RedStone Literary Agents, Inc.

The Company has issued stock options to employees and non-employees. Stock options granted to non-employees for services or performance not yet rendered would be expensed over the service period or until the goals had been reached. The fair value calculation valued as at the grant date. The stock options granted to non-employees during the period ended March 31, 2021 were for services to be rendered and, as such, the expense will be amortized over the service period.

As at March 31, 2021, the Company recorded $10,930,625 related to warrant exercises based upon the following Black-Sholes option pricing model assumptions on exercise date: an average exercise price of CAD$0.10, an average stock price based on the exercise dates of CAD$2.07, expected dividend yield of 0%, average expected volatility of 43.76%, average risk free interest rate of 0.08%, average estimated life of 1.4 years and foreign exchange rate of 1.2651.

CurrencyWorks Inc. announced that the Canadian Securities Exchange has approved the listing of the Company’s shares of common stock on the CSE and its Shares commenced trading on the CSE at market open on April 28, 2021 under the symbol “CWRK” and will continue to trade in Canadian dollars. In connection with the CSE Listing, the Company delisted its Shares from the TSX Venture Exchange at the close of the market on April 27, 2021.

Effective as of May 5, 2021, we loaned $400,000 to Fogdog Energy Solutions Inc. pursuant to convertible promissory note. The note bears interest at a rate of 4% per annum and comes due on May 5, 2022. The note may not be prepaid without the written consent of our company. Our chief financial officer, secretary and treasurer, Swapan Kakumanu, is a director, chief financial officer and a shareholder of Fogdog.

We incurred general and administrative expenses of $1,548,742 and $171,428 for the three months ended March 31, 2021 and 2020, respectively, representing an increase of $1,377,314 between the two periods. These expenses consisted primarily of stock-based compensation expense for issuance of options, consulting fees, pre-licensing fees, professional fees, and other general and administrative costs. The increase in stock-based compensation of $777,284 is due to the issuance of options to the directors of the Company. The increase in consulting fees between the two periods from $564,148 in 2021 from $46,160 in 2020 was mainly due to the issuance of options for a consultant with stock-based compensation expense of $354,817 as well as an increase in compensation for our president, chief operating officer, and Board of Directors. Professional fees increased from $9,379 in 2020 to $55,872 in 2021 due to increased legal services as 2021 saw the Company raised equity in Q1.

Financing activities provided cash of $4,894,825 for the three months ended March 31, 2021 and $10,000 for the three months ended March 31, 2020. This is mainly due to share issuances of $4,577,115, warrant exercises of $443,018 and options exercises of $32,500 for the quarter ended March 31, 2021 less repayment of loans payable of $156,598.