(a) Issued in connection to a supply and distribution agreement. The Company fully expensed the value of the purchase warrants in stock based compensation which has been recorded as an administrative expense.

(b) Issued in connection to a commission agreement, the Company issued warrants for the purchase of 1,000,000 Common Shares of the Company. The warrants vest in four tranches of 250,000 purchase warrants each. The first tranche has an exercise price of $0.40 per Common Share and vested upon execution of the agreement. The Second tranche has an exercise price of $0.50 per Common Share and will vest upon the sales agent delivering $500,001 in sales revenue to Gilla Worldwide. The third tranche has an exercise price of $0.60 per Common Share and will vest upon the sales agent delivering $1,000,001 in sales revenue to Gilla Worldwide. The fourth tranche has an exercise price of $0.70 per Common Share and will vest upon the sales agent delivering $1,500,001 in sales revenue Gilla Worldwide. The Company booked the value of the vested purchase warrants in the amount of $35,362 as a prepaid to be expensed over the two year life of the commission agreement. During the year ended December 31, 2016, the Company expensed $17,681 in stock based compensation which has been recorded as an administrative expense. No portion of the value of the unvested purchase warrants has been expensed as the sales agent had not yet delivered any sales revenue to Gilla Worldwide.

(c) Issued in connection to the Secured Note No.3. The Company booked the value of the purchase warrants as prepaid to be expensed over six months which is the life of the Secured Note No.3. No amounts were expensed related to this prepaid during the years ended December 31, 2016. During the year ended December 31, 2015, the Company recorded $20,321 in interest expense related to these purchase warrants.

(d) Issued as part of the consideration for the acquisition of VaporLiq.

(e) Issued in connection with a private placement. No stock based compensation expense was recorded since the purchase warrants were issued as part of a private placement of Common Shares.

(f) Issued in connection with a private placement. No stock based compensation expense was recorded since the purchase warrants were issued as part of a private placement of Common Shares.

(g) Issued in connection to the Secured Notes, the Company booked the value of the purchase warrants as prepaid to be expensed over the life of the Secured Notes. During the year ended December 31, 2016, the Company expensed $17,881 of the prepaid as financing fees which has been recorded as interest expense.

(h) Issued in connection to the issuance of Convertible Debentures Series B. The value of the purchase warrants along with the BCF represents debt discount on the Convertible Debentures Series B and is accreted over the life of the debenture using the effective interest rate. For the year ended December 31, 2016, the Company recorded interest expense in the amount of $52,781 related to debt discount which includes the accretion of the BCF of the Convertible Debentures Series B (note 14).

(i) Issued in connection to the Term Loan (note 13). On July 15, 2016 and in connection to the Term Loan Amendment, the Company extended the expiration date of these purchase warrants to December 31, 2018, with all other terms of the warrants remaining the same. The Company booked the value of the purchase warrants of $51,598 as a prepaid to be expensed over the life of the Term Loan. During the year ended December 31, 2016, the Company expensed $22,888 of the prepaid as financing fees which has been recorded as interest expense. On January 18, 2016 and in connection to the Term Loan (note 13), the Company extended the expiration date of the 250,000 purchase warrants issued on August 1, 2014 to be exercisable until December 31, 2017. On July 15, 2016, the Company entered into the Term Loan Amendment and extended the expiration date of these purchase warrants to December 31, 2018, with all other terms of the warrants remaining the same. The Company booked the value of the purchase warrants in the amount of $42,325 as a prepaid to be expensed over the life of the Term Loan. During the year ended December 31, 2016, the Company expensed $17,829 of the prepaid as financing fees which has been recorded as interest expense.

(j) Issued in relation to a consulting agreement. The purchase warrants shall vest quarterly in eight equal tranches, with the first tranche vesting immediately and the final tranche vesting on November 18, 2017. If the consulting agreement was terminated prior to the expiration of the purchase warrants, any unexercised fully vested warrants would expire thirty calendar days following the effective termination date and any unvested warrants would be automatically canceled. During the year ended December 31, 2016, the Company expensed $16,511 as stock based compensation in relation to the above purchase warrants which has been recorded as an administrative expense. On August 31, 2016, the Company terminated the consulting agreement and 187,500 of the unvested warrants have been cancelled and the remaining 112,500 vested warrants remain outstanding and exercisable until February 17, 2018 as mutually agreed in the termination.

(k) Issued in relation to a consulting agreement. The purchase warrants shall vest quarterly in eight equal tranches, with the first tranche vesting immediately and the final tranche vesting on November 18, 2017. If the consulting agreement was terminated prior to the expiration of the purchase warrants, any unexercised fully vested warrants would expire thirty calendar days following the effective termination date and any unvested warrants shall be automatically canceled. During the year ended December 31, 2016, the Company expensed $108,656 as stock based compensation in relation to the above purchase warrants which has been recorded as an administrative expense. On October 25, 2016, the Company terminated the consulting agreement and 937,500 unvested warrants have been cancelled and the remaining 562,500 vested warrants remain outstanding and exercisable until March 31, 2018 as mutually agreed in the termination.

(l) Issued in connection to the Loan Agreement (note 11). The warrants shall vest in two equal tranches, with 500,000 purchase warrants to vest upon the close of Loan Tranche A and the remaining 500,000 purchase warrants to vest upon the close of Loan Tranche B. On March 3, 2016 and April 14, 2016, the Company closed Loan Tranche A and Loan Tranche B, respectively, at which dates the purchase warrants became fully vested and exercisable. The Company booked the value of the purchase warrants of $158,995 as a prepaid to be expensed over the life of the Shareholder Loan. During the year ended December 31, 2016, the Company expensed $63,156 of the prepaid as financing fees which has been recorded as interest expense.

(m) Issued in connection to a consulting agreement. Forty percent of the purchase warrants vested immediately with the remaining sixty percent vesting in equal tranches of fifteen percent on September 30, 2016, December 31 2016, June 30, 2017 and December 31, 2017. If the consulting agreement is terminated prior to the expiration of the purchase warrants, any unexercised fully vested warrants shall expire ninety calendar days following the effective termination date and any unvested warrants shall be automatically cancelled. During the year ended December 31, 2016, the Company expensed $205,828 as stock based compensation in relation to the above purchase warrants which has been recorded as an administrative expense. Subsequent to the year ended December 31, 2016, the Company terminated the consulting agreement for cause and all Common Share purchase warrants issued in connection to the consulting agreement were cancelled (note 24).

(n) Issued in connection to the issuance of Convertible Debentures Series C-1. The value of the purchase warrants along with the BCF represents debt discount on the Convertible Debentures Series C-1 and is accreted over the life of the debenture using the effective interest rate. For the year ended December 31, 2016, the Company recorded interest expense in the amount of $21,674 related to debt discount which includes the accretion of the BCF (note 14).

(o) Issued as a commission payment related to the issuance of the Convertible Debentures Series C-1. The value of the purchase warrants in the amount of $14,225 were recorded as a reduction to the proceeds received for the Convertible Debentures Series C-1 (note 14).

(p) Issued in connection to the Term Loan Amendment (note 13). The Company booked the value of the purchase warrants in the amount of $45,799 as a prepaid financing fee to be expensed over the life of the Term Loan. During the year ended December 31, 2016, the Company expensed $10,732 of the prepaid as financing fees which has been recorded as interest expense.

(q) Issued in connection to the Secured Notes. The Company booked the value of the purchase warrants in the amount of $18,840 was booked as prepaid to be expensed over the life of the Secured Notes. During the year ended December 31, 2016, the Company expensed $306 of the prepaid as financing fees which has been recorded as interest expense.

(r) Issued in connection to the issuance of Convertible Debentures Series C-2. The value of the purchase warrants along with the BCF represents debt discount on the Convertible Debentures Series C-2 and is accreted over the life of the debenture using the effective interest rate. For the year ended December 31, 2016, the Company recorded interest expense in the amount of $2,750 related to debt discount which includes the accretion of the BCF of Convertible Debentures Series C-2 (note 14).