Unique Logistics International Inc (UNQL)

[bobbleheadtwin]

The underlying value of the anti-dilution provision is calculated from estimating the probability and value of the provision assuming a near term financing
event. For the period ended May 31, 2022, the model used estimates the potential that the company completes a capital raise prior to the expiration of the antidilution feature and determines the value of the anti-dilution feature given these assumptions. The model required the use of certain assumptions. These
assumptions include probability a raise is completed, probability certain anti-dilution features are extended, estimated raise amount, term to a raise, and an
appropriate risk-free interest rate. For the period ended August 31, 2022, due to changes in the way antidilutive shares of Convertible Preferred Series A, C and
D would be exchanged in the near future for common stock, and the fact that the antidilution provision of these shares was extended through March 31, 2023,
the assumptions were changed to include probability of the financing event, estimated value of common stock at the exchange point and estimated time to
financing event.
F-9
The key inputs into the model were as follows:
_______________________________August 31, 2022 __________May 31, 2022
Risk-free interest rate ______________________3.3% _______________1.6%
Probability of financing event or capital raise ____90.0% ______________53.9%
Estimated capital raise ____________________________________$ 39.0 million
Estimated value of common stock _________ $ 10.0 per share _____________ -
Estimated time to financing event _____________0.5 years _________0.5 years