Company: CMND
Filing Date: 2025-01-22
Form Type: 20-F
Source: 0001213900-25-005490
Chunk: 248

Company: Clearmind Medicine Inc.
Filing Date: 2025-01-22
Form: 20-F
Item: Item 19
Chunk 248
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 are included in the consolidated statement of operations and comprehensive
loss.

F-14

CLEARMIND
MEDICINE INC.

Notes to
the Consolidated Financial Statements

(Expressed
in United States Dollars)

  Material                         

  Share-based Payments  

The
grant date fair value of share-based payment awards granted to employees is recognized as stock-based compensation expense, with a corresponding
increase in equity, over the period that the employees unconditionally become entitled to the awards. The amount recognized as an expense
is adjusted to reflect the number of awards for which the related service and non-market vesting conditions are expected to be met, such
that the amount ultimately recognized as an expense is based on the number of awards that do meet the related service and non-market
performance conditions at the vesting date. For share-based payment awards with non-vesting conditions, the grant date fair value of
the share-based payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.

Where
equity instruments are granted to parties other than employees, they are recorded by reference to the fair value of the services received.
If the fair value of the services received cannot be reliably estimated, the Company measures the services received by reference to the
fair value of the equity instruments granted, measured at the date the counterparty renders service. The fair value of services received
from consultants cannot be reliably measured; therefore, the fair value of the underlying equity instruments was utilized for all periods
presented.

All
equity-settled share-based payments are reflected in share-based payment reserve, unless exercised. Upon exercise, shares are issued
and the amount reflected in share-based payment reserve is credited to share capital, adjusted for any consideration paid.

  Restricted Share Units  

The
Company recognizes compensation expense for restricted share units (“ RSU’s”) awarded based on the grant-date fair value
of the common shares. The grant-date fair value, which is determined by multiplying the Company’s share price by the number of
RSU’s granted, is amortized over the vesting period and is included in compensation expense with a corresponding increase in the
share-based payment reserve. If RSU’s are for services that have been provided and are non-cancellable, the Company recognizes
the full cost of the RSU’s on the date of grant. The amount recognized is adjusted to reflect the number of RSU’s expected
to eventually vest.

  Leases  

The
Company’s Israeli subsidiary leased an office through