability Company ("Cordova
OR"), as a wholly-owned subsidiary of CordovaCann USA to act
as the Company's primary operating subsidiary in the State of
Oregon.
On
April 3, 2018, the Company changed the name of its wholly-owned
Ontario-based subsidiary from "LiveReel Productions
Corporation" to "CordovaCann Holdings Canada,
Inc." ("Cordova Canada") to act as the
Company's primary operating subsidiary in
Canada.
On May
17, 2018, Graham Simmonds resigned as a Director of the Company and
Thomas (Taz) M. Turner, Jr. replaced Mr. Simmonds as Chairman of
the Company. Furthermore, the Board of Directors also appointed
Nathan Nienhuis to serve as the Company's Chief Operating
Officer.
On
September 4, 2018, the Company incorporated Cordova Investments
Canada, Inc., a wholly-owned Ontario-based subsidiary
("Cordova Investments Canada") to act as the
Company's parent holding company in Canada.
On
October 17, 2018, the Company's Board of Directors and Audit
Committee requested that MNP LLP resign as the Company's
auditor to facilitate the appointment of Marcum LLP as the
Company's new auditor until the next annual general meeting,
effective immediately on the date thereof.
On
November 6, 2018, the Company incorporated Cordova CA Holdings,
LLC, a California limited liability company ("Cordova
CA"), as a wholly-owned subsidiary of CordovaCann USA to act
as the Company's primary holding subsidiary in the State of
California.
On
November 6, 2018, the Company incorporated CDVA Enterprises, LLC, a
California limited liability company ("CDVA
Enterprises"), as a wholly-owned subsidiary of CordovaCann
USA, to act as the Company's primary operating subsidiary in
the State of California.
On
October 28, 2019, Eric Lowy resigned as a Director of the
Company.
On
April 8, 2020, Ashish Kapoor resigned as a Director of the Company.
Furthermore, Benjamin Higham and Jakob Ripshtein were appointed as
Directors of the Company.
On May
19, 2020, the Company acquired 50.1% ownership in 2734158 Ontario
Inc., as disclosed below.
On May
16, 2020, Nathan Nienhuis resigned as a Director and chief
operating officer of the Company. Dale Rasmussen was appointed as a
Director of the Company.
On
August 17, 2020, Henry Kloepper resigned as a Director of the
Company.
On
September 21, 2020, the Company acquired an additional 10.35%
equity stake in 2734158 Ontario Inc. bringing its total ownership
of the corporation to 60.45%.
On
November 20, 2020, Cannabilt Farms, LLC, a wholly-owned subsidiary
the Company, was granted a Marijuana Production License in
Oregon.
On
December 2, 2020, the Company acquired a 51% stake in 10062771
Manitoba Inc.
17
Transaction Summaries
Summary of Star Buds Asset Acquisition.
On
April 8, 2020, the Company, through its wholly-owned subsidiary,
Cordova Investments Canada, Inc., completed the purchase of certain
real assets and intellectual property (the "Assets") of
an arm's length Canadian cannabis corporation (the
"Star Buds Transaction"). The Assets acquired will
enable the Company to open five recreational cannabis stores and
four medical cannabis clinics in Western Canada under an
established brand name, with the exclusive right to open more
stores in Canada. In conjunction with the Star Buds Transaction,
seasoned industry veterans, Mr. Jakob Ripshtein and Mr. Ben Higham
joined the Company's board of directors.
Starbuds
International Inc., the vendor of the Assets (the
"Vendor" or "Star Buds") is a British
Columbia based cannabis venture that owns one of the most
significant medical cannabis clinic footprints in Western Canada,
in addition to a network of recreational cannabis retail stores
awaiting final provincial regulatory approvals. The Company has
purchased the Assets related to five such recreational stores and
four such medical clinics and expects to have them opened in 2020.
These stores will leverage the Star Buds brand name and proven
business model that has created one of the most profitable cannabis
retail companies in the United States over the last six years.
These stores also expect to be able to utilize the intellectual
property of well-established Star Buds product lines of flower,
concentrates, and edibles. The Company plans on leveraging the Star
Buds business model and the platform to open additional stores
across Canada in 2020 and beyond.
As
consideration to the Vendor for the Star Buds Transaction, the
Company:
(i)
issued twelve
million five hundred thousand (12,500,000) common shares of the
Company at close, in exchange for the Assets held related to five
retail cannabis stores and four medical cannabis
clinics;
(ii)
issued three
million (3,000,000) common shares of the Company for each
additional lease assignment in Alberta to the Company, for a total
of six million (6,000,000) common shares of the
Company;
(iii)
agreed to issue
three million (3,000,000) common shares of the Company for the
opening of each retail store, up to a maximum of fifteen million
(15,000,000) common shares of the Company. Each store must be
opened by April 8, 2021 for the Vendor to receive this additional
consideration;
(iv)
issued a three-year
promissory note for five hundred twenty-seven thousand and three
hundred dollars (CDN $527,967) accruing interest at six percent per
annum payable upon maturity (the "Closing Promissory
Note"); and
(v)
issued two
additional three-year promissory notes in amounts of two hundred
twenty-two thousand and five hundred dollars (CDN $222,500) and one
hundred ninety-six thousand and eight hundred (CDN $196,832) for
obtaining assignment of two specific leases to Company. Such
additional notes to have same terms as the Closing Promissory
Note.
Summary of Investment in 2734158 Ontario Inc.
On May
19, 2020, the Company completed the purchase of its initial stake
of 2734158 Ontario Inc. ("273"), an arm's length
Ontario-based cannabis retail venture (the "Ontario
Transaction"). Cordova agreed to invest a total of seven
hundred twenty-three thousand dollars ($723,000) in 273 in exchange
for 50.1% of 273. Cordova invested two hundred thousand dollars
($200,000) for 21.7% of 273 at the close of the Transaction, and
invested (i) two hundred thousand dollars ($200,000) on June 14,
2020, (ii) two hundred thousand dollars ($200,000) on July 14,
2020, and (iii) one hundred twenty-three thousand dollars
($123,000) on August 13, 2020, which collectively gave the Company
ownership of 50.1% of 273 after all payments were made. The
Transaction is subject to approval from the Alcohol and Gaming
Commission of Ontario and compliance with all applicable laws,
rules and regulations. Cordova holds 4 of 7 board seats of 273 and
has a right of first refusal on any future sale of primary or
secondary shares in 273. The retail stores will be operated by 273
under the Star Buds brand name, and Cordova is leveraging its
recently closed assets of Starbuds International Inc. to provide
273 with retail store designs and layouts, standard operating
procedures, staff training, financing resources and systems
support. On September 17, 2020, the Company acquired an additional
10.35% of the common shares of 273 not previously owned by Cordova
(the "Additional Shares") bringing its accumulated
ownership of 273 to 60.45%. The total purchase price for the
Additional Shares amounted to $305,267, of which $72,539 was paid
on closing and the remaining amounts are payable within a year from
close.
Summary of Oregon Transaction
On
April 4, 2018, Cordova OR entered into an agreement to acquire
Cordova OR Operations, LLC ("OR Operations) for the
acquisition of land and building for a total purchase price of US
$1,440,000. Under the terms of the agreement, Cordova OR acquired a
27.5% membership interest in OR Operations for $534,311 (US
$400,000) on April 4, 2018, and acquired the remaining 72.5%
interest on June 19, 2019 for $1,361,048 (US $1,040,000). The
assets of OR Operations consists of land, building and construction
in progress with the construction in progress funded by Cordova OR.
The total assets acquired through the transaction amounted to
$3,645,389. The Company intends to continue its buildout the Oregon
property to complete the construction and establish cultivation and
processing facilities on the premises. On November 20, 2020,
Cannabilt Farms, LLC, a wholly-owned subsidiary the Company, was
granted a Marijuana Production License in Oregon.
18
Summary of Manitoba Transaction
On
December 2, 2020, the Company, through its wholly owned subsidiary
Cordova Investments Canada, Inc., completed the purchase of a 51%
stake in 10062771 Manitoba Inc. ("Manitoba Inc.") a
Manitoba-based cannabis retail venture (the "Manitoba
Transaction"). The purchase price for the shares is one
hundred fifty thousand dollars ($150,000) payable to Manitoba Inc.
and six million (6,000,000) warrants of the Company to be granted
to the current shareholders of Manitoba Inc., with each warrant
entitling the holder thereof to purchase one common share in the
capital of the Company at an exercise price of $0.32 until November
30, 2022. In addition, the Company has agreed to loan up to one
hundred fifty thousand dollars ($150,000) to Manitoba Inc. to
enable the opening of the second store in Manitoba. The stores will
be operated by Manitoba Inc. under the Star Buds brand name, and
the Company will provide the retail store designs and layouts,
standard operating procedures, staff training, financing resources
and systems support. The Company also has a right of first refusal
regarding any future primary issuance or secondary sale of shares
of Manitoba Inc., and has a call option to purchase all of the
outstanding equity interests of Manitoba Inc. at any time following
the two-year anniversary of the closing date at a valuation
equivalent to four times the trailing twelve months normalized
EBITDA of Manitoba Inc.
(B) BUSINESS OVERVIEW
CordovaCann is committed to assembling a premier cannabis business
with a vision to becoming a worldwide industry leader. The Company
is focused on working with leading cannabis production, processing
and retail operators in key jurisdictions that will enable
CordovaCann to serve national and international markets that have
legal and regulated medical and/or recreational cannabis
industries. The Company intends to leverage its production,
processing and retail investments to establish a global
multi-jurisdictional platform that delivers consistent formulations
of best-of-breed brands and predictable consumer
experiences.
CordovaCann has entered into strategic relationships and
investments with cannabis operators in Canada and the United
States. The Company will provide a variety of resources and
services to these respective operators including, but not limited
to: capital commitments, strategic positioning, brand development,
best operating practices, access to intellectual property,
administrative assistance, and general business consulting. Over
the next twelve months, CordovaCann is focused on growing its
retail operations through its assets acquired as part of the Star
Buds acquisition and the acquisition of 273, as well as expanding
the throughput of its Oregon operations. Moving forward, the
Company will also seek partnerships with cannabis operators in key
legal markets not currently served by CordovaCann, as well as seek
to expand operations in those markets where the Company already has
a presence. CordovaCann plans to develop various end products for
distribution in each of its current markets as well as to service
other brands and intellectual property owners with its growing
processing and manufacturing platforms with a view to allowing
these clients and prospective clients to gain access to our
channels to market and to also generate additional revenue for the
Company. The platform that the Company is building will seek to
ensure that the end products are consistent across all
jurisdictions by maintaining strict and professional standard
operating procedures covering everything from marketing, sales,
packaging, and branding through to the ultimate end user
experience.
CordovaCann's long-term focus is to continue expanding its
reach into additional legal markets, and the Company expects to
organically build and forge strategic relationships with cannabis
producers, processors and retailers globally. As the Company works
to penetrate new markets with its branded products, the Company
will likely develop and/or acquire new brands and products to
further leverage its channels to market through the broadening of
its product offerings. Additionally, CordovaCann may invest in
additional parts of the cannabis value chain in markets where such
assets are legal and provide a competitive advantage and
significant operating leverage for the Company.
Competition
The
Company competes with other companies for financing and investment
opportunities in the cannabis industry. Some of these companies may
possess greater financial resources than the Company. Such
competition may result in the Company being unable to enter into
desirable strategic agreements or similar transactions, to recruit
or retain qualified employees or to acquire the capital necessary
to fund its investments. Existing or future competition in the
cannabis industry, including, without limitation, the entry of
large multinational entities into the industry, could materially
adversely affect the Company's prospects for entering into
additional agreements in the future. In addition, the Company
currently competes with other cannabis streaming and royalty
companies, some of which may possess greater financial resources
than the Company.
19
There
is potential that the Company will face intense competition from
other companies, some of which can be expected to have longer
operating histories and more financial resources and experience
than the Company. Increased competition by larger and better
financed competitors, including competitors to the Company's
investments, could materially and adversely affect the business,
financial condition and results of operations of the Company. It is
possible that larger competitors could establish price setting and
cost controls which would effectively "price out"
certain of the Company's investments operating within and in
support of the medical and recreational cannabis
industry.
Because
of the early stage of the industry in which the Company will
operate, the Company expects to face additional competition from
new entrants. To become and remain competitive, the Company will
require research and development, marketing, sales and support. The
Company may not have sufficient resources to maintain research and
development, marketing, sales and support efforts on a competitive
basis, which could materially and adversely affect the business,
financial condition and results of operations of the
Company.
(C) ORGANIZATIONAL STRUCTURE
The
following table presents the corporate subsidiaries and the
respective percentage ownership of the Company (the
"Subsidiaries") as at June 30, 2020:
Subsidiary
Name
Jurisdiction
of Incorporation
Percentage
of Ownership
CordovaCann
Holdings Canada, Inc.
Ontario
(Canada)
100
%
Cordova Investments
Canada, Inc.
Ontario
(Canada)
100
%
2734158 Ontario
Inc.
Ontario
(Canada)
50.1
%
CordovaCann
Holdings, Inc.
Delaware
(USA)
100
%
Cordova CO
Holdings, LLC
Colorado
(USA)
100
%
Cordova CA
Holdings, LLC
California
(USA)
100
%
CDVA Enterprises,
LLC
California
(USA)
100
%
Cordova OR
Holdings, LLC
Oregon
(USA)
100
%
Cordova OR
Operations, LLC
Oregon
(USA)
100
%
Cannabilt Holdings,
Inc.
Oregon
(USA)
100
%
Cannabilt Farms,
LLC
Oregon
(USA)
100
%
Cannabilt OR
Retail, LLC
Oregon
(USA)
100
%
Future Processing,
LLC
Oregon
(USA)
100
%
Note:
(1)
2734158 Ontario Inc
is a 50.1% subsidiary of Cordova Investments Canada, Inc. As at the
date of this Annual Report, 2734158 Ontario Inc is a 60.45%
subsidiary of Cordova Investments Canada, Inc.
(2)
Cordova CO
Holdings, LLC is a 100% subsidiary of CordovaCann Holdings,
Inc.
(3)
Cordova CA
Holdings, LLC is a 100% subsidiary of CordovaCann Holdings,
Inc.
(4)
CDVA Enterprises,
LLC is a 100% subsidiary of CordovaCann Holdings, Inc.
(5)
Cordova OR
Holdings, LLC is a 100% subsidiary of CordovaCann Holdings,
Inc.
(6)
Cordova OR
Operations, LLC is a 100% subsidiary of Cordova OR Holdings,
LLC.
(7)
Cannabilt Holdings,
Inc. is a 100% subsidiary of CordovaCann Holdings,
Inc.
(8)
Cannabilt Farms,
LLC is a 100% subsidiary of Cannabilt Holdings, Inc.
(9)
Cannabilt OR
Retail, LLC is a 100% subsidiary of Cannabilt Holdings,
Inc.
(10)
Future Processing,
LLC is a 100% subsidiary of Cannabilt Holdings, Inc.
20
(D) PROPERTY PLANTS AND EQUIPMENT
The
Company's leased property relates to rental leases entered
into during the year ended June 30, 2020 related to the acquisition
of 273 and Star Buds Transaction, as disclosed above.
The
Company, through its wholly-owned subsidiary OR Operations, owns a
premise located at 17551 SE Hwy 224, Damascus, Oregon
97089.
The
Company's registered office is 217 Queen Street West, Suite
401, Toronto, Ontario, Canada, M5V 0R2. It
is not charged monthly rent under
this arrangement.
ITEM 5 - OPERATING AND FINANCIAL REVIEW AND PROSPECTS
(A) OPERATING RESULTS
The
following discussion should be read in conjunction with the audited
consolidated financial statements of the Company and notes thereto
contained elsewhere in this report. The following is stated in
CAD.
Results of operations
For
the Years Ending June 30,
2020
2019
2018
$
$
$
Revenue
166,773
-
-
Cost of
sales
106,742
30,529
12,770
Expenses
3,368,656
5,547,863
4,880,359
Other expense
(income)
1,396,624
258,144
(27,196
)
Net loss for
year
(4,705,249
)
(5,836,536
)
(4,865,933
)
Net loss per
share
(0.10
)
(0.15
)
(0.15
)
Revenues
During
the year ended June 30, 2020, the Company recorded $166,773 in
revenue from retail cannabis store operations (June 30, 2019 -
$nil, June 30, 2018 - $nil).
During
the year ended June 30, 2020, the Company recorded $106,742 in cost
of sales in relation to the retail cannabis store operations.
During the year ended June 30, 2019 and 2018, the cost of sales
related to cannabis-related equipment rental revenue in the amount
of $30,529 and $12,770, respectively, of which no revenue was
earned.
21
Expenses
The
Company incurred the following operating expenses over the years
ended June 30, 2020, 2019 and 2018:
For the Years Ending June
30,
2020
2019
2018
$
$
$
Consulting
fees
1,295,829
2,448,560
977,410
Share based
compensation
1,048,661
1,413,919
3,447,415
Professional
fees
488,902
371,079
225,151
Shareholders
information services
135,181
379,058
52,714
Salaries and
wages
23,039
-
-
Advertising
costs
2,825
88,917
-
Office and
general
208,484
605,334
120,274
Depreciation
5,768
-
-
Amortization of
right-of-use assets
92,167
-
-
Lease and
utilities
67,800
-
-
Financing
costs
-
-
14,845
Exclusivity
fee
-
48,367
42,550
Impairment of
promissory note receivable
-
85,114
-
Impairment of
equipment
-
107,515
-
3,368,656
5,547,863
4,880,359
The
overall analysis of the key operating expenses above is as
follows:
Consulting Fees
Consulting
fees for the year ended June 30, 2020 were $1,295,829, as compared
to $2,448,560 for the year ended June 30, 2019 and $977,410 for the
year ended June 30, 2018. Consulting fees decreased due to the
decrease in the number of consultants during the year.
Share Based Compensation
Share
based compensation expense for the year ended June 30, 2020 were
1,048,661 as compared to $1,413,919 for the year ended June 30,
2019 and $3,447,415 for the year ended June 30, 2018. The share
based compensation expense for the year ended June 30, 2020 was a
result of the issuances and vesting of warrants issued to
consultants and the forfeitures of warrants that were issued in the
prior fiscal year.
Professional Fees
Professional
fees for the year ended June 30, 2020 were $488,902 as compared to
$371,079 for the year ended June 30, 2019 and $225,151 for the year
ended June 30, 2018. Professional fees for the year ended June 30,
2020, 2019 and 2018 were comprised of legal and audit fees and the
increase reflects the increased acquisition activity in
2020.
22
Shareholder Information Services
Shareholder
information services for the year ended June 30, 2020 were
$135,181, as compared to $379,058 for the year ended June 30, 2019
and $52,714 for the year ended June 30, 2018. Shareholder
information services for the year ended June 30, 2020, 2019 and
2018 were comprised of annual general meeting costs and accruals,
transfer agent fees, other filing fees and investor relation
services.
Office and General
Office
and general costs for the year ended June 30, 2020 were $208,484 as
compared to $605,334 for the year ended June 30, 2019 and $120,274
for the year ended June 30, 2018. Office and general costs were
primarily comprised of administrative, travel and other expenses
incurred by the Company and its employees and consultants. The
decrease in office and general costs for the year ended June 30,
2020 was primarily a result of decreased travel and administrative
expenses.
Amortization of right of use assets
Amortization
of right of use assets for the year ended June 30, 2020 was $92,167
as compared to $nil for the year ended June 30, 2019 and 2018. The
increase in the expense reflects the new leases entered into
through the Star Buds and 273 acquisitions over the year ended June
30, 2020.
Advertising
Advertising
costs for the year ended June 30, 2020 were $2,825 as compared to
$88,917 for the year ended June 30, 2019. Advertising costs during
the year ended June 30, 2020 and 2019 were primarily a result of
the Company's efforts to increase traction to potential
investors and other opportunities.
Financing Costs
Financing
costs for the year ended June 30, 2019 were $nil as compared to
$14,845 for the year ended June 30, 2018. Financing costs were in
relation to accrued interest on the Company's liabilities.
The financing costs during the year ended June 30, 2018 were in
relation to the settlement of a shareholder loan and repayments of
related party loans.
Exclusivity Fee
On
March 7, 2018, the Company entered into a memorandum of
understanding (the "MOU") with a third party which
granted the Company exclusivity on a transaction to acquire a
majority stake in real estate and intellectual property assets
owned by the third party. Under the terms of the MOU, the Company
agreed to pay the third party up to USD $100,000 for such
exclusivity until termination by either party. In October 2019, the
Company terminated the MOU. During the year ended June 30, 2019,
the Company paid and expensed $48,367 as compared to $42,550 for
the year ended June 30, 2018 as a result of the exclusivity
fee.
Impairment of Promissory Note Receivable
During
the year ended June 30, 2019, the Company impaired a promissory
note receivable in the amount of $85,114 as compared to $nil for
the years ended June 30, 2018. The impairment during the year ended
June 30, 2019 was due to issues related to the collectability of
the principal amount of the promissory note.
23
Impairment of Equipment
During
the year ended June 30, 2019, the Company recorded an impairment of
equipment of $107,515 as compared to $nil for the year ended June
30, 2018. The impairment of equipment during the year ended June
30, 2019 was in relation to the equipment that was leased to a
third party in the State of Colorado.
Other Expense (Income)
The
Company incurred the following other expense (income) over the
years ended June 30, 2020, 2019 and 2018:
For
the Years Ending June 30,
2020
2019
2018
$
$
$
Interest
expense
564,897
39,215
-
Interest on lease
obligation
46,171
-
-
Accretion
expense
249,518
24,680
-
Loss on settlement
of fees
-
12,700
-
Loss on settlement
of other investment
184,440
-
-
Impairment of
assets
16,316
-
-
Foreign exchange
loss (gain)
56,225
57,121
(27,196
)
Gain on
settlement
(51,023
)
-
-
Other
income
(65,920
)
-
-
Loss on
deposit
396,000
124,428
-
1,396,624
258,144
(27,196
)
The
overall analysis of the key other expense (income) above is as
follows:
Interest Expense
During
the year ended June 30, 2020, the Company recorded interest expense
of $564,897, $39,215 for the year ended June 30, 2019 and $nil for
the year ended June 30, 2018. The interest expense during the year
ended June 30, 2020 was primarily in relation to convertible
debentures, promissory notes and a mortgage issued during the years
ended June 30, 2020 and 2019, as well as the interest related to
the lease obligation.
Accretion Expense
During
the year ended June 30, 2020, the Company recorded an accretion
expense of $249,518, as compared to $24,680 for the year ended June
30, 2019 and $nil for the year ended June 30, 2018. The accretion
expenses during the year ended June 30, 2020 was primarily in
relation to a discount on convertible debentures and promissory
notes issued in relation to the Star Buds transaction as noted
above, during the years ended June 30, 2020 and 2019.
24
Loss on Settlement of Other Investment
During
the year ended June 30, 2020, the Company recorded a loss on
settlement of other investment of $184,440 as compared to $nil for
years ending June 30, 2019 and 2018. The loss in fiscal 2020 was
due to impairment of the Company's investment in NWN Inc.
made on September 18, 2018 for $500,000. The investment was pledged
as security for a promissory note and due to default on such
promissory note, the security was called on October 26, 2020 and as
a result, the investment was fully impaired as part of the
repayment of the promissory note.
Loss on Settlement of Fees
During
the year ended June 30, 2019, the Company recorded a loss on
settlement of fees of $12,700 as compared to $nil for the year
ended June 30, 2018. The loss on settlement of fees during the year
ended June 30, 2019 was in relation to outstanding fees that were
settled with the issuance of $250,000 in convertible
debentures.
Foreign Exchange Loss (Gain)
Foreign
exchange loss (gain) for the year ended June 30, 2020 was $56,225
as compared to a loss (gain) of $57,121 for the year ended June 30,
2019 and $(27,196) for the year ended June 30, 2018. The foreign
exchange losses and gains for the years ended June 30, 2020, 2019
and 2018 were a result of the exchange rate fluctuations related to
transactions based in United States Dollars.
Loss on Deposit
During
the year ended June 30, 2020, the Company recorded a loss on
deposit of $396,000 as compared to $124,428 and $nil for the years
ended June 30, 2019 and 2018. The loss on deposit during the year
ended June 30, 2020 relates to a non-refundable deposit made
towards a proposed California asset purchase and that transaction
was effectively terminated. The loss on deposit during the year
ended June 30, 2019 relates to a non-refundable deposit made on a
proposed Oregon asset purchase and that transaction was effectively
terminated.
Net Loss and Comprehensive Loss
Net
loss for the year ended June 30, 2020 was $4,650,900 as compared to
$5,836,536 for the year ended June 30, 2019 and $4,865,933 for the
year ended June 30, 2018.
Comprehensive
loss for the year ended June 30, 2020 was $4,700,388 as compared to
$5,829,331 for the year ended June 30, 2019 and $4,865,249 for the
year ended June 30, 2018.
25
(B) LIQUIDITY AND CAPITAL RESOURCES
Working
Capital
As at
June 30, 2020, the Company had total assets of $14,693,789 (June
30, 2019 – $4,645,132) consisting of the
following:
As at
June 30, 2020
June 30,
2019
$
$
ASSETS
Current
Cash
and cash equivalents
647,739
71,849
Prepaid
expenses and deposits
188,674
427,894
Inventory
118,682
-
Harmonized
sales tax receivable
27,118
-
Other deposit - current
portion
74,450
-
Total
current assets
1,056,663
499,743
Other investment
-
500,000
Other deposit
330,764
-
Right-of-use assets
2,539,670
-
Property and equipment,
net
4,979,813
3,645,389
Intangible assets
5,243,967
-
Licenses
542,912
-
Total
assets
14,693,789
4,645,132
The
increase in assets from June 30, 2019 to June 30, 2020 was
primarily the result of Star Buds and 273 acquisitions discussed
above.
As at
June 30, 2020, the Company had total liabilities of $8,417,100
(June 30, 2019 – $4,282,562) consisting of the
following:
As at
June 30,
2020
June 30,
2019
$
$
Current
Accounts
payable and accrued liabilities
2,800,206
1,371,386
Mortgage payable
766,531
657,633
Debenture unit deposits
-
594,889
Convertible debentures
381,678
-
Deferred
tax liability
4,939
-
Lease liability
253,205
-
Promissory notes payable
1,314,427
1,112,194
Total
current liabilities
5,520,986
3,736,102
Promissory notes payable
566,835
-
Lease liability
2,329,279
-
Convertible debentures
-
546,460
Total
liabilities
8,417,100
4,282,562
26
The
increase in accounts payable and accrued liabilities from June 30,
2019 to June 30, 2020 was a result of the Company's increased
operations due to the Star Buds and 273 acquisitions discussed
above and limited cash flow. During the year ended June 30, 2020,
the Company issued debt through convertible debentures to assist in
financing its operations and investments. During the year ended
June 30, 2019, the Company issued debt through a mortgage payable,
promissory notes payable, convertible debentures and subscriptions
thereto to assist in financing its operations and
investments.
As at
June 30, 2020, the Company had a working capital deficiency of
$4,464,323 as compared to a working capital deficiency of
$3,236,359 as at June 30, 2019. The Company's ability to
continue as a going concern is dependent upon its ability to access
sufficient capital until it has profitable operations and raises a
material concern. To this point, all operational activities and
overhead costs have been funded through equity issuances, debt
issuances and related party advances.
Cash Used in Operating Activities
The
Company used cash in operating activities in the amount of
$1,037,942 (June 30, 2019 – $2,936,734 and June 30, 2018 -
$1,177,474) for the year ending June 30, 2020 due to the reasons as
discussed above.
Cash Used in Investing Activities
The
Company used cash in investing activities in the amount of $145,587
(June 30, 2019 – $3.069,685 and June 30, 2018 - $1,304,415)
for the year ending June 30, 2020. The investing activities during
the year ending June 30, 2020 were primarily attributable to cash
used for the 273 acquisition.
Cash From Financing Activities
The
Company received proceeds from financing activities in the amount
of $1,723,677 (June 30, 2019 – $2,820,366 and June 30, 2018 -
$5,731,902) during the year ending June 30, 2020. The financing
activities proceeds during the year ending June 30, 2020 were in
relation to the proceeds received from the issuance of convertible
debentures that closed on August 14, 2019, issuance of convertible
debentures on April 24, 2020, a common share offering that closed
on May 25, 2020, and a refinancing of a mortgage that was
previously defaulted on.
(C)
RESEARCH AND DEVELOPMENT, PATENTS AND
LICENSES
The
Company has not spent any funds on research and development during
the fiscal years ended 2020, 2019 and 2018.
(D)
TREND INFORMATION
There
are no trends, commitments, events or uncertainties presently known
to management that are reasonably expected to have a material
effect on the Company's business, financial condition or
results of operation other than the nature of the business (Refer
to the heading entitled "Risk Factors").
(E)
OFF-BALANCE SHEET
ARRANGEMENTS
As at
June 30, 2020, the Company did not have any off balance sheet
arrangements, including any relationships with unconsolidated
entities or financial partnerships to enhance perceived
liquidity.
(F)
CONTRACTUAL OBLIGATIONS
As at
June 30, 2020, the Company did not have any key contractual
obligations.
27
(G)
SAFE HARBOR
Statements
in Item 5 of this Annual Report on Form 20-F that are not
statements of historical fact, constitute "forward-looking
statements." See "Forward-Looking Statements" on
page 1 of this Annual Report. The Company is relying on the safe
harbor provided in Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, in making such forward-looking statements.
ITEM 6 - DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
(A) DIRECTORS AND SENIOR MANAGEMENT
Mr. Thomas (Taz) M. Turner, Jr.
joined the Board of
Directors on November 22, 2017 and as Chief Executive Officer of
the Company on September 22, 2017. Mr. Turner is currently the
Chairman of the Board of Directors. Mr. Turner has over 20 years of
experience in the capital markets focused on both debt and equity
securities in the technology and consumer industries. He founded
Southshore Capital Partners, LP in 2009 and has guided the growth
of Southshore's global equity hedge fund as General Partner.
Through his fund, Mr. Turner has invested in public and private
cannabis companies since 2012. Prior to Southshore, Mr. Turner held
progressive positions at hedge funds and private equity funds with
Tala Investments, Trafelet Delta Funds and ABS Capital Partners,
where he specialized in technology and consumer investments. Mr.
Turner graduated from the University of Virginia with a Bachelor of
Science in both Commerce and Mathematics.
We
believe Mr. Turner is well-qualified to serve as Chairman of the
Board of Directors due to his investment experience, operational
experience and business contacts.
Mr. Dale Rasmussen
joined the Board of Directors on May 15,
2020. Mr. Rasmussen has provided consulting services to growth
companies in a variety of industries. He previously served as
Chairman of Quantum Fuel System Technologies Worldwide and Chairman
of Fisker Automotive. He was also the Senior Vice President and
Secretary of IMPCO Technologies. He has helped facilitate numerous
international transactions including several cross-border
acquisitions and exchange agreements with leading Canadian
companies in solar, wind, battery, and clean technology and
alternative fuel automotive sectors. Prior to these roles, Mr.
Rasmussen was a commercial banker responsible for the bank's
investment portfolio and corporate development
initiatives.
We
believe Mr. Rasmussen is well-qualified to serve as a member of the
Board of Directors and Chairman of the Audit Committee due to his
public company experience, financial markets knowledge and business
contacts.
Mr. Jakob Ripshtein
joined the Board of Directors on April
8, 2020. Mr. Ripshtein previously served as the President of
Aphria, a leading global cannabis company. Mr. Ripshtein's
diverse career began in the Canadian spirits, pharmaceutical, and
financial sectors, where he oversaw business, sales and tax
functions. Joining Diageo in 2008 as VP of Finance, Mr. Ripshtein
operated in a series of senior roles in Canada, the US, and the UK,
becoming President of Diageo Canada, and, in 2016, CFO of Diageo
North America. Mr. Ripshtein holds a CPA and International Tax
designation, and a Bachelor of Business Administration Honours
Degree from York University.
We
believe Mr. Riphstein is well-qualified to serve as a member of the
Board of Directors due to his public company experience, financial
markets knowledge and business contacts.
Mr. Benjamin Higham
joined the Board of Directors on April
8, 2020. Mr. Higham was instrumental in the creation and growth of
Starbuds International and served on its Board of Directors over
the past eight months. Prior to entering business, he practiced law
in Canada and the United States, working in private practice and as
corporate counsel. Mr. Higham brings significant retail cannabis
experience gained from his deep personal network of industry
leaders and proven success as a cannabis entrepreneur. Admitted to
the New York and Massachusetts Bars in 2004 and called to the Bar
of Ontario in 2006, Mr. Higham practiced law in both Canada and
United States in private practice and as corporate counsel to a
large multinational.
We
believe Mr. Higham is well-qualified to serve as a member of the
Board of Directors due to his public company experience, financial
markets knowledge and business contacts.
28
Mr. Ashish Kapoor
assumed the roles of Chief Financial
Officer and Corporate Secretary of the Company, effective March 10,
2015. Mr. Kapoor has over 20 years of experience in providing
capital markets advisory and assurance services as a finance
professional. After obtaining his Chartered Accountant designation
at Ernst & Young, Mr. Kapoor has gained over 10 years of
experience in investment banking; advising clients across various
industries. As a senior vice president at Macquarie Capital Markets
Canada Ltd., Mr. Kapoor was responsible for the Canadian telecom,
media, entertainment and technology investment banking and
principal investing group. During his 10 years at Macquarie, Mr.
Kapoor completed in excess of $3 billion in successful principal
investments and advised on a further $4 billion of mergers and
acquisitions for third party clients. Mr. Kapoor was formerly the
CFO of DealNet Capital Corp., a consumer finance company, and
Transeastern Power Trust (prior to its current name, Blockchain
Power Trust), an independent power producer focused on renewable
energy sources. Mr. Kapoor was awarded the Gold Medal for first
place in Ontario, and the Bronze Medal for third place in Canada on
the 2000 Chartered Accountancy Uniform Final Examination. Mr.
Kapoor is also a CFA Charter holder and holds a Masters of
Accounting and a Bachelor of Arts degree from University of
Waterloo.
(B) COMPENSATION
The
compensation payable to directors and officers of the Company and
its subsidiary is summarized below:
1.
General
The
Company recognizes that remuneration plays an important role in
attracting, motivating, rewarding and retaining knowledgeable and
skilled individuals to the Company's management team.
However, the Company has not, as yet, generated any significant
income or cash flow from operations. The Board of Directors has to
consider not only the financial situation of the Company at the
time of the determination of executive compensation, but also the
estimated financial situation in the mid and long-term. The Board
of Directors plans to ensure that, at all times, its compensation
arrangements adequately reflect the responsibilities and risks
involved in being an effective Director and/or Officer of the
Company.
Given
the Issuer's size and stage of operations, the Board does not
have a separate compensation committee and such functions are
addressed by the entire Board.
On
November 22, 2017, the Company's shareholders approved and
the Company adopted a new rolling stock option plan (the
"Option Plan"), under which the Board of Directors may
from time to time, in its discretion, grant to directors, officers,
employees and consultants of the Company. Pursuant to the Option
Plan, the Company may issue options for such period and exercise
price as may be determined by the Board of Directors, and in any
case not exceeding ten (10) years from the date of grant with the
total options issued under the Option Plan not exceeding ten
percent (10%) of the common shares of the Company, outstanding at
the time of the granting of such options. The minimum exercise
price of an option granted under the Option plan must not be less
than the market value of the common shares on the date such option
is granted. The Option Plan is filed as Exhibit 4.(d) to this
Annual Report and is incorporated herein by reference.
29
2. Statement of Executive Compensation
The
following table and accompanying notes set forth all compensation
expensed by the Company to all persons who served as the
Company's Directors and Officers during the fiscal year ended
June 30, 2020. The information is provided for the fiscal years
ended 2020, 2019 and 2018.
Name and principal position
Year
Salary (CAD $)
Share-based awards
(CAD $)
Option-based awards (CAD $)
Non-equity incentive plan compensation (CAD $)
Pension value (CAD $)
All other compensation (CAD $)
Total compensation (CAD $)
Annual incentive plans
Long-term incentive plans
Thomas
M, Turner, Jr.,
Chairman
and Chief Executive Officer
2020
2019
2018
204,270
264,740
141,126
-
-
-
25,959
(1)
-
216,694
(1)
-
-
-
-
-
-
-
-
-
-
-
-
230,229
264,740
357,820
Ashish
Kapoor,
Director,
Chief Financial Officer and Corporate Secretary
2020
2019
2018
204,270
264,740
141,126
-
-
-
12,980
(1)
-
216,694
(1)
-
-
-
-
-
-
-
-
-
-
-
-
217,250
264,740
357,820
Nathan
Nienhuis, Former Director and Former Chief Operating
Officer
2020
2019
2018
169,270
264,740
56,574
-
-
-
277,004
(1)
-
1,815,029
(1)
-
-
-
-
-
-
-
-
-
-
-
-
446,274
264,740
1,871,603
Henry
J. Kloepper,
Director
2020
2019
2018
31,112
31,769
7,747
-
-
-
6,490
(1)
-
18,851
(1)
-
-
-
-
-
-
-
-
-
-
-
-
37,602
31,769
26,598
Jakob
Ripshtein, Director
2020
2019
2018
7,500
-
-
-
-
-
184,713
(1)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
192,213
-
-
Benjamin
Higham, Director
2020
2019
2018
7,500
-
-
-
-
-
184,713
(1)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
192,213
-
-
Dale
Rasmussen, Director
2020
2019
2018
3,750
-
-
-
-
-
132,012
(1)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
135,762
-
-
Eric
Lowy, Former Director
2020
2019
2018
8,056
31,769
7,747
-
-
-
-
-
18,851
(1)
-
-
-
-
-
-
-
-
-
-
-
-
8,056
31,769
26,598
Note:
(1)
See Item 6(E) below
for details of option based awards.
30
Employment Agreements; Termination and Change of Control
Benefits
As at
the date of this Annual Report, the Company is a party to the
following employment agreements with the Company's Directors
and Officers:
Thomas (Taz) M. Turner, Jr.
Pursuant to the employment
agreement entered into with Mr. Turner, Mr. Turner serves as Chief
Executive Officer of the Company and is entitled to an annual base
salary of CAD $140,000 and is eligible to earn a cash performance
bonus.
Mr.
Turner' employment agreement may be terminated by the Company
without notice or payment in lieu of notice for just cause. Mr.
Turner may terminate his employment for any reason by providing at
least two months' notice in writing. If the Company elects to
terminate the employment of Mr. Turner without cause, and provided
Mr. Turner is in compliance with the relevant terms and conditions
of his employment agreement, the Company shall be obligated to pay
Mr. Turner eighteen months of his monthly base salary and any
accrued and unpaid expenses and fees.
If
(i) there has been a Change of Control (as defined below) of
the Company, and (ii) the Involuntary Termination (as defined
below) of the employment of Mr. Turner has occurred within twelve
months of the date of the Change of Control, the Company shall pay
Mr. Turner, in a lump sum, an amount equal to the sum of the
following:
(a)
twenty-four
months of the base salary immediately prior to the date of the
Change of Control;
(b)
the
annual premium cost to the Company of all the benefits provided to
Mr. Turner by the Company under his employment agreement
immediately prior to the date of the Change of Control;
and
(c)
any
other outstanding amounts owed to Mr. Turner under his employment
agreement.
Furthermore,
the Company shall also be required to pay to Mr. Turner the lump
sum of any other outstanding amounts owed to Mr. Turner (including
entities related to or controlled by Mr. Turner) regardless of the
terms of such amounts which will become immediately due and payable
upon Involuntary Termination.
Ashish Kapoor.
Pursuant to the employment agreement entered
into with Mr. Kapoor, Mr. Kapoor serves as Chief Financial Officer
of the Company and is entitled to an annual base salary of CAD
$140,000 and is eligible to earn a cash performance
bonus.
Mr.
Kapoor' employment agreement may be terminated by the Company
without notice or payment in lieu of notice for just cause. Mr.
Kapoor may terminate his employment for any reason by providing at
least two months' notice in writing. If the Company elects to
terminate the employment of Mr. Kapoor without cause, and provided
Mr. Kapoor is in compliance with the relevant terms and conditions
of his employment agreement, the Company shall be obligated to pay
Mr. Kapoor eighteen months of his monthly base salary and any
accrued and unpaid expenses and fees.
If
(i) there has been a Change of Control (as defined below) of
the Company, and (ii) the Involuntary Termination (as defined
below) of the employment of Mr. Kapoor has occurred within twelve
months of the date of the Change of Control, the Company shall pay
Mr. Kapoor, in a lump sum, an amount equal to the sum of the
following:
(a)
twenty-four
months of the base salary immediately prior to the date of the
Change of Control;
(b)
the
annual premium cost to the Company of all the benefits provided to
Mr. Kapoor by the Company under his employment agreement
immediately prior to the date of the Change of Control;
and
(c)
any
other outstanding amounts owed to Mr. Kapoor under his employment
agreement.
Furthermore,
the Company shall also be required to pay to Mr. Kapoor the lump
sum of any other outstanding amounts owed to Mr. Kapoor (including
entities related to or controlled by Mr. Kapoor) regardless of the
terms of such amounts which will become immediately due and payable
upon Involuntary Termination.
31
Director Compensation
The
Company has no formal agreements for compensating its Directors for
their services in their capacity as directors. The Company's
Board of Directors agreed to pay each of the Company's
non-executive directors $2,500 per month for their services. The
payment or non-payment of non-executive director fees is made by
the Board of Directors from time to time. Directors are expected in
the future to receive stock options to purchase Common Shares as
may be awarded by the Board of Directors.
Long Term Incentive Plan (LTIP) Awards
The
Company does not have a LTIP, pursuant to which cash or non-cash
compensation intended to serve as an incentive for performance
(whereby performance is measured by reference to financial
performance or the price of the Company's securities) was
paid or distributed during the most recently completed fiscal
year.
Defined Benefit or Actuarial Plan Disclosure
There
is no pension plan or retirement benefit plan that has been
instituted by the Company and none are proposed at this
time.
(C) BOARD PRACTICES
The
Board is currently comprised of four (4) directors; being; Thomas
(Taz) M. Turner, Jr. (Chairman); Dale Rasmussen, Jakob Ripshtein,
and Benjamin Higham; who were each elected by the Company's
shareholders to hold office until the next annual meeting of
shareholders or until a successor is duly elected or appointed,
unless his office is earlier vacated in accordance with the by-laws
of the Company. Mr. Rasmussen, Mr Ripshtein and Mr. Higham are
"independent" directors. Mr. Turner, the
Company's Chief Executive Officer; is not considered to be
independent. The Board has determined that a board of four (4)
members will be effective in the governance and supervision of the
management of the Company's business and affairs at this
time.
Other
than the Audit Committee, the Board has no other committees. The
directors are regularly informed of or are actively involved in the
operations of the Issuer. The scope and size of the Issuer's
operations and development does not currently warrant an increase
in the size of the Board or the formation of additional committees,
however, the Board periodically examines its size and constitution
and may from time to time establish ad hoc committees to deal with
specific situations.
Mandate of the Board
The
Board has adopted a mandate, in which it has explicitly assumed
responsibility for the stewardship of the Company. In carrying out
its mandate the Board holds at least four meetings (or consent
resolutions, where applicable) annually. The frequency of meetings,
as well as the nature of the matters dealt with, will vary from
year to year depending on the state of our business and the
opportunities or risks, which we face from time to time. To assist
in the discharge of its responsibilities, the Board has designated
an Audit Committee, as more particularly discussed
below.
Audit Committee
The
current members of the Company's Audit Committee are Dale
Rasmussen, who is also the Chair of the Audit Committee, Thomas
(Taz) M. Turner, Jr., Jakob Ripshtein and Benjamin Higham. Mr.
Rasmussen, Mr Ripshtein and Mr. Higham are
"independent" directors. Mr. Turner, the
Company's Chief Executive Officer; is not considered to be
independent. All members of the Audit Committee are considered to
be financially literate.
The
Audit Committee's primary function is to assist the Board of
Directors in fulfilling its oversight responsibilities with respect
to accounting and financial reporting processes, the integrity of
the financial statements the Company, compliance with legal and
regulatory requirements, the overall adequacy and maintenance of
the systems of internal controls that management has established
and the overall responsibility for the Company's external and
internal audit processes including the external auditor's
qualifications, independence and performance.
32
The
Audit Committee has the duty to review and ensure that the
Company's financial disclosures are complete and accurate,
are in accordance with generally accepted accounting principles and
fairly present the financial position and risks of the
organization. The Audit Committee should, where it deems
appropriate, review compliance with laws and regulations and the
Company's own policies.
The
Audit Committee provides the Board of Directors with such
recommendations and reports with respect to the financial
disclosures of the Company as it deems advisable. A copy of the
Audit Committee Charter is filed as Exhibit 14(a)(ii) to this
Annual Report and is incorporated herein by reference.
Corporate Governance Committee
The
Company does not currently have a Corporate Governance Committee.
The directors determined that, in light of the Company's size
and resources, setting up such a committee would not be practical
for the Company at this time.
Compensation Committee
The
Company does not currently have a Compensation Committee. The
directors determined that, in light of the Company's size and
resources, setting up such a committee would be too expensive for
the Company at this time.
(D) EMPLOYEES
The
Company presently has no permanent employees. It uses the services
of consultants from time to time.
(E) SHARE OWNERSHIP
The
Corporation had the following plans as at June 30, 2020 and the
date of this Annual Report:
2017 Stock Option Plan
- On November 22, 2017, the
Company's shareholders approved and the Company adopted a new
rolling stock option plan (the "Option Plan"), under
which the Board of Directors may from time to time, in its
discretion, grant to directors, officers, employees and consultants
of the Company. Pursuant to the Option Plan, the Company may issue
options for such period and exercise price as may be determined by
the Board of Directors, and in any case not exceeding ten (10)
years from the date of grant with the total options issued under
the Option Plan not exceeding ten percent (10%) of the common
shares of the Company, outstanding at the time of the granting of
such options. The minimum exercise price of an option granted under
the Option plan must not be less than the market value of the
common shares on the date such option is granted. The Option Plan
is filed as Exhibit 4.(d) to this Annual Report and is incorporated
herein by reference.
The
objective of the Option Plan is to provide for and encourage
ownership of common shares of the Company by its directors,
officers, consultants and employees and those of any subsidiary
companies so that such persons may increase their stake in the
Company and benefit from increases in the value of the common
shares. The Option Plan is designed to be competitive with other
companies in the industry. It is the view of management that the
Option Plan is a significant incentive for the directors, officers,
consultants and employees to continue and to increase their efforts
in promoting the Company's operations to the mutual benefit
of both the Company and such individuals and also allow the Company
to avail of the services of experienced persons with minimum cash
outlay.
33
The
following table sets forth the share ownership of those persons
listed in subsection 6.B above and includes details of all warrants
held by such persons as at June 30, 2020:
Name
Number of
Shares Held
Option-Based Awards
Share-Based Awards
Number of securities underlying unexercised options
(#)
Option exercised price
(CAD $)
Option expiration date
Number of shares or units of shares that have not
vested
(#)
Market or payout value of share based awards that have not
vested
(CAD $)
Thomas
M, Turner, Jr.,
Chairman
and Chief Executive Officer
2,947,523
(1)
200,000
(3)
0.25
Feb 24,
2023
-
-
150,000
(3)
0.40
Jan 15,
2021
150,000
(3)
1.15
Mar 8,
2021
Ashish
Kapoor,
Chief
Financial Officer and Corporate Secretary, Former
Director
5,997,380
(2)
100,000
(3)
0.25
Feb 24,
2023
-
-
150,000
(3)
0.40
Jan 15,
2021
150,000
(3)
1.15
Mar 8,
2021
Nathan
Nienhuis, Former Director and Former Chief Operating
Officer
-
1,000,000
(3)
0.45
May 15,
2023
-
-
100,000
(3)
0.25
Feb 24,
2023
150,000
(3)
0.40
Jan 15,
2021
150,000
(3)
1.15
Mar 8,
2021
Henry
J. Kloepper,
Director
-
50,000
(3)
0.25
Feb 24,
2023
-
-
50,000
(3)
0.40
Jan 15,
2021
Jakob
Ripshtein, Director
-
1,500,000
(3)
0.25
Apr 6,
2023
-
-
Benjamin
Higham, Director
-
1,500,000
(3)
0.25
Apr 6,
2023
-
-
Dale
Rasmussen, Director
-
500,000
(3)
0.45
May 15,
2023
-
-
Eric
Lowy, Former Director
-
50,000
(3)
0.40
Jan 15,
2021
-
-
Note:
(1)
Includes 2,947,523
Common Shares owned by T3 Research, LLC. Mr. Turner also may be
seen to have control or direction over an additional 2,947,523
Common Shares held by Southshore Capital Partners, LP, a private
investment fund.
(2)
Includes 5,895,046
Common Shares owned by 2364201 Ontario Corp. and 35,000 Common
Shares held by Mr. Kapoor's spouse.
(3)
Option-based awards
issued under the Option Plan; all of which are fully vested and
exercisable.
There
were 65,948,832 Common Shares issued and outstanding as at June 30,
2020 and 74,973,353 Common Shares issued and outstanding as at the
date of this Annual Report. There were 7,050,000 options and
10,249,500 warrants issued and outstanding as at June 30, 2020 and
7,050,000 options and 15,143,000 warrants issued and outstanding as
at the date of this Annual Report.
34
ITEM 7 - MAJOR SHAREHOLDERS AND RELATED PARTY
TRANSACTIONS
(A) MAJOR SHAREHOLDERS
The
Company's securities are recorded on the books of its transfer
agent in registered form. The majority of such shares are, however,
registered in the name of intermediaries such as brokerage houses
and clearing-houses on behalf of their respective clients. The
Company does not have knowledge of the beneficial owners
thereof.
As at
the date of this Annual Report, intermediaries like CDS & Co,
of Toronto, Canada and Cede & Co of New York, USA held
approximately 55% of the issued and outstanding common shares of
the Company on behalf of several beneficial shareholders whose
individual holdings details were not available.
The
following table shows the record and, where known to us, the
beneficial ownership of our shares by each shareholder holding at
least 5% of our common shares as at June 30, 2020. As used herein,
the term beneficial ownership with respect to a security is defined
by Rule 13d-3 under the Securities Exchange Act of
1934.
Name
of Shareholder
No.
of Shares Held
% of
Issued Shares
2364201 Ontario
Corp.
5,895,046
8.94
%
Southshore Capital
Partners, LP
2,947,523
4.47
%
T3 Research,
LLC
2,947,523
4.47
%
All of
the Company's shareholders have the same voting
rights.
As at
the date of this Annual Report, the Company had 74,973,353 common
shares outstanding, which, as per the details provided by TSX Trust
Company, the Company's registrar and transfer agent, were
held by approximately 615 record holders (excluding the beneficial
shareholders held through the intermediaries) of which 100
shareholders are based in the United States (including the
beneficial shareholders held through the intermediaries) and hold
an aggregate of 23,428,358 shares or less than 32% of the Common
Shares.
The
Registrant is a publicly owned Canadian corporation, the shares of
which are owned by Canadian residents, U.S. residents, and
residents of other countries. The Registrant is not owned or
controlled directly or indirectly by another corporation (other
than as indicated in the chart above) or any foreign government.
There are no arrangements, known to the Company, the operation of
which may at a subsequent date result in a change of control of the
Company.
35
(B) RELATED PARTY TRANSACTIONS
Related
party transactions for the year ended June 30, 2020, 2019 and 2018
and the balances as at those dates, not disclosed elsewhere in the
Company's consolidated financial statements are:
1.
During
the year ended June 30, 2020, the Company purchased equipment
valued at $nil (June 30, 2019 - $nil; June 30, 2018 –
$44,439) from a corporation related by virtue of a common officer
and a director;
2.
During
the year ended June 30, 2020, the Company expensed $662,284 (June
30, 2019 - $1,116,103; June 30, 2018 – $508,399), in fees
payable to officers and directors of the Company and in fees
payable to a corporation related by virtue of a common officer and
director. As at June 30, 2020, the Company had fees payable to
officers and directors of the Company of $1,278,106 (June 30, 2019
- $546,653); and
3.
During
the year ended June 30, 2020, the Company expensed $559,846 (June
30, 2019 - $nil; June 30, 2018 – $2,286,120) in share based
compensation related to officers and directors of the
Company.
Indebtedness to Company of Directors, Executive Officers and Senior
Officers
None of
the directors, consultants, executive officers and senior officers
of the Company or any of its subsidiaries, proposed nominees for
election or associates of such persons is or has been indebted to
the Company at any time for any reason whatsoever, including the
purchase of securities of the Company or any of its
subsidiaries.
(C) INTERESTS OF EXPERTS AND COUNSEL
Not
applicable.
ITEM 8 - FINANCIAL INFORMATION
(A) CONSOLIDATED STATEMENTS AND OTHER FINANCIAL
INFORMATION
Information
regarding our financial statements is contained under the caption
"Item 18. Financial Statements" below.
Legal Proceedings
The
Company is not currently involved in any litigation nor is it aware
of any litigation pending or threatened.
Dividend Policy
Since
its incorporation, the Company has not declared or paid, and has no
present intention to declare or to pay in the foreseeable future,
any cash dividends with respect to its common shares. Earnings will
be retained to finance further growth and development of the
business of the Company. However, if the Board of Directors
declares dividends, all common shares will participate equally in
the dividends, and, in the event of liquidation, in the net assets,
of the Company.
36
(B) SIGNIFICANT CHANGES
On
September 22, 2017, Graham Simmonds resigned as Chief Executive
Officer and was replaced by Thomas M. Turner, Jr., effective
immediately.
On
November 22, 2017, the Company's shareholders elected Graham
Simmonds, Henry J. Kloepper, Thomas (Taz) M. Turner, Jr., Ashish
Kapoor, Nathan Nienhuis and Eric Lowy to serve as Directors of the
Company until the next annual shareholders meeting of the
Company.
On May
17, 2018, Graham Simmonds resigned as a Director of the Company and
Thomas (Taz) M. Turner, Jr. replaced Mr. Simmonds as Chairman of
the Company. Furthermore, the Board of Directors also appointed
Nathan Nienhuis to serve as the Company's Chief Operating
Officer.
On
October 28, 2019, Eric Lowy resigned as a Director of the
Company.
On
April 8, 2020, Ashish Kapoor resigned as a Director of the Company.
Furthermore, Benjamin Higham and Jakob Ripshtein were appointed as
Directors of the Company.
On May
16, 2020, Nathan Nienhuis resigned as a Director and chief
operating officer of the Company. Dale Rasmussen was appointed as a
Director of the Company.
On
August 17, 2020, Henry Kloepper resigned as a Director of the
Company
ITEM 9 - THE OFFER AND LISTING
(A) OFFER AND LISTING DETAILS
The
Company's Common Shares are listed for trading on the CSE
under the symbol "CDVA" and are quoted on the OTCQB
marketplace in the United States under the symbol
"LVRLF".
The
following table sets forth the reported high and low prices and the
trading volume of the Common Shares on the CSE for each month for
the twelve (12) months prior to the date of this Annual
Report.
Date
High
($)
Low
($)
Volume
November,
2020
0.39
0.17
1,706,834
October,
2020
0.25
0.16
790,415
September,
2020
0.27
0.17
1,225,004
August,
2020
0.42
0.21
989,570
July,
2020
0.40
0.30
198,880
June,
2020
0.35
0.25
399,562
May,
2020
0.50
0.31
115,086
April,
2020
0.47
0.19
349,751
March,
2020
0.27
0.13
229,062
February,
2020
0.26
0.12
704,985
January,
2020
0.21
0.12
241,318
December,
2019
0.22
0.15
222,100
37
The
following table sets forth the reported high and low prices and the
trading volume of the Common Shares on the OTCQB marketplace for
each month for the twelve (12) months prior to the date of this
Annual Report.
Date
High
(USD $)
Low
(USD $)
Volume
November,
2020
0.30
0.13
2,107,500
October,
2020
0.19
0.13
978,100
September,
2020
0.22
0.14
1,815,900
August,
2020
0.33
0.17
1,533,700
July,
2020
0.35
0.21
547,900
June,
2020
0.31
0.20
563,600
May,
2020
0.36
0.23
335,100
April,
2020
0.38
0.12
1,184,300
March,
2020
0.22
0.06
943,100
February,
2020
0.21
0.08
1,156,300
January,
2020
0.22
0.10
1,169,500
December,
2019
0.23
0.12
447,900
(B)
PLAN OF DISTRIBUTION
Not
applicable.
(C) MARKETS
The
Company's Common Shares are listed for trading on the CSE
under the symbol "CDVA" and the OTCQB marketplace in
the United States under the symbol
"LVRLF".
(D) SELLING SHAREHOLDERS
Not
applicable.
(E) DILUTION
Not
applicable.
(F) EXPENSES OF THE ISSUE
Not
applicable.
38
ITEM 10 - ADDITIONAL INFORMATION
(A) SHARE CAPITAL
This
Form 20-F is being filed as an Annual Report under the Exchange Act
and, as such, there is no requirement to provide any information
under this section.
(B) MEMORANDUM AND ARTICLES OF ASSOCIATION
Following
approval by the shareholders in a special meeting held on October
4, 2006 as explained in item 8(B) above, the Company applied for
authorization to continue from being governed by the OBCA and was
granted approval on October 26, 2006 to continue under the
jurisdiction of the CBCA. An application for authorization to
continue is included in Exhibits 1.1 and 1.2 hereof, which exhibits
have been incorporated by reference into this report.
New
by-laws were adopted in the special meeting of shareholders on
October 4, 2006 in compliance with the requirements of the CBCA.
The new by-laws were included in Exhibit 1.3 thereof, which exhibit
has been incorporated by reference into this report.
On
January 3, 2018, the Company changed its name to its current name,
"CordovaCann Corp." The Company's certificate of
amendment is filed as Exhibit 1.16 to this Annual Report and is
incorporated herein by reference.
(C) MATERIAL CONTRACTS
Except
as set forth herein, under "Item 5(A) – Operating and
Financial Review Prospects – Operating Results –
Overview" or "Item 7(B) – Major Shareholders and
Related Party Transactions – Related Party
Transactions", all material contracts entered into in last
two fiscal years were in the ordinary course of its
business.
(D) EXCHANGE CONTROLS
Limitations
on the ability to acquire and hold shares of the Company may be
imposed by the
Competition
Act
(Canada) (the "Competition Act").  This
legislation permits the Commissioner of Competition to review any
acquisition of a significant interest in us.  This legislation
grants the Commissioner jurisdiction, for up to three years, to
challenge this type of acquisition before the Competition Tribunal
if the Commissioner believes that it would, or would be likely to,
result in a substantial lessening or prevention of competition in
any market in Canada.
The
Competition Act requires that any person proposing to acquire any
of the assets in Canada of an operating business file a
notification with the Competition Bureau where (a)
"size of the parties" threshold -
the
parties to the transaction, together with their respective
affiliates, have (i) assets in Canada the value of which exceeds
$400 million in the aggregate, or (ii) annual gross revenues from
sales in, from or into Canada that exceed $400 million in the
aggregate;
and
(b)
"size of the transaction"
threshold
- the aggregate value of those assets, or the
gross revenues from sales in or from Canada generated from those
assets, would exceed
an annually
established threshold (2014 - $82 million), based on the book value
of the subject assets or Company in Canada, or gross revenues from
sales in or from Canada generated from those assets or by the
Company).
For the purposes of the Competition Act, asset
values and gross revenues are to be determined as of the last day
of the period covered by the most recent audited financial
statements in which the assets or gross revenues are accounted
for.
In the case of share acquisitions, an additional "shareholding
threshold" must be exceeded.
This legislation requires any
person who intends to acquire shares to file a notification with
the Competition Bureau if certain financial thresholds are
exceeded, and that person would hold more than 20% of our voting
shares as a result of the acquisition.  If a person already
owns 20% or more of our voting shares, a notification must be filed
when the acquisition would bring that person's holdings over
50%.  Where a notification is required, the legislation
prohibits completion of the acquisition until the expiration of a
statutory waiting period, unless the Commissioner provides written
notice that he does not intend to challenge the
acquisition.
39
There
are no governmental laws, decrees or regulations in Canada that
restrict the export or import of capital or that affect the
remittance of dividends, interest or other payments to non-resident
holders of our securities.  However, any such remittance to a
resident of the United States may be subject to a withholding tax
pursuant to the
Income Tax
Act
(Canada).  For further information concerning such
withholding tax, see "Taxation" below.
Except
as may be provided under the
Investment Canada Act
(the "ICA"),
there are no specific limitations under the laws of Canada or in
the Articles of the Company with respect to the rights of
non-residents of Canada to hold and/or vote securities of the
Company.
The ICA
requires each individual, government or agency thereof,
corporation, partnership, trust or joint venture that is not a
"Canadian" as defined in the ICA (a
"non-Canadian") making an investment to acquire control
of a Canadian business, the gross assets of which exceed certain
defined threshold levels, to file an application for review with
the Investment Review Division of Industry Canada.  The
threshold level for non-Canadians who are private sector World
Trade Organization investors (as defined in the ICA) is in excess
of $600 million in enterprise value and from non-Canadians who are
state-owned World Trade Organization investors is in excess of $369
million in asset value, subject to an annual adjustment on the
basis of a prescribed formula in the ICA to reflect inflation and
real growth within Canada.
In the
context of the Company, in essence, three methods of acquiring
control of a Canadian business are regulated by the ICA: (i) the
acquisition of all or substantially all of the assets used in
carrying on business in Canada; (ii) the acquisition, directly or
indirectly, of voting shares of a Canadian corporation carrying on
business in Canada; (iii) the acquisition of voting shares of an
entity which controls, directly or indirectly, another entity
carrying on business in Canada.  An acquisition of a majority
of the voting interests of an entity, including a corporation, is
deemed to be an acquisition of control under the ICA.
 However, under the ICA, there is a rebuttable presumption
that control is acquired if one-third of the voting shares of a
Canadian corporation or an equivalent undivided interest in the
voting shares of such corporation are held by a non-Canadian person
or entity.  An acquisition of less than one-third of the
voting shares of a Canadian corporation is deemed not to be an
acquisition of control.  An acquisition of less than a
majority, but one-third or more, of the voting shares of a Canadian
corporation is presumed to be an acquisition of control unless it
can be established that on the acquisition the Canadian corporation
is not, in fact, controlled by the acquirer through the ownership
of voting shares.  Certain transactions relating to the
acquisition of common shares would be exempt from review from the
ICA, including:
(a)
acquisition
of common shares by a person in the ordinary course of a
person's business as a trader or dealer in
securities;
(b)
acquisition
of control of a Canadian corporation in connection with the
realization of security granted for a loan or other financial
assistance and not for any purpose related to the provisions of the
ICA; and
(c)
acquisition
of control of a Canadian corporation by reason of an amalgamation,
merger, consolidation or corporate reorganization following which
the ultimate direct or indirect control in fact of the corporation,
through the ownership of voting interests, remains
unchanged.
In
addition, if less than a majority of voting interests of a Canadian
corporation are owned by Canadians, the acquisition of control of
any other Canadian corporation by such corporation may be subject
to review unless it can be established that the corporation is not
in fact controlled through the ownership of voting interests and
that two-thirds of the members of the board of directors of the
corporation are Canadians.
Where
an investment is reviewable under the ICA, it may not be
implemented unless it is likely to be of net benefit to Canada.
 If an applicant is unable to satisfy the Minister responsible
for Industry Canada that the investment is likely to be of net
benefit to Canada, the applicant may not proceed with the
investment.  Alternatively, an acquiror may be required to
divest control of the Canadian business that is the subject of the
investment.
In
addition to the foregoing, the ICA requires formal notification to
the Canadian government of all other acquisitions of control of
Canadian businesses by non-Canadians.  These provisions
require a foreign investor to give notice in the required form,
which notices are for information, as opposed to review
purposes.
40
(E) TAXATION
Canadian Federal Income Tax Consequences
We
consider that the following general summary fairly describes the
principal Canadian federal income tax considerations applicable to
holders of our common shares who, for purposes of the
Income Tax Act
(Canada) (the
"ITA"), deal at arm's length with the Company,
hold such shares as capital property, do not carry on business in
Canada, have not been at any time residents of Canada for purposes
of the ITA and are residents of the United States ("U.S.
Residents") under the Canada-United States Income Tax
Convention (1980) (the "Convention").
This
summary is based upon the current provisions of the ITA, the Income
Tax Regulations (the "Regulations"), the current
publicly announced administrative and assessing policies of the
Canada Revenue Agency (formerly Canada Customs and Revenue Agency),
and all specific proposals (the "Tax Proposals") to
amend the ITA and Regulations publicly announced prior to the date
hereof by the Minister of Finance (Canada).  This description
is not exhaustive of all possible Canadian federal income tax
consequences and, except for the Tax Proposals, does not take into
account or anticipate any changes in law, whether by legislative,
governmental or judicial action, nor does it take into account
provincial or foreign tax considerations which may differ
significantly from those discussed herein.
The
following discussion is for general information only and it is not
intended to be, nor should it be construed to be, legal or tax
advice to any holder or prospective holder of our common shares and
no opinion or representation with respect to any Canadian federal,
provincial or foreign tax consequences to any such holder or
prospective holder is made.  Accordingly, holders and
prospective holders of our common shares should consult with their
own tax advisors about the Canadian federal, provincial and foreign
tax consequences of purchasing, owning and disposing of our common
shares.
Dividends
Dividends,
including stock dividends, paid or credited or deemed to be paid or
credited on our common shares to a U.S. Resident will be subject to
withholding tax at a rate of 25%. The Convention provides that
the normal 25% withholding tax rate will generally be reduced to
15% on dividends paid on shares of a corporation resident in Canada
for federal income tax purposes (such as the Company) to U.S.
Residents, and also provides for a further reduction of this rate
to 5% where the beneficial owner of the dividends is a corporation
which is a resident of the United States and owns at least 10% of
the voting shares of the corporation paying the dividend.
 These Convention reductions are not available to beneficial
owners who are a U.S. LLC corporation.
Capital Gains
The
Convention provides that a U.S. Resident will not be subject to tax
under the ITA in respect of any capital gain on the disposition of
our common shares unless such shares constitute taxable Canadian
property of the U.S. Resident and the U.S. Resident is not entitled
to the benefits of the Convention with regards to capital gains.
 Our common shares will constitute taxable Canadian property
if at any time during the five year period immediately preceding
the disposition of our common shares, the U.S. Resident, or persons
with whom the U.S. Resident did not deal at arm's length, or
the U.S. Resident together with persons with whom the U.S. resident
did not deal at arm's length owned 25% or more of the issued
shares of any class of our capital stock.
Where a
U.S. Resident realizes a capital gain on a disposition of shares
that constitute "taxable Canadian property", the
Convention relieves the U.S. Resident from liability for Canadian
tax on such capital gains unless:
(a)
the
value of the shares is derived principally from "real
property" in Canada, including the right to explore for or
exploit natural resources and rights to amounts computed by
reference to production,
(b)
the
shareholder was resident in Canada for 120 months during any period
of 20 consecutive years preceding the disposition, was resident in
Canada at any time during the 10 years immediately preceding the
disposition and the shares were owned by him when he ceased to be
resident in Canada, or
(c)
the
shares formed part of the business property of a "permanent
establishment" or pertained to a fixed base used for the
purpose of performing independent personal services that the
shareholder has or had in Canada within the 12 months preceding the
disposition.
These
Convention benefits are generally not available to beneficial
owners who are a U.S. LLC corporation.
41
U.S. Federal Income Tax Consequences
The
following is a summary of the anticipated material U.S. federal
income tax consequences to a U.S. Holder (as defined below) arising
from and relating to the acquisition, ownership, and disposition of
our common shares ("Common Shares").
This
summary is for general information purposes only and does not
purport to be a complete analysis or listing of all potential U.S.
federal income tax consequences that may apply to a U.S. Holder as
a result of the acquisition, ownership, and disposition of Common
Shares.  In addition, this summary does not take into account
the individual facts and circumstances of any particular U.S.
Holder that may affect the U.S. federal income tax consequences of
the acquisition, ownership, and disposition of Common Shares.
 Accordingly, this summary is not intended to be, and should
not be construed as, legal or U.S. federal income tax advice with
respect to any U.S. Holder.  Each U.S. Holder should consult
its own financial advisor, legal counsel, or accountant regarding
the U.S. federal, U.S. state and local, and foreign tax
consequences of the acquisition, ownership, and disposition of
Common Shares.
Scope of this Disclosure
Authorities
This
summary is based on the
Internal
Revenue Code of 1986
, as amended (the "Code"),
Treasury Regulations (whether final, temporary, or proposed),
published rulings of the Internal Revenue Service
("IRS"), published administrative positions of the IRS,
the Convention Between Canada and the United States of America with
Respect to Taxes on Income and on Capital, signed September 26,
1980, as amended (the "Canada-U.S. Tax Convention"),
and U.S. court decisions that are applicable and, in each case, as
in effect and available, as of the date of this Annual Report.
 Any of the authorities on which this summary is based could
be changed in a material and adverse manner at any time, and any
such change could be applied on a retroactive basis.  This
summary does not discuss the potential effects, whether adverse or
beneficial, of any proposed legislation that, if enacted, could be
applied on a retroactive basis.
U.S. Holders
For
purposes of this summary, a "U.S. Holder" is a
beneficial owner of Common Shares that, for U.S. federal income tax
purposes, is (a) an individual who is a citizen or resident of
the U.S., (b) a corporation, or any other entity classified as
a corporation for U.S. federal income tax purposes, that is created
or organized in or under the laws of the U.S. or any state in the
U.S., including the District of Columbia, (c) an estate if the
income of such estate is subject to U.S. federal income tax
regardless of the source of such income, or (d) a trust if
(i) such trust has validly elected to be treated as a U.S.
person for U.S. federal income tax purposes or (ii) a U.S.
court is able to exercise primary supervision over the
administration of such trust and one or more U.S. persons have the
authority to control all substantial decisions of such
trust.
Non-U.S. Holders
For
purposes of this summary, a "non-U.S. Holder" is a
beneficial owner of Common Shares other than a U.S. Holder.
 This summary does not address the U.S. federal income tax
consequences of the acquisition, ownership, and disposition of
Common Shares to non-U.S. Holders.  Accordingly, a non-U.S.
Holder should consult its own financial advisor, legal counsel, or
accountant regarding the U.S. federal, U.S. state and local, and
foreign tax consequences (including the potential application of
and operation of any tax treaties) of the acquisition, ownership,
and disposition of Common Shares.
U.S. Holders Subject to Special U.S. Federal Income Tax Rules Not
Addressed
This
summary does not address the U.S. federal income tax consequences
of the acquisition, ownership, and disposition of Common Shares to
U.S. Holders that are subject to special provisions under the Code,
including the following U.S. Holders:  (a) U.S. Holders
that are tax-exempt organizations, qualified retirement plans,
individual retirement accounts, or other tax-deferred accounts;
(b) U.S. Holders that are financial institutions, insurance
companies, real estate investment trusts, or regulated investment
companies; (c) U.S. Holders that are dealers in securities or
currencies or U.S. Holders that are traders in securities that
elect to apply a mark-to-market accounting method; (d) U.S.
Holders that have a "functional currency" other than
the U.S. dollar; (e) U.S. Holders that are liable for the
alternative minimum tax under the Code; (f) U.S. Holders that
own Common Shares as part of a straddle, hedging transaction,
conversion transaction, constructive sale, or other arrangement
involving more than one position; (g) U.S. Holders that
acquired Common Shares in connection with the exercise of employee
stock options or otherwise as compensation for services;
(h) U.S. Holders that hold Common Shares other than as a
capital asset within the meaning of Section 1221 of the Code;
or (i) U.S. Holders that own, directly or indirectly, 10% or
more, by voting power or value, of our outstanding shares.
 U.S. Holders that are subject to special provisions under the
Code, including U.S. Holders described immediately above, should
consult their own financial advisor, legal counsel or accountant
regarding the U.S. federal, U.S. state and local, and foreign tax
consequences of the acquisition, ownership, and disposition of
Common Shares.
42
If an
entity that is classified as partnership (or
"pass-through" entity) for U.S. federal income tax
purposes holds Common Shares, the U.S. federal income tax
consequences to such partnership (or "pass-through"
entity) and the partners of such partnership (or owners of such
"pass-through" entity) generally will depend on the
activities of the partnership (or "pass-through"
entity) and the status of such partners (or owners).  Partners
of entities that are classified as partnerships (or owners of
"pass-through" entities) for U.S. federal income tax
purposes should consult their own financial advisor, legal counsel
or accountant regarding the U.S. federal income tax consequences of
the acquisition, ownership, and disposition of Common
Shares.
Tax Consequences Other than U.S. Federal Income Tax Consequences
Not Addressed
This
summary does not address the U.S. state and local, U.S. federal
estate and gift, or foreign tax consequences to U.S. Holders of the
acquisition, ownership, and disposition of Common Shares.
 Each U.S. Holder should consult its own financial advisor,
legal counsel, or accountant regarding the U.S. state and local,
U.S. federal estate and gift, and foreign tax consequences of the
acquisition, ownership, and disposition of Common Shares.
 (See "Taxation—Canadian Federal Income Tax
Consequences" above).
U.S. Federal Income Tax Consequences of the Acquisition, Ownership,
and Disposition of Common Shares
Distributions on Common Shares
General Taxation of Distributions
A U.S.
Holder that receives a distribution, including a constructive
distribution, with respect to the Common Shares will be required to
include the amount of such distribution in gross income as a
dividend (without reduction for any Canadian income tax withheld
from such distribution) to the extent of our current or accumulated
"earnings and profits".  To the extent that a
distribution exceeds our current and accumulated "earnings
and profits", such distribution will be treated
(a) first, as a tax-free return of capital to the extent of a
U.S. Holder's tax basis in the Common Shares and,
(b) thereafter, as gain from the sale or exchange of such
Common Shares.  (See more detailed discussion at
"Disposition of Common Shares" below).
Reduced Tax Rates for Certain Dividends
For
taxable years beginning after December 31, 2002 and before January
1, 2011, a dividend paid by us generally will be taxed at the
preferential tax rates applicable to long-term capital gains if
(a) we are a "qualified foreign corporation" (as
defined below), (b) the U.S. Holder receiving such dividend is
an individual, estate, or trust, and (c) such dividend is paid
on Common Shares that have been held by such U.S. Holder for at
least 61 days during the 121-day period beginning 60 days before
the "ex-dividend date" (i.e., the first date that a
purchaser of such Common Shares will not be entitled to receive
such dividend).
We
generally will be a "qualified foreign corporation"
under Section 1(h)(11) of the Code (a "QFC") if
(a) we are incorporated in a possession of the U.S.,
(b) we are eligible for the benefits of the Canada-U.S. Tax
Convention, or (c) the Common Shares are readily tradable on
an established securities market in the U.S.  However, even if
we satisfy one or more of such requirements, we will not be treated
as a QFC if we are a "passive foreign investment
company" (as defined below) for the taxable year during which
we pay a dividend or for the preceding taxable year.  In 2003,
the U.S. Department of the Treasury (the "Treasury")
and the IRS announced that they intended to issue Treasury
Regulations providing procedures for a foreign corporation to
certify that it is a QFC.  Although these Treasury Regulations
were not issued in 2004, the Treasury and the IRS have confirmed
their intention to issue these Treasury Regulations.  It is
expected that these Treasury Regulations will obligate persons
required to file information returns to report a distribution with
respect to a foreign security issued by a foreign corporation as a
dividend from a QFC if the foreign corporation has, among other
things, certified under penalties of perjury that the foreign
corporation was not a "passive foreign investment
company" for the taxable year during which the foreign
corporation paid the dividend or for the preceding taxable year.
We do
not believe that we were a "passive foreign investment
company" for the taxable year ended June 30, 2008.
  (See more detailed discussion at "Additional
Rules that May Apply to U.S. Holders" below).  There can
be no assurance that the IRS will not challenge the determination
made by us concerning our "passive foreign investment
company" status or that we will not be a "passive
foreign investment company" for the current or any future
taxable year.  Accordingly, there can be no assurances that we
will be a QFC for the current or any future taxable year, or that
we will be able to certify that it is a QFC in accordance with the
certification procedures issued by the Treasury and the
IRS.
If we
are not a QFC, a dividend paid by us to a U.S. Holder, including a
U.S. Holder that is an individual, estate, or trust, generally will
be taxed at ordinary income tax rates (and not at the preferential
tax rates applicable to long-term capital gains).  The
dividend rules are complex, and each U.S. Holder should consult its
own financial advisor, legal counsel, or accountant regarding the
dividend rules.
43
Distributions Paid in Foreign Currency
The
amount of a distribution paid to a U.S. Holder in foreign currency
generally will be equal to the U.S. dollar value of such
distribution based on the exchange rate applicable on the date of
receipt.  A U.S. Holder that does not convert foreign currency
received as a distribution into U.S. dollars on the date of receipt
generally will have a tax basis in such foreign currency equal to
the U.S. dollar value of such foreign currency on the date of
receipt.  Such a U.S. Holder generally will recognize ordinary
income or loss on the subsequent sale or other taxable disposition
of such foreign currency (including an exchange for U.S.
dollars).
Dividends Received Deduction
Dividends
paid on the Common Shares generally will not be eligible for the
"dividends received deduction."  The availability
of the dividends received deduction is subject to complex
limitations that are beyond the scope of this discussion, and a
U.S. Holder that is a corporation should consult its own financial
advisor, legal counsel, or accountant regarding the dividends
received deduction.
Disposition of Common Shares
A U.S.
Holder will recognize gain or loss on the sale or other taxable
disposition of Common Shares in an amount equal to the difference,
if any, between (a) the amount of cash plus the fair market
value of any property received and (b) such U.S.
Holder's tax basis in the Common Shares sold or otherwise
disposed of.  Any such gain or loss generally will be capital
gain or loss, which will be long-term capital gain or loss if the
Common Shares are held for more than one year.  Gain or loss
recognized by a U.S. Holder on the sale or other taxable
disposition of Common Shares generally will be treated as
"U.S. source" for purposes of applying the U.S. foreign
tax credit rules.   (See more detailed discussion at
"Foreign Tax Credit" below).
Preferential
tax rates apply to long-term capital gains of a U.S. Holder that is
an individual, estate, or trust.  There are currently no
preferential tax rates for long-term capital gains of a U.S. Holder
that is a corporation.  Deductions for capital losses and net
capital losses are subject to complex limitations.  For a U.S.
Holder that is an individual, estate, or trust, capital losses may
be used to offset capital gains and up to US$3,000 of ordinary
income.  An unused capital loss of a U.S. Holder that is an
individual, estate, or trust generally may be carried forward to
subsequent taxable years, until such net capital loss is exhausted.
For a
U.S. Holder that is a corporation, capital losses may be used to
offset capital gains, and an unused capital loss generally may be
carried back three years and carried forward five years from the
year in which such net capital loss is recognized.
Foreign Tax Credit
A U.S.
Holder who pays (whether directly or through withholding) Canadian
income tax with respect to dividends paid on the Common Shares
generally will be entitled, at the election of such U.S. Holder, to
receive either a deduction or a credit for such Canadian income tax
paid.  Generally, a credit will reduce a U.S. Holder's
U.S. federal income tax liability on a dollar-for-dollar basis,
whereas a deduction will reduce a U.S. Holder's income
subject to U.S. federal income tax.  This election is made on
a year-by-year basis and applies to all foreign taxes paid (whether
directly or through withholding) by a U.S. Holder during a year.
Complex
limitations apply to the foreign tax credit, including the general
limitation that the credit cannot exceed the proportionate share of
a U.S. Holder's U.S. federal income tax liability that such
U.S. Holder's "foreign source" taxable income
bears to such U.S. Holder's worldwide taxable income.
 In applying this limitation, a U.S. Holder's various
items of income and deduction must be classified, under complex
rules, as either "foreign source" or "U.S.
source."  In addition, this limitation is calculated
separately with respect to specific categories of income (including
"passive income," "high withholding tax
interest," "financial services income,"
"general income," and certain other categories of
income).  Dividends paid by us generally will constitute
"foreign source" income and generally will be
categorized as "passive income" or, in the case of
certain U.S. Holders, "financial services income."
 However, for taxable years beginning after December 31, 2006,
the foreign tax credit limitation categories are reduced to
"passive income" and "general income" (and
the other categories of income, including "financial services
income," are eliminated).  The foreign tax credit rules
are complex, and each U.S. Holder should consult its own financial
advisor, legal counsel, or accountant regarding the foreign tax
credit rules.
44
Information Reporting; Backup Withholding Tax
Payments
made within the U.S., or by a U.S. payor or U.S. middleman, of
dividends on, and proceeds arising from certain sales or other
taxable dispositions of, Common Shares generally will be subject to
information reporting and backup withholding tax, at the rate of
28%, if a U.S. Holder (a) fails to furnish such U.S.
Holder's correct U.S. taxpayer identification number
(generally on Form W-9), (b) furnishes an incorrect U.S.
taxpayer identification number, (c) is notified by the IRS
that such U.S. Holder has previously failed to properly report
items subject to backup withholding tax, or (d) fails to
certify, under penalty of perjury, that such U.S. Holder has
furnished its correct U.S. taxpayer identification number and that
the IRS has not notified such U.S. Holder that it is subject to
backup withholding tax.  However, U.S. Holders that are
corporations generally are excluded from these information
reporting and backup withholding tax rules.  Any amounts
withheld under the U.S. backup withholding tax rules will be
allowed as a credit against a U.S. Holder's U.S. federal
income tax liability, if any, or will be refunded, if such U.S.
Holder furnishes required information to the IRS.  Each U.S.
Holder should consult its own financial advisor, legal counsel, or
accountant regarding the information reporting and backup
withholding tax rules.
Additional Rules that May Apply to U.S. Holders
If we
are a "controlled foreign corporation," or a
"passive foreign investment company" (each as defined
below), the preceding sections of this summary may not describe the
U.S. federal income tax consequences to U.S. Holders of the
acquisition, ownership, and disposition of Common
Shares.
Controlled Foreign Corporation
We
generally will be a "controlled foreign corporation"
under Section 957 of the Code (a "CFC") if more
than 50% of the total voting power or the total value of our
outstanding shares are owned, directly or indirectly, by citizens
or residents of the U.S., domestic partnerships, domestic
corporations, domestic estates, or domestic trusts (each as defined
in Section 7701(a)(30) of the Code), each of which own,
directly or indirectly, 10% or more of the total voting power of
our outstanding shares (a
"10% Shareholder").
If we
are a CFC, a 10% Shareholder generally will be subject to
current U.S. federal income tax with respect to (a) such 10%
Shareholder's pro rata share of the "subpart F
income" (as defined in Section 952 of the Code) of the
Company and (b) such 10% Shareholder's pro rata
share of our earnings invested in "United States
property" (as defined in Section 956 of the Code).
 In addition, under Section 1248 of the Code, any gain
recognized on the sale or other taxable disposition of Common
Shares by a U.S. Holder that was a 10% Shareholder at any time
during the five-year period ending with such sale or other taxable
disposition generally will be treated as a dividend to the extent
of the "earnings and profits" of the Company that are
attributable to such Common Shares.  If we are both a CFC and
a "passive foreign investment company" (as defined
below), we generally will be treated as a CFC (and not as a
"passive foreign investment company") with respect to
any 10% Shareholder.
We do
not believe that the Company has previously been, or currently is a
CFC.  However, there can be no assurance that we will not be a
CFC for the current or any future taxable year.
Passive Foreign Investment Company
We
generally will be a "passive foreign investment
company" under Section 1297 of the Code (a
"PFIC") if, for a taxable year, (a) 75% or more of
our gross income for such taxable year is passive income or
(b) 50% or more of the assets held by us either produce
passive income or are held for the production of passive income,
based on the fair market value of such assets (or on the adjusted
tax basis of such assets, if we are not publicly traded and either
is a "controlled foreign corporation" or makes an
election).  "Passive income" includes, for
example, dividends, interest, certain rents and royalties, certain
gains from the sale of stock and securities, and certain gains from
commodities transactions.
For
purposes of the PFIC income test and asset test described above, if
we own, directly or indirectly, 25% or more of the total value of
the outstanding shares of another foreign corporation, we will be
treated as if it (a) held a proportionate share of the assets
of such other foreign corporation and (b) received directly a
proportionate share of the income of such other foreign
corporation.  In addition, for purposes of the PFIC income
test and asset test described above, "passive income"
does not include any interest, dividends, rents, or royalties that
are received or accrued by us from a "related person"
(as defined in Section 954(d)(3) of the Code), to the extent
such items are properly allocable to the income of such related
person that is not passive income.
We do
not believe that the Company has previously been, or currently are
a PFIC. However, there can be no assurance that the IRS will not
challenge our determination concerning our PFIC status or that we
will not be a PFIC for the current or any future taxable
year.
45
Default PFIC Rules Under Section 1291 of the Code
If we
are a PFIC, the U.S. federal income tax consequences to a U.S.
Holder of the acquisition, ownership, and disposition of Common
Shares will depend on whether such U.S. Holder makes an election to
treat the Company as a "qualified electing fund" or
"QEF" under Section 1295 of the Code (a "QEF
Election") or a mark-to-market election under
Section 1296 of the Code (a "Mark-to-Market
Election").  A U.S. Holder that does not make either a
QEF Election or a Mark-to-Market Election will be referred to in
this summary as a "Non-Electing U.S.
Holder."
A
Non-Electing U.S. Holder will be subject to the rules of
Section 1291 of the Code with respect to (a) any gain
recognized on the sale or other taxable disposition of Common
Shares and (b) any excess distribution paid on the Common
Shares.  A distribution generally will be an "excess
distribution" to the extent that such distribution (together
with all other distributions received in the current taxable year)
exceeds 125% of the average distributions received during the three
preceding taxable years (or during a U.S. Holder's holding
period for the Common Shares, if shorter).
Under
Section 1291 of the Code, any gain recognized on the sale or
other taxable disposition of Common Shares, and any excess
distribution paid on the Common Shares, must be ratably allocated
to each day in a Non-Electing U.S. Holder's holding period
for the Common Shares.  The amount of any such gain or excess
distribution allocated to prior years of such Non-Electing U.S.
Holder's holding period for the Class Common Shares
(other than years prior to the first taxable year of the Company
during such Non-Electing U.S. Holder's holding period and
beginning after December 31, 1986 for which we was not a PFIC) will
be subject to U.S. federal income tax at the highest tax applicable
to ordinary income in each such prior year.  A Non-Electing
U.S. Holder will be required to pay interest on the resulting tax
liability for each such prior year, calculated as if such tax
liability had been due in each such prior year.  Such a
Non-Electing U.S. Holder that is not a corporation must treat any
such interest paid as "personal interest," which is not
deductible.  The amount of any such gain or excess
distribution allocated to the current year of such Non-Electing
U.S. Holder's holding period for the Common Shares will be
treated as ordinary income in the current year, and no interest
charge will be incurred with respect to the resulting tax liability
for the current year.
If we
are a PFIC for any taxable year during which a Non-Electing U.S.
Holder holds Common Shares, we will continue to be treated as a
PFIC with respect to such Non-Electing U.S. Holder, regardless of
whether we cease to be a PFIC in one or more subsequent years.
 A Non-Electing U.S. Holder may terminate this deemed PFIC
status by electing to recognize gain (which will be taxed under the
rules of Section 1291 of the Code discussed above) as if such
Common Shares were sold on the last day of the last taxable year
for which the Company was a PFIC.
QEF Election
A U.S.
Holder that makes a QEF Election generally will not be subject to
the rules of Section 1291 of the Code discussed above.
 However, a U.S. Holder that makes a QEF Election will be
subject to U.S. federal income tax on such U.S. Holder's pro
rata share of (a) the net capital gain of the Company, which
will be taxed as long-term capital gain to such U.S. Holder, and
(b) and the ordinary earnings of the Company, which will be
taxed as ordinary income to such U.S. Holder.  Generally,
"net capital gain" is the excess of (a) net
long-term capital gain over (b) net short-term capital loss,
and "ordinary earnings" are the excess of
(a) "earnings and profits" over (b) net
capital gain.  A U.S. Holder that makes a QEF Election will be
subject to U.S. federal income tax on such amounts for each taxable
year in which we are a PFIC, regardless of whether such amounts are
actually distributed to such U.S. Holder by us.
However,
a U.S. Holder that makes a QEF Election may, subject to certain
limitations, elect to defer payment of current U.S. federal income
tax on such amounts, subject to an interest charge.  If such
U.S. Holder is not a corporation, any such interest paid will be
treated as "personal interest," which is not
deductible.
A U.S.
Holder that makes a QEF Election generally also (a) may
receive a tax-free distribution from us to the extent that such
distribution represents "earnings and profits" of the
Company that were previously included in income by the U.S. Holder
because of such QEF Election and (b) will adjust such U.S.
Holder's tax basis in the Common Shares to reflect the amount
included in income or allowed as a tax-free distribution because of
such QEF Election.  In addition, a U.S. Holder that makes a
QEF Election generally will recognize capital gain or loss on the
sale or other taxable disposition of Common Shares.
The
procedure for making a QEF Election, and the U.S. federal income
tax consequences of making a QEF Election, will depend on whether
such QEF Election is timely.  A QEF Election will be treated
as "timely" if such QEF Election is made for the first
year in the U.S. Holder's holding period for the Common
Shares in which we were a PFIC.  A U.S. Holder may make a
timely QEF Election by filing the appropriate QEF Election
documents at the time such U.S. Holder files a U.S. federal income
tax return for such first year.  However, if we were a PFIC in
a prior year, then in addition to filing the QEF Election
documents, a U.S. Holder must elect to recognize (a) a gain
(which will be taxed under the rules of Section 1291 of the
Code discussed above) as if the Common Shares were sold on the
qualification date or (b) if we were also a CFC, such U.S.
Holder's pro rata share of the post-1986 "earnings and
profits" of the Company as of the qualification date.
 The "qualification date" is the first day of the
first taxable year in which we were a QEF with respect to such U.S.
Holder.  The election to recognize such gain or
"earnings and profits" can only be made if such U.S.
Holder's holding period for the Common Shares includes the
qualification date.  By electing to recognize such gain or
"earnings and profits," such U.S. Holder will be deemed
to have made a timely QEF Election.  In addition, under very
limited circumstances, a U.S. Holder may make a retroactive QEF
Election if such U.S. Holder failed to file the QEF Election
documents in a timely manner.
46
A QEF
Election will apply to the taxable year for which such QEF Election
is made and to all subsequent taxable years, unless such QEF
Election is invalidated or terminated or the IRS consents to
revocation of such QEF Election.  If a U.S. Holder makes a QEF
Election and, in a subsequent taxable year, we cease to be a PFIC,
the QEF Election will remain in effect (although it will not be
applicable) during those taxable years in which we are not a PFIC.
 Accordingly, if we become a PFIC in another subsequent
taxable year, the QEF Election will be effective and the U.S.
Holder will be subject to the QEF rules described above during any
such subsequent taxable year in which we qualify as a PFIC.
 In addition, the QEF Election will remain in effect (although
it will not be applicable) with respect to a U.S. Holder even after
such U.S. Holder disposes of all of such U.S. Holder's direct
and indirect interest in the Common Shares.  Accordingly, if
such U.S. Holder reacquires an interest in the Company, such U.S.
Holder will be subject to the QEF rules described above for each
taxable year in which we are a PFIC.
Each
U.S. Holder should consult its own financial advisor, legal
counsel, or accountant regarding the availability of, and procedure
for making, a QEF Election.  U.S. Holders should be aware that
there can be no assurance that we will satisfy record keeping
requirements that apply to a QEF, or that we will supply U.S.
Holders with information that such U.S. Holders require to report
under the QEF rules, in event that we are a PFIC and a U.S. Holder
wishes to make a QEF Election.
Mark-to-Market Election
A U.S.
Holder may make a Mark-to-Market Election only if the Common Shares
are marketable stock.  The Common Shares generally will be
"marketable stock" if the Common Shares are regularly
traded on (a) a national securities exchange that is
registered with the Securities and Exchange Commission,
(b) the national market system established pursuant to section
11A of the Securities and Exchange Act of 1934, or (c) a
foreign securities exchange that is regulated or supervised by a
governmental authority of the country in which the market is
located, provided that (i) such foreign exchange has trading
volume, listing, financial disclosure, and other requirements and
the laws of the country in which such foreign exchange is located,
together with the rules of such foreign exchange, ensure that such
requirements are actually enforced and (ii) the rules of such
foreign exchange ensure active trading of listed
stocks.
A U.S.
Holder that makes a Mark-to-Market Election generally will not be
subject to the rules of Section 1291 of the Code discussed
above.  However, if a U.S. Holder makes a Mark-to-Market
Election after the beginning of such U.S. Holder's holding
period for the Common Shares and such U.S. Holder has not made a
timely QEF Election, the rules of Section 1291 of the Code
discussed above will apply to certain dispositions of, and
distributions on, the Common Shares.
A U.S.
Holder that makes a Mark-to-Market Election will include in
ordinary income, for each taxable year in which we are a PFIC, an
amount equal to the excess, if any, of (a) the fair market
value of the Common Shares as of the close of such taxable year
over (b) such U.S. Holder's tax basis in such Common
Shares.  A U.S. Holder that makes a Mark-to-Market Election
will be allowed a deduction in an amount equal to the lesser of
(a) the excess, if any, of (i) such U.S. Holder's
adjusted tax basis in the Common Shares over (ii) the fair
market value of such Common Shares as of the close of such taxable
year or (b) the excess, if any, of (i) the amount
included in ordinary income because of such Mark-to-Market Election
for prior taxable years over (ii) the amount allowed as a
deduction because of such Mark-to-Market Election for prior taxable
years.
A U.S.
Holder that makes a Mark-to-Market Election generally also will
adjust such U.S. Holder's tax basis in the Common Shares to
reflect the amount included in gross income or allowed as a
deduction because of such Mark-to-Market Election.  In
addition, upon a sale or other taxable disposition of Common
Shares, a U.S. Holder that makes a Mark-to-Market Election will
recognize ordinary income or loss (not to exceed the excess, if
any, of (a) the amount included in ordinary income because of
such Mark-to-Market Election for prior taxable years over
(b) the amount allowed as a deduction because of such
Mark-to-Market Election for prior taxable years).
A
Mark-to-Market Election applies to the taxable year in which such
Mark-to-Market Election is made and to each subsequent taxable
year, unless the Common Shares cease to be "marketable
stock" or the IRS consents to revocation of such election.
 Each U.S. Holder should consult its own financial advisor,
legal counsel, or accountant regarding the availability of, and
procedure for making, a Mark-to-Market Election.
47
Other PFIC Rules
Under
Section 1291(f) of the Code, the IRS has issued proposed
Treasury Regulations that, subject to certain exceptions, would
cause a U.S. Holder that had not made a timely QEF Election to
recognize gain (but not loss) upon certain transfers of Common
Shares that would otherwise be tax-deferred (e.g., gifts and
exchanges pursuant to corporate reorganizations).  However,
the specific U.S. federal income tax consequences to a U.S. Holder
may vary based on the manner in which Common Shares are
transferred.
Certain
additional adverse rules will apply with respect to a U.S. Holder
if we are a PFIC, regardless of whether such U.S. Holder makes a
QEF Election.  For example under Section 1298(b)(6) of
the Code, a U.S. Holder that uses Common Shares as security for a
loan will, except as may be provided in Treasury Regulations, be
treated as having made a taxable disposition of such Common Shares.
The
PFIC rules are complex, and each U.S. Holder should consult its own
financial advisor, legal counsel, or accountant regarding the PFIC
rules and how the PFIC rules may affect the U.S. federal income tax
consequences of the acquisition, ownership, and disposition of
Common Shares.
This summary is of a general nature only and is not intended to be
relied on as legal or tax advice or representations to any
particular investor.  Consequently, potential investors are
urged to seek independent tax advice in respect of the consequences
to them of the acquisition of common stock having regard to their
particular circumstances.
(F) DIVIDEND AND PAYING AGENTS
Not
applicable.
(G) STATEMENT BY EXPERTS
Not
applicable.
(H) DOCUMENTS ON DISPLAY
The
documents concerning the Company referred to in this Annual Report
may be inspected at the Company's office at 217 Queen Street West,
Suite 401, Toronto, Ontario, Canada, M5V 0R2. The Company may be
reached at (917) 843-2169. Documents filed with the Securities and
Exchange Commission ("SEC") may also be read and copied at the
SEC's public reference room at 100 F Street, N.E., Washington, D.C.
20549. Please call the SEC at 1-800-SEC-0330 for further
information on the public reference rooms.
The
Company is subject to reporting requirements as a "reporting
issuer" under applicable securities legislation in Canada and
as a "foreign private issuer" under the Securities
Exchange Act of 1934 (the "Exchange Act"). As a result,
we must file periodic reports and other information with the
Canadian securities regulatory authorities and the Securities and
Exchange Commission.
A copy
of this Form 20-F Annual Report and certain other documents
referred to in this Annual Report and other documents filed by us
may be retrieved from the system for electronic document analysis
and retrieval ("SEDAR") system maintained by the
Canadian securities regulatory authorities at www.sedar.ca or from
the Securities and Exchange Commission electronic data gathering,
analysis and retrieval system ("EDGAR") at
www.sec.gov/edgar
.
(I) SUBSIDIARY INFORMATION
The
documents concerning the Company's subsidiaries referred to
in this Annual Report may be inspected at the Company's office at
217 Queen Street West, Suite 401, Toronto, Ontario, Canada, M5V
0R2.
48
ITEM 11 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
The
Company, through its financial assets and liabilities, is exposed
to various risks. The Company has established policies and
procedures to manage these risks, with the objective of minimizing
any adverse effect that changes in these variables could have on
these consolidated financial statements. The following analysis
provides a measurement of risks as at June 30, 2020:
Credit
risk is the risk of financial loss to the Company if a customer or
counterparty to a financial instrument fails to meet its
contractual obligations. The Company is not exposed to any
significant credit risk.
Liquidity
risk is the risk that the Company will not be able to meet its
financial obligations as they fall due within one year. The
Company's approach to managing liquidity risk is to ensure,
as far as possible, that it will have sufficient liquidity to meet
its liabilities when due, under both normal and stressed
conditions, without incurring unacceptable losses or risking damage
to the Company's reputation. As at June 30, 2020, there is
substantial doubt about the Company's ability to continue as
a going concern primarily due to its history of losses and negative
working capital. Liquidity risk continues to be a key concern in
the development of future operations.
Interest
rate risk is the risk that the fair value or future cash flows of a
financial instrument will fluctuate because of changes in market
interest rates. The interest rates on all of the Company's
existing debt are fixed, and therefore it is not currently subject
to any significant interest rate risk.
The
Company is exposed to foreign currency risk from fluctuations in
foreign exchange rates and the degree of volatility in these rates
due to the timing of their accounts payable balances. The risk is
mitigated by timely payment of creditors and monitoring of foreign
exchange fluctuations by management. As at June 30, 2020, the
Company did not use derivative instruments to hedge its exposure to
foreign currency risk.
The
Company's operations do not involve the direct input or
output of any commodities and therefore it is not subject to any
significant commodity price risk. In addition, the Company does not
have any equity investment in other listed public companies, and
therefore it is not subject to any significant stock market price
risk.
ITEM 12 - DESCRIPTION OF SECURITIES OTHER THAN EQUITY
SECURITIES
Not
required since this is an annual report.
49
PART II
ITEM 13 - DEFAULTS, DIVIDEND ARREARAGES AND
DELINQUENCIES
None.
ITEM 14 - MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS
AND USE OF PROCEEDS
No
modifications or qualifications have been made to the instruments
defining the rights of the holders of our Common Shares and no
material amount of assets securing our securities has been
withdrawn or substituted by us or anyone else (other than in the
ordinary course of business).
As
explained earlier, we have moved the jurisdiction of our company
from the OBCA to the CBCA and have revised the by-laws which govern
rights of the security holders. We do not believe that these
changes have materially affected or modified the said
rights.
On
January 3, 2018, the Company changed its name to its current name,
"CordovaCann Corp." The Company's certificate of
amendment is filed as Exhibit 1.16 to this Annual Report and is
incorporated herein by reference.
ITEM 15 - CONTROLS AND PROCEDURES
A.    Evaluation
of Our Disclosure Controls and Internal Controls
Under
the supervision and with the participation of our senior
management, including our Chief Executive Officer and Chief
Financial Officer, we conducted an evaluation of the effectiveness
of the design and operation of our disclosure controls and
procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the
Securities Exchange Act of
1934
, as amended, (the "Exchange Act") as of the
end of the period covered by this annual report (the
"Evaluation Date").
Our
disclosure controls and procedures include controls and procedures
designed to ensure that information required to be disclosed in
reports filed or submitted under the Exchange Act is accumulated
and communicated to our management, including our Interim Chief
Executive Officer and Chief Financial Officer, as appropriate, to
allow timely decisions regarding required disclosure. Based on that
evaluation, our Interim Chief Executive Officer and our Chief
Financial Officer concluded that our disclosure controls and
procedures were not effective as of June 30, 2020.
B.
Management's Annual Report on Internal Control over Financial
Reporting
Our
internal control over financial reporting is a process designed to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes of International Financial Reporting Standards as issued
by the International Accounting Standards Board. It is our
management's responsibility to establish and maintain
adequate internal control over financial reporting for the Company.
Because of its inherent limitations, internal control over
financial reporting may not prevent or detect misstatements.
Therefore, even those systems determined to be effective can
provide only reasonable assurance of achieving their control
objectives. In evaluating the effectiveness of our internal control
over financial reporting, our management used the criteria set for
the by the 2013 framework in Internal Control – Integrated
Framework issued by the Committee of Sponsoring Organizations of
the Treadway Commission ("2013 COSO"). Based on the
Company's evaluation and the material weaknesses described
below, management concluded that the Company did not maintain
effective internal control over financial reporting as at June 30,
2020 based on the 2013 COSO framework criteria. Management has
identified control deficiencies regarding the: (i) lack of
segregation of duties; (ii) reliance on independent consultants for
review of critical accounting areas and disclosures; and (iii) lack
of sufficient financial and personnel resources to design, document
and effectuate internal controls over financial reporting.
Management of the Company believes that these material weaknesses
are due to the small size of the Company's accounting staff.
The small size of the Company's accounting staff may prevent
adequate controls in the future, such as segregation of duties, due
to the cost/benefit of such remediation. To mitigate the current
limited resources and limited staff, the Company relies heavily on
direct management oversight of transactions, along with the use of
legal and accounting professionals. As the Company grows, the
number of employees is expected to increase, which will enable the
Company to implement adequate segregation of duties within the
internal control framework.
50
These
control deficiencies could result in a misstatement of account
balances that would result in a reasonable possibility that a
material misstatement to the Company's consolidated financial
statements may not be prevented or detected on a timely basis.
Accordingly, the Company has determined that these control
deficiencies as described above together constitute a material
weakness.
In
light of these material weaknesses, the Company performed
additional analyses and procedures in order to conclude that its
consolidated financial statements for the year ended June 30, 2020
included in this Annual Report on Form 20-F were fairly stated in
accordance with the accounting principles generally accepted in
Canada. Accordingly, management believes that despite the
Company's material weaknesses, its consolidated financial
statements for the year ended June 30, 2020 are fairly stated, in
all material respects, in accordance with the accounting principles
generally accepted in Canada.
This
Annual Report does not include an attestation report of our
independent registered public accounting firm regarding internal
control over financial reporting. Management's report was not
subject to attestation by our independent registered public
accounting firm pursuant to temporary rules of the SEC that permit
us to provide only management's report in this
report.
The
Company's management, including its Chief Executive Officer
and Chief Financial Officer, does not expect that the
Company's disclosure controls and procedures or internal
controls will prevent all errors and all fraud. A control system,
no matter how well conceived and operated, can provide only
reasonable, not absolute, assurance that the objectives of the
control system are met. Further, the design of a control system
must reflect the fact that there are resource constraints and the
benefits of controls must be considered relative to their costs.
Because of the inherent limitations in all control systems, no
evaluation of controls can provide absolute assurance that all
control issues and instances of fraud, if any, within the Company
have been detected. These inherent limitations include, but are not
limited to, the realities that judgments in decision-making can be
faulty and that breakdowns can occur because of simple error or
mistake. Additionally, controls can be circumvented by the
individual acts of some persons, by collusion of two or more
people, or by management override of the control. The design of any
system of controls also is based in part upon certain assumptions
about the likelihood of future events and there can be no assurance
that any design will succeed in achieving its stated goals under
all potential future conditions. Over time, controls may become
inadequate because of changes in conditions, or the degree of
compliance with the policies or procedures may deteriorate. Because
of the inherent limitations in a cost-effective control system,
misstatements due to error or fraud may occur and not be
detected.
C.     Changes
in Internal Controls
There
have been no changes in the Company's internal controls over
financial reporting that occurred during the year ended June 30,
2020 that have materially affected or are reasonably likely to
materially affect the Company's internal control over
financial reporting.
ITEM 16 - [RESERVED]
ITEM 16A - AUDIT COMMITTEE FINANCIAL EXPERTS
As at
the Company's financial year ended June 30, 2020 the audit
committee consisted of four directors, all of whom would be
qualified as an audit committee financial expert, as that term is
defined under Section 407 of the Sarbanes-Oxley Act of 2002. The
background of the directors is described under Item 6(A) Directors
and senior management.
The
current members of the Company's Audit Committee are Dale
Rasmussen, who is also the Chair of the Audit Committee, Thomas
(Taz) M. Turner, Jr., Jakob Ripshtein and Benjamin Higham. Mr.
Rasmussen, Mr. Ripshtein, and Mr. Higham are
"independent" members of the Audit Committee. Mr.
Turner, the Company's Chief Executive Officer is not
considered to be independent members of the Audit Committee;
however, the Board of Directors has made a subjective determination
that no relationships exist which would interfere with the exercise
of independent judgment in Mr. Turner carrying out the
responsibilities of a director.
ITEM 16B CODE OF ETHICS
On
February 9, 2007, the Company adopted a Code of Ethics that applies
to its principal executive officer and principal financial officer,
or persons performing similar functions. A copy of our Code of
Ethics will be provided to any person requesting same without
charge. To request a copy of our Code of Ethics, please make a
written request to our Chief Financial Officer at 217 Queen Street
West, Suite 401, Toronto, Ontario, M5V 0R2.
51
ITEM 16C PRINCIPAL ACCOUNTANT'S FEES AND
SERVICES
The
following outlines the expenditures for accounting fees for the
last two fiscal years ended:
June
30,
2020
June
30,
2019
Audit
Fees
$
80,000
115,000
(1)
Audit Related
Fees
-
-
Tax
Fees
-
-
All Other
Fees
-
-
(1)
The accounting fees
for the year ended June 30, 2019 were expressed in United States
Dollars.
Under
our existing policies, the audit committee must pre-approve all
audit and non-audit related services provided by the
auditors.
ITEM 16D EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT
COMMITTEES
Not
applicable.
ITEM 16E PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND
AFFILIATED PURCHASERS
Not
applicable.
ITEM 16F CHANGE IN REGISTRANT'S CERTIFYING
ACCOUNTANT
On
October 15, 2020, the Company's Board of Directors and Audit
Committee requested that Marcum LLP (the "Former
Auditor") resign as the Company's auditor to facilitate
the appointment of Kreston GTA LLP (the "Successor
Auditor") as the Company's new auditor until the next
annual general meeting, effective immediately on the date
thereof.
The
audit report of the Former Auditor on the Company's
consolidated financial statements as of and for the years ended
June 30, 2019 and 2018 did not contain any adverse opinion or
disclaimer of opinion, nor were they qualified or modified as to
uncertainty, audit scope, or accounting principles. During the two
fiscal years ended June 30, 2019 and June 30, 2018 and through
October 15, 2020, there were no (i) disagreements with the Former
Auditor on any matter of accounting principles or practices,
financial statement disclosure, or auditing scope or procedures,
which disagreements if not resolved to their satisfaction would
have caused them to make reference in connection with their report
to the subject matter of the disagreement, or (ii) reportable
events as described in Item 16F(a)(1)(v) of Form 20-F. The Company
has provided the Former Auditor with a copy of the foregoing
disclosure and has requested that they furnish the Company with a
letter addressed to the SEC stating whether they agree with such
disclosure and, if not, stating the respects in which they do not
agree.
ITEM 16G CORPORATE GOVERNANCE
Our
securities are listed on the CSE and with the OTC Markets Group and
trade on the OTC QB marketplace. There are no significant ways in
which our corporate governance practices differ from those followed
by domestic companies under the listing standards of that exchange
except for proxy delivery requirements. The CSE and the OTC
marketplace requires the solicitation of proxies and delivery of
proxy statements for all shareholder meetings, and requires that
these proxies be solicited pursuant to a proxy statement that
conforms to the proxy rules of the U.S. Securities and Exchange
Commission. As a foreign private issuer, the Company is exempt from
the proxy rules set forth in Sections 14(a), 14(b), 14(c) and 14(f)
of the Act. The Company solicits proxies in accordance with
applicable rules and regulations in Canada.
52
PART III
ITEM 17 - FINANCIAL STATEMENTS
Not
applicable.
ITEM 18 - FINANCIAL STATEMENTS
See the
Consolidated Financial Statements and Exhibits listed in Item 19
hereof and filed as part of this Annual Report.
These
Consolidated Financial Statements of the Company have been prepared
in Canadian Dollars in accordance with International Financial
Reporting Standards ("IFRS") as promulgated by the
International Accounting Standards Board ("IASB") on a
going concern basis which presumes the realization of assets and
discharge of liabilities in the normal course of business for the
foreseeable future. For a history of exchange rates in effect for
Canadian Dollars as against United States Dollars, see Item 3(A)
Exchange Rates of this Annual Report.
ITEM 19 - EXHIBITS
(a)
Financial Statements -
Description of Document
Page No.
Cover
Sheet
F-1
Index
F-1
Reports
of Independent Registered Public Accounting Firms
F-2
– F-4
Consolidated
Statements of Financial Position as at June 30, 2020 and
2019
F-5
Consolidated
Statements of Operations and Comprehensive Loss for the Years Ended
June 30, 2020, 2019 and 2018
F-6
Consolidated
Statements of Changes in Equity (Deficiency) for the Years Ended
June 30, 2020, 2019 and 2018
F-7
Consolidated
Statements of Cash Flows for the Years Ended June 30, 2020, 2019
and 2018
F-8
Notes
to the Consolidated Financial Statements
F-9 -
F-36
53
b)
Exhibits
The
following documents are filed as part of this Annual Report on Form
20-F
1.1
Application
for Authorization to continue in another jurisdiction dated October
20, 2006.-
Incorporated herein by
reference
to Exhibit 1.1 to the Company's Registration
Statement on Form 20-F filed on December 26, 2006.
1.2
Articles
of Incorporation of the Company -
Incorporated herein by reference
to
Exhibit 1.1 to the Company's Registration Statement on Form
20-F filed on March 12, 2004.
1.3
By-Laws
of the Company -
Incorporated
herein by reference
to Exhibit 1.3 to the Company's
Registration Statement on Form 20-F filed on December 26,
2006.
1.4
Certificate
of name change from Minedel Mining & Development Company
Limited to Minedel Mines Limited -
Incorporated herein by reference
to
Exhibit 1.3 to the Company's Registration Statement on Form
20-F filed on March 12, 2004.
1.5
Certificate
of name change from Minedel Mines Limited to Havelock Energy &
Resources Inc. -
Incorporated
herein by reference
to Exhibit 1.4 to the Company's
Registration Statement on Form 20-F filed on March 12,
2004.
1.6
Certificate
of name change from Havelock energy & Resources Inc. to
Municipal Ticket Corporation -
Incorporated herein by reference
to
Exhibit 1.5 to the Company's Registration Statement on Form
20-F filed on March 12, 2004.
1.7
Certificate
of name change from Municipal Ticket Corporation to I.D. Investment
Inc. -
Incorporated herein by
reference
to Exhibit 1.6 to the Company's Registration
Statement on Form 20-F filed on March 12, 2004.
1.8
Certificate
of Amalgamation. to Biolink Corporation -
Incorporated herein by reference
to
Exhibit 1.7 to the Company's Registration Statement on Form
20-F filed on March 12, 2004.
1.9
Certificate
of name change from Biolink Corp. to First Empire Entertainment.com
Inc. -
Incorporated herein by
reference
to Exhibit 1.8 to the Company's Registration
Statement on Form 20-F filed on March 12, 2004.
1.10
Certificate
of name change from First Empire Entertainment.com Inc. to First
Empire Corporation Inc. -
Incorporated herein by reference
to
Exhibit 19 to the Company's Annual Report on Form 20-F filed
on March 12, 2004.
1.11
Certificate
of name change from First Empire Corporation Inc. to Noble House
Entertainment Inc. dated November 4, 2004 -
Incorporated herein by reference
to
Exhibit 1.10 to the Company's Annual Report on Form 20-F
filed on December 1, 2005.
1.12
Articles
of Amendment dated November 19, 2004 consolidating the common
shares of the Company on the basis of one new common share in
exchange for every two old common shares -
Incorporated herein by reference
to
Exhibit 1.11 to the Company's Annual Report on Form 20-F
filed on December 1, 2005.
1.13
Certificate
of name change from First Empire Music Corp. to Noble house Film
& Television Inc. dated January 21, 2005 -
Incorporated herein by reference
to
Exhibit 1.12 to the Company's Annual Report on Form 20-F
filed on December 1, 2005.
1.14
Certificate
of name change from Noble House Film & Television Inc. to
LiveReel Productions Corporation dated August 10, 2006 -
Incorporated herein by
reference
to Exhibit 1.14 to the Company's
Registration Statement on Form 20-F filed on December 26,
2006.
54
1.15
Certificate
of name change from Noble House Entertainment Inc. to LiveReel
Media Corporation dated October 12, 2006 -
Incorporated herein by reference
to
Exhibit 1.15 to the Company's Registration Statement on Form
20-F filed on December 26, 2006.
1.16
Certificate
of name change from LiveReel Media Corporation to CordovaCann Corp.
dated January 3, 2018 -
Incorporated herein by reference
to
Exhibit 1.16 to the Company's Annual Report on Form 20-F
filed on December 13, 2018.
4.(d)
2017
Stock Option Plan dated November 22, 2017 -
Incorporated herein by reference
to
Exhibit 4.(d) to the Company's Annual Report on Form 20-F
filed on December 13, 2018.
11.
Code of
Ethics -
Incorporated herein by
reference
to Exhibit 11 to the Company's Annual Report
on Form 20-F filed on October 29, 2015.
12.
The
certifications required by Rule 13a-14(a) (17 CFR 240.13a-14(a)) or
Rule 15d-14(a) (17 CFR 240.15d-14(a)).
13.(a)
The
Certifications Pursuant to 18 U.S.C. Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
14(a)(i)
Corporate
Governance Charter -
Incorporated
herein by reference
to Exhibit 14 (a)(i) to the
Company's Registration Statement on Form 20-F filed on
December 26, 2006.
14(a)(ii)
Audit
Committee Charter dated November 5, 2018 -
Incorporated herein by reference
to
Exhibit 14(a)(ii) to the Company's Annual Report on Form 20-F
filed on December 13, 2018.
99.1
Press
Release dated November 23, 2020 from CordovaCann Corp.
99.2
Press
Release dated December 2, 2020 from CordovaCann Corp.
55
SIGNATURE
The
Company hereby certifies that it meets all of the requirements for
filing on Form 20-F and has duly caused and authorized the
undersigned to sign this Annual Report on its behalf.
Dated
at Toronto, Ontario, Canada, this December
14
, 2020.
CORDOVACANN CORP.
By:
/s/
Ashish Kapoor
Name:
Ashish Kapoor
Title:
Chief Financial Officer
56
CordovaCann Corp.
(formerly
LiveReel Media Corporation)
Consolidated Financial Statements
For the years ended June 30, 2020, 2019 and 2018
(Expressed in Canadian Dollars)
F-1
F-2
F-3
F-4
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Consolidated
Statements of Financial Position
As at June 30, 2020
and 2019
(Expressed in
Canadian Dollars)
2020
2019
$
$
ASSETS
Current
Cash
and cash equivalents
647,739
71,849
Prepaid
expenses and deposits
188,674
427,894
Inventory
(Note 9)
118,682
-
Harmonized
sales tax receivable
27,118
-
Other deposit - current portion
(Note
22(d))
74,450
-
Total
current assets
1,056,663
499,743
Other investment (
Note 6
)
-
500,000
Other deposit
(Note
22(d))
330,764
-
Right-of-use assets
(Note 7)
2,539,670
-
Property and equipment, net
(Note 8)
4,979,813
3,645,389
Intangible assets (
Note 11)
5,243,967
-
Licenses
(Note 12)
542,912
-
Total
assets
14,693,789
4,645,132
LIABILITIES
Current
Accounts
payable and accrued liabilities
2,800,206
1,371,386
Mortgage payable (
Note 14
)
766,531
657,633
Debenture unit deposits (
Note 16)
-
594,889
Convertible debentures
(Note 17)
381,678
-
Deferred
tax liability
4,939
-
Lease liability
(Note 13)
253,205
-
Promissory notes payable
(Note 15)
1,314,427
1,112,194
Total
current liabilities
5,520,986
3,736,102
Promissory notes payable
(Note 15)
566,835
-
Lease liability
(Note 13)
2,329,279
-
Convertible debentures
(Note 17)
-
546,460
Total
liabilities
8,417,100
4,282,562
SHAREHOLDERS' EQUITY
Share capital
(Note 18)
19,697,180
14,636,828
Contingently issuable shares (
Note 18)
2,040,000
-
Shares to be issued (
Note 18)
510,000
-
Contributed
surplus
6,709,782
5,226,156
Equity
portion of convertible debentures
862,913
62,498
Accumulated
deficit
(24,159,690
)
(19,570,801
)
Accumulated
other comprehensive income
(41,599
)
7,889
Total shareholders' equity attributable to Cordova
shareholders
5,618,586
362,570
Non-controlling interest
658,103
-
Total equity
6,276,689
362,570
Total liabilities and shareholders' equity
14,693,789
4,645,132
Nature
of operations and going concern (
Note 1
)
Commitments
(
Note 22
)
Related
party transactions (
Note
3
)
Subsequent
events (
Note
28
)
Approved
on behalf of the Board:
"Dale
Rasmussen"
,
Director
"Thomas M. Turner,
Jr."
,
Director
(signed)
(signed)
The accompanying
notes are an integral part of these consolidated financial
statements.
F-5
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Consolidated
Statements of Operations and Comprehensive Loss
For the years ended
June 30, 2020, 2019 and 2018
(Expressed in
Canadian Dollars)
2020
2019
2018
$
$
$
Revenue
166,773
-
-
Cost of sales
(Note
8)
(106,742
)
30,529
12,770
Gross profit
60,031
(30,529
)
(12,770
)
Expenses
Consulting
fees
1,295,829
2,448,560
977,410
Share based compensation (
Note 19, 20
)
1,048,661
1,413,919
3,447,415
Professional
fees
488,902
371,079
225,151
Shareholders
information services
135,181
379,058
52,714
Salaries
and wages
23,039
-
-
Advertising
costs
2,825
88,917
-
Office
and general
208,484
605,334
120,274
Depreciation
(Note 8)
5,768
-
-
Amortization of right-of-use assets
(
Note
7)
92,167
-
-
Leases
and utilities
67,800
-
-
Financing
costs
-
-
14,845
Exclusivity fee (
Note 22(a)
)
-
48,367
42,550
Impairment of
promissory note receivable
(Note
5)
-
85,114
-
Impairment of
equipment
(Note
8)
-
107,515
-
3,368,656
5,547,863
4,880,359
Loss before other income
(3,308,625
)
(5,578,392
)
(4,893,129
)
Interest expense (
Note 14, 15,
17)
564,897
39,215
-
Interest on lease obligation
(Note 13)
46,171
-
Accretion expense (
Note 15,
17)
249,518
24,680
-
Loss on settlement of fees
(Note 17)
-
12,700
-
Loss
on settlement of other investment
184,440
-
-
Impairment
of assets
16,316
-
-
Foreign
exchange loss (gain)
56,225
57,121
(27,196
)
Gain
on settlement
(51,023
)
-
-
Other
income
(65,920
)
-
-
Loss on deposit
(Note
22(e))
396,000
124,428
-
Loss before income taxes
(4,705,249
)
(5,836,536
)
(4,865,933
)
Deferred tax recovery (
Note 26)
54,349
-
-
Net loss and comprehensive loss
(4,650,900
)
(5,836,536
)
(4,865,933
)
Loss per share - basic and diluted
(0.10
)
(0.15
)
(0.15
)
Weighted average number of outstanding common shares - basic and
diluted
45,424,867
40,149,242
32,255,112
Net loss
(4,650,900
)
(5,836,536
)
(4,865,933
)
Foreign
exchange translation adjustment
(49,488
)
7,205
684
Total comprehensive loss
(4,700,388
)
(5,829,331
)
(4,865,249
)
Net loss from continuing operations attributable to:
CordovaCann
Corp.
(4,588,889
)
(5,836,536
)
(4,865,933
)
Non-controlling
interest
(62,011
)
-
-
The accompanying
notes are an integral part of these consolidated financial
statements.
F-6
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Consolidated
Statements of Changes in Equity (Deficiency)
As at June 30, 2019
and 2018
(Expressed in Canadian
Dollars)
Number
of
Equity
Portion
Contingently
Accumulated
Other
Common
Shares
Share
Capital
Contributed
Surplus
of
Convertible Debentures
issuable
shares
Shares to be
issued
Accumulated
Deficit
Comprehensive Income
Non-controlling interests
Shareholders' Equity
#
$
$
$
$
$
$
$
$
$
Balance,
June 30, 2017
Note #
23,521,744
7,880,660
361,196
-
-
-
(8,868,332
)
-
-
(626,476
)
Common shares
issued for settlement of loan
18
7,681,110
384,055
-
-
-
-
-
-
-
384,055
Common shares
issued for private placement
18
5,532,500
553,250
-
-
-
-
-
-
-
553,250
Common shares
issued for private placement
18
890,074
959,251
-
-
-
-
-
-
-
959,251
Issuance of
options
19
-
-
1,177,727
-
-
-
-
-
-
1,177,727
Issuance of
warrants
20
-
-
2,269,688
-
-
-
-
-
-
2,269,688
Common shares
issued for private placement
18
2,410,800
4,703,025
-
-
-
-
-
-
-
4,703,025
Foreign currency
translation gain
-
-
-
-
-
-
-
684
684
Net loss for the
year
-
-
-
-
-
-
(4,865,933
)
-
-
(4,865,933
)
Balance,
June 30, 2018
40,036,228
14,480,241
3,808,611
-
-
-
(13,734,265
)
684
-
4,555,271
Issuance of
warrants
20
-
-
1,413,919
-
-
-
-
-
-
1,413,919
Equity portion of
convertible debentures
17
-
-
29,063
62,498
-
-
-
-
-
91,561
Warrant portion of
promissory note payable
15
-
-
18,650
-
-
-
-
-
-
18,650
Common shares
issued for exercise of warrants
18
750,000
156,587
(44,087
)
-
-
-
-
-
-
112,500
Foreign currency
translation gain
-
-
-
-
-
-
-
7,205
7,205
Net loss for the
year
-
-
-
-
-
-
(5,836,536
)
-
-
(5,836,536
)
Balance,
June 30, 2019
40,786,228
14,636,828
5,226,156
62,498
-
-
(19,570,801
)
7,889
-
362,570
The accompanying
notes are an integral part of these consolidated financial
statements.
F-7
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Consolidated
Statements of Changes in Equity (Deficiency)
As at June 30,
2020
(Expressed in Canadian
Dollars)
Number
of
Equity portion of
Contingently
Shares to
Accumulated Other
Non-controlling
Common Shares
Share Capital
Contributed Surplus
Convertible Debentures
issuable shares
be issued
Accumulated Deficit
Comprehensive
interests
Shareholders' Equity
#
$
$
$
$
$
$
$
$
$
Balance, June 30, 2019
Note
#
40,786,228
14,636,828
5,226,156
62,498
-
-
(19,570,801
)
7,889
-
362,570
Issuance
of warrants
20
-
-
631,336
-
-
-
-
631,336
Issuance
of options
19
-
-
869,299
-
-
-
-
-
-
869,299
Forfeiture
of warrants
20
-
-
(451,976
)
-
-
-
-
-
-
(451,976
)
Equity
portion of convertible debentures
17
-
-
33,816
74,989
-
-
-
-
-
108,805
Conversion
of convertible debenture
17
271,164
290,304
-
(19,140
)
-
-
-
-
-
271,164
Warrant
portion of promissory note payable
15
-
-
8,995
-
-
-
-
-
-
8,995
Conversion
of convertible debenture
17
-
-
-
(36,434
)
-
-
-
-
-
(36,434
)
Equity
portion of convertible debentures
17
-
-
415,010
748,990
-
-
-
-
-
1,164,000
Interest
on equity portion of convertible debentures
17
-
-
-
32,010
-
-
-
-
-
32,010
Issuance
of shares for asset acquisition
18
12,500,000
2,125,000
-
-
-
-
-
-
-
2,125,000
Contingent
consideration for asset acquisition
11
-
-
-
-
3,570,000
-
-
-
-
3,570,000
Shares
issued as part of contingent consideration
18
6,000,000
1,020,000
-
-
(1,020,000
)
-
-
-
-
-
Shares
issued as part of settlement
15
181,250
72,500
-
-
-
-
-
-
-
72,500
Shares
to be issued as part of contingent consideration
18
-
-
-
-
(510,000
)
510,000
-
-
-
-
Common
shares issued for private placement
18
6,210,190
1,552,548
-
-
-
-
-
-
-
1,552,548
Acquisition
of 273 Ontario
12
-
-
-
-
-
-
-
-
720,114
720,114
Deduction
of deferred tax liabilities
(22,854
)
(22,854
)
Foreign
currency translation gain
-
-
-
-
-
-
-
(49,488
)
-
(49,488
)
Net
loss for the year
-
-
-
-
-
-
(4,588,889
)
-
(62,011
)
(4,650,900
)
Balance, June 30, 2020
65,948,832
19,697,180
6,709,782
862,913
2,040,000
510,000
(24,159,690
)
(41,599
)
658,103
6,276,689
The accompanying
notes are an integral part of these consolidated financial
statements.
F-8
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Consolidated
Statements of Cash Flows
For the years ended
June 30, 2020, 2019 and 2018
(Expressed in
Canadian Dollars)
2020
2019
2018
$
$
$
Operating activities
Net
loss for the year
(4,650,900
)
(5,836,536
)
(4,865,933
)
Adjusted
for non-cash items:
Shares
issued on consulting agreement
27,550
-
322,862
Share
based compensation
1,048,661
1,413,919
3,447,415
Impairment
of promissory note receivable
-
85,114
-
Impairment
of equipment
-
107,515
-
Amortization
of right-of-use assets
92,167
-
-
Depreciation
5,768
30,529
12,770
Loss
on deposit
396,000
-
-
Loss
on settlement of other investment
184,440
-
-
Impairment
of assets
16,316
-
-
Interest
expense
531,545
39,215
-
Interest
on lease obligation
46,171
-
-
Deferred
tax recovery
(54,349
)
Gain
on settlement
(51,023
)
-
-
Accretion
expense
249,518
24,680
-
Convertible
debentures issued for settlement of fees
-
250,000
-
Share issued on
settlement of fees
140,680
-
-
Transaction
costs
-
-
(7,591
)
Changes in non-cash working capital items:
Prepaid
expenses and deposits
(188,674
)
(102,235
)
(318,903
)
Inventory
(118,682
)
-
-
Payment
of lease liabilities
(91,034
)
-
-
Harmonized
sales tax receivable
(27,118
)
-
-
Accounts
payable and accrued liabilities
1,405,022
1,051,065
231,906
Cash
used in operating activities
(1,037,942
)
(2,936,734
)
(1,177,474
)
Investing activities
Purchase
of property and equipment
(145,587
)
(2,500,373
)
(151,188
)
Investment
in OR Operations
-
-
(526,720
)
Advances
to OR Operations
-
-
(610,705
)
Investment
in related party
-
(500,000
)
-
Promissory note
receivable
-
(69,312
)
(15,802
)
Cash
used in investing activities
(145,587
)
(3,069,685
)
(1,304,415
)
Financing activities
Advances
from (repayments to) related parties
-
-
(117,081
)
Issuance
of mortgage payable
34,929
654,350
-
Debenture
unit deposits
-
594,889
-
(Repayments)
issuance of promissory notes payable
(180,043
)
1,108,627
-
Issuance
of convertible debentures
457,111
350,000
-
Proceeds
from the exercise of warrants
-
112,500
-
Repayments
of related party notes payable
-
-
(43,681
)
Proceeds
from issuance of common shares
1,411,680
-
5,892,664
Proceeds
from financing activities
1,723,677
2,820,366
5,731,902
Effect
of exchange rate changes on cash
35,742
7,205
684
Net increase (decrease) in cash and cash equivalents
575,890
(3,178,848
)
3,250,697
Cash and cash equivalents, beginning of year
71,849
3,250,697
-
Cash and cash equivalents, end of year
647,739
71,849
3,250,697
The accompanying
notes are an integral part of these consolidated financial
statements.
F-9
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Notes to the
Consolidated Financial Statements
For the years ended
June 30, 2020, 2019 and 2018
(Expressed in
Canadian Dollars)
1.
NATURE
OF OPERATIONS AND GOING CONCERN
CordovaCann Corp.
(formerly LiveReel Media Corporation) (the "Company" or
"CordovaCann") is a Canadian-domiciled company focused
on building a leading, diversified cannabis products business
across multiple jurisdictions including Canada and the United
States. CordovaCann primarily provides services and investment
capital to the processing, production and retail vertical markets
of the cannabis industry. On January 3, 2018, the Company changed
its name from LiveReel Media Corporation to CordovaCann Corp. The
Company's principal address is 217 Queen Street West, Suite
401, Toronto, Ontario, M5V 0R2.
The Company's
common shares currently trade on the Canadian Securities Exchange
under the symbol "CDVA" and in the United States on the
OTCQB under the symbol "LVRLF".
These consolidated
financial statements of the Company have been prepared in
accordance with International Financial Reporting Standards
("IFRS") as promulgated by the International Accounting
Standards Board ("IASB") on a going concern basis which
presumes the realization of assets and discharge of liabilities in
the normal course of business for the foreseeable future. There is
substantial doubt about the Company's ability to continue as a
going concern as the Company incurred a comprehensive loss of
$4,700,388 (June 30, 2019 – $5,829,331) during the year ended
June 30, 2020 and has a total accumulated deficit of $24,182,178
(June 30, 2019 – $19,570,801) as at June 30, 2020. The
Company's ability to continue as a going concern is dependent
upon its ability to access sufficient capital until it has
profitable operations and it raises a material concern. To this
point, all operational activities and overhead costs have been
funded through equity issuances, debt issuances and related party
advances.
The Company
believes that continued funding from equity and debt issuances will
provide sufficient cash flow for it to continue as a going concern
in its present form until its operations become profitable and cash
flow positive, however, there can be no assurances that the Company
will achieve this. Accordingly, these consolidated financial
statements do not include any adjustments related to the
recoverability and classification of recorded asset amounts or the
amount and classification of liabilities or any other adjustments
that might be necessary should the Company be unable to continue as
a going concern.
2.
BASIS
OF PREPARATION
(a)
Statement
of Compliance
These consolidated
financial statements of the Company and its subsidiaries were
prepared using accounting policies consistent with IFRS as issued
by the IASB and interpretations of the IFRS Interpretations
Committee ("IFRIC").
These consolidated
financial statements were authorized for issue by the Board of
Directors on October 28, 2020.
(b)
Basis
of Presentation
These consolidated
financial statements have been prepared on a historical cost basis,
except where otherwise disclosed. Historical cost is based on the
fair value of the consideration given in exchange for assets. In
addition, these consolidated financial statements have been
prepared using the accrual basis of accounting, except for cash
flow information.
F-10
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Notes to the
Consolidated Financial Statements
For the years ended
June 30, 2020, 2019 and 2018
(Expressed in
Canadian Dollars)
2.
BASIS
OF PREPARATION (continued)
(c)
Functional
and Presentation Currency
These consolidated
financial statements are presented in Canadian dollars, which is
the Company's presentation currency.
Translation of
foreign-currency transactions
Transactions in
foreign currencies are translated to the respective functional
currencies of each subsidiary at exchange rates at the dates of the
transactions. Monetary assets and liabilities denominated in
foreign currencies at the reporting date are translated to the
functional currency at the exchange rate at that date. The foreign
currency gain or loss resulting from the settlement of such
transactions and from the translation at the reporting date of
monetary assets and liabilities denominated in foreign currencies
are recognized in profit or loss.
Translation of
financial statements of subsidiaries
In translating the
financial statements of the Company's foreign subsidiaries from
their functional currencies into the Company's presentation
currency of Canadian dollars, statement of financial position
accounts are translated using the closing exchange rate in effect
at the statement of financial position date and income and expense
accounts are translated using an average exchange rate prevailing
during the reporting period. Adjustments resulting from the
translation, if any, are included in accumulated other
comprehensive income (loss) in shareholders' equity
(deficiency).
(d)
Use
of Estimates and Judgements
The preparation of
these consolidated financial statements in accordance with IFRS
requires management to make judgements, estimates and assumptions
that affect the application of accounting policies and reported
amounts of assets and liabilities at the date of the consolidated
financial statements and reported amounts of expenses during the
reporting period. Actual outcomes could differ from these
estimates. These consolidated financial statements include
estimates, which, by their nature, are uncertain. The impacts of
such estimates are pervasive throughout these consolidated
financial statements, and may require accounting adjustments based
on future occurrences. The estimates and underlying assumptions are
reviewed on a regular basis. Revisions to accounting estimates are
recognized in the period in which the estimate is revised and in
any future periods affected. The key assumptions concerning the
future, and other key sources of estimation uncertainty as of the
date of the statement of financial position that have a significant
risk of causing material adjustment to the carrying amounts of
assets and liabilities within the next fiscal year arise in
connection with the valuation of financial instruments, valuation
of acquired assets, fair value of share purchase warrants,
share-based payments and deferred tax assets.
(e)
Basis
of Consolidation
These consolidated
financial statements include those of the Company and of the
entities controlled by the Company (the
"subsidiaries"). Control over an investee is achieved
when the Company has power over the investee, has exposure or
rights to variable returns from its involvement with the investee
and
F-11
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Notes to the
Consolidated Financial Statements
For the years ended
June 30, 2020, 2019 and 2018
(Expressed in
Canadian Dollars)
2.
BASIS
OF PREPARATION (continued)
(e)
Basis
of Consolidation
has the ability to
use its power over the investee to affect the amount of its
returns.. The financial statements of subsidiaries are included in
the consolidated financial statements from the date that control
commences until the date that control ceases.
The following table
lists the Company's subsidiaries and their functional
currencies:
Name of Subsidaries
Place of Incorporation
Proportion of Ownership Interest
Direct /Indirect
Currency
CordovaCann
Holdings Canada, Inc.
Ontario,
Canada
100%
Direct
Canadian
Dollars
Cordova
Investments Canada, Inc.
Ontario,
Canada
100%
Direct
Canadian
Dollars
2734158
Ontario Inc.
Ontario,
Canada
50.1%
Indirect
Canadian
Dollars
CordovaCann
Holdings, Inc.
Delaware,
USA
100%
Direct
Canadian
Dollars
Cordova
CO Holdings, LLC
Colorado,
USA
100%
Indirect
United States
Dollars
Cordova
OR Holdings, LLC
Oregon,
USA
100%
Indirect
United States
Dollars
CDVA
Enterprises, LLC
California,
USA
100%
Indirect
United States
Dollars
Cordova
CA Holdings, LLC
California,
USA
100%
Indirect
United States
Dollars
Cordova
OR Operations, LLC
Oregon,
USA
100%
Indirect
United States
Dollars
Cannabilt
Farms, LLC
Oregon,
USA
100%
Indirect
United States
Dollars
Cannabilt
OR Retail, LLC
Oregon,
USA
100%
Indirect
United States
Dollars
Cannabilt
Holdings, Inc.
Oregon,
USA
100%
Indirect
United States
Dollars
Future
Processing, LLC
Oregon,
USA
100%
Indirect
United States
Dollars
The significant
accounting policies used in the preparation of these consolidated
financial statements are described below.
Cash
and cash equivalents
Cash consists of
bank balances and cash held in trust. Cash equivalents consist of
short-term deposits with original maturities of three months or
less. As at June 30, 2020 and June 30, 2019, there were no cash
equivalents.
F-12
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Notes to the
Consolidated Financial Statements
For the years ended
June 30, 2020, 2019 and 2018
(Expressed in
Canadian Dollars)
Related
party transactions
Parties are
considered to be related if one party has the ability, directly or
indirectly, to control the other party or exercise significant
influence over the other party in making financial and operating
policy decisions. Parties are also considered to be related if they
are subject to common control. Related parties may be individuals
or corporate entities. A transaction is considered to be a related
party transaction when there is a transfer of resources or
obligations between related parties.
3.
SIGNIFICANT
ACCOUNTING POLICIES (continued)
Share-based
payments
Share-based
payments to employees are measured at the fair value of the
instruments issued and recognized over the expected service
periods. Share-based payments to non-employees are measured at the
fair value of goods or services received or the fair value of the
equity instruments issued, if it is determined the fair value of
the goods or services cannot be reliably measured, and are recorded
at the date the goods or services are received. The corresponding
amount is recorded to the stock options reserve. The fair value of
options is determined using the Black-Scholes Option Pricing Model
which incorporates all market vesting conditions. The number of
shares and options expected to vest is reviewed and adjusted at the
end of each reporting period such that the amount recognized for
services received as consideration for the equity instruments
granted shall be based on the number of equity instruments that
will eventually vest.
Compound
financial instruments
Compound financial
instruments issued by the Company are comprised of convertible
debentures that can be converted into common shares and promissory
notes payable attached with warrants. The Compound financial
instruments are segregated into their debt and equity components or
derivative liability components at the date of issue, in accordance
with the substance of the contractual agreements. The conversion
feature of the convertible promissory notes is presumed to be
classified as a derivative financial liability unless it meets all
the criteria to recognize as equity instrument. One of criteria is
that the conversion option exchanges a fixed amount of shares for a
fixed amount of cash ("fixed for fixed").
If the conversion
feature meets the fixed for fixed criteria, the conversion option
will be classified as equity components. Equity instruments are
instruments that evidence a residual interest in the assets of an
entity after deducting all of its liabilities. Therefore, when the
initial carrying amount of the compound financial instruments is
allocated to its equity and liability components, the equity
component is assigned the residual amount after deducting from the
fair value of the instrument as a whole the amount separately
determined for the liability component. The sum of the carrying
amounts assigned to the liability and equity components on initial
recognition is always equal to the fair value that would be
ascribed to the instrument as a whole. No gain or loss arises from
initially recognizing the components of the instrument
separately.
If the conversion
feature does not meet the fixed for fixed criteria, the conversion
option will be recorded as derivative financial liability, which
must be separately accounted for at fair value on initial
recognition. The carrying amount of the debt component, on initial
recognition, is recalculated as the difference between the proceeds
of the convertible promissory notes as a whole and the fair value
of the derivative financial liabilities. Subsequent to initial
recognition, the derivative financial liability is re-measured at
fair value at the end of each reporting period with changes in fair
value recognized in the statement of operation for each reporting
period, while the debt component is accreted to the face value of
the debt using the effective interest method.
Transaction costs
are allocated to the debt and equity components in proportion to
the allocation of the proceeds on initial recognition. Transaction
costs allocated to equity components will be accounted for as a
deduction from equity, net of any related income tax benefit; cost
allocated to the derivative financial liability component are
expensed; and cost allocated to the debt component are offset
against the carrying amount of the liability and included in the
determination of the effective interest rate.
F-13
CordovaCann Corp
.
(formerly LiveReel Media Corporation)
Notes to the Consolidated Financial Statements
For the years ended June 30, 2020, 2019 and 2018
(Expressed in Canadian Dollars)
3.
SIGNIFICANT
ACCOUNTING POLICIES (continued)
Compound
financial instruments (continued)
The liability
component of a compound financial instrument is recognized
initially at the fair value of a similar liability that does not
have an equity conversion option. The equity component is
recognized initially as the difference between the fair value of
the computed financial instrument as a whole and the fair value of
the liability component. Any directly attributable transaction
costs are allocated to the liability and equity components in
proportion to their initial carrying amounts. Subsequent to initial
recognition, the liability component of a compound financial
instrument is measured at amortized cost using the effective
interest method. The equity component of a compound financial
instrument is not re-measured subsequent to initial recognition
except on conversion or upon expiration, when the carrying value of
the equity portion is transferred to common shares or contributed
surplus.
Financial
instruments
The Company
recognizes a financial asset or a financial liability when it
becomes a party to the contractual provisions of the instrument.
Under IFRS 9, such financial assets or financial liabilities are
initially recognized at fair value and the subsequent measurement
depends on their classification.
Financial assets
IFRS 9 uses a
single approach to determine whether a financial asset is
classified and measured at amortized cost or at fair value. The
classification and measurement of financial assets is based on the
Company's business models for managing its financial assets
and whether the contractual cash flows represent solely payments of
principal and interest ("SPPI"). Financial assets are
initially measured at fair value and are subsequently measured at
either (i) amortized cost; (ii) fair value through other
comprehensive income ("FVTOCI"); or (iii) at fair value
through profit or loss ("FVTPL").
Amortized cost -
Financial assets classified and measured at amortized cost are
those assets that are held within a business model whose objective
is to hold financial assets in order to collect contractual cash
flows, and the contractual terms of the financial asset give rise
to cash flows that are SPPI. Financial assets classified at
amortized cost are measured using the effective interest
method.
Fair value through
other comprehensive income - Financial assets classified and
measured at FVTOCI are those assets that are held within a business
model whose objective is achieved by both collecting contractual
cash flows and selling financial assets, and the contractual terms
of the financial asset give rise to cash flows that are SPPI. This
classification includes certain equity instruments where IFRS 9
allows an entity to make an irrevocable election to classify the
equity instruments, on an instrument-by-instrument basis, that
would otherwise be measured at FVTPL to present subsequent changes
in FVTOCI.
FVTPL - Financial
assets classified and measured at FVTPL are those assets that do
not meet the criteria to be classified at amortized cost or at
FVTOCI. This category includes debt instruments whose cash flow
characteristics are not SPPI or are not held within a business
model whose objective is either to collect contractual cash flows,
or to both collect contractual cash flows and sell the financial
asset.
F-14
CordovaCann Corp
.
(formerly LiveReel Media Corporation)
Notes to the Consolidated Financial Statements
For the years ended June 30, 2020, 2019 and 2018
(Expressed in Canadian Dollars)
3.
SIGNIFICANT
ACCOUNTING POLICIES (continued)
Financial
instruments (continued)
Financial liabilities
Under IFRS 9,
financial liabilities are primarily classified at amortized cost
with limited exceptions. Financial liabilities are derecognized
when the obligation specified in the contract is discharged,
cancelled or expires. The Company's accounting policy for each
category is as follows:
FVTPL - This
category comprises derivatives, liabilities acquired or incurred
principally for the purpose of selling or repurchasing it in the
near term, and certain financial liabilities that were designated
at FVTPL from inception.
Amortized cost -
Financial liabilities are recognized initially at fair value net of
directly attributable transaction costs. They are subsequently
recognized at amortized cost using effective interest method with
interest expense recognized on an effective yield
basis.
Financial assets
and liabilities are offset and the net amount is presented in the
statement of financial position when the Company has a legal right
to offset the amounts and it intends to either settle on a net
basis or realize the asset and settle the liability
simultaneously.
F-15
CordovaCann Corp
.
(formerly LiveReel Media Corporation)
Notes to the Consolidated Financial Statements
For the years ended June 30, 2020, 2019 and 2018
(Expressed in Canadian Dollars)
3. 
SIGNIFICANT ACCOUNTING POLICIES (continued)
The following table
summarizes the classification of the Company's financial
instruments:
IFRS 9
Classification
Financial assets
Cash
and cash equivalents
Amortized
cost
Promissory
note receivable
Amortized
cost
Other
deposit
Amortized
cost
Other
investment
Amortized
cost
Financial liabilities
Accounts
payable and accrued liabilities
Amortized
cost
Convertible
debentures
Amortized
cost
Mortgage
payable
Amortized
cost
Debenture
unit deposits
Amortized
cost
Promissory
notes payable
Amortized
cost
The adoption of
IFRS 9 did not have an impact on the Company's classification
and measurement of financial assets and liabilities. On adoption of
IFRS 9 on July 1, 2018, there was no change in the carrying value
of the financial instruments on transition from IAS 39. IFRS 9 uses
an expected credit loss impairment model as
F-16
CordovaCann Corp
.
(formerly LiveReel Media Corporation)
Notes to the Consolidated Financial Statements
For the years ended June 30, 2020, 2019 and 2018
(Expressed in Canadian Dollars)
3.
SIGNIFICANT
ACCOUNTING POLICIES (continued)
Financial
instruments (continued)
opposed to an
incurred credit loss model under IAS 39. The impairment model is
applicable to financial assets measured at amortized cost where any
expected future credit losses are provided for, irrespective of
whether a loss event has occurred as at the reporting date. For
accounts receivable excluding taxes receivable, the Company
utilized a provision matrix, as permitted under the simplified
approach, and has measured the expected credit losses based on
lifetime expected credit losses taking into consideration
historical credit loss experience and financial factors specific to
the debtors and other factors. The carrying amount of
trade
receivables is
reduced for any expected credit losses through the use of an
allowance account. Changes in the carrying amount of the allowance
account are recognized in the statement of comprehensive income. At
the point when the Company is satisfied that no recovery of the
amount owing is possible, the amount is considered not recoverable
and the financial asset is written off. The adoption of the new
expected credit loss impairment model had a negligible impact on
the carrying amounts of financial assets at amortized
cost.
Impairment
of long-lived assets
Long-lived assets,
including property, plant and equipment and intangible assets are
reviewed for impairment at each statement of financial position
date or whenever events or changes in circumstances indicate that
the carrying amount of an asset exceeds its recoverable amount. For
the purpose of impairment testing, assets that cannot be tested
individually are grouped together into the smallest group of assets
that generates cash inflows from continuing use that are largely
independent of the cash inflows of other assets or groups of assets
(the cash-generating unit, or "CGU").
The recoverable
amount of an asset or a CGU is the higher of its fair value, less
costs to sell, and its value in use. If the carrying amount of an
asset exceeds its recoverable amount, an impairment charge is
recognized immediately in profit or loss equal to the amount by
which the carrying amount exceeds the recoverable amount. Where an
impairment loss subsequently reverses, the carrying amount of the
asset is increased to the lesser of the revised estimate of
recoverable amount, and the carrying amount that would have been
recorded had no impairment loss been recognized
previously.
Inventories
Inventories for
finished cannabis goods are initially valued at cost, and
subsequently at the lower of cost and net realizable value. Cost is
determined using the average costing method. Net realizable value
is determined as the estimated selling price in the ordinary course
of business less the estimated costs of completion and the
estimated costs necessary to make the sale. The Company reviews
inventory for obsolete, redundant and slow-moving goods and any
such inventories identified are written down to net realizable
value.
Revenue
Revenue from the
sale of cannabis goods is recognized when the significant risks and
rewards of ownership have been transferred, generally at the date
of transfer of ownership title. Revenue from the sale of goods is
measured at the fair value of the consideration
received.
F-17
CordovaCann Corp
.
(formerly LiveReel Media Corporation)
Notes to the Consolidated Financial Statements
For the years ended June 30, 2020, 2019 and 2018
(Expressed in Canadian Dollars)
3.
SIGNIFICANT
ACCOUNTING POLICIES (continued)
Equity
Common shares are
classified as equity. Transaction costs directly attributable to
the issue of common shares and share purchase options are
recognized as a deduction from equity, net of any tax effects. When
share capital recognized as equity is repurchased, the amount of
the consideration paid, including directly attributable costs, is
recognized as a deduction from total equity.
Property
and equipment, net
Equipment is stated
at cost, less accumulated depreciation and any accumulated
impairment losses. The gain or loss arising on the disposal or
retirement of an item of equipment is determined as the difference
between the sales proceeds and the carrying amount of the asset and
is recognized in the statement of operations. Expenditures to
replace a component of an item of equipment that is accounted for
separately are capitalized and the existing carrying amount of the
component written off. Other subsequent expenditures are
capitalized if future economic benefits will arise from the
expenditure. All other expenditures, including repair and
maintenance, are recognized in the statement of operations as
incurred.
Depreciation is
charged to the income statement based on the cost, less estimated
residual value, of the asset on a straight-line basis over the
estimated useful life. Depreciation commences when the assets are
available for use. The estimated useful lives are as
follows:
Method:
Rate:
Equipment
Straight-line
5
years
Furnitures and
fixtures
Straight-line
5
years
Leasehold
improvements
Straight-line
Over the lease
term
Computer
equipment
Straight-line
2
years
Property and
equipment, excluding land, not yet ready for use are not amortized
until they are available for use.
Loss
per share
Basic loss per
share is calculated by dividing net loss by the weighted average
number of common shares outstanding during the period. Diluted loss
per share reflects the dilution that would occur if outstanding
stock options and share purchase warrants were exercised or
converted into common shares using the treasury stock method and
are calculated by dividing net loss applicable to common shares by
the sum of the weighted average number of common shares outstanding
and all additional common shares that would have been outstanding
if
potentially
dilutive common shares had been issued.
The inclusion of
the Company's stock options and share purchase warrants in
the computation of diluted loss per share would have an
anti-dilutive effect on loss per share and are therefore excluding
from the computation. Consequently, there is no difference between
basic loss per share and diluted loss per share.
F-18
CordovaCann Corp
.
(formerly LiveReel Media Corporation)
Notes to the Consolidated Financial Statements
For the years ended June 30, 2020, 2019 and 2018
(Expressed in Canadian Dollars)
3.
SIGNIFICANT
ACCOUNTING POLICIES (continued)
Business
combinations
A business
combination is a transaction or event in which an acquirer obtains
control of one or more businesses and is accounted for using the
acquisition method. The total consideration paid for the
acquisition is the aggregate of the fair values of assets given,
liabilities incurred or assumed, and equity instruments issued in
exchange for control of the acquiree at the acquisition date. The
acquisition date is the date where the Company obtains control of
the acquiree.
The identifiable
assets acquired, and liabilities assumed are recognized at their
acquisition date fair values, except for deferred taxes and
share-based payment awards where IFRS provides exceptions to
recording the amounts at fair value. Acquisition costs are expensed
in statement of operations and comprehensive income (loss).
Contingent consideration, if any, is measured at its acquisition
date fair value and included as part of the consideration
transferred in a business combination.
Contingent
consideration that is classified as equity is not remeasured at
subsequent reporting dates and its subsequent settlement is
accounted for within equity. Contingent consideration that is
classified as an asset or a liability is remeasured at subsequent
reporting dates with the corresponding gain or loss being
recognized in profit or loss.
Non-controlling
interest in the acquiree, if any, is recognized either at fair
value or at the non-controlling interest's proportionate
share of the acquiree's net assets, determined on an
acquisition-by-acquisition basis. For each acquisition, the excess
of total consideration, the fair value of previously held equity
interest prior to obtaining control and the non-controlling
interest in the acquiree, over the fair value of the identifiable
net assets acquired or net liabilities assumed, is recorded as
goodwill. Certain fair values may be estimated at the acquisition
date pending confirmation or completion of the valuation process.
Where provisional values are used in accounting for a business
combination, they may be adjusted retrospectively in subsequent
periods. The measurement period is the period from the acquisition
date to the date complete information about facts and circumstances
that existed as of the acquisition date is received. However, the
measurement period does not exceed one year from the acquisition
date
Goodwill
Goodwill is
initially measured at cost and is calculated as the excess of the
purchase price for an acquired business over the fair value of
acquired net identifiable assets and liabilities and is allocated
to the cash-generating units ("CGU") to which it
relates. Goodwill is not amortized but is evaluated for impairment
against the carrying amount of the CGU annually or more often if
events or circumstances indicate that there may be an impairment.
The carrying amount of a CGU includes the carrying amount of
assets, liabilities and goodwill allocated to the CGU. If the
recoverable amount is less than the carrying value, the impairment
loss is first allocated to reduce the carrying amount of any
goodwill allocated to the CGU and then to the other non-financial
assets of the CGU proportionately based on the carrying amount of
each asset. Any impairment loss is charged to income in the period
in which the impairment is identified. Goodwill is stated at cost
less accumulated impairment losses. Subsequent reversals of
goodwill impairment are prohibited.
F-19
CordovaCann Corp
.
(formerly LiveReel Media Corporation)
Notes to the Consolidated Financial Statements
For the years ended June 30, 2020, 2019 and 2018
(Expressed in Canadian Dollars)
3.
SIGNIFICANT
ACCOUNTING POLICIES (continued)
Intangible
assets
Intangible assets
acquired are measured on initial recognition at cost. The cost of
an intangible asset acquired in a business combination is the fair
value at the date of acquisition. The useful lives of intangible
assets are assessed as either finite or indefinite. Intangible
assets with finite lives are amortized over the useful economic
life and assessed for impairment whenever there is an indication
that the intangible asset may be impaired. The amortization expense
on intangible assets with finite lives is recognised in the
consolidated statement of operations and comprehensive loss.
Intangible assets with indefinite useful lives are not amortized,
but are tested for impairment annually or more frequently when
circumstances indicate that the carrying value may not be
recoverable.
Asset
type
Amortization
method
Amortization
term
Intellectual
Property - Licenses
Straight-line
5
years
Brand
Name
N/A
Indefinite
Estimated useful
lives of intangible assets are shorter of the economic life and the
year the right is legally enforceable. The estimated useful life,
residual value and amortization method are reviewed at the end of
each reporting period, with the effect of any changes in estimate
being accounted for on a prospective basis.
Following initial
recognition, intangible assets with indefinite useful lives are
carried at cost less any accumulated impairment
losses.
Income
taxes
Income tax expense
is comprised of current and deferred tax. Income tax expense is
recognized in profit or loss except to the extent that it relates
to items recognized in equity, in which case it is recognized in
equity. Current income tax is the expected tax payable on the
taxable income for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustments to
tax payable in respect of previous years.
Deferred tax
liabilities or assets are recognized using the balance sheet
method, providing for temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes
and amounts used for taxation purposes. Deferred tax is not
recognized on the initial recognition of assets or liabilities in a
transaction that is not a business combination.
Deferred tax is
measured at the tax rates that are expected to be applied to
temporary differences when they reverse, based on the laws that
have been enacted or substantively enacted by the reporting date.
Deferred tax assets and liabilities are offset if there is a
legally enforceable right to offset, and they relate to income
taxes
levied by the same
tax authority on the same taxable entity, or on different tax
entities, but they intend to settle current tax liabilities and
assets on a net basis or their tax assets and liabilities will be
realized simultaneously.
A deferred tax
asset is recognized to the extent that it is probable that future
taxable profits will be available against which the temporary
difference can be utilized. Deferred tax assets are reviewed at
each reporting date and are reduced to the extent that it is no
longer probable that the related tax benefit will be
realized.
F-20
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Notes to the
Consolidated Financial Statements
For the years ended
June 30, 2020, 2019 and 2018
(Expressed in
Canadian Dollars)
3.
SIGNIFICANT
ACCOUNTING POLICIES (continued)
Leases
The Company adopted
IFRS 16 – Leases ("IFRS 16") on July 1, 2019. The
Company has applied IFRS 16 using the modified retrospective
approach, under which the Company will not restate its comparative
figures but will recognize the cumulative effect of adopting IFRS
16 as an adjustment to opening retained earnings. Additionally, the
Company has elected not to recognize right-of use assets and lease
liabilities for short-term leases that have a lease term of 12
months or less and leases of low-value assets. The following are
the significant accounting policies which have been amended as a
result of IFRS 16, and applied as at July 1, 2019:
Right-of use assets
At inception of a
contract, the Company assesses whether a contract is, or contains,
a lease. A contract is, or contains, a lease if the contract
conveys the right to control the use of an identified asset of a
period of time in exchange for consideration. At inception or on
reassessment of a contract that contains a lease component, the
Company allocates the consideration in the contract to each lease
component on the basis of their relative stand-alone
prices.
Lease obligations
The Company
recognized lease obligation and right-of-use asset for its leased
equipment at the date of adoption of IFRS 16. The lease obligation
is measured at the present value of the remaining lease payments as
of July 1, 2019, discounted using the interest rate implicit in the
lease terms. If that rate cannot be readily determined, the Company
will use its incremental borrowing rate. The Company did not have
any outstanding leases as at July 1, 2019.
The Lease term
determined by the Company comprises:
● The
non-cancellable period of lease contracts, including a rent-free
period if applicable;
● Periods
covered by an option to extend the lease if the Company is
reasonably certain to exercise that option;
● Periods
covered by an option to terminate the lease if the Company is
reasonably certain not to exercise that option.
For leases entered
into after July 1, 2019, the commencement date of the lease begins
on the date on which the lessor makes the underlying asset
available for use to the Company. Lease payments included in the
measurement of the lease obligation are comprised of the
following:
● Fixed lease
payments, including in-substance fixed payments;
● Variable
lease payments that depend on an index or rate, initially measured
using the index or rate at the commencement date;
● Amounts
expected to be payable under a residual value
guarantee;
● The
exercise price of purchase options that the Company is reasonably
certain to exercise;
● Lease
payments in an option renewal period if the Company is reasonably
certain to exercise the extension option;
F-21
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Notes to the
Consolidated Financial Statements
For the years ended
June 30, 2020, 2019 and 2018
(Expressed in
Canadian Dollars)
3.
SIGNIFICANT
ACCOUNTING POLICIES (continued)
● Penalties
for early termination of the lease unless the Company is reasonably
certain not to terminate early; and
● Less any
lease incentives receivable;
Variable payments
for leases that do not depend on an index or rate are not included
in the measurement of the lease obligations. The variable payments
are recognized as an expense in the period in which they are
incurred. The Company accounts for any leases and associated
non-lease components separately, as opposed to a single
arrangement, which is permitted under IFRS 16. The Company records
non-lease components such as an expense in the period in which they
are incurred.
Interest on the
lease obligations is calculated using the effective interest method
and increases the lease obligation while rent payments reduce the
obligation. The lease obligation is remeasured whenever a lease
contract is modified, and the lease modification is not accounted
for as a separate lease, or there is a change in the assessment of
the exercise of an extension option. The lease obligation is
remeasured by discounting the revised lease payments using a
revised discount rate resulting in a corresponding adjustment to
the right-of-use asset or is recorded in gain or loss if the
carrying amount of the right-of-use asset has been reduced to zero
or the modification results in a reduction in the scope of the
lease.
As at July 1, 2019,
the right-of-use asset have been initially calculated at an amount
equal to the initial value of the lease obligation. There is no
impact on retained earnings. For leases entered into, on or after
July 1, 2019, the right-of-use asset will be initially calculated
at an amount equal to the initial value of the lease liability,
adjusted for the following items:
● Any lease
payments made at or before the commencement date, less any lease
incentives received;
● Any initial
direct costs incurred by the Company;
● An estimate
of costs to dismantle and remove the underlying asset or to restore
the site on which the asset is located.
For short-term
leases that have a lease term of 12 months or less and low-value
assets, the Company has elected to not recognize a lease obligation
and right-of-use asset and instead will recognize a lease expense
as permitted under IFRS 16.
The right-of-use
assets will be depreciated using the straight-line from the date of
adoption to the earlier of the end of the useful life of the asset
or the end of the lease term as determined under IFRS 16. For
leases entered into after July 1, 2019, the right-of-use assets
will be depreciated from the date of commencement to the earlier of
the end of the useful life of the asset or the end of the lease
term.
Under IFRS 16,
right-of-use assets are tested for impairment in accordance with
IAS 36, Impairment of Assets which replaces the previous
requirement to recognize a provision for onerous lease contracts
under IAS 37, Provisions, Contingent liabilities and Contingent
assets.
F-22
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Notes to the
Consolidated Financial Statements
For the years ended
June 30, 2020, 2019 and 2018
(Expressed in
Canadian Dollars)
3.
SIGNIFICANT
ACCOUNTING POLICIES (continued)
Significant
accounting judgement and estimates
Information about
critical judgments in applying accounting policies and estimates
that have the most significant effect on the amounts recognized in
these consolidated financial statements is included in the
following notes:
Determination of control
The control
principle in IFRS 10 sets out the three elements of control: power
over the investee; exposure, or rights, to variable returns from
involvement with the investee; and the ability to use power over
the investee to affect the amount of those returns. Judgement is
required in assessing these three elements and reaching a
conclusion on obtaining of control of a business.
Purchase price allocation
The purchase price
allocation for business combination and assets acquisition is based
on the valuation of the assets acquired, liabilities assumed, and
intangible assets identified, including management's process
for developing the estimates and the significant assumptions
underlying the estimates.
Impairment of long-lived assets
Assets, including
property and equipment, are reviewed for impairment whenever events
or changes in circumstances indicate that their carrying amounts
exceed their recoverable amounts. If an impairment assessment is
required, the assessment of fair value often requires estimates and
assumptions such as discount rates, exchange rates, commodity
prices, rehabilitation and restoration costs, future capital
requirements and future operating performance. Changes in such
estimates could impact recoverable values of these assets.
Estimates are reviewed regularly by management.
Useful lives of depreciable assets
The Company
estimates the useful lives for an item of depreciable assets to its
significant parts and depreciates separately each such part.
Management reviews the useful lives of depreciable assets and their
significant parts at each reporting date based on the expected
utility of the assets to the Company. Actual results, however, may
vary due to a variety of factors including technical
obsolescence.
Share-based payment transactions
The Company
measures the cost of equity-settled transactions with goods and
services received by reference to the fair value of the equity
instruments at the date at which they are granted. Estimating fair
value for share-based payment transactions requires determining the
most appropriate valuation model, which is dependent on the terms
and conditions of the grant. This estimate also requires
determining the most appropriate inputs to the valuation model
including the expected life of the stock option, volatility and
dividend yield and making assumptions about them. The assumptions
and models used for estimating fair value for share-based payment
transactions are disclosed in Note 19 and Note 20.
F-23
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Notes to the
Consolidated Financial Statements
For the years ended
June 30, 2020, 2019 and 2018
(Expressed in
Canadian Dollars)
3.
SIGNIFICANT
ACCOUNTING POLICIES (continued)
Provisions and contingencies
The amount
recognized as provision, including legal, contractual, constructive
and other exposures or obligations, is the best estimate of the
consideration required to settle the related liability, including
any related interest charges, taking into account the risks and
uncertainties surrounding the obligation. In addition,
contingencies will only be resolved when one or more future events
occur or fail to occur. Therefore assessment of contingencies
inherently involves the exercise of significant judgment and
estimates of the outcome of future events. The Company assesses its
liabilities and contingencies based upon the best information
available, relevant tax laws and other appropriate
requirements.
Valuation of Convertible Debentures
The convertible
debentures were separated into their liability and equity
components or derivative liability component at the date of issue,
in accordance with the substance of the contractual agreements. The
conversion options require an estimation of the fair value of a
similar liability that doesn't have an associated equity
component by using a suitable discount rate at initial recognition
and each extension date. The carrying amount of the conversion
options is then determined by deducting the fair value of the
financial liability from the fair value of the convertible
debenture as a whole.
4.
STANDARDS
NOT YET EFFECTIVE JULY 1, 2019
New
standards not yet adopted and interpretations issued but not yet
effective
The following IFRS
standards have been recently issued by the IASB. Pronouncements
that are irrelevant or not expected to have a significant impact
have been excluded.
IFRS 10 -
Consolidated Financial Statements ("IFRS 10")
IFRS 10 and IAS 28
– Investments in Associates and Joint Ventures ("IAS
28") were amended in September 2014 to address a conflict
between the requirements of IAS 28 and IFRS 10 and clarify that in
a transaction involving an associate or joint venture, the extent
of gain or loss recognition depends on whether the assets sold or
contributed constitute a business. The effective date of these
amendments is yet to be determined, however early adoption is
permitted.
Amendments to IFRS
3: Definition of a Business
In October 2018,
the IASB issued "Definition of a Business (Amendments to IFRS
3)". The amendments clarify the definition of a business,
with the objective of assisting entities to determine whether a
transaction should be accounted for as a business combination or as
an asset acquisition. The amendment provides an assessment
framework to determine when a series of integrated activities is
not a business. The amendments are effective for business
combinations occurring on or after the beginning of the first
annual reporting period beginning on or after January 1, 2020.
The Company has evaluated the potential impact of these amendments
and concluded that there is no impact to the Company's
consolidated financial statements.
Amendments to IAS
1: Classification of Liabilities as Current or
Non-current
F-24
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Notes to the
Consolidated Financial Statements
For the years ended
June 30, 2020, 2019 and 2018
(Expressed in
Canadian Dollars)
4.
STANDARDS
NOT YET EFFECTIVE JULY 1, 2019 (continued)
The amendment
clarifies the requirements relating to determining if a liability
should be presented as current or non-current in the statement of
financial position. Under the new requirement, the assessment of
whether a liability is presented as current or non-current is based
on the contractual arrangements in place as at the reporting date
and does not impact the amount or timing of recognition. The
amendment applies retrospectively for annual reporting periods
beginning on or after January 1, 2022. The Company is currently
evaluating the potential impact of these amendments on the
Company's consolidated financial statements.
Amendments to IAS
37: Onerous Contracts and the cost of Fulfilling a
Contract
The amendment
specifies that 'cost of fulfilling' a contract
comprises the 'costs that relate directly to the
contract'. Costs that relate directly to a contract can
either be incremental costs of fulfilling that contract or an
allocation of other costs that relate directly to fulfilling
contracts. The amendment is effective for annual periods beginning
on or after January 1, 2022 with early application permitted. The
Company is currently evaluating the potential impact of these
amendments on the Company's consolidated financial
statements.
5.
PROMISSORY NOTE RECEIVABLE
On
June 7, 2018, the Company entered into a revolving promissory note
with a customer (the "Promissory Note"). The Promissory
Note was unsecured, bearing interest at 8% per annum and due twelve
months from the date of issuance. Due to issues related to the
expected collectability of the Promissory Note, the total amount of
the promissory note amounting to $85,114 was impaired during the
year ended June 30, 2019 (2018 - $nil). As at June 30, 2020 and
2019, $nil was outstanding under the Promissory Note.
6.
OTHER INVESTMENT
On
September 18, 2018, the Company subscribed for 500,000 convertible
preferred shares of NWN Inc. ("NWN") at a price of
$1.00 per preferred share (each, a "Preferred Share")
for a total consideration of $500,000. Each Preferred Share is
convertible into one common share of NWN, subject to appropriate
adjustments for any stock splits, consolidations or other
recapitalizations. The Company has pledged the Preferred Shares of
NWN as security for Promissory Note B as disclosed in Note 15. Due
to the default provisions of Promissory Note B, the pledged
Preferred Shares for NWN were called on October 26, 2020 as
described on Note 28, and resulted in loss on the settlement of
debt in the amount of $184,540.
7.
RIGHT-OF-USE ASSETS
The
Company recognized the right-of-use asset for it leased properties
as follows:
$
Balance, June 30, 2019
-
Additions
2,631,837
Depreciation
for the year
(92,167
)
Balance, June 30, 2020
2,539,670
Leased properties
are amortized over the terms of their respective
leases.
F-25
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Notes to the
Consolidated Financial Statements
For the years ended
June 30, 2020, 2019 and 2018
(Expressed in
Canadian Dollars)
8.
PROPERTY AND EQUIPMENT, NET
Property and
equipment, net consists of the following:
Equipment
Land
Building
Construction in progress
Leasehold improvements
Computer equipment
Furnitures and fixtures
Total
$
$
$
$
$
$
$
$
Cost
As at June 30, 2018
151,188
-
-
-
-
-
-
151,188
Additions
-
523,480
1,361,048
1,760,861
-
-
-
3,645,389
Translation
adjustment
-
-
-
-
-
-
-
-
Impairment
charge
(151,188
)
-
-
-
-
-
-
(151,188
)
As at June 30, 2019
-
523,480
1,361,048
1,760,861
-
-
-
3,645,389
Additions
-
-
-
1,130,183
44,645
30,984
1,205,812
Translation
adjustment
-
21,640
56,264
72,792
-
-
-
150,696
Impairment
charge
-
-
-
-
(16,316
)
-
-
- 16,316
As at June 30, 2020
-
545,120
1,417,312
1,833,653
1,113,867
44,645
30,984
4,985,581
Accumulated depreciation
As at June 30, 2018
12,770
-
-
-
-
-
-
12,770
Depreciation
30,529
-
-
-
-
-
-
30,529
Impairment
charge
(43,299
)
-
-
-
-
-
-
(43,299
)
As at June 30, 2019
-
-
-
-
-
-
-
-
Depreciation
-
-
-
-
(2,027
)
(2,708
)
(1,033
)
(5,768
)
Impairment
charge
-
-
-
-
-
-
-
-
As at June 30, 2020
-
-
-
-
(2,027
)
(2,708
)
(1,033
)
(5,768
)
Net book value ($)
At
June 30, 2019
-
523,480
1,361,048
1,760,861
-
-
-
3,645,389
At June 30, 2020
-
545,120
1,417,312
1,833,653
1,111,840
41,937
29,951
4,979,813
During
the year ended June 30, 2020, the Company incurred a depreciation
expense in the amount of $5,768 (2019 - $30,529 and 2018 - $12,770,
included in cost of sales).
Equipment
During
the year ended June 30, 2019, the Company expensed $30,529 in
depreciation (June 30, 2018 – $12,770) which has been
recorded as cost of sales in relation to the below lease agreement.
The equipment during the year ended June 30, 2019 was deemed
impaired by management and an impairment charge was recorded in the
amount of $107,515 which included a foreign translation adjustment
of $374.
The Company entered
into an operating lease (the "Lease") on February 1,
2018, under which the lessee (the "Lessee") agreed to
lease the above equipment for an initial period of twelve months.
On February 1, 2019, the Lease was automatically extended for an
additional period of twelve months. The Lessee shall make monthly
payments of US $5,040 due on or before the first day of each
respective month.
During the year
ended June 30, 2019
, the Company had unrecognized rental
revenue in the amount of $80,057 (June 30, 2018 – $24,159),
as a result of the Lease. The Company has not recorded rental
revenue pending a determination by the Company that collectability
is reasonably assured. The Company will recognize revenue upon
receipt.
Land, building and construction in progress
On April 4, 2018,
the Company entered into an agreement to acquire a 27.5% interest
of Cordova OR Operations, LLC ("OR Operations") for the
acquisition of land and buildings. Under the terms of the
agreement, the Company acquired a 27.5% membership interest in OR
Operations for $534,311 (US $400,000). On June 19, 2019, the
Company purchased the remaining 72.5% interest in OR Operations for
$1,361,048 (US$1,040,000)
(Note
10
). The Company spent $1,760,861 for the construction in
progress during the year ended June 30, 2019. Depreciation on these
assets will be recorded from the date when these assets are
available for use. As at June 30, 2020, the value of land, building
and construction in progress amounted to $3,796,085 (June 30, 2019
- $3,645,389), reflecting a change in value due to foreign currency
translation in the amount of $150,696. As at June 30, 2020, these
assets were not available for use.
F-26
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Notes to the
Consolidated Financial Statements
For the years ended
June 30, 2020, 2019 and 2018
(Expressed in
Canadian Dollars)
8.
PROPERTY AND EQUIPMENT, NET (continued)
Leasehold improvements
Leasehold
improvements include those acquired as part of the asset
acquisition of Star Buds International Inc., as disclosed in Note
11 in the amount of 1,060,224. As at June 30, 2020, these assets
were not available for use. Management assessed the indicators of
impairment and determined that the leasehold improvements were
impaired and resulted of impairment of assets in the amount of
$16,316 during the year ended June 30, 2020.
9.
INVENTORY
The Company's
inventory only includes purchased products. The Company's
purchased inventory during the year ended June 30, 2020 amounted to
$225,424 (June 30, 2019 - $nil). During the year ended June 30,
2020, there was no impairment of inventory (June 30, 2019 - $Nil).
Inventory recognized as cost of goods sold amounted to
$106,742.
10.
ACQUISITION
OF CORDOVA OR OPERATIONS, LLC
On April 4, 2018,
the Company entered into an agreement to acquire a 27.5% interest
of Cordova OR Operations, LLC ("OR Operations") for the
acquisition of land and buildings. Under the terms of the
agreement, the Company acquired a 27.5% membership interest in OR
Operations for $534,311 (US $400,000). On June 19, 2019, the
Company purchased the remaining 72.5% interest in OR Operations for
$1,361,048 (US$1,040,000)
(Note
8).
The acquisition of OR Operations did not meet the
minimum requirements of a business and therefore the Company has
accounted for the transaction as an asset acquisition.
On June 19, 2019,
the total asset acquisition amounted to $3,645,389, comprised of
land, building and construction in progress, which were transferred
to property and equipment, net (
Note 8
).
11.
ASSET
ACQUISITION OF STAR BUDS INTERNATIONAL INC.
On
April 8, 2020 (the "Closing date"), the Company
completed the purchase of certain tangible assets and intellectual
property (the "Assets") of an arm's length
Canadian cannabis corporation (the "Transaction"), Star
Buds International Inc. (the "Vendor" or "Star
Buds").
To
acquire the Assets from the Vendor, the Company:
(i)
issued
12,500,000 common shares of the Company on the Closing date of the
Transaction, in exchange for the Assets held and related to five
retail cannabis stores and four medical cannabis
clinics;
(ii)
agreed
to issue 3,000,000 common shares of the Company for each additional
lease assignment in Alberta to the Company, up to a maximum of
6,000,000 common shares of the Company;
(iii)
agreed
to issue 3,000,000 common shares of the Company for the opening of
each retail store, up to a maximum of 15,000,000 common shares of
the Company. Each store must be opened by April 8, 2021 for the
Vendor to receive this additional consideration;
(iv)
issued a three-year promissory note for $527,967
with interest at 6% per annum payable upon maturity (the
"Closing Promissory Note"). The fair value of the
promissory notes was determined to be $381,093 (
Note 15
(e))
;
(v)
agreed to issue two additional three-year
promissory notes in amounts $222,500 and $196,832 upon obtaining
assignment of two specific leases to the Company. Such additional
notes to have same terms as the Closing Promissory Note. The fair
values of the promissory notes were determined to be $160,603 and
$142,075 (
Note 15
(e)).
The consideration
payables as per note (ii) and (iii) above are considered a
contingent consideration. Management assessed the probability of
the issuance of shares noted in (ii) and (iii) above to be highly
probable. The total fair value of the 21,000,000 contingently
issuable shares is estimated to be $3,570,000. The Company has
referred to IFRS 3 by analogy and accordingly, the contingent
consideration has been recorded as part of the cost of the
purchase. The Contingent consideration of shares has been
classified as equity, as the number of shares to be issued has been
fixed based on the Company's share price a day prior to the
closing date.
On May 8, 2020, the
Company obtained two additional lease assignments in Alberta and
issued 6,000,000 common shares of the Company to the Vendor.
Accordingly, the value of the 6,000,000 common shares amounting to
$1,020,000 was transferred from contingently issuable shares to
share capital.
As at June 30,
2020, the Company had opened a retail store in Barrie under the
Star Buds's brand name, resulting in the Company required to
issue additional 3,000,000 common shares to the Vendor.
Accordingly, the value of the 3,000,000 common shares amounting to
$510,000 was transferred from contingently issuable shares to
shares to be issued.
F-27
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Notes to the
Consolidated Financial Statements
For the years ended
June 30, 2020, 2019 and 2018
(Expressed in
Canadian Dollars)
11.
ASSET
ACQUISITION OF STAR BUDS INTERNATIONAL INC.
(continued)
$
Consideration paid
33,500,000
common shares at $0.17 per share
5,695,000
Initial
promissory note (iv)
381,093
Additional
promissory notes (v)
302,678
6,378,771
Liabilities
assumed
55,000
6,433,771
Amount allocated to:
Leasehold
improvements
1,060,224
Rental
deposits
129,580
Intangible
asset - Star Buds trade name
5,243,967
Balance, June 30, 2020
6,433,771
12.
ACQUISITION
OF 2734158 ONTARIO INC.
On May 15, 2020,
the Company entered into a subscription agreement to acquire 50.1%
ownership interest in 2734158 Ontario Inc. ("273
Ontario") by subscribing to 501,000 common shares of 273
Ontario for a total consideration of $723,000 (the
"Acquisition"). Pursuant to the subscription
agreement, the subscription price (the "Subscription
Price") will be paid as follows:
●
payment of $200,000
on May 15, 2020 and issuance of 138,589 common
shares;
●
payment of $200,000
on June 15, 2020 and issuance of 138,589 common
shares;
●
payment of $200,000
on July 15, 2020 and issuance of 138,589 common shares;
and
●
payment of $123,000
on August 15, 2020 and issuance of 85,233 common
shares.
The following table
summarises the recognized amounts of assets acquired and
liabilities assumed at the date of acquisition.
Cash
48,850
Other
assets
59,040
Computer equipment
16,337
Furniture and fixture
27,222
Leasehold improvement
46,081
Liabilities assumed
(20,328
)
Total identifiable net assets
acquired
177,202
F-28
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Notes to the
Consolidated Financial Statements
For the years ended
June 30, 2020, 2019 and 2018
(Expressed in
Canadian Dollars)
12.
ACQUISITION
OF 2734158 ONTARIO INC. (continued)
The subscription
amount payable of $323,000 outstanding to 2734158 Ontario Inc. as
at year end was paid subsequent to the year ended June 30,
2020.
The non-controlling
interest is calculated as follow.
$
Consideration
723,000
Ownership
50.1
%
Fair
value of assets acquired
1,443,114
Consideration
(723,000
)
Non-controlling
interest
720,114
Licenses allocated
from the acquisition has been recognized as follows.
Consideration
transferred
723,000
Consideration
received by 273 Ontario
(723,000
)
Non-controlling
interest
720,114
Fair
value of identifiable net assets
(177,202
)
Fair value of licenses
542,912
13.
LEASE
LIABILITY
The following table
represents the lease obligations for the Company as at June 30,
2020:
$
Balance, June 30, 2019
-
Additions
2,631,837
Interest
expense
46,171
Lease
payments
(95,524
)
Balance, June 30, 2020
2,582,484
F-29
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Notes to the
Consolidated Financial Statements
For the years ended
June 30, 2020, 2019 and 2018
(Expressed in
Canadian Dollars)
13.
LEASE
LIABILITY (continued)
Allocated
as:
As at
June 30, 2020
As at June 30,
2019
$
$
Current
253,205
-
Long-term
2,329,279
-
Total
2,582,484
-
The following table
presents the contractual undiscounted cash flows for lease
obligations as at June 30, 2020:
$
Less
than one year
423,429
One
to five years
1,722,465
More
than five years
1,094,038
Total
undiscounted lease obligation
3,239,932
When
measuring the lease obligation, the Company discounted the lease
payments using the implicit interest rate in the lease terms. The
Company has a lease with a term less than 12 months and recorded
$12,330 rent expense attributed to short-term leases during the
year ended June 30, 2020.
14.
MORTGAGE
PAYABLE
On
June 16, 2019, the Company obtained financing through a mortgage
(the "Mortgage") in the amount of $696,117 (US
$531,915) against a property that has title to 6 acres of real
estate in Clackamas County, Oregon (the "Property").
The Mortgage was due in six months from the date of the agreement
at an initial draw of $654,350 (US $500,000), implying interest at
a rate of 12.77% per annum. The Mortgage after the date of default
bears interest at 12% per annum, payable monthly, until the
repayment of the outstanding amount. The Mortgage was secured by a
first charge on the Property.
On
June 12, 2020, the Company entered into a new mortgage (the
"New Mortgage'), in the amount of $815,760 (US
$600,000), and paid off the existing Mortgage and accrued interest
of $724,894 (USD$531,914). The New Mortgage bears interest at 12%,
is secured by a first charge on the Property and matures on
December 15, 2020. The transaction cost of $52,045 was deducted
from the initial carrying value of the mortgage payable and was
recognized into profit and loss over the term of the mortgage
payable.
The mortgage payable outstanding as at June 30,
2020 was $766,531 (June 30, 2019
–
$657,633). Total interest expense in relation to
the mortgage payable for the year ended June 30, 2020 amounted to
$88,667 (June 30, 2019
–
$3,002).
F-30
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Notes to the
Consolidated Financial Statements
For the years ended
June 30, 2020, 2019 and 2018
(Expressed in
Canadian Dollars)
15.
PROMISSORY
NOTES PAYABLE
a)
Promissory Note A – February 1, 2019
On February 1,
2019, the Company issued an unsecured promissory note (the
"Promissory Note A") in the principal amount of
$196,425 (US $150,000). The Promissory Note A matured on May 1,
2019 and bears interest at a rate of 10% per annum, accrued monthly
and due at maturity. As at the date of these financial statements,
the Promissory Note A is in default and remains outstanding. In
connection with the Promissory Note A, the Company also issued
warrants for the purchase of 150,000 common shares of the Company
exercisable until January 31, 2020 at a price of $1.00 per
share.
The Promissory Note
A was determined to be a compound instrument, comprising a
liability and warrants. The initial carrying amount of the
financial liability was determined by discounting the stream of
future payments of interest and principal at a market interest rate
of 19% which is estimated to be the borrowing rate available to the
Company for similar instruments of debt having no warrants. Using
the residual method, the carrying amount of the warrants issued is
the difference between the principal amount and the initial fair
value of the financial liability. The fair value of the liability
was determined to be $192,142 (US $146,729). The residual value of
$4,283 (US $3,271) was allocated to warrants. The carrying value of
the Promissory Note A, net of the warrant component, has been
accreted using the effective interest rate method over the term of
the Promissory Note A, such that the carrying amount of the
financial liability will equal the principal balance at
maturity.
During the year
ended June 30, 2020, the Company repaid $68,140 (US $50,000) to the
lender. As at June 30, 2020, the principal amount of $136,280 (US
$100,000) and accrued interest of $28,062 (US $20,591) were
outstanding (June 30, 2019 – $204,484). Accretion expense of
$nil (June 30, 2019 - $8,715) and interest expense of $19,227 (June
30, 2019 - $8,340) was recorded for the year ended June 30,
2020.
b)
Promissory Note B – June 12, 2019
On June 12, 2019,
the Company issued a secured promissory note (the "Promissory
Note B") in the principal amount of $261,740 (US $200,000).
The Promissory Note B matured on March 31, 2020 and bears interest
at a rate of 15% per annum, accrued monthly and due at maturity.
The Promissory Note B was secured by the convertible preferred
shares investment in NWN (
Note
6
).
Due to the default
provisions of Promissory Note B, the pledged Preferred Shares for
NWN were called and resulted the loss on the settlement of debt in
the amount of $184,540.
As at June 30,
2020, the value of the Promissory Note B amounted to $nil (June 30,
2019 – $263,690). Interest expense in the amount of $40,280
was recorded for the year ended June 30, 2020 (June 30, 2019 -
$1,950).
F-31
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Notes to the
Consolidated Financial Statements
For the years ended
June 30, 2020, 2019 and 2018
(Expressed in
Canadian Dollars)
15.
PROMISSORY
NOTES PAYABLE (continued)
c)
Promissory Note C – June 19, 2019
On June 19, 2019,
the Company issued secured promissory notes (the "Promissory
Note C") in the aggregate principal amount of $654,350 (US
$500,000). The Promissory Note C matured on December 18, 2019 and
bears interest at a rate of 15% per annum, accrued monthly and due
at maturity. The Promissory Note C is secured by a general security
interest over all the assets of Cordova OR Holdings, LLC, a wholly
owned subsidiary of the Company and parent to OR Operations. In
connection with the Promissory Note C, the Company issued warrants
for the purchase of 200,000 common shares of the Company
exercisable until June 18, 2021 at a price of $1.00 per
share.
The Promissory Note
C was determined to be a compound instrument, comprising of a
liability and warrants. The initial carrying amount of the
financial liability was determined by discounting the stream of
future payments of interest and principal at a market interest rate
of 19% which is estimated to be the borrowing rate available to the
Company for similar instruments of debt having no warrants. Using
the residual method, the carrying amount of the warrants issued is
the difference between the principal amount and the initial fair
value of the financial liability.
The fair value of
the liability was determined to be $652,675 (US $489,152). The
residual value of $14,367 (US $10,848) was allocated to warrants.
The carrying value of the Promissory Note C, net of the warrant
component, has been accreted using the effective interest rate
method over the term of the Promissory Note C, such that the
carrying amount of the financial liability will equal the principal
balance at maturity.
On December 16,
2019, the Company extended the maturity date of the Promissory Note
C to March 19, 2020 (the "Extension") in exchange for a
one-time fee in the amount $13,142 (US $10,000), due at maturity
and the issuance of additional warrants for the purchase of 200,000
common shares of the Company exercisable until June 18, 2021 at a
price of $0.30 per share.
On the date of the
Extension, the fair value of the liability was determined to be
$696,151 (US $530,643). The residual value of $8,995 (US $6,857)
was allocated to warrants. The carrying value of Promissory Note C,
as a result of the Extension, net of the warrant component, has
been accreted using the effective interest rate method over the
term of the Promissory Note C, such that the carrying amount of the
financial liability will equal the principal balance at
maturity.
On March 16, 2020,
the Company extended the maturity date of the Promissory Note C to
June 19, 2020 in exchange for a fee in the amount $13,142 (US
$10,000), due at maturity. On June 15, 2020, the Company extended
the maturity date of the Promissory Note C to December 19, 2020 in
exchange for a fee in the amount $40,472 (US $29,750), due at
maturity.
As at June 30,
2020, the value of the Promissory Note C amounted to $817,935 (US
$600,188) (June 30, 2019 - $644,020). Accretion expense of $22,671
(June 30, 2019 - $847) and interest expense $131,893 (June 30, 2019
- $3,020) was recorded for the year ended June 30,
2020.
F-32
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Notes to the
Consolidated Financial Statements
For the years ended
June 30, 2020, 2019 and 2018
(Expressed in
Canadian Dollars)
15.
PROMISSORY
NOTES PAYABLE (continued)
d)
Promissory Note D – October 28, 2019
On October 28,
2019, the Company issued a promissory note (the "Promissory
Note D") in the principal amount of $391,680 (US $300,000).
The Promissory Note D matured on December 31, 2019 and bears
interest at a rate of 5% per annum, accrued monthly and due at
maturity. Subsequent to the issuance,
the Promissory Note D was extended until October
31, 2020 for a one-time fee of US $40,000. Interest on the
Promissory Note D subsequent to the maturity date bears interest at
15% per annum.
The Promissory Note D is secured by a
personal guarantee of vendors.
On May 25, 2020,
the Company issued 453,720 common shares of the Company at a price
of $0.25 per share for $113,317 (US $78,150) of Promissory Note D
(
Note 18
). As at June 30,
2020, the value of the Promissory Note D amounted to $332,149 (June
30, 2019 - $nil). Interest expense of $92,165 was recorded for the
year ended June 30, 2020 (June 30, 2019 – $nil).
e)
Promissory Note E – April 8, 2020
On April 28, 2020, the Company issued a promissory
note (the "Promissory Note E-1") in the principal
amount of $527,967.49
(Note 11).
The Promissory Note E-1 matures on April 8, 2023
and bears interest at a rate of 6% per annum, calculated in
arrears, compounded annually and payable at maturity. The fair
value of $381,093 for the Promissory Note E-1 was determined by
discounting the stream of future payments of interest and principal
at a market interest rate of 19% which is estimated to be the
borrowing rate available to the Company for similar instruments of
debt.
On
May 8, 2020, the Company repaid $90,803 of the principal in cash
and issued 181,250 of its common shares to settle $72,500 of the
principal outstanding. Further, on June 30, 2020 the Company repaid
$20,000 of the principal.
As
at June 30, 2020, the value of the Promissory Note E-1 amounted to
$260,988 (June 30, 2019 - $nil). Interest and accretion expense of
$6,454 and $6,851 respectively was recorded for the year ended June
30, 2020 (June 30, 2019 – $nil).
On June 8, 2020, the Company issued a promissory
note (the "Promissory Note E-2") in the principal
amount of $225,000
(Note 11).
. The Promissory Note E-2 matures on April 8, 2023
and bears interest at a rate of 6% per annum, calculated in
arrears, compounded annually and payable at maturity. The fair
value of $160,603 for the Promissory Note E-2 was determined by
discounting the stream of future payments of interest and principal
at a market interest rate of 19% which is estimated to be the
borrowing rate available to the Company for similar instruments of
debt.
As
at June 30, 2020, the value of the Promissory Note E-2 amounted to
$162,868 (June 30, 2019 - $nil). Interest and accretion expense of
$1,461 and $805 respectively was recorded for the year ended June
30, 2020 (June 30, 2019 – $nil).
F-33
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Notes to the
Consolidated Financial Statements
For the years ended
June 30, 2020, 2019 and 2018
(Expressed in
Canadian Dollars)
15.
PROMISSORY
NOTES PAYABLE (continued)
On June 8, 2020, the Company issued a promissory
note (the "Promissory Note E-3") in the principal
amount of $196,832
(Note 11)
. The Promissory Note E-3 matures on April 8, 2023
and bears interest at a rate of 6% per annum, calculated in
arrears, compounded annually and payable at maturity. The fair
value of $142,075
for
the Promissory Note E-3 was determined by discounting the stream of
future payments of interest and principal at a market interest rate
of 19% which is estimated to be the borrowing rate available to the
Company for similar instruments of debt.
As
at June 30, 2020, the value of the Promissory Note E-3 amounted to
$144,079 (June 30, 2019 - $nil). Interest and accretion expense of
$1,292 and $771.83 respectively was recorded for the year ended
June 30, 2020 (June 30, 2019 – $nil).
16.
DEBENTURE UNIT DEPOSITS
During the year
ended June 30, 2019, the Company received a total of $594,889 in
deposits related to subscriptions for a convertible debenture unit
offering (the "Offering"). Each $1,000 unit of the
Offering shall be comprised of a $1,000 principal amount of 10%
unsecured subordinated convertible debenture and 500 common share
purchase warrants. The debentures shall mature twenty-four months
from the date of issuance and shall be exercisable into common
shares of the Company at a price of $1.00 per share any time prior
to maturity by the holder and at the option of the Company in
certain circumstances. The warrants shall be exercisable for a
period of twenty-four months from the date of issuance and
exercisable at a price of $1.20 per share. The Offering was closed
on August 14, 2019 and the convertible debentures
(Note 17 (b)).
17.
CONVERTIBLE
DEBENTURES
a)
Convertible Debentures Series A-1 – March 13,
2019
On March 13, 2019,
the Company closed a non-brokered private placement of unsecured
subordinated convertible debenture units (the "Debenture
Units of Series A-1") of the Company for gross proceeds of
$600,000; of which $350,000 was received in cash and $250,000 was
issued in settlement of outstanding fees with a fair value
amounting to $237,300. The balance of $12,700 has been recorded as
a loss on settlement of fees.
Each Debenture Unit
of Series A-1 consists of $1,000 principal amount of unsecured
subordinated convertible debentures (the "Debentures of
Series A-1") and 500 common share purchase warrants (the
"Warrants of Series A-1") of the Company. The
Debentures of Series A-1 mature on March 12, 2021 and bear interest
at a rate of 10% per annum, accrued monthly and payable at
maturity. The outstanding principal amount of the Debentures of
Series A-1 and any accrued interest is convertible into common
shares of the Company at the option of the holder at any time prior
to the maturity date at a conversion price of $1.00 per share. The
Company also has the option to force conversion of the Debentures
of Series A-1 and any accrued interest at the same conversion price
if the Company's common shares trade above $2.50 per share
for ten consecutive trading days on the Canadian Securities
Exchange. Each full Warrant of Series A-1 entitles the holder to
purchase one common share of the Company until March 12, 2021 at an
exercise price of $1.20 per share. 300,000 Warrants of Series A-1
were issued related to the Debenture Units of Series
A-1.
F-34
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Notes to the
Consolidated Financial Statements
For the years ended
June 30, 2020, 2019 and 2018
(Expressed in
Canadian Dollars)
17.
CONVERTIBLE
DEBENTURES (continued)
The Debenture Units
of Series A-1 are determined to be a compound instrument,
comprising a liability, a conversion feature and warrants. Both
conversion feature and warrants met the fixed for fixed criteria
and were therefore presented as equity instruments in accordance
with IAS 32. The fair value of the debt component was determined by
discounting the stream of future payments of interest and principal
at a market interest rate of 19% which is estimated to be the
borrowing rate available to the Company for similar instruments of
debt having no conversion rights. Using the residual method, the
carrying amount of the conversion feature and the warrants issued
is the difference between the principal amount and the initial fair
value of the financial liability.
The fair value of
the liability was determined to be $508,439. The residual value of
$91,561 was allocated to the equity portion of convertible debt and
warrants based on their pro-rata fair values of $62,498 and
$29,063, respectively. The carrying value of the Debentures of
Series A-1, net of the equity components, have been accreted using
the effective interest rate method over the term of the debentures,
such that the carrying amount of the financial liability will equal
the principal balance at maturity.
The equity
component from the initial recognition resulted taxable temporary
difference. The Company recognized the deferred tax liabilities of
24,264, which was charged directly to the carrying amount of the
two equity components. Subsequent changes in the deferred tax
liability are recognized in profit and loss as deferred tax
recovery.
On January 16,
2020, the Company issued 271,164 common shares at $1.00 per share
as a result of a partial conversion of the outstanding Debentures
of Series A-1 with a face value of principal $250,000 and accrued
interest of $21,164. The debt in the amount of $271,164 and the
equity in the amount of $21,979, were transferred to share capital
upon conversion.
As at June 30,
2020, the value of the Debentures of Series A-1 amounted to
$381,678 (June 30, 2019 – $546,460). Accretion expense of
$57,806 (June 30, 2019 - $15,118) and interest expense of $48,275
(June 30, 2019 - $22,903) were recorded for the year ended June 30,
2020. Accordingly, the Company recorded deferred tax recovery of
$15,316 for the year ended June 30, 2020 (2019 -
$nil).
b)
Convertible Debentures Series A-2 – August 14,
2019
On August 14, 2019,
the Company closed a non-brokered private placement of unsecured
subordinated convertible debenture units (the "Debenture
Units of Series A-2") of the Company for gross proceeds of
$713,000 (
Note
16
).
F-35
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Notes to the
Consolidated Financial Statements
For the years ended
June 30, 2020, 2019 and 2018
(Expressed in
Canadian Dollars)
17.
CONVERTIBLE
DEBENTURES (continued)
Each Debenture Unit
of Series A-2 consists of $1,000 principal amount of unsecured
subordinated convertible debentures (the "Debentures of
Series A-2") and 500 common share purchase warrants (the
"Warrants of Series A-2") of the Company. The
Debentures of Series A-2 mature on August 13, 2021 and bear
interest at a rate of 10% per annum, accrued monthly and payable at
maturity. The outstanding principal amount of the Debentures of
Series A-2 and any accrued interest is convertible into common
shares of the Company at the option of the holder at any time prior
to the maturity date at a conversion price of $1.00 per share. The
Company also has the option to force conversion of the Debentures
of Series A-2 and any accrued interest at the same conversion price
if the Company's common shares trade above $2.50 per share
for ten consecutive trading days on the Canadian Securities
Exchange. Each full Warrant of Series A-2 entitles the holder to
purchase one
common share of the
Company until August 13, 2021 at an exercise price of $1.20 per
share. As a result, 356,500 Warrants of Series A-2 were issued
related to the Debenture Units of Series A-2.
The Debenture Units
of Series A-2 were determined to be a compound instrument,
comprising a liability, a conversion feature and warrants. The fair
value of debt component was determined by discounting the stream of
future payments of interest and principal at a market interest rate
of 19% which is estimated to be the borrowing rate available to the
Company for similar instruments of debt having no conversion
rights. Using the residual method, the carrying amount of the
conversion feature and the warrants issued is the difference
between the principal amount and the initial fair value of the
financial liability.
The fair value of
the liability was determined to be $604,195. The residual value of
$108,805 was allocated to the equity portion of convertible debt
and warrants based on their pro-rata fair values of $74,989 and
$33,816, respectively. The deferred tax liability of $28,833 was
charged directly to the carrying amount of these two equity
components. The carrying value of the Debentures of Series A-2, net
of the equity components, have been accreted using the effective
interest rate method over the term of the debentures, such that the
carrying amount of the financial liability will equal the principal
balance at maturity.
On April 22, 2020,
the Debenture Units of Series A-2 were converted into the
Convertible Debentures Series A-3 offering. The principal amount of
$713,000, the accrued interest of 49,614 and a small loss of
$1,614, for total transfer of $761,000 were transferred to
Convertible Debentures Series A-3. The total amount of interest and
accretion amounted to $49,614 and 33,454, respectively. The Company
recorded deferred tax recovery of $28,833 for the year ended June
30, 2020.
F-36
CordovaCann Corp
.
(formerly LiveReel Media Corporation)
Notes to the Consolidated Financial Statements
For the years ended June 30, 2020, 2019 and 2018
(Expressed in Canadian Dollars)
17.
CONVERTIBLE
DEBENTURES (continued)
c)
Convertible Debentures Series A-3 – April 22,
2020
On April 22, 2020,
the Company closed a non-brokered private placement of unsecured
subordinated convertible debenture units (the "Debenture
Units of Series A-3") of the Company for gross proceeds of
$1,164,000.
Each Debenture Unit
of Series A-3 consists of $1,000 principal amount of unsecured
subordinated convertible debentures (the "Debentures of
Series A-3") and 2,000 common share purchase warrants (the
"Warrants of Series A-3") of the Company. The
Debentures of Series A-3 mature on April 21, 2021 and bear interest
at a rate of 15% per annum, accrued monthly and payable at
maturity. The outstanding principal amount of the Debentures of
Series A-3 and any accrued interest is convertible into common
shares of the Company at the option of the holder at any time prior
to the maturity date at a conversion price of $0.25 per share. The
Company also has the option to force conversion of the Debentures
of Series A-3 and any accrued interest at the same conversion price
if the Company's common shares trade above $0.50 per share
for ten consecutive trading days on the Canadian Securities
Exchange. Furthermore, the Debentures of Series A-3 and accrued
interest shall automatically convert into common shares of the
Company at maturity. Each full Warrant of Series A-3 entitles the
holder to purchase one common share of the Company until April 21,
2022 at an exercise price of $0.30 per share. As a result,
2,328,000 Warrants of Series A-3 were issued related to the
Debenture Units of Series A-3.
Prior to closing of
the Offering, the Company exercised its rights of early repayment
in respect of certain of the Convertible Debentures of Series A-2
of the Company issued on August 14, 2019 and, in connection with
its election for early repayment, holders of the Convertible
Debentures of Series A-2 directed the Company to retain the funds
representing such repayment and to apply such funds towards
satisfaction of the purchase price for the respective Debenture of
Series A-3. The Company issued an aggregate of 761 Debenture Units
to the subscribers of the Debentures of Series A-2.
The Debenture Units
of Series A-3 were determined to be an equity instrument,
comprising a conversion feature and warrants as a result of the
Company being able to avoid a contractual obligation to pay cash
related to the principal and interest at maturity. The subscription
amount of $1,164,000 was allocated to the equity portion of
convertible debt and warrants based on their pro-rata fair values
of $748,990 and $415,010, respectively. The interest expense
related to the Debenture Units of Series A-3 are added to the
equity portion of convertible debt as accrued.
During the year
ended June 30, 2020, interest of $32,010 was recorded in the equity
portion of the convertible debt (June 30, 2019 -
$Nil).
F-37
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Notes to the
Consolidated Financial Statements
For the years ended
June 30, 2020, 2019 and 2018
(Expressed in
Canadian Dollars)
18.
SHARE
CAPITAL
The authorized
share capital of the Company consists of an unlimited number of
common shares. During the year ended June 30, 2020, the Company had
the following common share transactions:
●
On May 25, 2020,
the Company issued 6,210,190 common shares of the Company at a
price of $0.25 per share for gross proceeds of $1,552,548; of which
$1,411,680 was received in cash and $140,868 was issued in
settlement of outstanding fees and debt; and
●
On May 8, 2020, the
Company issued 6,000,000 common shares of the Company at a price of
$0.17 per share in relation to the contingent consideration issued
for the asset acquisition of Star Buds.
●
On May 8, 2020, the
Company issued 181,250 common shares of the Company at a price of
$0.40 per share for the settlement of a portion of Promissory Note
E.
●
On April 8, 2020,
the Company issued 12,500,000 common shares of the Company at a
price of $0.17 per share in relation to the asset acquisition of
Star Buds.
●
On January 16,
2020, the Company issued 271,164 common shares of the Company at a
price of $1.00 per share as a result of a partial conversion of the
Debentures of Series A-1, as disclosed in Note 17.
Shares to be issued
As at June 30,
2020, 3,000,000 common shares of the Company at a price of $0.17
per share were to be issued in relation to the contingent
consideration issued for the asset acquisition of Star Buds,
amounting to $510,000.
Contingently issuable shares
As at June 30,
2020, 12,000,000 common shares of the Company were contingently
issuable shares in relation to the asset acquisition of Star Buds,
at $0.17 per share amounting to $2,040,000.
During the year
ended June 30, 2019, the Company had the following common share
transactions:
●
On May 4, 2019, and
in connection with warrants previously issued to a consultant,
warrants were exercised for the purchase of 750,000 common shares
of the Company at an exercise price of $0.15 per share for total
gross proceeds of $112,500. As a result of this exercise,
contributed surplus in the amount of $44,087 was transferred into
share capital.
During
the year ended June 30, 2018, the Company had the following common
share transactions:
●
On October 19,
2017, an outstanding shareholder loan in the amount of $384,055 was
settled with the issuance of 7,681,110 common shares of the Company
at a price of $0.05 per share;
●
On December 14,
2017, the Company issued 5,532,500 common shares valued at $0.10
per share as part of a private placement for total gross proceeds
of $553,250; of which $533,250 was received in cash and $20,000 was
issued pursuant to a consulting agreement;
●
On March 12, 2018,
the Company issued 890,074 common shares valued at $1.08 per share
as part of a private placement for total gross proceeds of
$959,251; all of which was received in cash; and
F-38
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Notes to the
Consolidated Financial Statements
For the years ended
June 30, 2020, 2019 and 2018
(Expressed in
Canadian Dollars)
18.
SHARE
CAPITAL (continued)
●
On June 12, 2018
and June 15, 2018, the Company issued 2,390,800 and 20,000 common
shares, respectively, valued at $1.95 per share as part of a
private placement for total gross proceeds of $4,703,025; of which
$4,400,163 was received in cash and $302,862 was received in
services provided by consultants.
19.
OPTIONS
On November 22,
2018, the Company's shareholders approved and the Company
adopted a new rolling stock option plan (the "Option
Plan"), under which the Board of Directors may from time to
time, in its discretion, grant to directors, officers, employees
and consultants of the Company. Pursuant to the Option Plan,
the
Company may issue
options for such period and exercise price as may be determined by
the Board of Directors, and in any case not exceeding ten (10)
years from the date of grant with the total options issued under
the Option Plan not exceeding ten percent (10%) of the common
shares of the Company, outstanding at the time of the granting of
such options. The minimum exercise price of an option granted under
the Option plan must not be less than the market value of the
common shares on the date such option is granted.
Outstanding options
as at June 30, 2020 are as follows:
Options
Outstanding
Weighted Average
Exercise Price
Weighted Average
Life Remaining (yrs)
Executive
Officers
900,000
$
0.60
1.30
Directors
3,600,000
$
0.28
2.75
Consultants
2,550,000
$
0.53
1.86
7,050,000
F-39
CordovaCann
Corp.
(formerly LiveReel
Media Corporation)
Notes to the
Consolidated Financial Statements
For the years ended
June 30, 2020, 2019 and 2018
(Expressed in
Canadian Dollars)
19.
OPTIONS
(continued)
Grant
Date
Expiry
Date
Options
Outstanding
Options
Exercisable
Exercise
Price
Fair
Value
Jan. 16,
2018
(i)
Jan. 15,
2021
1,000,000
1,000,000
$
0.40
$
377,024
Mar. 9,
2018
(ii)
Mar. 8,
2021
750,000
750,000
$
1.15
$
800,703
Feb. 25,
2020
(iii)
Feb. 24,
2023
800,000
800,000
$
0.25
$
103,838
Apr. 7,
2020
(iv)
Apr. 6,
2023
3,000,000
3,000,000
$
0.25
$
369,426
May 16,
2020
(v)
May 5,
2023
1,500,000
1,500,000
$
0.45
$
396,036
(i)
The options fully
vested on issuance and the fair value of $377,024 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:
Stock
price
$
0.40
Risk-free interest
rate
1.78
%
Expected
life
3 years
Estimated
volatility in the market price of the common shares
218
%
Dividend
yield
Nil
(ii)
The options fully
vested on issuance and the fair value of $800,703 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:
Stock
price
$
1.14
Risk-free interest
rate
1.83
%
Expected
life
3 years
Estimated
volatility in the market price of the common shares
213
%
Dividend
yield
Nil
F-40
CordovaCann Corp
.
(formerly LiveReel Media Corporation)
Notes to the Consolidated Financial Statements
For the years ended June 30, 2020, 2019 and 2018
(Expressed in Canadian Dollars)
19.
OPTIONS
(continued)
(iii)
The options fully
vested on issuance and the fair value of $103,838 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:
Stock
price
$
0.19
Risk-free interest
rate
1.37
%
Expected
life
3 years
Estimated
volatility in the market price of the common shares
124
%
Dividend
yield
Nil
(iv)
The options fully
vested on issuance and the fair value of $369,426 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:
Stock
price
$
0.19
Risk-free interest
rate
0.62
%
Expected
life
3 years
Estimated
volatility in the market price of the common shares
117
%
Dividend
yield
Nil
(v)
The options fully
vested on issuance and the fair value of $396,036 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:
Stock
price
$
0.405
Risk-free interest
rate
0.33
%
Expected
life
3 years
Estimated
volatility in the market price of the common shares
112
%
Dividend
yield
Nil
During the year
ended June 30, 2020 the Company expensed $869,299 (June 30, 2019
– $nil, June 30, 2018 - $1,177,727) of the fair value of the
options.
F-41
CordovaCann Corp
.
(formerly LiveReel Media Corporation)
Notes to the Consolidated Financial Statements
For the years ended June 30, 2020, 2019 and 2018
(Expressed in Canadian Dollars)
20.
WARRANTS
Warrants
Outstanding
Weighted Average
Exercise Price
Weighted Average
Life Remaining (years)
June
30, 2018
6,650,000
$
0.54
1.37
Issued
3,725,000
1.69
1.65
Exercised
(750,000
)
0.15
0.00
Forfeited
(1,000,000
)
2.00
0.00
Expired
(250,000
)
0.10
0.00
June
30, 2019
8,375,000
0.93
1.05
Issued
8,424,500
0.33
2.23
Forfeited
(750,000
)
2.00
0.00
Expired
(5,800,000
)
0.62
0.00
June
30, 2020
10,249,500
$
0.53
2.00
a)
On
November 1, 2017 and in connection to a consulting agreement with a
director and officer of the Company, the Company issued warrants
for the purchase of 3,000,000 common shares of the Company
exercisable until October 31, 2019 at an exercise price of $0.10
per share. On issuance, warrants for the purchase of 1,000,000
common shares vested immediately and the remaining 2,000,000 vested
during the three months ended June 30, 2018. The warrants were not
exercised as of October 31, 2019 and expired.
The
fair value of these issued warrants of $261,401 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:
Stock
price
$
0.10
Risk-free interest
rate
1.41
%
Expected
life
2 years
Estimated
volatility in the market price of the common shares
214
%
Dividend
yield
Nil
For
the year ended June 30, 2020, the Company expensed $nil (June 30,
2019 - $nil, June 30, 2018 – $261,401) of the fair value of
the warrants as share based compensation.
b)
On
November 1, 2017 and in connection to a consulting agreement, the
Company issued warrants for the purchase of 750,000 common shares
of the Company exercisable until April 30, 2019 at an exercise
price of $0.15 per share. On issuance, warrants for the purchase of
250,000 common shares vested immediately and the remaining 500,000
vested during the three months ended June 30, 2018. On April 30,
2019, the warrants were exercised.
F-42
CordovaCann Corp
.
(formerly LiveReel Media Corporation)
Notes to the Consolidated Financial Statements
For the years ended June 30, 2020, 2019 and 2018
(Expressed in Canadian Dollars)
20.
WARRANTS (continued)
The
fair value of these issued warrants of $44,087 was determined using
the Black-Scholes Option Pricing Model with the following
assumptions:
Stock
price
$
0.10
Risk-free interest
rate
1.41
%
Expected
life
1.5 years
Estimated
volatility in the market price of the common shares
155
%
Dividend
yield
Nil
For
the year ended June 30, 2020, the Company expensed $nil (June 30,
2019 - $Nil, June 30, 2018 – $44,087) of the fair value of
the warrants as share based compensation.
c)
On
November 1, 2017 and in connection to a consulting agreement, the
Company issued warrants for the purchase of 250,000 common shares
of the Company exercisable until April 30, 2019 at an exercise
price of $0.10 per share, such warrants vesting upon the consultant
meeting certain deliverables as set forth in the consulting
agreement. On April 30, 2019, the deliverables were not met and the
warrants expired.
The
fair value of these issued warrants of $16,499 was determined using
the Black-Scholes Option Pricing Model with the following
assumptions:
Stock
price
$
0.10
Risk-free interest
rate
1.41
%
Expected
life
1.5 years
Estimated
volatility in the market price of the common shares
155
%
Dividend
yield
Nil
For
the year ended June 30, 2020, the Company expensed $nil (June 30,
2019 - $nil, June 30, 2018 – $4,125) of the fair value of the
warrants as share based compensation.
d)
On
March 9, 2018 and in connection to a consulting agreement with a
director and officer of the Company, the Company issued warrants
for the purchase of 1,500,000 common shares of the Company
exercisable until March 8, 2020 at an exercise price of $1.15 per
share, such warrants vesting immediately upon issuance. The
warrants were not exercised as of March 8, 2020 and
expired.
The
fair value of these issued warrants of $1,336,934 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:
Stock
price
$
1.14
Risk-free interest
rate
1.83
%
Expected
life
2 years
Estimated
volatility in the market price of the common shares
173
%
Dividend
yield
Nil
F-43
CordovaCann Corp
.
(formerly LiveReel Media Corporation)
Notes to the Consolidated Financial Statements
For the years ended June 30, 2020, 2019 and 2018
(Expressed in Canadian Dollars)
20.
WARRANTS (continued)
For
the year ended June 30, 2020, the Company expensed $nil (June 30,
2019 -$nil, June 30, 2018 – $1,336,934) of the fair value of
the warrants as share based compensation.
e)
On
March 9, 2018 and in connection to a consulting agreement, the
Company issued warrants for the purchase of 750,000 common shares
of the Company exercisable until March 8, 2020 at an exercise price
of $1.15 per share, such warrants vesting upon the consultant
meeting certain deliverables as set forth in the consulting
agreement. As at March 8, 2020, the deliverables were not met and
warrants expired.
The
fair value of these issued warrants of $668,467 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:
Stock
price
$
1.14
Risk-free interest
rate
1.83
%
Expected
life
2 years
Estimated
volatility in the market price of the common shares
173
%
Dividend
yield
Nil
For
the year ended June 30, 2020, the Company expensed $nil (June 30,
2019 - $nil, June 30, 2018 – $501,350) of the fair value of
the warrants as share based compensation.
f)
On
March 15, 2018 and in connection to a consulting agreement, the
Company issued warrants for the purchase of 400,000 common shares
of the Company exercisable until September 14, 2019 at an exercise
price of $1.45 per share, such warrants vesting upon the consultant
meeting certain deliverables as set forth in the consulting
agreement. As at September 14, 2019, the deliverables were not met
and warrants expired.
The
fair value of these issued warrants of $324,775 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:
Stock
price
$
1.42
Risk-free interest
rate
1.75
%
Expected
life
1.5 years
Estimated
volatility in the market price of the common shares
129
%
Dividend
yield
Nil
For
the year ended June 30, 2020, the Company expensed $nil (June 30,
2019 - $nil, June 30, 2018 – $121,791) of the fair value of
the warrants as share based compensation.
g)
On
October 1, 2018 and in connection to a consulting agreement, the
Company issued warrants for the purchase of 250,000 common shares
of the Company exercisable until September 30, 2020 at an exercise
price of $1.50 per share. Of these issued warrants, 100,000 vested
immediately upon issuance while the remaining 150,000 warrants
shall vest in six equal tranches of 25,000 warrants every three
months from the date of issuance.
The
fair value of these issued warrants of $207,833 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:
Stock
price
$
1.35
Risk-free interest
rate
2.27
%
Expected
life
2 years
Estimated
volatility in the market price of the common shares
126
%
Dividend
yield
Nil
For
the year ended June 30, 2020 the Company expensed $23,901 (June 30,
2019 – $183,932) of these fair value of the warrants as share
based compensation.
h)
On
October 15, 2018 and in connection to a consulting agreement, the
Company issued warrants for the purchase of 250,000 common shares
of the Company exercisable until October 14, 2020 at an exercise
price of $2.00 per share. The warrants shall vest in four equal
tranches of 62,500 warrants every three months from the date of
issuance.
F-44
CordovaCann Corp
.
(formerly LiveReel Media Corporation)
Notes to the Consolidated Financial Statements
For the years ended June 30, 2020, 2019 and 2018
(Expressed in Canadian Dollars)
20.
WARRANTS (continued)
The
fair value of these issued warrants of $131,421 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:
Stock
price
$
1.05
Risk-free interest
rate
2.25
%
Expected
life
2 years
Estimated
volatility in the market price of the common shares
124
%
Dividend
yield
Nil
For
the year ended June 30, 2020 the Company expensed $11,467 (June 30,
2019 – $119,954) of these fair value of the warrants as share
based compensation.
i)
On
October 31, 2018 and in connection to a consulting agreement, the
Company issued warrants for the purchase of 1,000,000 common shares
of the Company exercisable until October 30, 2022 at a price of
$2.00 per share. The warrants shall vest in equal tranches of
250,000 every six months from the date of issuance.
The
fair value of these issued warrants of $1,251,625 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:
Stock
price
$
1.30
Risk-free interest
rate
2.41
%
Expected
life
4 years
Estimated
volatility in the market price of the common shares
215
%
Dividend
yield
Nil
During
the year ended June 30, 2020, 750,000 of the 1,000,000 warrants
previously issued to the consultant were forfeited. As a result,
the Company reversed $451,976 of the previously recorded share
based compensation expense during the year ended June 30, 2020
(June 30, 2019 – expense of $764,874).
j)
On
October 31, 2018 and in connection to a consulting agreement, the
Company issued warrants for the purchase of 1,000,000 common shares
of the Company exercisable until October 30, 2022 at a price of
$2.00 per share. The warrants shall vest in equal tranches of
250,000 every six months from the date of issuance.
The
fair value of these issued warrants of $1,251,625 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:
Stock
price
$
1.30
Risk-free interest
rate
2.41
%
Expected
life
4 years
Estimated
volatility in the market price of the common shares
215
%
Dividend
yield
Nil
On
February 15, 2019, all 1,000,000 warrants previously issued to the
consultant were forfeited. As a result, the Company reversed the
previously recorded share based compensation expense during the
year ended June 30, 2019. For the year ended June 30, 2020, the
Company expensed $nil (June 30, 2019 – $nil) of the fair
value of these warrants as share based compensation.
k)
On
December 1, 2018 and in connection to a consulting agreement, the
Company issued warrants for the purchase of 250,000 common shares
of the Company exercisable until November 30, 2020 at a price of
$1.50 per share. Of these issued warrants, 100,000 vested
immediately upon issuance while the remaining 150,000 warrants
shall vest in three equal tranches of 50,000 warrants every three
months from the date of issuance.
The
fair value of these issued warrants of $138,853 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:
Stock
price
$
1.06
Risk-free interest
rate
2.14
%
Expected
life
2 years
Estimated
volatility in the market price of the common shares
116
%
Dividend
yield
Nil
For
the year ended June 30, 2020 the Company expensed $6,171 (June 30,
2019 – $132,682) of the fair value of these warrants as share
based compensation.
F-45
CordovaCann Corp
.
(formerly LiveReel Media Corporation)
Notes to the Consolidated Financial Statements
For the years ended June 30, 2020, 2019 and 2018
(Expressed in Canadian Dollars)
20.
WARRANTS (continued)
l)
On
February 1, 2019 and in connection to a consulting agreement, the
Company issued warrants for the purchase of 325,000 common shares
of the Company exercisable until January 31, 2022 at a price of
$1.00 per share. Of these issued warrants, 81,250 vested
immediately while the remaining 243,750 warrants shall vest in
three equal tranches of 81,250 warrants every three months from the
date of issuance.
The
fair value of these issued warrants of $250,793 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:
Stock
price
$
0.95
Risk-free interest
rate
1.83
%
Expected
life
3 years
Estimated
volatility in the market price of the common shares
152
%
Dividend
yield
Nil
For
the year ended June 30, 2020 the Company expensed $38,316 (June 30,
2019 – $212,477) of the fair value of these warrants as share
based compensation.
m)
On
February 25, 2020 and in connection to a consulting agreement, the
Company issued warrants for the purchase of 3,000,000 common shares
of the Company exercisable until February 23, 2023 at a price of
$0.25 per share. Of these issued warrants, 500,000 vested
immediately and the remainder shall vest over time as certain
acquisition and duration milestones are met.
The
fair value of these issued warrants of $389,390 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:
Stock
price
$
0.19
Risk-free interest
rate
1.37
%
Expected
life
3 years
Estimated
volatility in the market price of the common shares
124
%
Dividend
yield
Nil
For
the year ended June 30, 2020 the Company expensed $338,914 of the
fair value of these warrants as share based
compensation.
n)
On
April 1, 2020 and in connection to a consulting agreement, the
Company issued warrants for the purchase of 540,000 common shares
of the Company exercisable until March 31, 2023 at a price of $0.30
per share. These warrants vest in equal tranches of 30,000 each
month from the date of issuance.
F-46
CordovaCann Corp
.
(formerly LiveReel Media Corporation)
Notes to the Consolidated Financial Statements
For the years ended June 30, 2020, 2019 and 2018
(Expressed in Canadian Dollars)
20.
WARRANTS (continued)
The
fair value of these issued warrants of $78,427 was determined using
the Black-Scholes Option Pricing Model with the following
assumptions:
Stock
price
$
0.225
Risk-free interest
rate
0.53
%
Expected
life
3 years
Estimated
volatility in the market price of the common shares
117
%
Dividend
yield
Nil
For
the year ended June 30, 2020 the Company expensed $34,793 of the
fair value of these warrants as share based
compensation.
o)
On
April 1, 2020 and in connection to a consulting agreement, the
Company issued warrants for the purchase of 1,000,000 common shares
of the Company exercisable until March 31, 2023 at a price of $0.30
per share. Of these issued warrants, 250,000 vested immediately
while the remaining 750,000 warrants shall vest in three equal
tranches of 250,000 warrants every three months from the date of
issuance.
The
fair value of these issued warrants of $145,235 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:
Stock
price
$
0.225
Risk-free interest
rate
0.53
%
Expected
life
3 years
Estimated
volatility in the market price of the common shares
117
%
Dividend
yield
Nil
For
the year ended June 30, 2020 the Company expensed $102,875 of the
fair value of these warrants as share based
compensation.
p)
On
April 15, 2020, and in connection to a consulting agreement, the
Company issued warrants for the purchase of 1,000,000 common shares
of the Company exercisable until April 14, 2022 at a price of $0.35
per share. Of these issued warrants, 250,000 vested immediately
while the remaining 750,000 warrants shall vest in three equal
tranches of 250,000 warrants every six months from the date of
issuance.
The
fair value of these issued warrants of $169,849 was determined
using the Black-Scholes Option Pricing Model with the following
assumptions:
Stock
price
$
0.30
Risk-free interest
rate
0.42
%
Expected
life
2 years
Estimated
volatility in the market price of the common shares
118
%
Dividend
yield
Nil
F-47
CordovaCann Corp
.
(formerly LiveReel Media Corporation)
Notes to the Consolidated Financial Statements
For the years ended June 30, 2020, 2019 and 2018
(Expressed in Canadian Dollars)
20.
WARRANTS (continued)
For
the year ended June 30, 2020 the Company expensed $74,899 of the
fair value of these warrants as share based
compensation.
q)
On
February 1, 2019 and in connection with the Promissory Note A, the
Company issued warrants for the purchase of 150,000 common shares
of the Company exercisable until January 31, 2020 at a price of
$1.00 per share. The fair value of these issued warrants of $4,283
was determined by the residual method as noted in Note 15. For the
year ended June 30, 2019, $4,283 (June 30, 2018 – $nil) of
the fair value of the warrants was included in contributed
surplus.
r)
On March 13, 2019 and in connection with the
private placement of Debenture Units of Series
A-1
,
the Company issued warrants for the
purchase of 300,000 common shares of the Company exercisable until
March 12, 2021 at a price of $1.20 per share. The fair value of
these issued warrants of $29,063 was determined by the residual
method as noted in Note 17. For the year ended June 30, 2019,
$29,063 (June 30, 2018 – $nil) of the fair value of the
warrants was included in contributed surplus.
s)
On
June 19, 2019 and in connection with the Promissory Note C, the
Company issued warrants for the purchase of 200,000 common shares
of the Company exercisable until June 18, 2021 at a price of $1.00
per share. The fair value of these issued warrants of $14,367 was
determined by the residual method as noted in Note 15. For the year
ended June 30, 2019, $14,367 (June 30, 2018 – $nil) of the
fair value of the warrants was included in contributed
surplus.
t)
On August 14, 2019 and in connection with the
private placement of Debenture Units of Series
A-2
,
the Company issued warrants for the
purchase of 356,500 common shares of the Company exercisable until
August 13, 2020 at a price of $1.20 per share. The fair value of
these issued warrants of $33,816 was determined by the residual
method as noted in Note 17. For the year ended June 30, 2020,
$33,816 (June 30, 2019 – $nil) of the fair value of the
warrants was included in contributed surplus.
u)
On
December 16, 2019 and in connection with the amendment of
Promissory Note C, the Company issued warrants for the purchase of
200,000 common shares of the Company exercisable until June 18,
2021 at a price of $0.30 per share. The fair value of these issued
warrants of $8,995 was determined by the residual method as noted
in Note 15. For the year ended June 30, 2020, $8,995 (June 30, 2019
– $nil) of the fair value of the warrants was included in
contributed surplus.
v)
On
April 24, 2020 and in connection with the private placement of
Debenture Units of Series A-3, the Company issued warrants for the
purchase of 2,328,000 common shares of the Company exercisable
until April 23, 2022 at a price of $0.30 per share. The fair value
of these issued warrants of $415,010 was determined by the relative
fair value method as noted in Note 17. For the year ended June 30,
2020, $415,010 (June 30, 2019 – $nil) of the fair value of
the warrants was included in contributed surplus.
During the year
ended June 30, 2020 the Company expensed $631,335 in the fair value
of warrants as a result of the issuances which have been recorded
as share based compensation and reversed $451,976 of stock based
compensation expense as a result of forfeitures (June 30, 2019
– $1,413,919).
F-48
CordovaCann Corp
.
(formerly LiveReel Media Corporation)
Notes to the Consolidated Financial Statements
For the years ended June 30, 2020, 2019 and 2018
(Expressed in Canadian Dollars)
21.
LOSS ON DEPOSIT
On June 19, 2019,
the Company entered into an asset purchase agreement to acquire
certain assets and licenses. The Company made non-refundable
payments of $124,428 (US $94,000), with the balance of US $246,000
to be paid within 45 days. The Company did not make the subsequent
payment of US $246,000 and has recorded a loss on deposit in the
amount of $124,428 for the year ended June 30, 2019.
22.
COMMITMENTS
(a)
Exclusivity
Fee
On March 7, 2018,
the Company entered into a memorandum of understanding (the
"MOU") with a third party which granted the Company an
exclusivity option on a transaction to acquire a majority stake in
real estate and intellectual property owned by the third party.
Under the terms of the MOU, the Company agreed to pay the third
party up to US $100,000 for such exclusivity until termination by
either party. In October 2019, the Company terminated the MOU.
During the year ended June 30, 2020, the Company paid and expensed
a total of $nil (June 30, 2019 - $48,367, June 30, 2018 -
$42,550).
(b)
Employment
Agreements
The Company is
party to certain employments agreements with key executives of the
Company that contain clauses requiring additional payments of up to
two times the annual entitlements under these agreements upon
occurrence of certain events, such as a change of control. As a
triggering event has not taken place, the contingent payments have
not been reflected in these consolidated financial
statements.
(c)
Commitments
During the year
ended June 30, 2020, the Company received a notice of
termination letter (the "Termination Letter") from the landlord of
a leased property, who subsequently repossessed the premises.
The landlord of leased property has notified the Company that to
the extent applicable, it intends to seek recovery of damages
incurred including without limitation, the costs of recovering the
leased property, solicitor fees, arrears and all future rental
payments following the notice of
termination.
The Company has
expensed its rental deposit as a result of the Termination
Letter. As of the date of these consolidated financial statements,
the Company has not received any claims from the landlord as a
result of the Termination Letter.
(d)
Deposit
in Joint Forces
On November 7,
2019, the Company advanced CDN $408,840 (US $300,000) to a
non-arm's length party in exchange for Promissory Note D (the
"Joint Forces Deposit").
On October 12,
2020, the Company entered into a settlement agreement (the
"Settlement"), settling the outstanding Joint Forces
Deposit for a payment term over 2 years for a total of US $338,000.
The proceeds of the Settlement will be received by the
beneficiaries of Promissory Note D. As a result, a gain on
Settlement has been recorded in the amount of $51,023 (US
$38,000).
F-49
CordovaCann Corp
.
(formerly LiveReel Media Corporation)
Notes to the Consolidated Financial Statements
For the years ended June 30, 2020, 2019 and 2018
(Expressed in Canadian Dollars)
22.
COMMITMENTS (continued)
Accordingly, the
Joint Forces Deposit was determined to be a financial instrument
and recorded at amortized cost. The initial carrying amount of the
financial asset was determined by discounting the stream of future
payments of interest and principal at a market interest rate of 8%
which is estimated to be the lending rate available to the Company
for similar instruments. The balance as at June 30, 2020 was
$405,214 (US $297,340), and interest expense amounted to $54,595.
The current portion of the Joint Forces Deposit as at June 30, 2020
amounted to $74,450 (US $54,630).
(e)
Loss
on Deposit
During the year
ended June 30, 2019, the Company made certain non-refundable
deposits towards a transaction in California (the "California
Transaction"). During the year ended June 30, 2020, the
Company terminated the California Transaction and recorded a loss
on the deposit in the amount of $396,000.
(f)
COVID-19
On March 11, 2020,
the World Health Organization declared the outbreak of the novel
strain of coronavirus ("COVID-19") a pandemic, which
has resulted in governments worldwide enacting emergency measures
to combat the spread of the virus. These measures, which include
the implementation of travel bans, self-imposed quarantine periods
and social distancing, have caused material disruption to
businesses globally resulting in an economic slowdown. Global
equity markets have experienced significant volatility and
weakness. Governments and central banks have reacted with
significant monetary and fiscal interventions designed to stabilize
economic conditions. The duration and impact of the COVID-19
outbreak is unknown at this time, as is the efficacy of the
government and central bank interventions. It is not possible to
reliably estimate the length and severity of these developments and
the impact on the financial results and condition of the Company
and its operating subsidiaries in future periods as well as the
Company's ability to find new business opportunities, raise
capital or restructure the Company's finances
(g)
Contingencies
On August 28, 2020,
a subsidiary of the Company was identified as a defendant to a
complaint in the Superior Court of California, County of Mendocino
alleging breach of contract for unspecified damages. The Company
intends on defending such complaint, however, it is not practical
to estimate the potential effect of this complaint at such
time.
F-50
CordovaCann Corp
.
(formerly LiveReel Media Corporation)
Notes to the Consolidated Financial Statements
For the years ended June 30, 2020, 2019 and 2018
(Expressed in Canadian Dollars)
23.
RELATED PARTY TRANSACTIONS
Related party
transactions for the year ended June 30, 2020 and 2019 and the
balances as at those dates, not disclosed elsewhere in these
consolidated financial statements are:
a)
During the year
ended June 30, 2020, the Company purchased equipment valued at $nil
(June 30, 2019 - $nil; June 30, 2018 – $44,439) from a
corporation related by virtue of a common officer and a
director;
b)
During the year
ended June 30, 2020, the Company expensed $662,284 (June 30, 2019 -
$1,116,103; June 30, 2018 – $508,399), in fees payable to
officers and directors of the Company and in fees payable to a
corporation related by virtue of a common officer and director. As
at June 30, 2020, the Company had fees payable to officers and
directors of the Company of $1,278,106 (June 30, 2019 - $546,653);
and
c)
During the year
ended June 30, 2020, the Company expensed $559,846 (June 30, 2019 -
$nil; June 30, 2018 – $2,286,120) in share based compensation
related to officers and directors of the Company.
24.
FINANCIAL INSTRUMENTS AND RISK FACTORS
The
fair value hierarchy that reflects the significance of inputs used
in making fair value measurements is as follows:
Level 1:
quoted
prices in active markets for identical assets or
liabilities;
Level 2:
inputs
other than quoted prices included in Level 1 that are observable
for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. from derived prices); and
Level 3:
inputs
for the asset or liability that are not based upon observable
market data.
Assets
are classified in their entirety based on the lowest level of input
that is significant to the fair value measurement.
The fair values of
the Company's financial instruments consisting of cash and
cash equivalents, promissory note and accounts payable and accrued
liabilities approximate their carrying value due to the relatively
short term maturities of these instruments.
Risk Management Policies
The
Company, through its financial assets and liabilities, is exposed
to various risks. The Company has established policies and
procedures to manage these risks, with the objective of minimizing
any adverse effect that changes in these variables could have on
these consolidated financial statements. The following analysis
provides a measurement of risks as at June 30, 2020:
F-51
CordovaCann Corp
.
(formerly LiveReel Media Corporation)
Notes to the Consolidated Financial Statements
For the years ended June 30, 2020, 2019 and 2018
(Expressed in Canadian Dollars)
24.
FINANCIAL INSTRUMENTS AND RISK FACTORS (continued)
Credit
Risk
The
Company's maximum exposure to credit risk, which will cause a
financial loss to the Group due to failure to discharge an
obligation by the counterparties, totals the carrying amount of
these assets as stated in the consolidated statements of financial
position. The Company's principal financial assets are cash,
restricted investments and accounts receivable, which represent the
Company's exposure to credit risk in relation to financial assets.
The credit risk on cash and restricted investments is mitigated by
transacting with banks with high credit ratings assigned by
international credit-rating agencies. An allowance for expected
credit losses is established based upon factors surrounding the
credit risk of specific accounts, historical trends and other
information when necessary.
Liquidity Risk
Liquidity
risk is the risk that the Company will not be able to meet its
financial obligations as they fall due within one year. The
Company's approach to managing liquidity risk is to ensure,
as far as possible, that it will have sufficient liquidity to meet
its liabilities when due, under both normal and stressed
conditions, without incurring unacceptable losses or risking damage
to the Company's reputation.
As
at June 30, 2020, there is substantial doubt about the
Company's ability to continue as a going concern primarily
due to its history of losses and negative working capital.
Liquidity risk continues to be a key concern in the development of
future operations.
Market Risk
(i)
Interest Rate Risk
Interest
rate risk is the risk that the fair value or future cash flows of a
financial instrument will fluctuate because of changes in market
interest rates. The interest rates on all of the Company's
existing debt are fixed, and therefore it is not currently subject
to any significant interest rate risk.
(ii) Foreign
Currency Risk
The
Company is exposed to foreign currency risk from fluctuations in
foreign exchange rates and the degree of volatility in these rates
due to the timing of their accounts payable balances. The risk is
mitigated by timely payment of creditors and monitoring of foreign
exchange fluctuations by management. As at June 30, 2020, the
Company did not use derivative instruments to hedge its exposure to
foreign currency risk.
(iii)
Price Risk
The
Company's operations do not involve the direct input or
output of any commodities and therefore it is not subject to any
significant commodity price risk. In addition, the Company does not
have any equity investment in other listed public companies, and
therefore it is not subject to any significant stock market price
risk.
F-52
CordovaCann Corp
.
(formerly LiveReel Media Corporation)
Notes to the Consolidated Financial Statements
For the years ended June 30, 2020, 2019 and 2018
(Expressed in Canadian Dollars)
25.
CAPITAL MANAGEMENT
The Company
includes equity comprised of issued share capital, contributed
surplus, deficit in the definition of capital and accumulated other
comprehensive loss. As at June 30, 2020, the Company's
shareholders' equity was $6,276,689 (June 30, 2019 –
shareholders' equity of $362,570). The Company's
objectives when managing capital are as follows:
(i)
to safeguard the
Company's ability to continue as a going concern;
and
(ii)
to raise sufficient
capital to meet its business objectives.
The Company manages
its capital structure and makes adjustments to it, based on the
general economic conditions, the Company's long-term and
short-term capital requirements. To secure the additional capital
necessary to pursue these plans, the Company may attempt to raise
additional funds through the issuance of equity or
debt.
26
. INCOME TAXES
Canadian
Income Taxes
The major factors
that cause variations from the Company's combined federal and
provincial statutory Canadian income tax rates were the
following:
June
30,
2020
June
30,
2019
June
30,
2018
Loss from Canadian
operations
$
(4,254,121
)
$
(5,057,042
)
$
(4,860,659
)
Combined Canadian
statutory income tax rates
26.50
%
26.50
%
26.50
%
Income tax recovery
at statutory income tax rates
$
(1,127,342
)
$
(1,340,116
)
$
(1,288,075
)
Increase (decrease)
in taxes resulting from:
Stock-based
compensation expense
277,895
374,689
913,565
Other
26,336
11,671
4,790
Unrecognized
benefit of non-capital losses
672,781
953,756
369,720
Provision for
income taxes
$
(54,349
)
$
-
$
-
Deferred
Income Taxes
Deferred tax assets
have not been recognized in respect of the following deductible
temporary differences:
June
30,
2020
June
30,
2019
Amounts
related to tax loss carry forwards $
$
11,898,000
8,467,000
A deferred tax
asset has not been recognized in respect of the above because it is
not probable that future taxable profits will be available against
which the temporary difference can be utilized.
F-53
CordovaCann Corp
.
(formerly LiveReel Media Corporation)
Notes to the Consolidated Financial Statements
For the years ended June 30, 2020, 2019 and 2018
(Expressed in Canadian Dollars)
26
. INCOME TAXES (continued)
Deferred
Tax
Liabilities
June
30, 2020
Convertible
debt
$
4,939
Non-capital
Losses
As at June 30,
2020, the Company has accumulated non-capital tax loss carry
forwards for income tax purposes of carry-forward of approximately
$11,399,000 which may be applied against future Canadian taxable
income and expire as detailed below. No deferred taxes have been
recognized in these consolidated financial statements in respect of
the following as the probability that future taxable profit will
allow the deferred tax asset to be recognized cannot be predicted
at this time.
The net operating
losses for these years will not be available to reduce future
taxable income until the returns are filed.
2027
536,000
2028
868,000
2029
1,047,000
2030
627,000
2031
251,000
2032
161,000
2033
52,000
2034
115,000
2035
177,000
2036
74,000
2037
88,000
2038
1,399,000
2039
3,602,000
2040
2,901,000
$
11,399,000
United
States
Income Taxes
The major factors
that cause variations from the Company's combined United
States federal and state level income tax rates were the
following:
F-54
CordovaCann Corp
.
(formerly LiveReel Media Corporation)
Notes to the Consolidated Financial Statements
For the years ended June 30, 2020, 2019 and 2018
(Expressed in Canadian Dollars)
26
. INCOME TAXES (continued)
June 30,
2020
June 30,
2019
Loss
on US Operations
(420,578
)
(772,238
)
Combined
federal and state taxes
29.71
%
26.64
%
(124,941
)
(205,724
)
Temproary
difference, Equipment
-
34,826
Unrecognized
benefit of non-capital losses
124941
170,898
Provision
of income taxes (recovery)
-
-
Deferred
Income Taxes
Deferred tax assets
have not been recognized in respect of the following United States
deductible temporary differences:
June
30,
2020
June
30,
2019
Amounts
related to tax loss carry forwards $
$
1,199,000
778,000
A deferred tax
asset has not been recognized in respect of the above because it is
not probable that future taxable profits will be available against
which the temporary difference can be utilized.
Non-capital
Losses
As at June 30,
2020, the Company has accumulated non-capital tax loss carry
forwards for income tax purposes of carry-forward of approximately
$1,199,000 which may be applied against future United States
taxable income and expire as detailed below.
No deferred taxes
have been recognized in these consolidated financial statements in
respect of the following as the probability that future taxable
profit will allow the deferred tax asset to be recognized cannot be
predicted at this time.
2038
$
144,000
2039
634,000
2040
421,000
$
1,199,000
27.
COMPARATIVE
AMOUNTS
Certain comparative
figures have been reclassified to conform to the consolidated
financial statement presentation adopted for the current period.
Such reclassifications did not have an impact on previously
reported net and comprehensive loss.
F-55
CordovaCann Corp
.
(formerly LiveReel Media Corporation)
Notes to the Consolidated Financial Statements
For the years ended June 30, 2020, 2019 and 2018
(Expressed in Canadian Dollars)
28.
SUBSEQUENT
EVENTS
On
July 24, 2020, the Company issued six million (6,000,000) common
shares of the Company to Star Buds International Inc. for the
opening of two cannabis retail stores under the Star Buds trade
name. Of the 6,000,000 common shares issued, 3,000,000 were related
to shares to be issued as at June 30, 2020.
On
August 17, 2020, the Company closed a non-brokered private
placement of common shares of the Company for gross proceeds of
$967,846; of which $552,501 was received in cash and $415,345 was
issued in settlement of outstanding fees and debt.
On October 12,
2020, the Company entered into a settlement agreement (the
"Settlement"), settling the outstanding Joint Forces
Deposit as disclosed in
Note 22
(d).
F-56