Stockholder's Equity

9 Months Ended

Sep. 30, 2025

NOTE 3 - STOCKHOLDER’S EQUITY

The Company did not issue common shares for the nine months ended September 30, 2025 and year ended December 31, 2024.

Convertible Preferred Stock

In August 2011, the Board of Directors designated 5,000,000 shares of Preferred Stock as Series A Preferred Stock. Each share of Series A Preferred Stock is convertible into one share of common stock at the option of the preferred holder. The Series A Preferred Stock is not entitled to receive dividends and does not possess redemption rights. The Company is prohibited from effecting the conversion of the Series A Preferred Stock to the extent that, as a result of the conversion, the holder of such shares would beneficially own more than 4.99% (or, if this limitation is waived by the holder upon no less than 61 days prior notice to us, 9.99%) in the aggregate of the issued and outstanding shares of our common stock. The holders of the Company’s Series A Preferred Stock are also entitled to certain liquidation preferences upon the liquidation, dissolution or winding up of the business of the Company.

In October 2012, the Board of Directors designated 5,000,000 shares of Preferred Stock as Series B Preferred Stock. In July 2016, the Board of Directors increased the total Series B Preferred Stock designated to 7,500,000. Each share of Series B Preferred Stock is convertible into one share of common stock at the option of the preferred holder. The Series B Preferred Stock is not entitled to receive dividends and does not possess redemption rights. The Company is prohibited from effecting the conversion of the Series B Preferred Stock to the extent that, as a result of the conversion, the holder of such shares would beneficially own more than 4.99% (which may be increased or waived upon no less than 61 days prior notice) in the aggregate of the issued and outstanding shares of our common stock. For a period of 24 months from the issue date, the holder of Series B Preferred Stock were entitled to price protection as determined in the subscription agreement. The Company has evaluated this embedded lower price issuance feature in accordance with ASC 815 and determined that it is clearly and closely related to the host contract and is therefore accounted for as an equity instrument.

As of September 30, 2025 and 2024, there was no Preferred Stock outstanding.

Common Stock Options

On February 22, 2021, the Company’s Board of Directors approved a new stock option plan (the “Plan”). The aggregate number of shares of common stock of the Company (a “Share”) that may be reserved for issuance pursuant to the Plan shall not exceed 10% of the number of Shares issued and outstanding from time to time. Options granted vest in accordance with terms at the discretion of the Board.

On April 16, 2024, the Company granted 2,800,000 options to certain directors, officers and employees. On August 13, 2024, the Company granted 200,000 options to an officer.

The Company recognized share-based compensation expense related to stock options of $289,906 and $638,102 for the nine months ended September 30, 2025 and 2024, respectively. The options are vested based on years of service, with options vesting between immediately and three years.

The Black Scholes option pricing model was used to estimate the aggregate fair value of the options with the following inputs:

Options	Exercise Price		Expected Life	Volatility			Risk Free Interest Rate
2,800,000	C$	1.11	3.3 years		75.9	%		4.8	%
200,000	C$	1.11	3.5 years		72.4	%		3.8	%

Stock Option Activity

A summary of the stock options as of September 30, 2025, and changes during the periods are presented below:

						Weighted
						Average
				Weighted		Remaining
				Average		Contractual		Aggregate
	Number of			Exercise		Life		Intrinsic
	Options			Price		(Years)		Value
Balance at December 31, 2023		5,010,002		$	1.48		2.43	$	0
Exercised		0			0		0		0
Issued		3,000,000			C$1.11		0		0
Canceled		(840,000	)		C$1.93		0		0
Balance at December 31, 2024		7,170,002		$	1.12		2.58		0
Exercised		0			0		0		0
Issued		0			0		0		0
Canceled		0			0		0		0
Balance at September 30, 2025		7,170,002		$	1.16		1.83	$	1,251,360
Options exercisable at September 30, 2025		5,570,002		$	1.29		1.33	$	607,061

Warrant Activity

Total outstanding warrants of 3,662,573 as of September 30, 2025, were as follows:

	Warrants Issued													Total
Warrants issued (includes expired warrants)		27,433,335			3,777,784			3,362,573		336,257			300,000
Issued date		10/26/2020			3/4/2021			1/20/2023		1/20/2023			2/26/2024
Expiration date		10/26/2024			3/4/2024			1/20/2026		1/20/2024			2/26/2029
Exercise price (Canadian $)	$	1.80		$	2.80		$	2.30	$	1.71		$	0.62

Balance at December 31, 2023		27,225,001			3,777,784			3,362,573		336,257			0		34,701,615
Exercised		0			0			0		0			0		0
Issued		0			0			0		0			300,000		300,000
Expired		(27,225,001	)		(3,777,784	)		0		(336,257	)		0		(31,339,042	)
Balance at December 31, 2024		0			0			3,362,573		0			300,000		3,662,573
Exercised		0			0			0		0			0		0
Issued		0			0			0		0			0		0
Expired		0			0			0		0			0		0
Balance at September 30, 2025		0			0			3,362,573		0			300,000		3,662,573

- Definition

The entire disclosure for equity.

+ References

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+ Details

AUGUSTA GOLD CORP. 10-Q