BriaCell Therapeutics Corp. 10-K

ITEM 9A. CONTROLS AND PROCEDURES Evaluation of Disclosure Controls and Procedures We maintain “disclosure controls and procedures,” as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Exchange Act that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to our management, including our principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Our management, with the participation of our principal executive officer and principal accounting and financial officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), as of the end of the period covered by this Annual Report on Form 10-K. Our management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and our management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on such evaluation, our principal executive officer and principal accounting and financial officer have concluded that as of July 31, 2022, our disclosure controls and procedures were not effective as of such date as a result of material weaknesses in our internal control over financial reporting. Management’s Report on Internal Control Over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting as such term is defined in Exchange Act Rule 13a-15(f). Internal control over financial reporting is a process designed under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the U.S.. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. As of July 31, 2022, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, our management concluded that, as of July 31, 2022, our internal control over financial reporting lacked adequate segregation of duties within account processes, and systems, inadequate documentation to evidence the operation of controls, inconsistent procedures and approvals, lack of periodic user access reviews, lack of assessment of controls of financially significant vendors and insufficient written policies and procedures for accounting, IT and financial reporting and record keeping. We are implementing plans to improve such internal control. Changes in Internal Control Over Financial Reporting There has been material changes in our internal control over financial reporting during the quarter ended July 31, 2022 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. Independent review and approval of transactions and reconciliations has been implemented in some processes by hiring personnel and segregating duties amongst the team. Management is implementing processes to document and retain evidence to support reviews and reconciliations. ITEM 9B. OTHER INFORMATION None. ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections Not applicable. 67 PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE Executive Officers, Directors and Key Employees The following table sets forth the name, age and position of each of our executive officers, key employees and directors as of October 27, 2022. All directors hold office until the next annual meeting of shareholders and the election and qualification of their successors. Officers serve at the discretion of the board. Name Age Position William V. Williams, MD, FRCP 67 President, Chief Executive Officer, and Director Gadi Levin, CA, MBA 49 Chief Financial Officer and Corporate Secretary Giuseppe Del Priore, MD, MPH 60 Chief Medical Officer Miguel A. Lopez-Lago, PhD 53 Chief Scientific Officer Jamieson Bondarenko, CFA, CMT 38 Chairman of the Board of Directors Vaughn C. Embro-Pantalony, MBA, FCPA, FCMA, CDIR, ACC 65 Director Marc Lustig, MSC, MBA 50 Director Martin E. Schmieg 60 Director Rebecca Taub, MD 70 Director Jane A. Gross, PhD 66 Director Biographies William V. Williams, MD , President, Chief Executive Officer and Director, is a seasoned biopharmaceutical executive with over 35 years of industry and academic expertise, including significant clinical management in multinational pharmaceutical companies. Dr. Williams has served as President, Chief Executive Officer and Director of the Company since November 1, 2016. Dr. Williams served as Vice President of Exploratory Development at Incyte Corporation from March 2005 through November 2016. There he facilitated entry of over 20 compounds into the clinic, including ruxolitinib (Jakafi), baricitinib (Olumiant), and epacadostat. Dr. Williams held several positions at GlaxoSmithKline Pharmaceuticals, including Head of Experimental Medicine and Vice President of Clinical Pharmacology from December 2000 through March 2002; Director and Head of Clinical Pharmacology, Oncology, Musculoskeletal and Inflammation from March 2002 through December 2004 and Director and Head of Clinical Pharmacology, Musculoskeletal, Inflammation, Gastrointestinal and Urology from December 2004 through March 2005. He has also served as Assistant Professor of Medicine and the Director of Rheumatology Research at the University of Pennsylvania from July 1991 through January 1998. Dr. Williams earned his BSc in Chemistry and Biotechnology from Massachusetts Institute of Technology and Medical Doctorate from Tufts University School of Medicine. We believe that Dr. Williams is qualified to serve as a member of our Board b ecause of his experience as our President and Chief Executive Officer, as well as his depth of academic and industry experience. Gadi Levin, CA, MBA , Chief Financial Officer and Secretary, was appointed Chief Financial Officer and Secretary of the Company on February 1, 2016. Mr. Levin has also served as Chief Financial Officer and Director of Vaxil Bio Ltd since March 1, 2016, and as the Finance Director of Eco (Atlantic) Oil & Gas Ltd. since December 1, 2016. Mr. Levin has over 15 years of experience working with public U.S., Canadian and multi-jurisdictional public companies. Previously, Mr. Levin served as Chief Financial Officer of DarioHeath Corp from November 2013 through January 2015. Mr. Levin also served as the Vice President of Finance and Chief Financial Officer for two Israeli investment firms specializing in private equity, hedge funds and real estate. Mr. Levin began his CPA career at the accounting firm Arthur Andersen, where he worked for nine years, specializing in U.S. listed companies involved in initial public offerings. Mr. Levin has a Bachelor of Commerce degree in Accounting and Information Systems from the University of Cape Town, South Africa, and a post graduate diploma in Accounting from the University of South Africa. He received his Chartered Accountant designation in South Africa and has an MBA from Bar Ilan University in Israel. 68 Giuseppe Del Priore, MD, MPH , Chief Medical Officer, was appointed Chief Medical Officer on February 16, 2022. Dr. Del Priore is a seasoned healthcare executive with over 25 years of experience in research, drug development, and clinical trial management. Dr. Del Priore’s prior work experience includes serving as a biotechnology company Chief Medical Officer, a National Director at the Cancer Treatment Centers of America, and faculty at Indiana University School of Medicine, Weill Cornell Medicine, and New York University School of Medicine. Dr. Del Priore completed his MPH degree in Biostatistics and Epidemiology at the University of Illinois Chicago School of Public Health, his medical degree with Distinction at The State University of New York, and his BA, magna cum laude, in Philosophy, at The City University of New York, with additional training at Memorial Sloan Kettering Cancer Center, The University of Chicago, Northwestern University, and the University of Rochester. He has authored numerous publications, was named on several patents, and was listed as the “Best Doctors” by the U.S. News & World Report. He regularly appears in various media outlets as a Key Opinion Leader in oncology. We believe that Dr. Del Priore is qualified to serve as Chief Medical Officer b ecause of his medical and clinical trial experience. Miguel A. Lopez-Lago, PhD , Chief Scientific Officer, was appointed Chief Scientific Officer on May 26, 2022, a promotion from his prior title of Senior Director, Research and Development. Since 2000, Dr. Lopez-Lago has been working as a cancer scientist at Memorial Sloan Kettering Cancer Center, New York. Specifically, he has investigated various aspects of tumor biology, including the development of targeted therapies for mesothelioma and the characterization of the biological mechanisms underlying cancer metastasis. More recently, Dr. Lopez-Lago has been interested in the study of the tumor immune-microenvironment and in the development of immunotherapies for thoracic cancers using chimeric antigen receptor T cell technologies. Since 2013, Dr. Lopez-Lago has been working as Senior Research Scientist at MSKCC. Dr. Lopez-Lago received his Bachelor of Science in Bio-Sciences and his doctorate in Molecular Biology from Santiago of Compostela University, Spain. We believe that Dr. Lopez-Lago is qualified to serve as Chief Scientific Officer b ecause of his scientific training, especially in immunology and cellular therapies. Jamieson Bondarenko , CFA, CMT , Chairman of the Board, was appointed as a Director of the Company on February 12, 2019 and elected as Chairman on April 24, 2019. Mr. Bondarenko provides strategic capital markets & corporate development advice to early-stage life sciences companies through his merchant capital company, JGRNT Capital Corp., a company he founded in November 2016. From December 2016 through October 2017, he served as Principal and Managing Director of the Equity Capital Markets group of Eight Capital. He also held several positions in the Capital Markets division of Dundee Securities Ltd., including Managing Director from July 2016 through December 2016, Director from October 2015 through July 2016, Vice President from December 2012 through October 2015 and Associate from February 2010 through December 2012. We believe that Mr. Bondarenko is qualified to serve as a member of our Board b ecause of his industry-specific and capital markets experience. Vaughn C. Embro-Pantalony, MBA, FCPA, FCMA, CDIR, ACC , Director, has been a Director of the Company since his appointment on March 18, 2019. In February 2018, he joined the Board of Directors of Soricimed Biopharma Inc., a private clinical-stage biopharma company developing targeted cancer therapies, and in August 2018 he was appointed Chairman of the Board of Soricimed, where he continues to serve in this capacity. He is also a Director of Microbix Biosystems Inc., a public company and leading manufacturer of viral and bacterial antigens and reagents for the global diagnostics industry. He originally joined the Microbix Board in February 2007, and he also served as its President and Chief Executive Officer from November 2012 to July 2017. He is President of Stratpath Management Inc., consulting on strategy and governance to the life sciences sector. He has held other executive positions in life sciences with responsibility for finance, business development, strategic planning and information technology, including Vice President, Finance, and Chief Financial Officer of Novopharm Limited from May 2003 through April 2006; Vice President, Information Technology, and Chief Information Officer of Bayer Inc. from July 1999 through April 2003; Vice President, Finance and Administration of Bayer Healthcare from October 1996 through June 1999; and Director, Finance and Administration and Chief Financial Officer of Zeneca Pharma Inc. from March 1995 through August 1996. He received his bachelor’s degree from Wilfrid Laurier University and his master of business administration degree from University of Windsor. He is a Fellow Chartered Professional Accountant and a Chartered Director (C. Dir.) and is Audit Committee Certified (A.C.C.) through the Directors College, McMaster University. We believe that Mr. Embro-Pantalony is qualified to serve as a member of our Board due to his extensive experience as a pharmaceutical and life sciences executive. 69 Marc Lustig, Director, was appointed to the Company’s Board on September 1, 2021. Mr. Lustig is a highly regarded investor, entrepreneur, and corporate finance veteran with a deep understanding of the life sciences industry, including biotechnology and pharmaceuticals, as well as the legal cannabis industry. He holds MSc and MBA degrees from McGill University. His professional experience includes working at Merck & Co., and his capital markets career includes roles in biotechnology equity research and corporate finance. Mr. Lustig was the founder and CEO of Origin House, which was sold to Cresco Labs Inc. (CSE: CL; OTCQX: CRLBF) in 2020, where he currently serves as a director and as Head of Capital Markets. In addition to being a director of a number of public companies, he founded the Lustig Family Medical Cannabis Research & Care Fund of the Cedars Cancer Foundation that provides cannabis to palliative cancer patients. We believe that Mr. Lustig is qualified to serve as a member of our Board b ecause of his industry-specific and capital markets experience. Martin Schmieg , Director, rejoined the Company’s Board on November 24, 2020. Having served as a member of BriaCell’s Board from 2016 to March 2019, Mr. Schmieg is a “C” level executive with a diversified background in the global biotech, med-tech and pharmaceutical industries, with 40 years of business experience. He currently serves as Co-Founder and CEO of ClearIt, LLC, a private company based in Massachusetts. As a hands-on leader, Mr. Schmieg’s early career focused on accounting and financial management responsibilities, serving as Chief Financial Officer to privately held Cytometrics, Inc. and Advanced Bionics Corporation, and publicly traded Sirna Therapeutics, Inc. and Isolagen, Inc. We believe that Mr. Schmeig is qualified to serve as a member of our Board b ecause of his long-term familiarity with the Company and his perspective and experience in relevant industries. Rebecca Taub, MD , Director, has been a Director of the Company since her appointment on March 18, 2019. Dr. Taub currently serves as the President of Research and Development for Madrigal Pharmaceuticals, a clinical-stage biopharmaceutical company. She previously served as Vice President of Research and Development from July 2016 through her recent promotion to President of Research and Development on June 27, 2019. She has also served as Madrigal’s Chief Medical Officer since July 2016. Dr. Taub served as the CEO and a Director of Madrigal from September 2011 through Madrigal’s merger with Synta Pharmaceuticals Corp. in July 2016. Prior to joining Madrigal, Dr. Taub served as Senior Vice President, Research and Development of VIA Pharmaceuticals from 2008 to 2011 and as Vice President, Research, Metabolic Diseases at Hoffmann-LaRoche from 2004 to 2008. In those positions, Dr. Taub oversaw clinical development and drug discovery programs in cardiovascular and metabolic diseases, including the conduct of a series of Phase I and II proof of conduct clinical trials. Dr. Taub led drug discovery programs, including target identification, lead optimization and advancement of preclinical candidates into clinical development. From 2000 through 2003, Dr. Taub worked at Bristol-Myers Squibb Co. and DuPont Pharmaceutical Company, in a variety of positions, including Executive Director of CNS and metabolic diseases research. Before becoming a pharmaceutical executive, Dr. Taub was a tenured Professor of Genetics and Medicine at the University of Pennsylvania, and remains an adjunct professor. Dr. Taub is the author of more than 120 research articles. Before joining the faculty of the University of Pennsylvania, Dr. Taub served as an Assistant Professor at the Joslin Diabetes Center of Harvard Medical School, Harvard University and an associate investigator with the Howard Hughes Medical Institute. Dr. Taub received her M.D. from Yale University School of Medicine and her B.A. from Yale College. We believe that Dr. Taub is qualified to serve as a member of our Board due to her extensive experience as a pharmaceutical executive heading up major development programs in non-alcoholic steatohepatitis. Jane Gross, Director, was appointed to the Company’s Board in November 2021. Dr. Gross is a highly experienced biotech executive with over 30 years in leading research and development teams from discovery through preclinical evaluation and clinical development of therapeutics for the treatment of cancer and autoimmune and inflammatory diseases. Dr. Gross currently serves as an Independent Director for aTyr Pharmaceuticals (Nasdaq: LIFE), a biotechnology company developing novel therapeutics for respiratory diseases and multiple cancer indications. Dr. Gross’s experience includes roles as Chief Scientific Officer and SVP, Research and Non-Clinical Development at Aptevo Therapeutics (Nasdaq: APVO), during which she led the discovery of novel antibody-based, bispecific protein therapeutics as immunotherapies to treat diseases like cancer. Previously, Dr. Gross served as VP, Applied Research and Non-Clinical Development at Emergent BioSolutions (NYSE: EBS), during which she successfully introduced a drug to patients from the design stage into the clinic stage. Formerly, as VP, Immunology Research at ZymoGenetics, Dr. Gross discovered and developed 30+ new product candidates, completed partnerships and out-licensing of assets, and helped position ZymoGenetics for a successful acquisition by Bristol Myers Squibb (NYSE: BMY) in 2010. Dr. Gross earned her Ph.D. in Immunology from the University of California, Berkeley and her Post-Doctoral Fellowship from the University of Washington in Immunology. We believe that Dr. Gross is qualified to serve as a member of our Board due to her extensive industry experience and academic background. 70 Family Relationships and Other Arrangements There are no family relationships among our directors and executive officers. There are no arrangements or understandings between or among our executive officers and directors pursuant to which any director or executive officer was or is to be selected as a director or executive officer. Composition of our Board 6 Under our amended articles of incorporation, our Board consists of a minimum of three directors and up to that number which was last set by ordinary resolution of the shareholders. Our Board is currently comprised of seven directors, and under the Business Corporations Act (British Columbia) (“ BCBCA ”), as a reporting issuer, we must have no fewer than three directors. Under the BCBCA, a director may be removed with or without cause by a resolution passed by at least two-thirds of the votes cast by shareholders present in person or by proxy at a meeting and who are entitled to vote. The directors are appointed at the annual general meeting of shareholders and the term of office for each of the directors will expire at the time of our next annual shareholders meeting. Our amended articles of incorporation provide that, between annual general meetings of our shareholders, the directors may appoint one or more additional directors, but the number of additional directors may not at any time exceed one-third of the number of directors who held office at the expiration of the last meeting of our shareholders. Under the BCBCA, there is no minimum number of directors required to be resident Canadians as defined in the BCBCA. Director Term Limits and Other Mechanisms of Board Renewal Our Board has not adopted director term limits or other automatic mechanisms of Board renewal. Rather than adopting formal term limits, mandatory age-related retirement policies and other mechanisms of Board renewal, the nominating and corporate governance committee of our Board will develop a skills and competencies matrix for our Board as a whole and for individual directors. The nominating and corporate governance committee conducts a process for the assessment of our board of directors, each committee and each director regarding his or her effectiveness and contribution, and reports evaluation results to our Board on a regular basis. Director Independence Under the Nasdaq Rules, independent directors must comprise a majority of a listed company’s board of directors. For purposes of the Nasdaq Rules, an independent director means a person other than an executive officer or employee of the company who, in the opinion of the board of directors, has no relationship with the company that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. Under NI 58-101, a director is considered to be independent if he or she is independent within the meaning of Section 1.4 of National Instrument 52-110— Audit Committees . Section 1.4 of NI 52-110 generally provides that a director is independent if he or she has no direct or indirect relationship with the issuer which could, in the view of the issuer’s board of directors, be reasonably expected to interfere with the exercise of the director’s independent judgment. Our Board has undertaken a review of the independence of each director. Based on information provided by each director concerning his or her background, employment and affiliations, our Board has determined that Dr. Gross, Dr. Taub, Mr. Embro-Pantalony, Mr. Schmieg, and Mr. Bondarenko, representing five of the seven members of our Board, are “independent” as that term is defined under the Nasdaq Rules. In making this determination, our Board considered the current and prior relationships that each non-employee director has with our company and all other facts and circumstances our Board deemed relevant in determining their independence, including the beneficial ownership of our shares by each non-employee director. Dr. Williams is not independent by virtue of being the Company’s Chief Executive Officer. Mr. Lustig is not independent by virtue of being a significant securityholder of the Company. Certain members of our Board are also members of the boards of other public companies. Our Board has not adopted a director interlock policy, but is kept informed of other public directorships held by its members. 71 Mandate of the Board of Directors Our Board is responsible for supervising the management of our business and affairs, including providing guidance and strategic oversight to management. Our Board’s mandate includes, among other things, the following matters: ● succession planning, including appointing, training and monitoring senior management; ● developing the corporate goals and objectives that management is responsible for meeting and reviewing the performance of our senior officers against such corporate goals and objectives; ● taking steps to satisfy itself as to the integrity of our executive officers and that our executive officers create a culture of integrity throughout the organization; ● reviewing and approving our code of conduct and reviewing and monitoring compliance with the code of conduct and our enterprise risk management processes; ● reviewing and approving management’s strategic and business plans and our financial objectives, plans and actions, including significant capital allocations and expenditures; and ● reviewing and approving material transactions not in the ordinary course of business. Meetings of Independent Directors Our Board holds regularly-scheduled quarterly meetings as well as ad hoc meetings from time to time. The independent members of our Board also meet, as required, without the non-independent directors and members of management after each regularly scheduled board meeting. A director who has a material interest in a matter before our Board or any committee on which he or she serves is required to disclose such interest as soon as the director becomes aware of it. In situations where a director has a material interest in a matter to be considered by our Board or any committee on which he or she serves, such director may be required to absent himself or herself from the meeting while discussions and voting with respect to the matter are taking place. Directors are also required to comply with the relevant provisions of the BCBCA regarding conflicts of interest. Position Descriptions Our Board has adopted written terms of reference for the chairman which set out his or her key responsibilities, including duties relating to determining the frequency, dates and locations of meetings and setting Board meeting agendas, chairing Board and shareholder meetings and carrying out any other or special assignments or any functions as may be requested by our Board or management, as appropriate. Our Board has also adopted written terms of reference for each of the committee chairs which set out each of the committee chair’s key responsibilities, including duties relating to determining the frequency, dates and locations of meetings and setting committee meeting agendas, chairing committee meetings, reporting to our Board and carrying out any other special assignments or any functions as may be requested by our Board. In addition, our Board, in conjunction with our Chief Executive Officer, will develop and implement a written position description for the role of our Chief Executive Officer. Orientation and Continuing Education We have implemented an orientation program for new directors under which a new director meets separately with the chairman of our Board, members of the senior executive team and the secretary. The nominating and corporate governance committee will be responsible for coordinating orientation and continuing director development programs relating to the committee’s mandate. The chairman of our Board will be responsible for overseeing director continuing education designed to maintain or enhance the skills and abilities of our directors and to ensure that their knowledge and understanding of our business remains current. 72 Code of Conduct Our board of directors has adopted a Code of Ethics that applies to all of our directors, officers and employees. We have made the Code of Ethics available on our website https://briacell.com/corporate/corporate-governance/. We intend to disclose future amendments to, or waivers of, our Code of Ethics, as and to the extent required by SEC regulations, at the same location on our website identified above or in public filings. Monitoring Compliance with the Code of Conduct Our nominating and corporate governance committee will be responsible for reviewing and evaluating the code of conduct at least annually and will recommend any necessary or appropriate changes to our Board for consideration. The nominating and corporate governance committee will assist our Board with the monitoring of compliance with the code of conduct, and will be responsible for considering any waivers therefrom (other than waivers applicable to members of the nominating and corporate governance committee, which shall be considered by the audit committee, or waivers applicable to our directors or executive officers, which shall be subject to review by our Board as a whole). Requirement for Directors and Officers to Disclose Interest in a Contract or Transaction In accordance with the BCBCA, each director and officer must disclose the nature and extent of any interest that he or she has in a material contract or material transaction whether made or proposed with us, if the director or officer is a party to the contract or transaction, is a director or an officer or an individual acting in a similar capacity of a party to the contract or transaction, or has a material interest in a party to the contract or transaction. Subject to certain limited exceptions under the BCBCA, no director may vote on a resolution to approve a material contract or material transaction which is subject to such disclosure requirement. As of the date hereof, except as otherwise disclosed in this Annual Report on Form 10-K, to the knowledge of the Board or the management of the Company, there are no material interests, whether direct or indirect, of any informed person of the Company, any proposed director of the Company, or any associate or affiliate of any informed person or proposed director, in any transaction since the commencement of the Company’s most recently completed financial year or in any proposed transaction which has materially affected or would materially affect the Company of any of its subsidiaries. Benefits upon Termination of Employment The service contracts with our directors do not provide for any benefits upon termination of employment, other than a “tail” directors and officers insurance policy. Complaint Reporting In order to foster a climate of openness and honesty in which any concern or complaint pertaining to a suspected violation of the law, our code of conduct or any of our policies, or any unethical or questionable act or behavior, our code of conduct will require that our employees promptly report the violation or suspected violation. In order to ensure that violations or suspected violations can be reported without fear of retaliation, harassment or an adverse employment consequence, we will adopt a whistleblowing policy which will contain procedures that are aimed to facilitate confidential, anonymous submissions of complaints by our directors, officers, employees and others. Committees of the Board We currently have an audit committee, a compensation committee and a nominating and corporate governance committee, with each committee having a written charter. 73 Audit Committee Our Audit Committee is currently comprised of Vaughn C. Embro-Pantalony, Martin Schmieg and Jane A. Gross, and chaired by Mr. Embro-Pantalony. Our Board has determined that each of Mr. Schmieg and Mr. Embro-Pantalony is financially literate and meets the independence requirements for directors, including the heightened independence standards for members of the audit committee under Rule 10A-3 under the Exchange Act and NI 52-110. Our Board has determined that Mr. Embro-Pantalony is “financially sophisticated” within the meaning of the Nasdaq Rules, “financially literate” within the meaning of NI 52-110, and a “financial expert” as defined by Rule 10A-3 under the Exchange Act. We have adopted an Audit Committee Charter setting forth the purpose, composition, authority and responsibility of the audit committee. The primary function of the audit committee is to assist the Board in fulfilling its financial oversight responsibilities by reviewing the financial reports and other financial information provided by the company to regulatory authorities and the Company’s shareholders, the Company’s systems of internal controls regarding finance and accounting and the Company auditing, accounting and financial reporting processes. Consistent with this function, the Committee will encourage continuous improvement of, and should foster adherence to, Company’s policies, procedures and practices at all levels. The Committee’s primary duties and responsibilities are to: ● Serve as an independent and objective party to monitor the Company’s financial reporting and internal control system and review Company’s financial statements; ● Review and appraise the performance of the Company’s external auditors; and ● Provide an open avenue of communication among the Company’s auditors, financial and senior management and the Board. The Audit Committee meets at least annually, or more frequently as circumstances dictate. As part of its job to foster open communication, the Audit Committee meets at least annually with the external auditors. To fulfill its responsibilities and duties, the Audit Committee: ● Reviews and updates the Audit Committee’s charter annually; ● Reviews the Company’s financial statements, Management Discussion & Analysis and any annual and interim earnings, press releases before the Company publicly discloses this information and any reports or other financial information (including quarterly financial statements), which are submitted to any governmental body, or to the public, including any certification, report, opinion, or review rendered by the external auditors; ● Reviews annually, the performance of the external auditors who shall be ultimately accountable to the Board and the Committee as representatives of the shareholders of the Company; ● Obtains annually, a formal written statement of external auditors setting forth all relationships between the external auditors and the Company, consistent with Independence Standards Board Standard I; ● Reviews and discusses with the external auditors any disclosed relationships or services that may impact the objectivity and independence of the external auditors; ● Takes, or recommends that the full Board takes, appropriate action to oversee the independence of the external auditors; ● Recommends to the Board the selection and, where applicable, the replacement of the external auditors nominated annually for shareholder approval; ● Reviews and approves the Company’s hiring policies regarding partners, employees and former partners and employees of the present and former external auditors of the Company; ● Reviews and pre-approves all audit and audit-related services and the fees and other compensation related thereto; ● In consultation with the external auditors, reviews with management the integrity of the Company’s financial reporting process, both internal and external; 74 ● Considers the external auditors’ judgments about the quality and appropriateness of the Company’s accounting principles as applied in its financial reporting; ● Considers and approves, if appropriate, changes to the Company’s auditing and accounting principles and practices as suggested by the external auditors and management; ● Reviews significant judgments made by management in the preparation of the financial statements and the view of the external auditors as to appropriateness of such judgments; ● Following completion of the annual audit, reviews separately with management and the external auditors any significant difficulties encountered during the course of the audit, including any restrictions on the scope of work or access to required information; ● Reviews any significant disagreement among management and the external auditors in connection with the preparation of the financial statements; ● Reviews with the external auditors and management the extent to which changes and improvements in financial or accounting practices have been implemented; ● Reviews any complaints or concerns about any questionable accounting, internal accounting controls or auditing matters; ● Reviews certification process; and ● Reviews any related-party transactions. Principal Accountant’s Fees External Audit Service Fees The following table sets forth the aggregate fees paid to the Company’s external auditors, Chartered Professional Accountants, by the Company during the financial years ended July 31, 2022 and 2021: Year ended July 31, 2022 Year ended July 31, 2021 Audit Fees $ 232,884 $ 211,000 Audit-Related Fees - 21,950 Tax Fees 11,900 11,900 All Other Fees 17,134 17,139 Total: $ 261,918 $ 261,989 Compensation Committee 7 Our compensation committee is comprised of Mr. Embro-Pantalony and Mr. Schmieg and is chaired by Mr. Schmieg. The Compensation Committee is appointed by the Board to assist in promoting a culture of integrity throughout the Company, to assist the Board in setting director and senior executive compensation, and to develop and submit to the Board recommendations with respect to other employee benefits as the Compensation Committee sees fit. In the performance of its duties, the Compensation Committee is guided by the following principles: ● offering competitive compensation to attract, retain and motivate highly qualified executives in order for the Company to meet its goals; and ● acting in the interests of the Company and the shareholders by being fiscally responsible. The Board relies on the knowledge and experience of the members of the Compensation Committee to set appropriate levels of compensation for senior officers. Neither the Company nor the Compensation Committee currently has, or has had at any time since incorporation, any contractual arrangement with any executive compensation consultant who has a role in determining or recommending the amount or form of senior officer compensation. 75 When determining compensation payable, the Compensation Committee considers both external and internal data. External data includes general market conditions and well as information regarding compensation paid to directors, CEOs and CFOs of companies of similar size and at a similar stage of development in the industry. Internal data includes annual reviews of the performance of the directors, CEO and CFO in light of the Company’s corporate objectives and considers other factors that may have impacted the Company’s success in achieving its objectives. Nominating and Corporate Governance Committee The Nominating and Corporate Governance Committee is appointed by the Board to assist in fulfilling its corporate governance responsibilities under applicable laws. The Nominating and Corporate Governance Committee is responsible for, among other things, developing the Company’s approach to governance issues and establishing sound corporate governance practices that are in the interests of shareholders and that contribute to effective and efficient decision-making. Our Nominating and Corporate Governance Committee is currently comprised of Mr. Embro-Pantalony and Dr. Taub and is chaired by Mr. Embro-Pantalony. Exculpation, Insurance and Indemnification of Directors and Officers Under the BCBCA, a company may indemnify: (i) a current or former director or officer of that company; (ii) a current or former director or officer of another corporation if, at the time such individual held such office, the corporation was an affiliate of the company, or if such individual held such office at the company’s request; or (iii) an individual who, at the request of the company, held, or holds, an equivalent position in another entity (an “ indemnifiable person ”) against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by him or her in respect of any civil, criminal, administrative or other legal proceeding or investigative action (whether current, threatened, pending or completed) in which he or she is involved because of that person’s position as an indemnifiable person, unless: (i) the individual did not act honestly and in good faith with a view to the best interests of such company or the other entity, as the case may be; or (ii) in the case of a proceeding other than a civil proceeding, the individual did not have reasonable grounds for believing that the individual’s conduct was lawful. A company cannot indemnify an indemnifiable person if it is prohibited from doing so under its articles or by applicable law. A company may pay, as they are incurred in advance of the final disposition of an eligible proceeding, the expenses actually and reasonably incurred by an indemnifiable person in respect of that proceeding only if the indemnifiable person has provided an undertaking that, if it is ultimately determined that the payment of expenses was prohibited, the indemnifiable person will repay any amounts advanced. Subject to the aforementioned prohibitions on indemnification, a company must, after the final disposition of an eligible proceeding, pay the expenses actually and reasonably incurred by an indemnifiable person in respect of such eligible proceeding if such indemnifiable person has not been reimbursed for such expenses, and was wholly successful, on the merits or otherwise, in the outcome of such eligible proceeding or was substantially successful on the merits in the outcome of such eligible proceeding. On application from an indemnifiable person, a court may make any order the court considers appropriate in respect of an eligible proceeding, including the indemnification of penalties imposed or expenses incurred in any such proceedings and the enforcement of an indemnification agreement. As permitted by the BCBCA, under Article 21.1, we are required to indemnify our directors and former directors (and such individual’s respective heirs and legal representatives) and we will indemnify any such person to the extent permitted by the BCBCA . The BCBCA provides certain protections under Part 5 – Management, Division 5 - Indemnification of Directors and Officers and Payment of Expenses, to our current and former directors and officers, as well as other eligible parties defined in Section 159 of the BCBCA (the “ Eligible Parties ”, each an “ Eligible Party ”). The Company will indemnify the Eligible Parties, to the fullest extent permitted by law and subject to certain limitations listed in Section 163 of the BCBCA, against any proceeding in which an Eligible Party or any of the heirs and personal or other legal representatives of the Eligible Party, by reason of the Eligible Party being or having been a director or officer of, or holding or having held a position equivalent to that of a director or officer of, the Company or an associated corporation (a) is or may be joined as a party, or (b) is or may be liable for or in respect of a judgment, penalty or fine in, or expenses related tom, the proceeding. 76 We maintain insurance policies relating to certain liabilities that our directors and officers may incur in such capacity. ITEM 11. EXECUTIVE COMPENSATION Summary Compensation Table The following table presents the compensation awarded to, earned by or paid to each of our named executive officers for the years ended July 31, 2022 and July 31, 2021. Name and Principal Position Year Salary ($) Bonus ($) Stock Awards ($)(1) Option Awards ($) All Other Compensation ($) Total ($) William V. Williams, MD, FRCP 2022 560,992 150,000 - 100,152 - 811,144 President and Chief Executive Officer 2021 217,995 - - 612,324 - 830,319 Gadi Levin, CA, MBA 2022 202,091 45,000 - 9,240 - 256,331 Chief Financial Officer and Corporate Secretary 2021 114,278 - - 229,621 - 343,899 Giuseppe Del Priore, MD, MPH (2) 2022 199,665 - - 215,881 - 415,546 Chief Medical Officer 2021 - - - - Miguel A. Lopez-Lago, PhD (3) 2022 211,616 35,000 - 22,456 - 269,072 Chief Scientific Officer 2021 40,909 - - - 40,909 (1) This column represents the grant date fair value of the award in accordance with stock-based compensation rules under Accounting Standards Codification Topic 718. For a more detailed discussion of the valuation model and assumptions used to calculate the fair value of each option award, refer to Note 2 of the financial statements included in this annual report. (2) Giuseppe Del Priore was appointed as the Chief Medical Officer on February 16, 2022 (3) Miguel A. Lopez-Lago was appointed as the Chief Scientific Officer on May 26, 2022 Outstanding Equity Awards at Fiscal Year-End The following table provides information regarding option awards held by each of our named executive officers that were outstanding as of July 31, 2022. Option Awards Stock Awards Name Number of Securities Underlying Unexercised Options (#) Exercisable Number of Securities Underlying Unexercised Options (#) Unexercisable Option Exercise Price ($) Option Expiration Date Number of shares or units of stock that have not vested (#) Market value of shares or units of stock that have not vested ($) William V. Williams, MD, FRCP 200,000 - 4.24 03/29/26 - - 22,300 - 8.47 01/13/27 5,575 33,384 Gadi Levin, CA, MBA 75,000 - 4.24 03/29/26 - - 20,000 - 4.71 05/20/27 17,500 55,441 Giuseppe Del Priore, MD, MPH 150,000 - 7.51 02/16/27 112,500 647,642 Miguel A. Lopez-Lago, PhD 15,000 - 8.47 01/13/27 9,375 56,139 77 Non-Employee Director Compensation The following table presents the total compensation for each person who served as a non-employee member of our Board and received compensation for such service during the fiscal year ended July 31, 2022. Other than as set forth in the table and described more fully below, we did not pay any compensation, make any equity awards or non-equity awards to, or pay any other compensation to any of the non-employee members of our Board in 2022. Name Fees Earned or Paid in Cash ($) Stock Awards ($) Option Awards ($) All Other Compensation ($) Total ($) Jamieson Bondarenko, CFA, CMT 171,279 - 1,122,784 - 1,294,063 Vaughn C. Embro-Pantalony, MBA, FCPA, FCMA, CDIR, ACC 82,675 - 224,557 - 307,232 Marc Lustig, MSC, MBA 59,663 - 224,557 - 284,220 Martin E. Schmieg 72,500 - 224.557 - 297,057 Rebecca Taub, MD 60,000 - 44,911 - 104,911 Jane A. Gross, PhD 30,000 - 283,747 - 313,747 Employment Agreements Dr. Williams V. Williams On August 31, 2021, we entered into a compensation package with Dr. Williams, our Chief Executive Officer (the “ 2021 Compensation Package ”). Pursuant to the 2021 Compensation Package, Mr. Williams receives $550,000 annually and may earn an equity incentive bonus compensation, which may include a direct stock award of up to $125,000 based upon a performance review as of December 31, 2021 (the “ Performance Review ”). In addition, the 2021 Compensation Package provides for an option award to purchase up to $250,000 in common shares of the Company, in connection with the Performance Review, which vests over a four year period and provides for an aggregate cash, stock and option award of up to $950,000. On June 21, 2022, we entered into a compensation package with Dr. Williams (the “ 2022 Compensation Package ”). Pursuant to the 2022 Compensation Package, Mr. Williams receives $650,000 annually and an annual bonus of $150,000. In addition, the 2022 Compensation Package provides for a performance stock option award of $250,000 and a total cash, bonus and option award of up to $1,050,000. Giuseppe Del Priore On February 14, 2022, we entered into an employment agreement with Giuseppe Del Priore, our Chief Medical Officer (the “ Del Priore Employment Agreement ”). The Del Priore Employment Agreement provides for a full-time position, $350,000 annual salary and standard employee benefit plan participation. In addition, Mr. Del Priore was granted an option to purchase 150,000 of the Company’s common shares. The Del Priore Employment Agreement provides that Mr. Del Priore is eligible for an annual bonus in either cash or options to purchase common shares of the Company based on the successful completion of certain corporate milestones selected by our Chief Executive Officer and reviewed in the sole discretion of our Board or a compensation committee. Gadi Levin On March 2, 2022, we entered into an executive employment agreement with Gadi Levin, our Chief Financial Officer (the “ Levin Employment Agreement ”), effective January 1, 2022. The Levin Employment Agreement provides for a part-time position (60%), $200,000 annual salary (“ Base Salary ”) and standard employee benefit plan participation. Our Board approved a annual discretionary bonus of 30% of Mr. Levin’s yearly salary and $100,000 in stock options, which vest over a four year period per calendar year. In addition, Mr. Levin was granted 20,000 options in accordance with the terms of the Company’s stock option plan. During August 2022, Mr. Levin’s annual salary was increased to 250,000, retroactively to January 1, 2022 78 Miguel Lopez-Lago On May 26, 2022, we entered into an employment agreement with Miguel Lopez-Lago, our Chief Scientific Officer (the “ Lopez-Lago Employment Agreement ”). The Lopez-Lago Employment Agreement provides for $210,000 annually for Mr. Lopez-Lago’s duties as our Chief Scientist Officer. Equity Compensation Plan Information The following table summarizes the total number of outstanding awards and shares available for other future issuances of options under all of our equity compensation plans as of July 31, 2022. All of the outstanding awards listed below were granted under our stock option plan. Plan Category Number of Shares to be Issued Upon Exercise of Outstanding Options, Warrants and Rights Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights Number of Shares Remaining Available for Future Issuance Under the Equity Compensation Plan (Excluding Shares in First Column) Equity compensation plans approved by shareholders 9,674,638 $ 5.83 61,501 Equity compensation plans not approved by shareholders - - - ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS The following table sets forth certain information regarding the beneficial ownership of our common shares as of October 27, 2022 by: ● each of our named executive officers; ● each of our directors; ● all of our current directors and executive officers as a group; and ● each shareholder known by us to own beneficially more than 5% of our common shares. Beneficial ownership is determined in accordance with the rules of the SEC and includes voting or investment power with respect to the securities. Common shares that may be acquired by an individual or group within 60 days of October 27, 2022, pursuant to the exercise of options or warrants, vesting of common shares or conversion of preferred stock or convertible debt, are deemed to be outstanding for the purpose of computing the percentage ownership of such individual or group, but are not deemed to be outstanding for the purpose of computing the percentage ownership of any other person shown in the table. Percentage of ownership is based on 15,518,018 common shares issued and outstanding as of October 27, 2022. 79 Except as indicated in footnotes to this table, we believe that the shareholders named in this table have sole voting and investment power with respect to all common shares shown to be beneficially owned by them, based on information provided to us by such shareholders. Unless otherwise indicated, the address for each director and executive officer listed is: c/o BriaCell Therapeutics Corp., Suite 300 – 235 15th Street, West Vancouver, BC V7T 2X1. Number of Shares Percentage of Common Shares Name of Beneficial Owner Beneficially Owned Beneficially Owned Directors and Named Executive Officers Jamieson Bondarenko, CFA, CMT (1) 557,356 3.59 % William V. Williams, MD, FRCP (2) 406,358 2.62 % Gadi Levin, CA, MBA (3) 82,848 * Giuseppe Del Priore, MD, MPH (4) 38,750 * Miguel A. Lopez-Lago, PhD (5) 6,875 * Vaughn C. Embro-Pantalony, MBA, FCPA, FCMA, CDIR, ACC (6) 72,024 * Marc Lustig, MSC, MBA 1,660,000 10.70 % Martin E. Schmieg (7) 63,075 * Rebecca Taub, MD (8) 17,500 * Jane A. Gross, PhD (9) 47,500 * All current named executive officers and directors as a group (10 persons) 2,952,285 19.02 % 5% or Greater Shareholders Marc Lustig, MSC, MBA 1,660,000 10.70 % * Represents beneficial ownership of less than 1%. Notes : 1. Includes 150,000 options with an exercise price of $4.35, expiring on March 29, 2026, 187,500 options with an exercise price of $8.47, expiring on January 13, 2027 and 100,000 warrants to purchase common shares with an exercise price of $5.3125, expiring on February 26, 2026. 2. Includes 200,000 options with an exercise price of $4.35, expiring on March 29, 2026, 16,725 options with an exercise price of $8.47, expiring on January 13, 2027, 12,725 options with an exercise price of C$8.38, expiring on August 2, 2027 and 27,272 warrants to purchase common shares with an exercise price of $5.3125, expiring on February 26, 2026. 3. Includes 75,000 options with an exercise price of US$4.24, expiring on March 29, 2026, 2,500 options with an exercise price of US$4.71, expiring on May 20, 2027 and 2,538 options with an exercise price of C$8.38, expiring on August 2, 2027. 4. Includes 37,500 options with an exercise price of US$7.51, expiring on February 16, 2027 and 1,250 options with an exercise price of C$8.38, expiring on August 2, 2027. 5. 5,625 options with an exercise price of $8.47, expiring on January 13, 2027 and 1,250 options with an exercise price of C$8.38, expiring on August 2, 2027. 6. Includes 25,000 options with an exercise price of US$4.24, expiring on March 29, 2026 and 37,500 options with an exercise price of $8.47, expiring on January 13, 2027. 7 Includes 25,000 options with an exercise price of US$4.24, expiring on March 29, 2026 and 37,500 options with an exercise price of $8.47, expiring on January 13, 2027. 8. Includes 10,000 options with an exercise price of US$4.24, expiring on March 29, 2026 and 7,500 options with an exercise price of $8.47, expiring on January 13, 2027. 9. Includes 10,000 options with an exercise price of US$7.74, expiring on November 1, 2026 and 37,500 options with an exercise price of $8.47, expiring on January 13, 2027. Section 16(A) Beneficial Ownership Reporting Compliance Section 16(a) of the Exchange Act requires our officers and directors, and persons who own more than 10% of a registered class of our equity securities, to file reports of ownership and changes in ownership with the SEC. Officers, directors and greater than 10% shareholders are required by SEC regulations to furnish us with copies of all Section 16(a) forms they file. Based on a review of the copies of such forms received, we believe that during the fiscal year ending July 31, 2022, all filing requirements applicable to our officers, directors and greater than 10% beneficial owners were complied with. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE There have been no transactions since August 1, 2020 to which we have been a party, including transactions in which the amount involved in the transaction exceeds the lesser of $120,000 or 1% of the average of our total assets at year-end for the last two completed fiscal years, and in which any of our directors, executive officers or, to our knowledge, beneficial owners of more than 5% of our capital stock or any member of the immediate family of any of the foregoing persons had or will have a direct or indirect material interest, other than equity and other compensation, termination, change in control and other arrangements, which are described elsewhere in this Annual Report on Form 10-K. We are not a party to a current related party transaction, and no transaction is currently proposed, in which the amount of the transaction exceeds the lesser of $120,000 or 1% of the average of our total assets at year-end for the last two completed fiscal years and in which a related person had or will have a direct or indirect material interest. 80 Director Independence Our board of directors undertook a review of the independence of our directors and considered whether any director has a relationship with us that could compromise that director’s ability to exercise independent judgment in carrying out that director’s responsibilities. Our board of directors has affirmatively determined that Dr. Gross, Dr. Taub. Mr. Bondarenko, Mr. Empro-Pantalony, Mr. Lustig, and Mr. Schmieg are each an “independent director,” as defined under the Nasdaq rules. ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES Audit Fees The aggregate fees billed to us by MNP LLP, our independent registered public accounting firm, for the indicated services for each of the last two fiscal years were as follows: 2022 2021 Audit fees (1) $ 232,884 $ 211,000 Audit-related fees (2) $ - $ 21,950 Tax fees $ 11,900 $ 11,900 All other fees $ 17,134 $ 17,139 (1) Audit fees consist of fees for professional services performed by MNP LLP for the audit and review of our financial statements. (2) Audit related fees consist of fees for preparation and filing of our registration statements, including issuance of comfort letters. Policy on Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services of Independent Auditors Consistent with SEC policies and guidelines regarding audit independence, the Audit Committee is responsible for the pre-approval of all audit and permissible non-audit services provided by our independent registered public accounting firm on a case-by-case basis. Our Audit Committee has established a policy regarding approval of all audit and permissible non-audit services provided by our principal accountants. Our Audit Committee pre-approves these services by category and service. Our Audit Committee has pre-approved all of the services provided by our independent registered public accounting firm. 81 PART IV ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES Exhibit Number Description of Exhibit (a)(1) Financial Statements The financial statements required by this item are submitted in a separate section beginning on page F-1 of this Annual Report on Form 10-K. (b) Exhibits Exhibit Description 3.1 Articles of BriaCell Therapeutics Corp, dated July 26, 2006 3.2 Articles of BriaCell Therapeutics Corp, dated October 22, 2019 3.3 Notice of Articles, dated November 25, 2014 3.4 Notice of Articles, dated August 22, 2019 10.1 Stock Option Plan, dated November 25, 2014 10.2 Service Agreement with UC Davis, dated June 11, 2015 10.3 Clinical Study Agreement with Cancer Insight, LLC, dated May 2, 2016 10.4 Amendment #1 to Service Agreement with UC Davis, dated June 12, 2016 10.5 Licensing Agreement between Faller & Williams Technology LLC and Sapientia Pharmaceuticals, Inc., dated March 16, 2017 10.6 Master Services Agreement with KBI Biopharma, Inc., dated March 17, 2017 10.7 Clinical Study Agreement with Cancer Insight, LLC, dated September 29, 2017 10.8 Amendment #2 to Service Agreement with UC Davis, dated August 27, 2018 10.9 First Supplement to Clinical Study Agreement with Cancer Insight, LLC, dated October 18, 2018 10.10 Amendment #1 to Services Agreement with Colorado State University, dated April 2, 2019 10.11 Stem Cell Program Services Agreement with UC Davis, May 3, 2019 10.12 HLA Typing Services Agreement with Histogenetics, dated October 3, 2019 10.13 Procurement Agreement with Catalent Pharma Solutions, LLC, dated June 13, 2019 82 10.14 Clinical Supply Services Agreement with Catalent Pharma Solutions, LLC, dated June 13, 2019 10.15 Quality Agreement with Catalent Pharma Solutions, LLC, dated June 25, 2019 10.16 Master Services Agreement, dated February 27, 2020 10.17 Cooperative Research and Development Agreement, dated October 28, 2020 10.18 Form of Securities Purchase Agreement (June 2021) 10.19 Form of Placement Agency Agreement (June 2021) 10.20 Form of Registration Rights Agreement (June 2021) 10.21 Form of Underwriting Agreement dated February 22, 2021 10.22+ Compensation Agreement with Dr. William V. Williams, dated August 31, 2021 10.23 Compensation Agreement with Dr. William V. Williams, dated June 21, 2022 10.24+ Employment Agreement with Giuseppe Del Priore, dated February 14, 2022 10.25+ Employment Agreement with Gadi Levin, dated March 2, 2022 10.26+ Employment Agreement with Miguel Lopez-Lago, dated May 26, 2022 21.1 List of Subsidiaries 31.1 Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 31.2 Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 32.1 Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 32.2 Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 101.INS Inline XBRL Instance Document 101.SCH Inline XBRL Taxonomy Extension Schema 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase 101.LAB Inline XBRL Taxonomy Extension Labels Linkbase 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) + Indicates a management contract or compensatory plan or arrangement. ITEM 16. FORM 10-K SUMMARY None. 83 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BRIACELL THERAPEUTICS CORP. /s/ William V. Williams October 27, 2022 Chief Executive Officer (Principal Executive Officer and Principal Accounting and Financial Officer) Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. SIGNATURE TITLE DATE /s/ William V. Williams Chief Executive Officer, President and Director October 27, 2022 William V. Williams (Principal Executive Officer) /s/ Gadi Levin Chief Financial Officer and Corporate Secretary (Principal Accounting and Financial Officer) October 27, 2022 Gadi Levin /s/ Jamieson Bondarenko Chairman of the Board of Directors October 27, 2022 Jamieson Bondarenko /s/ Vaughn C. Embro-Pantalony Director October 27, 2022 Vaughn C. Embro-Pantalony   /s/ Marc Lustig Director October 27, 2022 Marc Lustig /s/ Martin E. Schmieg Director October 27, 2022 Martin E. Schmieg /s/ Rebecca Taub Director October 27, 2022 Rebecca Taub /s/ Jane A. Gross Director October 27, 2022 Jane A. Gross 84 Consolidated Financial Statements For the Years Ended July 31, 2022 and 2021 Expressed in United States Dollars F- 1 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholders of BriaCell Therapeutics Corp. Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of BriaCell Therapeutics Corp. (the Company) as of July 31, 2022 and 2021, and the related consolidated statements of operations and comprehensive loss, changes in shareholders’ equity, and cash flows for each of the years in the two-year period ended July 31, 2022, and the related notes (collectively referred to as the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of July 31, 2022 and 2021, and the results of its consolidated operations and its consolidated cash flows for each of the years in the two-year period ended July 31, 2022, in conformity with accounting principles generally accepted in the United States of America. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matters The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. F- 2 Critical Audit Matter description The Company changed its accounting framework from the International Financial Reporting Standards (IFRS) to generally accepted accounting principles in the United States (US GAAP). The change in accounting framework caused a change in accounting treatment of certain warrant instruments from being classified as equity to liability. The transition treatment of these warrants requires the Company to perform detail accounting and complex accounting analysis and multiple complex calculations to account for the warrant liabilities. Thus, we identified the change in the accounting treatment of the warrant instruments as a critical audit matter. How the Critical Audit Matter was Addressed in the Audit The primary procedures MNP performed to address this critical audit matter included the following, among other procedures: ● We obtained a transition memo from management to understand the implication of the changes from IFRS to US GAAP. We assessed the accounting treatment change for reasonability. ● We obtained management’s recalculation of balances and adjustments due to the change in the accounting treatment and recalculated the balances and adjustments as at July 31, 2022 and July 31, 2021 to determine if the amounts were reasonably calculated and presented. Chartered Professional Accountants Licensed Public Accountants We have served as the Company’s auditor since 2015. MNP LLP Mississauga, Canada October 27, 2022 F- 3 BriaCell Therapeutics Corp Consolidated Balance Sheets As at July 31, 2022 and 2021 (Expressed in US Dollars, except share and per share data) July 31, 2022 July 31, 2021 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 41,041,652 $ 57,268,685 Amounts receivable 24,103 12,574 Prepaid expenses 1,280,945 516,891 Total current assets 42,346,700 57,798,150 NON-CURRENT ASSETS: Investments 2 2 Intangible assets, net 230,339 245,610 Total non-current assets 230,341 245,612 Total assets $ 42,577,041 $ 58,043,762 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES: Trade payables $ 463,280 $ 214,116 Accrued expenses and other payables 477,807 342,679 Total current liabilities 941,087 556,795 NON-CURRENT LIABILITIES: Warrant liability 31,307,022 29,789,260 Government loans - 25,986 Total non-current liabilities $ 31,307,022 $ 29,815,246 CONTINGENT LIABILITIES AND COMMITMENTS SHAREHOLDERS’ EQUITY: Share Capital of no par value – Authorized: unlimited at July 31, 2022 and 2021; Issued and outstanding: 15,518,018 and 15,269,583 shares at July 31, 2022 and 2021, respectively 65,589,293 54,774,172 Additional paid in capital 5,228,160 2,178,130 Warrant reserve - - Accumulated other comprehensive loss ( 138,684 ) ( 138,684 ) Accumulated deficit ( 60,349,837 ) ( 29,141,897 ) Total shareholders’ equity 10,328,932 27,671,721 Total liabilities and shareholders’ equity $ 42,577,041 $ 58,043,762 These consolidated financial statements were approved and authorized for issue on behalf of the Board of Directors on October 27, 2022 by: On behalf of the Board: “Jamieson Bondarenko” “William Williams” Director Director The accompanying notes are an integral part of these consolidated financial statements. F- 4 BriaCell Therapeutics Corp Consolidated Statements of Operations and Comprehensive Loss For the Years Ended July 31, 2022 and 2021 (Expressed in US Dollars, except share and per share data) July 31, 2022 July 31, 2021 Year Ended July 31, 2022 July 31, 2021 Research and development expenses $ 8,021,489 $ 2,020,899 General and administrative expenses 7,267,452 4,955,136 Total operating loss ( 15,288,941 ) ( 6,976,035 ) Financial expenses, net ( 11,549,962 ) ( 6,840,165 ) Loss and comprehensive loss $ ( 26,838,903 ) $ ( 13,816,200 ) Net loss per share attributable to ordinary shareholders, basic and diluted $ ( 1.73 ) $ ( 3.06 ) Weighted average number of shares used in computing net loss per share attributable to ordinary shareholders, basic and diluted 15,494,091 4,519,579 The accompanying notes are an integral part of these consolidated financial statements. F- 5 BriaCell Therapeutics Corp Consolidated Statements of Changes in Shareholders’ Equity For the Years Ended July 31, 2022 and 2021 (Expressed in US Dollars , except share and per share data) Number Amount PAID IN CAPITAL COMPREHENSIVE INCOME (LOSS) ACCUMULATED DEFICIT EQUITY (DEFICIT) Share capital ADDITIONAL ACCUMULATED OTHER TOTAL SHAREHOLDERS’ Number Amount PAID IN CAPITAL COMPREHENSIVE INCOME (LOSS) ACCUMULATED DEFICIT EQUITY (DEFICIT) Balance, July 31, 2020 721,962 12,263,858 2,446,886 ( 138,684 ) ( 17,312,812 ) ( 2,740,752 ) Issuance of warrants on convertible debt - - - - - - Conversion feature - 20,251 - - - 20,251 Issuance of shares for debt 50,000 329,670 - - - 329,670 Issuance of shares in public offering 6,764,705 12,357,799 - - - 12,357,799 Issuance of shares in private placement, net of issuance costs 5,170,343 13,611,136 - - - 13,611,136 Reclassification of warrant liability - - - - - - Exercise of warrants 2,562,573 16,191,458 ( 249,867 ) - - 15,941,591 Expiration of warrants - - ( 1,599,468 ) - 1,599,468 - Expiration and forfeiture of options - - ( 387,647 ) - 387,647 - Issuance of options - - 1,968,226 - - 1,968,226 Loss for the year - - - - ( 13,816,200 ) ( 13,816,200 ) Balance, July 31, 2021 15,269,583 $ 54,774,172 $ 2,178,130 $ ( 138,684 ) $ ( 29,141,897 ) $ 27,671,721 Exercise of Broker Warrants 219,453 2,730,754 - - - 2,730,754 Exercise of Private Placement Warrants 997,200 12,162,001 - - - 12,162,001 Exercise of Public Offering Warrants 63,454 683,905 - - - 683,905 Shares issuance costs - ( 57,116 ) - - - ( 57,116 ) Issuance of options - - 3,074,584 - - 3,074,584 Shares repurchased and canceled ( 1,031,672 ) ( 4,704,423 ) - - ( 4,393,591 ) ( 9,098,014 ) Expiration of options - - ( 24,554 ) - 24,554 - Loss for the year - - - - ( 26,838,903 ) ( 26,838,903 ) Balance, July 31, 2022 15,518,018 65,589,293 5,228,160 ( 138,684 ) ( 60,349,837 ) 10,328,932 The accompanying notes are an integral part of these consolidated financial statements. F- 6 BriaCell Therapeutics Corp Consolidated Statements of Cash Flows For the Years Ended July 31, 2022 and 2021 (Expressed in US Dollars, except share and per share data) July 31, 2022 July 31, 2021(Restated) Year Ended July 31, 2022 July 31, 2021 Cash flow from operating activities: Loss $ ( 26,838,903 ) $ ( 13,816,200 ) Adjustments to reconcile loss to net cash used in operating activities: Depreciation and amortization 15,272 15,256 Share-based compensation 3,074,584 1,968,226 Interest expense 979 78,554 Gain from government grant ( 3,388 ) 3,691 Expensed share issue costs in public offering - 1,793,527 Loan forgiveness - ( 127,030 ) Loss on extinguishment of settlement of debt - 166,937 Change in fair value of warrants 11,658,372 4,448,957 Changes in assets and liabilities: Decrease (increase) in amounts receivable ( 11,530 ) 9,941 Decrease in prepaid expenses ( 764,054 ) ( 100,984 ) Increase (decrease) in accounts payable 249,164 ( 1,405,664 ) Increase (decrease) in accrued expenses and other payables 135,128 ( 785,399 ) Net cash used in operating activities ( 12,484,376 ) ( 7,750,188 ) Cash flow from financing activities: Proceeds from public offering, net - 26,927,142 Proceeds from private placement, net - 24,695,195 Proceeds from exercise of warrants 6,509,768 13,705,685 Share and warrant buyback program ( 10,171,732 ) - Repayment government grant ( 23,577 ) - Repayment of unsecured convertible loan - ( 307,108 ) Proceeds from issuance of unsecured convertible loan - 215,710 Share issuance costs ( 57,116 ) - Repayment of short-term loans - ( 239,000 ) Net cash provided by (used in) financing activities ( 3,742,657 ) 64,997,624 Increase (decrease) in cash and cash equivalents ( 16,227,033 ) 57,247,436 Cash and cash equivalents at beginning of year 57,268,685 21,249 Cash and cash equivalents at end of year $ 41,041,652 $ 57,268,685 Significant non-cash transactions: Shares issued for settlement of debt $ - $ 329,670 Forgiveness of government grant $ - $ 144,542 The accompanying notes are an integral part of these consolidated financial statements. F- 7 BriaCell Therapeutics Corp Notes to the Consolidated Financial Statements For the Years Ended July 31, 2022 and 2021 (Expressed in US Dollars, except share and per share data and unless otherwise indicated) NOTE 1: GENERAL a. BriaCell Therapeutics Corp. (“BriaCell” or the “Company”) was incorporated under the Business Corporations Act (British Columbia) on July 26, 2006 and is listed on the Toronto Stock Exchange (“TSX”) under the symbol “BCT” and the Company also trades on the Nasdaq Capital Market (“NASDAQ”) under the symbols “BCTX” and “BCTXW”. b. BriaCell is an immuno-oncology biotechnology company. BriaCell owns the US patent to Bria-IMT™, a whole-cell cancer vaccine (US Patent No.7674456) (the “Patent”). The Company is currently advancing its immunotherapy program, Bria-IMT™, to complete a 24-subject Phase I/IIa clinical trial and by research activities in the context of BriaDx™, a companion diagnostic test to identify patients likely benefitting from Bria-IMT™. c. The Company continues to devote substantially all of its efforts toward research and development activities. In the course of such activities, the Company has sustained operating losses and expects such losses to continue in the foreseeable future. The Company’s accumulated deficit as of July 31, 2022 was $ 60,349,837 (July 31, 2021 - $29,141,897) and negative cash flows from operating activities during the year ended July 31, 2022 was $ 12,484,376 (July 31, 2021 - $ 7,750,188 ). The Company is planning to finance its operations from its existing and future working capital resources and to continue to evaluate additional sources of capital and financing. The Company believes that its existing capital resources will be adequate to satisfy its expected liquidity requirements for at least twelve months from the issuance of the consolidated financial statements. d. The Company has a wholly-owned U.S. subsidiary, BriaCell Therapeutics Corp. (“BTC”), which was incorporated in April 3, 2014, under the laws of the state of Delaware. BTC has a wholly-owned subsidiary, Sapientia Pharmaceuticals, Inc. (“Sapientia” and together with BTC the “Subsidiaries”), which was incorporated in September 20, 2012, under the laws of the state of Delaware. The Company has one operating segment and reporting unit. e. Since January 2020, the Coronavirus outbreak has dramatically expanded into a worldwide pandemic creating macro-economic uncertainty and disruption in the business and financial markets. Many countries around the world, including Canada and the United States have been taking measures designated to limit the continued spread of the Coronavirus, including the closure of workplaces, restricting travel, prohibiting assembling, closing international borders and quarantining populated areas. Such measures present concerns that may dramatically affect the Company’s ability to conduct its business effectively. The Company may face difficulties recruiting or retaining patients in our ongoing and planned clinical trials if patients are affected by the virus or are fearful of visiting or traveling to our clinical trial sites because of the outbreak of COVID-19. In the event that clinical trial sites are slowed down or closed to enrolment in our trials, this could have a material adverse impact on our clinical trial plans and timelines. The Company is continuing to assess its business plans and the impact COVID-19 is having on the Company’s clinical trial timelines and the Company’s ability to recruit candidates for clinical trials. The extent to which COVID-19 and global efforts to contain its spread will impact our operations will depend on future developments, which are highly uncertain and cannot be predicted at this time, and include the duration, severity and scope of the outbreak and the actions taken to contain or treat the coronavirus outbreak. The Company currently believes that the execution of our clinical trials and research programs are delayed by at least one quarter due to COVID-19. NOTE 2: SIGNIFICANT ACCOUNTING POLICIES a. Basis of presentation of the financial statements: The Company’s consolidated financial statements have been prepared in accordance with the United States generally accepted accounting principles (U.S. GAAP) as set forth in the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (ASC). Prior to July 2022, the Company prepared its financial statements in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB), as permitted in the United States based on the Company’s qualification as a “foreign private issuer” under the rules and regulations of the U.S Securities and Exchange Commission (the “SEC”). On August 1, 2022, the Company no longer qualified as a “foreign private issuer” as such term is defined in Rule 405 under the Securities Act of 1933 and therefore, as a domestic filer, prepared its consolidated financial statements in accordance with U.S. GAAP. F- 8 BriaCell Therapeutics Corp Notes to the Consolidated Financial Statements For the Years Ended July 31, 2022 and 2021 (Expressed in US Dollars, except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.) b. Use of estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company’s management believes that the estimates, judgment and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities at the dates of the consolidated financial statements, and the reported amount of expenses during the reporting periods. Actual results could differ from those estimates. Going Concern Preparation of the consolidated financial statement on a going concern basis, which contemplates the realization of assets and payments of liabilities in the ordinary course of business. Should the Company be unable to continue as a going concern, it may be unable to realize the carrying value of its assets, including its intangible assets and to meet its liabilities as they become due Warrants and options The Company uses the Black-Scholes option-pricing model to estimate fair value of options and the warrant liability at each reporting date. The key assumptions used in the model are the expected future volatility in the price of the Company’s shares and the expected life of the warrants. Income Taxes Provisions for taxes are made using the best estimate of the amount expected to be paid based on a qualitative assessment of all relevant factors. The Company reviews the adequacy of these provisions at the end of the reporting period. However, it is possible that at some future date an additional liability could result from audits by taxing authorities. Where the final outcome of these tax-related matters is different from the amounts that were initially recorded, such differences will affect the tax provisions in the period in which such determination is made. c. Principal of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. d. Consolidated financial statements in U.S dollars: The functional currency is the currency that best reflects the economic environment in which the Company and its subsidiary operates and conducts their transactions. The Company’s management believes that the functional currency of the Company and its subsidiaries is the U.S. dollar. Accordingly, monetary accounts maintained in currencies other than the U.S. dollar are remeasured into U.S. dollars at each reporting period end in accordance with ASC No. 830 “Foreign Currency Matters.” All transaction gains and losses of the remeasured monetary balance sheet items are reflected in the statements of operations as financing income or expenses as appropriate. The Company changed its functional currency from the Canadian dollar (C$) to the United States dollar (US$) as of May 1, 2021. The change in presentation currency is a voluntary change which is accounted for retrospectively. F- 9 BriaCell Therapeutics Corp Notes to the Consolidated Financial Statements For the Years Ended July 31, 2022 and 2021 (Expressed in US Dollars, except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.) e. Cash and cash equivalents: Cash equivalents are short-term highly liquid deposits that are readily convertible to cash with original maturities of three months or less, at the date acquired. f. Property and equipment, net: Property and equipment with individual values of over $ 2,500 are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: SCHEDULE OF ESTIMATED USEFUL LIFE OF ASSET % Computers and peripheral equipment 20 - 33 g. Intangible assets, net: Separately acquired intangible assets are measured on initial recognition at cost including directly attributable costs. Intangible assets acquired in a business combination are measured at fair value at the acquisition date. Expenditures relating to internally generated intangible assets, excluding capitalized development costs, are recognized in profit or loss when incurred. Intangible assets with finite useful lives are amortized over their useful lives and reviewed for impairment annually and whenever there is an indication that the asset may be impaired. The evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of these group of assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the group of assets is expected to generate. If such review indicates that the carrying amount of intangible assets is not recoverable, the carrying amount of such assets is reduced to fair value. The amortization period and the amortization method for an intangible asset are reviewed at least at each year end. Intangible assets with indefinite useful lives are not systematically amortized and are tested for impairment annually, or whenever there is an indication that the intangible asset may be impaired. The useful life of these assets is reviewed annually to determine whether their indefinite life assessment continues to be supportable. If the events and circumstances do not continue to support the assessment, the change in the useful life assessment from indefinite to finite life is accounted for prospectively as a change in accounting estimate and on that date the asset is tested for impairment. Commencing from that date, the asset is amortized systematically over its useful life. The useful lives of intangible assets are as follows: SCHEDULE OF USEFUL LIVES OF INTANGIBLE ASSETS Patents Useful life 20 years Amortization method Straight-line In-house development or purchase Purchase For the years ended July 31, 2022 and 2021, no impairment losses have been identified. F- 10 BriaCell Therapeutics Corp Notes to the Consolidated Financial Statements For the Years Ended July 31, 2022 and 2021 (Expressed in US Dollars, except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.) h. Impairment of long-lived assets: The Company’s long-lived assets to be held or used, including intangible assets that are subject to amortization, are reviewed for impairment in accordance with ASC 360 “Property, Plants and Equipment”, whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset (or asset group) to the future undiscounted cash flows expected to be generated by the assets (or asset group). If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds their fair value. For the years ended July 31, 2022 and 2021, no impairment losses have been identified. i. Research and Development expenses: Research and development expenses are recognized in the consolidated statements of operations when incurred. Research and development expenses consist of intellectual property, development and production expenditures. j. Fair value of financial instruments: The accounting guidance for fair value provides a framework for measuring fair value, clarifies the definition of fair value, and expands disclosures regarding fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows: Level 1 — Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2 — Observable inputs that are based on inputs not quoted on active markets but corroborated by market data. Level 3 — Unobservable inputs are used when little or no market data are available. The carrying amounts of cash and cash equivalents, amounts receivables, trade payable and accrued expenses and other payables approximate their fair value due to the short-term maturity of such instruments. F- 11 BriaCell Therapeutics Corp Notes to the Consolidated Financial Statements For the Years Ended July 31, 2022 and 2021 (Expressed in US Dollars, except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.) k. Leases: The Company accounts for leases according to ASC 842, “Leases”. The Company determines if an arrangement is a lease and the classification of that lease at inception based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefits from the use of the asset throughout the period, and (3) whether the Company has a right to direct the use of the asset. An ROU asset represents the right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease agreement. An ROU asset is measured based on the discounted present value of the remaining lease payments, plus any initial direct costs incurred and prepaid lease payments, excluding lease incentives. The lease liability is measured at lease commencement date based on the discounted present value of the remaining lease payments. The implicit rate within the operating leases is generally not determinable, therefore the Company uses the Incremental Borrowing Rate (“IBR”) based on the information available at commencement date in determining the present value of lease payments. The Company’s IBR is estimated to approximate the interest rate for collateralized borrowing with similar terms and payments and in economic environments where the leased asset is located. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain that the Company will exercise that option. An option to terminate is considered unless it is reasonably certain that the Company will not exercise the option. The Company elected the practical expedient for lease agreements with a term of twelve months or less and does not recognize right-of-use (“ROU”) assets and lease liabilities in respect of those agreements. The Company also elected the practical expedient to not separate lease and non-lease components for its leases. l. Share-based compensation : The Company accounts for share-based compensation in accordance with ASC No. 718, “Compensation – Stock Compensation”, which requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the award is recognized as an expense over the requisite service periods, which is the vesting period of the respective award, on a straight-line basis when the only condition to vesting is continued service. The Company has selected the Black-Scholes option-pricing model as the most appropriate fair value method for its option awards. The Company recognizes forfeitures of equity-based awards as they occur. F- 12 BriaCell Therapeutics Corp Notes to the Consolidated Financial Statements For the Years Ended July 31, 2022 and 2021 (Expressed in US Dollars, except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.) m. Income Taxes: The Company accounts for income taxes in accordance with ASC 740, “Income Taxes”, which prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, to reduce deferred tax assets to their estimated realizable value, if needed. ASC 740 offers a two-step approach for recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. As of July 31, 2022, and 2021 no liability for unrecognized tax benefits was recorded as a result of ASC 740. n. Basic and diluted net loss per Share: The Company’s basic net loss per share is calculated by dividing net loss attributable to ordinary shareholders by the weighted-average number of shares of ordinary shares outstanding for the period, without consideration of potentially dilutive securities. The diluted net loss per share is calculated by giving effect to all potentially dilutive securities outstanding for the period using the treasury share method or the if-converted method based on the nature of such securities. Diluted net loss per share is the same as basic net loss per share in periods when the effects of potentially dilutive ordinary shares are anti-dilutive. F- 13 BriaCell Therapeutics Corp Notes to the Consolidated Financial Statements For the Years Ended July 31, 2022 and 2021 (Expressed in US Dollars, except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.) o. Recently issued and adopted accounting standards: As an “emerging growth company,” the Jumpstart Our Business Startups Act (“JOBS Act”) allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use this extended transition period under the JOBS Act. The adoption dates discussed below reflects this election. 1. In June 2016, the FASB issued ASU No. 2016-13 (Topic 326), Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments, which replaces the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected. The guidance will be effective for the Company for fiscal years beginning after December 15, 2022. Early adoption is permitted. Effective August 1, 2021, the Company early adopted ASU 2016-13. Adoption of the new standard did not have a material impact on the financial statements. 2. In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). The final guidance issued by the FASB for convertible instruments eliminates two of the three models in ASC 470-20 that require separate accounting for embedded conversion features. Separate accounting is still required in certain cases. Additionally, among other changes, the guidance eliminates some of the conditions for equity classification in ASC 815-40-25 for contracts in an entity’s own equity. The guidance also requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of share settlement for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. ASU 2020-06 is effective for the company for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2020. Effective August 1, 2021, the Company early adopted ASU 2020-06. Adoption of the new standard did not have a material impact on the financial statements. 3. In November 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832): Disclosure by Business Entities about Government Assistance (ASU 2021-10), which improves the transparency of government assistance received by most business entities by requiring the disclosure of: (1) the types of government assistance received; (2) the accounting for such assistance; and (3) the effect of the assistance on a business entity’s financial statements. This guidance is effective for financial statements issued for annual periods beginning after 15 December 2021. Early adoption is permitted. Adoption of the new standard did not have a material impact on the financial statements. F- 14 BriaCell Therapeutics Corp Notes to the Consolidated Financial Statements For the Years Ended July 31, 2022 and 2021 (Expressed in US Dollars, except share and per share data and unless otherwise indicated) NOTE 3: INTANGIBLE ASSETS. NET Acquired intangible assets with finite lives consisted of the following as of July 31, 2022 and 2021: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT 2022 2021 July 31, 2022 2021 Patents $ 305,130 $ 305,130 Gross intangible assets 305,130 305,130 Less – accumulated amortization ( 74,791 ) ( 59,520 ) Intangible assets, net $ 230,339 $ 245,610 The attributable intellectual property relates to Sapientia’s various patents, which the Company is amortizing over 20 years, consistent with its accounting policy. Amortization expenses for the years ended July 31, 2022 and 2021, were $ 15,271 and $ 15,256 , respectively. The estimated future amortization expense of intangible assets as of July 31, 2022 is as follows: SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSES OF INTANGIBLE ASSETS 2023 $ 15,271 2024 15,271 2025 15,271 2026 15,271 2027 15,271 2028 and thereafter 153,984 Total $ 230,339 F- 15 BriaCell Therapeutics Corp Notes to the Consolidated Financial Statements For the Years Ended July 31, 2022 and 2021 (Expressed in US Dollars, except share and per share data and unless otherwise indicated) NOTE 4: LOANS (a) Short-terms loans During the year ended July 31, 2021, the Company received seven unsecured loans from directors and an officer in the total amount of $ 27,469 . The loans all bore interest at 2.5 % annually and were repayable on or before July 31, 2021. During March 2021, all the above mentioned short-term loans and accrued interest were repaid. Total interest expense in respect to all short-term loans for year ended July 31, 2022 and 2021 is nil and $ 5,429 , respectively. (b) Government grants On April 24, 2020, the Company received a $ 32,560 (CAD$ 40,000 ) loan from the Canada Emergency Business Account (“CEBA Loan”). The CEBA Loan bears 0 % interest until December 31, 2022. If the balance is not paid by December 31, 2022, the remaining balance will be converted to a 3 -year term loan at 5 % annual interest, paid monthly, effective January 1, 2023. The full balance must be repaid by no later than December 31, 2025. No principal payments required until December 31, 2022. Principal repayments can be voluntarily made at any time without fees or penalties. $ 8,140 loan forgiveness is available, provided the carrying value of $ 25,986 at December 31, 2020, and $ 24,420 is paid back between January 1, 2021 and December 31, 2022. The loan was recognized at the fair value based on an estimated market interest rate of 15 %. On December 13, 2021, the Company repaid the CEBA loan in the amounts of $ 24,420 and the balance was forgiven and recorded as a gain on the statements of operations and comprehensive loss. For the year ended July 31, 2022 and 2021, the Company recorded an interest expense of nil and $ 3,650 , respectively, being the interest accretion on the CEBA Loan. On May 1, 2020 the Company received $ 127,030 as a loan from the Paycheck Protection Program in the United States (the “Program”) The terms of the Program provide that a portion of the loan may be forgiven, to the extent that the amounts spent during the eight week period following the first disbursement of the loan are incurred as follows: (i) payroll costs, (ii) interest payments on mortgages incurred before February 15, 2020, (iii) rent payments on leases in effect before February 15, 2020, and (iv) utility payments for which service began before February 15, 2020 (“Program Expenses”). The unforgiven part of the loan must be repaid within two years and bears interest at 1 % per annum. The Company used the entire proceeds to pay program expenses and in August 2021, the loan was forgiven and amounts were set off against the related general and administrative expenses in the consolidated statements of operations and comprehensive loss. For the year ended July 31, 2022 and 2021, the Company recorded an interest expense of nil and $ 3,300 , respectively, being the interest accretion on the program. F- 16 BriaCell Therapeutics Corp Notes to the Consolidated Financial Statements For the Years Ended July 31, 2022 and 2021 (Expressed in US Dollars, except share and per share data and unless otherwise indicated) NOTE 4: LOANS (Cont.) (c) 2020 Convertible Loan On November 16, 2020 (“Closing Date”), the Company closed a brokered private placement of an unsecured convertible debenture unit of the Company (the “Debenture Unit”) to a single subscriber, purchased at a price of $ 305,250 , less an original discount of approximately 29.33 %, for aggregate gross proceeds of $ 215,710 . The Debenture Unit was comprised of (A) $ 305,250 principal amount (“Principal Amount”) of a 5.0 % convertible unsecured debenture of the Company (the “Debenture”), due on the earlier of (i) 5 years from the issue date; (ii) the Company receiving $ 1,628,000 or more by way of private placement or public offering; or (iii) such earlier date as the principal amount hereof may become due, subject to extension upon mutual agreement of the Company and the holder of the Debenture; and (B) 69,188 common share purchase warrants of the Company (“Debenture Warrants”). The Debenture was convertible, at the option of the holder thereof, from the period beginning on May 16, 2021, until the repayment of the Debenture in full, into that number of Shares computed on the basis of the principal amount of the Debenture divided by the conversion price of $4.41 per Share. Each Debenture Warrant entitles the holder thereof to purchase one Share for a period of five (5) years from the Closing Date at a price of $4.41 per Debenture Warrant, subject to adjustment as set forth in the Warrants . Each Debenture Warrant may also be exercised by presentation and surrender of the Debenture Warrant to the Company with a written notice of the Subscriber’s intention to effect a cashless exercise. In consideration for the services rendered by ThinkEquity, a division of Fordham Financial Management, Inc. (the “Broker”), the Broker received a cash commission of $ 21,571 . As additional consideration, the Company also issued to the Broker, 4,890 non-transferable compensation warrants (the “Broker Warrants”). Each Broker Warrant is exercisable to acquire one Share at an exercise price of $ 4.41 at any time in whole or in part for a period of five ( 5 ) years from the Closing Date. The Company has determined that the Debenture Unit contained the following freestanding financial instruments: The term loan and the warrants. The warrants and the Broker Warrants are not indexed to the Company’s own stock and were classified as liabilities, initially measured at fair value, and subsequently measured at fair value through earnings. The Company has determined that the term loan contained embedded derivatives required to be bifurcated from the host debt instrument pursuant to ASC 815-15. In addition, since the conversion feature was not bifurcated, the Company concluded that the term loan also includes a beneficial conversion feature which was accounted for as an equity component. As such, the proceeds were allocated to the warrants, bifurcated embedded derivatives and the equity component. The residual proceeds were allocated to the liability component. The cash commission and Broker Warrants were expensed in the statement of operations and comprehensive loss. The Debenture’s net proceeds were $ 188,672 . The value of the Broker Warrants was $ 14,838 . The amount allocated to the warrants and embedded derivatives was $ 51,084 and $ 10,905 , respectively. The amount allocated to the equity component was $ 127,156 . The residual proceeds in the amount of $ 11,597 were allocated to the liability component. Total expenses relating to the Debenture were $ 26,907 . The liability is carried at amortized cost using the effective interest method with an effective interest rate of 19.97 % per annum. The fair value of the embedded derivatives, Debenture Warrants and the Broker Warrants issued with the Debentures were valued using the Black-Scholes option pricing model based on the following assumptions: volatility of 100 % using the historical prices of the Company, risk-free interest rate of 0.49 %, expected life of 5 years and share price of $ 4.25 . During the year ended July 31, 2021, the Company recorded interest and accretion of expenses of $ 53,878 , which were recorded as finance expense in the consolidated statements of operations and comprehensive loss. The fair value of the Debenture Warrants and the Broker warrants are recorded as liabilities and revalued at each reporting date. On March 1, 2021, the Debenture was repaid and the Company recorded a charge in the consolidated statements of operations and comprehensive loss of $ 79,717 on the extinguishment of the Debenture. NOTE 5: ACCRUED EXPENSES AND OTHER PAYABLES SCHEDULE OF ACCRUED EXPENSES AND OTHER PAYABLES Year ended July 31, 2022 2021 Clinical activities $ 69,720 39,896 Professional services 408,087 221,816 Other - 80,967 Total $ 477,807 $ 342,679 F- 17 BriaCell Therapeutics Corp Notes to the Consolidated Financial Statements For the Years Ended July 31, 2022 and 2021 (Expressed in US Dollars, except share and per share data and unless otherwise indicated) NOTE 6: CONTINGENT LIABILITIES AND COMMITMENTS a. Legal proceedings: On May 19, 2021, Alpha Capital Anstalt (“Alpha”) filed a lawsuit in the New York State Supreme Court, Commercial Division, New York County against BriaCell Therapeutics Corp. (“BriaCell”), alleging that BriaCell breached a loan contract when it refused to reprice and extend the term of warrants purported held by Alpha in spring 2021, seeking monetary and injunctive relief for delivery of those amended warrants. Counterclaiming and defending against Alpha’s complaint, BriaCell alleges that Alpha’s loan to BriaCell is unenforceable both because the loan is criminally usurious under New York law and because Alpha acted as an unregistered securities dealer in violation of American securities law. BriaCell also has alleged that Canadian securities law, regulation, and rules prohibited it from amending the warrants to comply with Alpha’s spring 2021 demands. On May 11, 2022, Alpha moved to dismiss BriaCell’s operative Amended Counterclaim. The parties have fully briefed that motion, and the Court has calendared oral argument on that motion for February 7, 2023. Expert discovery is ongoing and may affect the value of the parties’ respective claims and damages. The Company disagrees with Alpha’s claims, is defending these claims, and has filed a counter claim. At this time, whilst it is impossible to provide any guarantee as to the outcome of the lawsuit, it is the Company’s assessment, based on advice from the Company’s legal counsel at this time, and based on the information known by the Company, that it’s more likely than not that BriaCell will not have to pay Alpha in the litigation. b. Lease In July 2021, the Company ended its lease agreement in Berkeley, California. During the same time, the Company started a month-to-month lease arrangement for office and lab space in New York, New York in the amount of approximately $ 8,600 per month. This lease was terminated in March 2022. As of April 2022, the Company commenced a month-to-month lease arrangement for office and lab space in Philadelphia, PA, in the amount of approximately $ 16,000 per month. NOTE 7: FAIR VALUE MEASUREMENTS The following table presents information about our financial instruments that are measured at fair value on a recurring basis as of July 31, 2022 and 2021: SCHEDULE OF FAIR VALUE ON A RECURRING BASIS Fair Value Measurements at July 31, July 31, 2022 July 31, 2021 Level 1 Level 2 Total Level 1 Level 2 Total Financial Assets: Cash and cash equivalents $ 41,041,652 - 41,041,652 57,268,685 - 57,268,685 Total assets measured at fair value $ 41,041,652 - 41,041,652 57,268,685 - 57,268,685 Financial liabilities: Warrants liability 11,151,608 20,155,414 31,307,022 7,426,535 22,362,725 29,789,260 Total liabilities measured at fair value $ 11,151,608 $ 20,155,414 $ 31,307,022 $ 7,426,535 $ 22,362,725 $ 29,789,260 We classify our cash equivalents and the liability in respect of publicly traded warrants within Level 1 because we use quoted market prices in active markets. The fair value of the warrant liability for non-public warrants is measured using inputs other than quoted prices included in Level 1 that are observable for the liability either directly or indirectly, and thus are classified as Level 2 financial instruments. F- 18 BriaCell Therapeutics Corp Notes to the Consolidated Financial Statements For the Years Ended July 31, 2022 and 2021 (Expressed in US Dollars, except share and per share data and unless otherwise indicated) NOTE 8: SHAREHOLDERS’ EQUITY a. Authorized share capital The authorized share capital consists of an unlimited number of common shares with no par value (“Share”). b. Issued share capital During the years ended July 31, 2021 and 2022, the Company issued shares as follows: i) On August 18, 2020, the Company issued 50,000 Shares to Sichenzia Ross Ference LLP or certain members or employees of Sichenzia Ross Ference LLP as compensation for legal services. The shares were valued at $ 6.59 per share and the Company recorded a loss on the extinguishment of debt of $ 25,235 . ii) On February 26, 2021, the Company completed an underwritten public offering in the United States. The aggregate gross proceeds to the Company from the offering were approximately $ 26 million, before deducting underwriting discounts, commissions and other offering expenses (the “Public Offering”). The Company offered 4,852,353 common units at a public offering price of $ 4.25 per unit, consisting of one Share and one warrant to purchase one Share (“Public Offering Warrants”), and 1,030,000 pre-funded units at a public offering price of $ 4.24 per unit, consisting of one pre-funded common stock purchase warrant (“Pre-Funded Warrant”) and one Public Offering Warrant. The Pre-Funded Warrants are exercisable at any time after the date of issuance at an exercise price of $ 0.01 per Share. The Public Offering Warrants have a per warrant exercise price of $ 5.3125 , can be exercised immediately, and expire five years from the date of issuance. All the Pre-Funded Warrants were exercised between March 16, 2021 and April 9, 2021. In addition, the Company issued the underwriter 294,118 warrants (“Public Offering Broker Warrants”). Each Public Offering Broker Warrant entitles the holder to purchase one Share at an exercise price per Public Offering Broker Warrant that is equal to $ 5.3125 and have a term of 5 years from the closing of the Public Offering. The Company granted the underwriter a 45-day option to purchase up to 882,352 additional Shares and/or Pre-Funded Warrants and/or 882,352 additional warrants to cover over-allotments, if any, on the same terms as the Offering (“Over-allotment Option”). The underwriter exercised the Over-allotment Option on April 12, 2021 and the Company issued 882,352 Shares and 882,352 Public Offering Warrants for gross proceeds of $ 3.9 million. In addition, the Company issued the underwriter 44,118 Public Offering Broker Warrants. F- 19 BriaCell Therapeutics Corp Notes to the Consolidated Financial Statements For the Years Ended July 31, 2022 and 2021 (Expressed in US Dollars, except share and per share data and unless otherwise indicated) NOTE 8: SHAREHOLDERS’ EQUITY (Cont.) b. Issued share capital (continued) During the year ended July 31, 2021, the Company accounted for the Public Offering as follows: The Pre-funded Warrants were recorded in equity. The Public Offering Warrants and the Over-allotment Warrants were recorded as a liability with fair value of $ 4,920,666 at the issuance date. $ 3,433,158 of costs incurred for the Company’s registration on NASDAQ and the relative portion of costs incurred in the Public Offering that relate to the Public Offering Warrants ($ 1,820,114 ) were expensed in the consolidated statement of operations and comprehensive loss. The balance of the costs ($ 1,613,043 ) incurred in the Public Offering were off-set against equity. The fair value of the Over-allotment Warrants at the issuance date was $ 1,632,351 and was based on the closing price of the warrants traded on NASDAQ on April 11, 2021. At July 31, 2022 the fair value of the Public Offering Warrants and Public Offering Broker Warrants were $ 11,151,608 and $ 190,333 , respectively. As a result, for the year ended July 31, 2022, the Company recorded a loss on the revaluation of the total warrant liability of $ 5,728,396 in the consolidated statements of operations and comprehensive loss. The key inputs used in the valuation of the Public Offering Broker Warrants as of July 31, 2022 and at July 31, 2021 were as follows: SCHEDULE OF WARRANTS February 26, 2021 (Issuance date) April 12, 2021 (Issuance date) July 31, 2022 July 31, 2021 Share price $ 3.40 $ 3.92 $ 6.50 $ 5.23 Exercise price $ 5.31 $ 5.31 $ 5.31 - 6.19 $ 5.31 - 6.19 Expected life (years) 5.00 5.00 3.58 - 4.35 4.58 - 5.35 Volatility 100 % 100 % 100 % 100 % Dividend yield 0 % 0 % 0 % 0 % Risk free rate 0.88 % 0.97 % 2.68 % 0.70 % F- 20 BriaCell Therapeutics Corp Notes to the Consolidated Financial Statements For the Years Ended July 31, 2022 and 2021 (Expressed in US Dollars, except share and per share data and unless otherwise indicated) NOTE 8: SHAREHOLDERS’ EQUITY (Cont.) b. Issued share capital (continued) iii) On June 3, 2021, the Company entered into securities purchase agreements (each a “Purchase Agreement”) with certain institutional and accredited investors (the “Investors”) pursuant to which the Company issued (i) 4,370,343 Shares, (ii) pre-funded warrants to purchase up to an aggregate of 800,000 Shares (the “Private Placement Pre-funded Warrants”) and (iii) warrants to purchase up to an aggregate of 5,170,343 Shares (the “Private Placement Warrants”) for gross proceeds to the Company of approximately $ 27.2 million (“Private Placement”). The combined purchase price for one Share and one Private Placement Warrants was $ 5.26 and the combined purchase price for one Private Placement Pre-funded Warrant and one Private Placement Warrants is $ 5.2599 . The transactions contemplated by the Purchase Agreement closed on June 7, 2021. In connection with the Private Placement, the Company agreed to: 1) pay the placement agent a cash commission equal to 8.0 % of the gross proceeds of the Private Placement; 2) reimburse the placement agent for all reasonable and out-of-pocket expenses of the placement agent; and 3) issue to the placement agent 258,517 compensation warrants (“Private Placement Agent Warrants”). Each Private Placement Agent Warrant entitles the placement agent to purchase one Share at an exercise price per Private Placement Agent Warrant that is equal to $ 6.19 and have a term of 5 years from the closing of the Private Placement. The Private Placement Pre-funded Warrants were recorded in equity. The fair value of the Private Placement Warrants was $ 10,095,311 at the issuance date and were recorded as a liability. The fair value was estimated using the Black-Scholes option pricing model and the following weighted average assumptions: share price - $ 5.15 ; exercise price - $ 6.19 ; expected life – 5.5 years; annualized volatility - 100 %; dividend yield - 0 %; risk free rate – 0.78 %. The fair value of the warrants at year end July 31, 2022 was $ 19,721,446 and this resulted in a change of fair value of $ 5,810,946 . The fair value was estimated using the Black-Scholes option pricing model and the following weighted average assumptions: share price - $ 6.50 ; exercise price - $ 6.19 ; expected life – 4.35 years; annualized volatility - 100 %; dividend yield - 0 %; risk free rate – 2.68 %. $ 3,489,558 of costs incurred in the Private Placement that relate to the Private Placement Warrants were allocated to share capital. On June 25, 2021, and June 26, 2021, 750,000 and 50,000 , respectively, of the Private Placement Pre-funded Warrants were exercised into 800,000 Shares. iv) The following table presents the summary of the changes in the fair value of the warrants: SCHEDULE OF CHANGE IN FAIR VALUE OF WARRANTS Warrants liability Balance as of July 31, 2020 $ - Convertible Debt Warrants 227,460 Issuance of Public Offering Warrants 4,920,666 Issuance of Public Offering Broker Warrants 1,778,904 Issuance of Private Placement Warrants 10,095,311 Exercise of Warrants ( 645,386 ) Reclassification of warrant liability to warrant reserve following change in functional currency 8,963,348 Change in fair value 4,448,957 Balance as of July 31, 2021 $ 29,789,260 Issuance of warrants - Warrant buyback program ( 1,073,718 ) Exercise of warrants ( 9,066,892 ) Change in fair value 11,658,372 Balance as of July 31, 2022 $ 31,307,022 v) During the year ended July 31, 2022, 554,991 compensation warrants with a weighted average exercise price of $ 5.68 per warrant were exercised into 219,453 Shares by way of a cashless exercise. vi) During the year ended July 31, 2022, 63,454 warrants with an exercise price of $ 5.31 were exercised for gross proceeds of $ 337,099 and 997,200 warrants with an exercise price of $ 6.19 were exercised for gross proceeds of $ 6,172,669 . In total, the Company issued 1,060,654 shares in respect of the exercise of these warrants. F- 21 BriaCell Therapeutics Corp Notes to the Consolidated Financial Statements For the Years Ended July 31, 2022 and 2021 (Expressed in US Dollars, except share and per share data and unless otherwise indicated) NOTE 8: SHAREHOLDERS’ EQUITY (Cont.) c. Share buyback program On September 9, 2021 the Company approved a repurchase program whereby the Company may purchase through the facilities of the TSX or NASDAQ (i) up to 1,341,515 common shares (the “Common Shares”) and (ii) up to 411,962 publicly traded BCTXW warrants (the “Listed Warrants”) in total, representing 10 % of the 13,415,154 Common Shares and 10 % of the 4,119,622 Listed Warrants comprising the “public float” as of September 8, 2021, over the next 12 months (the “Buyback”). Independent Trading Group (ITG) Inc. will act as the Company’s advisor and dealer manager in respect of the Buyback. The Company received final regulatory approval on September 22, 2021. As of July 31, 2022, the Company repurchased a total of 1,031,672 shares with a value of $ 9,098,014 (net of commissions) and 243,323 publicly traded warrants for $ 1,073,718 (net of commissions) with a fair value of $ 1,428,620 . All of the warrants and shares repurchased have been cancelled. d. Share Purchase Warrants A summary of changes in share purchase warrants for the years ending July 31, 2022 and 2021 is presented below: SUMMARY OF CHANGES IN SHARE PURCHASE WARRANTS Number of warrants outstanding Weighted average exercise price Balance, July 31, 2020 178,528 $ 35.82 Granted from the issuance of a convertible note 69,188 5.42 Granted in the Public Offering 5,882,353 5.31 Granted in the Over-allotment Option 882,352 5.31 Granted in the Private Placement 5,170,343 6.19 Expired ( 156,039 ) ( 36.26 ) Exercised ( 2,562,573 ) ( 5.48 ) Balance, July 31, 2021 9,464,152 $ 5.85 Expired ( 22,489 ) ( 28.08 ) Exercised ( 1,060,654 ) ( 6.14 ) Repurchased and cancelled ( 243,323 ) ( 5.31 ) Balance, July 31, 2022 8,137,686 $ 5.76 F- 22 BriaCell Therapeutics Corp Notes to the Consolidated Financial Statements For the Years Ended July 31, 2022 and 2021 (Expressed in US Dollars, except share and per share data and unless otherwise indicated) NOTE 8: SHAREHOLDERS’ EQUITY (Cont.) d. Share Purchase Warrants (continued) As of July 31, 2022, warrants outstanding were as follows: SCHEDULE OF SHARE PURCHASE WARRANTS OUTSTANDING Number of Warrants outstanding as of July 31, 2022 Exercise Price Number of Warrants Exercisable as of July 31, 2022 Expiry Date 51,698 $ 4.41 51,698 November 16, 2025 3,912,845 $ 5.31 3,910,724 February 26, 2026 – April 26, 2026 4,173,143 $ 6.19 4,173,143 December 7, 2026 8,137,686 8,135,565 e) Compensation Warrants A summary of changes in compensation warrants for the years ended July 31, 2022 and 2021 is presented below: SUMMARY OF CHANGES IN COMPENSATION WARRANTS Number of warrants outstanding Weighted average exercise price Balance, July 31, 2020 13,790 35.16 Granted from the issuance of a convertible note 4,890 4.41 Granted in the Public Offering 294,118 5.31 Granted in the Over Allotment 44,118 5.31 Granted in the Private Placement 258,517 6.19 Expired ( 13,790 ) ( 35.16 ) Exercised - - Balance, July 31, 2021 601,643 $ 5.68 Exercised ( 554,991 ) ( 5.68 ) Balance, July 31, 2022 46,652 $ 5.66 F- 23 BriaCell Therapeutics Corp Notes to the Consolidated Financial Statements For the Years Ended July 31, 2022 and 2021 (Expressed in US Dollars, except share and per share data and unless otherwise indicated) NOTE 8: SHAREHOLDERS’ EQUITY (Cont.) e) Compensation Warrants (continued) As of July 31, 2022, compensation warrants outstanding were as follows: SCHEDULE OF COMPENSATION WARRANTS OUTSTANDING Number of Warrants as of July 31, 2022 Exercise Price Exercisable As of July 31, 2022 Expiry Date 4,890 $ 4.23 4,890 November 16, 2025 17,074 $ 5.31 17,074 February 26, 2026 24,688 $ 6.19 24,688 June 7, 2026 46,652 46,652 NOTE 9: SHARE-BASED COMPENSATION The Company has adopted a stock option plan (the “Stock Option Plan”) under which it is authorized to grant options to officers, directors, employees and consultants enabling them to acquire up to 10 % of the issued and outstanding common stock of the Company. The options can be granted for a maximum of 5 years and vest as determined by the Board of Directors. The exercise price of each option granted may not be less than the fair market value of the common shares at the time of grant. The Company estimates the fair value of stock options granted using the Black-Scholes option-pricing model. The option-pricing model requires a number of assumptions, of which the most significant are the expected stock price volatility and the expected option term. Expected volatility was calculated based upon the Company’s historical share price and historical volatilities of similar entities in the related sector index. The expected term of the options granted is derived from output of the option valuation model and represents the period of time that options granted are expected to be outstanding. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term. The Company has historically not paid dividends and has no foreseeable plans to pay dividends. The following table lists the inputs to the Black-Scholes option-pricing model used for the fair value measurement of equity-settled share options for the above Options Plans for the years 2022 and 2021: SCHEDULE OF FAIR VALUE MEASUREMENT OF EQUITY-SETTLED SHARE OPTIONS Year ended July 31, 2022 2021 Dividend yield 0 % 0 % Expected volatility of the share prices 65 % 74 %- 79 % Risk-free interest rate 1.4 %- 1.5 % 0.6 %- 1.38 % Expected term (in years) 8 8 F- 24 BriaCell Therapeutics Corp Notes to the Consolidated Financial Statements For the Years Ended July 31, 2022 and 2021 (Expressed in US Dollars, except share and per share data and unless otherwise indicated) NOTE 9: SHARE - BASED COMPENSATION (Cont.) a. The following table summarizes the number of options granted to employees under the Stock Option Plan for the year ended July 31, 2022 and related information: SCHEDULE OF NUMBER OF OPTIONS GRANTED Number of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Balance as of July 31, 2021 674,666 $ 4.38 3.91 $ 573,466 Granted 818,300 7.81 4.44 Exercised - - Forfeited ( 999 ) 30.04 Expired ( 1,667 ) 46.80 Balance as of July 31, 2022 1,490,300 6.20 4.09 447,090 Exercisable as of July 31, 2022 1,202,040 $ 5.83 3.99 $ 805,367 The weighted-average grant date per-share fair value of stock options granted during 2022 and 2021 was $ 7.81 and $ 4.39 , respectively. As of July 31, 2022, there are $ 1,652,550 of total unrecognized costs related to share-based compensation that is expected to be recognized over a period of up to 1.75 years. b. The following table summarizes information about the Company’s outstanding and exercisable options granted to employees as of July 31, 2022 SCHEDULE OF OUTSTANDING AND EXERCISABLE OPTIONS Exercise price Options outstanding as of July 31, 2022 Weighted average remaining contractual term (years) Options exercisable as of July 31, 2022 Weighted average remaining contractual term (years) Expiry Date $ 4.71 31,000 4.81 3,875 4.81 May 20, 2027 $ 7.51 150,000 4.54 37,500 4.54 February 16, 2027 $ 8.47 524,700 4.45 377,625 4.45 January 13, 2027 $ 7.74 12,600 4.25 11,040 4.25 November 01, 2027 $ 5.74 100,000 4.09 100,000 4.09 September 01, 2026 $ 4.24 612,000 3.66 612,000 3.66 March 29, 2026 $ 4.24 60,000 3.72 60,000 3.72 April 19, 2026 1,490,300 1,202,040 c. The total share-based compensation expense related to all of the Company’s equity-based awards, recognized for the years ended July 31, 2022 and 2021 is comprised as follows: SCHEDULE OF SHARE-BASED COMPENSATION EXPENSES 2022 2021 Year ended July 31, 2022 2021 Research and development expenses $ 435,563 $ 719,480 General and administrative expenses 2,639,023 1,288,025 Total share-based compensation $ 3,074,586 $ 2,007,505 F- 25 BriaCell Therapeutics Corp Notes to the Consolidated Financial Statements For the Years Ended July 31, 2022 and 2021 (Expressed in US Dollars, except share and per share data and unless otherwise indicated) NOTE 10: TAXES ON INCOME a. Components of income taxes excluding cumulative effects of changes in accounting principles, other comprehensive income, and equity in net results of affiliated companies accounted for after-tax for the years ended December 31 were as follows: b. The Company recorded loss before taxes on income for the period indicated as follows: SCHEDULE OF LOSS BEFORE TAXES ON INCOME 2022 2021 Year ended July 31, 2022 2021 Domestic $ ( 16,551,241 ) $ ( 11,434,438 ) Foreign ( 10,283,662 ) ( 2,381,762 ) Loss before taxes on income $ ( 26,838,903 ) $ ( 13,816,200 ) c. The reconciliation of the combined Canadian federal and provincial statutory income tax rate of 27% (2021 - 27%) to the effective tax rate is as follows: SCHEDULE OF EFFECTIVE INCOME TAX July 31, 2022 July 31, 2021 Net loss before recovery of income taxes $ ( 26,838,903 ) $ ( 13,816,200 ) Expected income tax (recovery) expense ( 7,246,504 ) ( 3,730,374 ) Tax rate changes and effect of taxes of subsidiaries at foreign rates 1,591,220 31,580 Share-based compensation and other non-deductible expenses 828,930 497,160 Foreign exchange loss 7,810 579,170 Share issuance cost booked directly to equity ( 15,420 ) ( 1,360,580 ) Valuation allowance 4,833,964 3,983,044 Income tax (recovery) $ - $ - d. The Company had no income tax expense for the years ended July 31, 2022, and 2021, due to its history of operating losses and valuation allowances. e. Significant components of the Company’s deferred tax assets are as follows: SCHEDULE OF DEFERRED TAX ASSETS NET July 31, 2022 July 31, 2021 Deferred Tax Assets: Property, plant and equipment $ 730 731 Marketable Securities 11,760 12,181 Warrant liability 4,330,580 1,182,778 Share issuance costs 1,105,220 1,483,999 Operating tax losses carried forward 2,714,150 1,833,609 Operating tax losses carried forward- USA 4,015,960 3,909,537 Total deferred tax assets 12,178,400 8,422,835 Valuation allowance ( 12,130,030 ) ( 8,363,505 ) Net deferred tax assets $ 48,370 $ 59,330 Deferred Tax Liability: Intellectual Property $ ( 48,370 ) $ ( 51,580 ) Convertible Debentures - ( 7,750 ) Total net deferred tax liabilities ( 48,370 ) ( 59,330 ) Valuation allowance - - Net deferred tax assets (liabilities) $ - $ - f. The Company has net deferred tax assets relating primarily to net operating loss (“NOL”) carryforwards, warrant liability and share issuance costs. Subject to certain limitations, the Company may use these deferred tax assets to offset taxable income in future periods. Due to the Company’s history of losses and uncertainty regarding future earnings, a full valuation allowance has been recorded against the Company’s deferred tax assets, as it is more likely than not that such assets will not be realized. The net change in the total valuation allowance for the year ended July 31, 2022, was $ 1,870,351 . At July 31, 2022, the Company had US federal NOL carryforwards of approximately $ 18,890,000 . The federal net operating losses have expiry periods ranging between 2033 and indefinitely. The Company also has Canadian net operating loss carryovers of approximately $ 10,053,000 as of July 31, 2022. The Canadian net operating losses have expiry periods ranging between 2035 and 2042. Utilization of the NOL carryforwards and credits may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code (“IRC”) Sections 382 and 383, and similar state provisions. The Company has not completed an IRC 382/383 analysis regarding the limitation of NOL and credit carryforwards. If a change in ownership were to have occurred, the annual limitation may result in the expiration of NOL carryforwards and credits before utilization. If eliminated, the related asset would be removed from the deferred tax asset schedule with a corresponding reduction in the valuation allowance. The Company has adopted the provisions of ASC 740-10, which clarifies the accounting for uncertain tax positions. ASC 740-10 requires that the Company recognize the impact of a tax position in its financial statements if the position is more likely than not to be sustained upon examination based on the technical merits of the position. For the year ended July 31, 2022, the Company had no material unrecognized tax benefits, and based on the information currently available, no significant changes in unrecognized tax benefits are expected in the next 12 months. The Company’s policy is to recognize interest and penalties related to uncertain tax positions as income tax expense. The Company has no accruals for interest or penalties on its accompanying consolidated balance sheets as of July 31, 2022, and 2021, and has not recognized interest or penalties in the consolidated statements of operations for the years ended July 31, 2022, and 2021. The Company is subject to taxation in the United States, New York, California, and Canada. The Company is subject to tax examination by tax authorities in those jurisdictions for periods after 2015. However, to the extent allowed by law, the taxing authorities may have the right to examine the periods where NOLs and credits were generated and carried forward, and make adjustments to the amount of the NOL and credit carryforwards. The Company is not currently under examination by federal or state jurisdictions. F- 26 BriaCell Therapeutics Corp Notes to the Consolidated Financial Statements For the Years Ended July 31, 2022 and 2021 (Expressed in US Dollars, except share and per share data and unless otherwise indicated) NOTE 11: RELATED PARTY TRANSACTIONS AND BALANCES Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making operating and financial decisions. This would include the Company’s senior management, who are considered to be key management personnel by the Company. Parties are also related if they are subject to common control or significant influence. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. a. The following related party salaries and directors’ fees are included in the consolidated statements of operations and comprehensive loss: SCHEDULE OF RELATED PARTY BALANCES 2022 2021 Year ended July 31, 2022 2021 Directors (*) $ 476,117 $ 434,370 Officers (**) 1,404,363 332,273 Due from related party $ 1,880,480 $ 766,643 (*) Excluding the CEO who is a director (**) Includes the CEO who is also a director b. The following related party balances are included in the consolidated balance sheets: 2022 2021 As of July 31, 2022 2021 Directors (*) $ 20,519 $ 17,101 Officers (**) 55,039 31,429 Due from related party $ 75,558 $ 48,530 F- 27 BriaCell Therapeutics Corp Notes to the Consolidated Financial Statements For the Years Ended July 31, 2022 and 2021 (Expressed in US Dollars, except share and per share data and unless otherwise indicated) NOTE 12: FINANCIAL EXPENSE, NET SCHEDULE OF FINANCIAL INCOME (EXPENSE), NET 2022 2021 Year ended July 31, 2022 2021 Interest income $ 136,731 $ 3,149 Interest expense ( 979 ) ( 78,554 ) Change in fair value of warrant liability ( 11,658,372 ) ( 4,448,957 ) Gain on government grant 3,388 3,691 Foreign exchange loss ( 30,730 ) ( 2,177,791 ) Loss on extinguishment of debt - ( 141,703 ) Financial expenses, net $ ( 11,549,962 ) $ ( 6,840,165 ) NOTE 13: BASIC AND DILUTED NET LOSS PER SHARE Basic net loss per ordinary share is computed by dividing net loss for each reporting period by the weighted-average number of ordinary shares outstanding during each period. Diluted net loss per ordinary share is computed by dividing net loss for each reporting period by the weighted average number of ordinary shares outstanding during the period, plus dilutive potential ordinary shares considered outstanding during the period, in accordance with ASC No. 260-10 “Earnings Per Share”. The Company experienced a loss in the year ended July 31, 2022 and 2021; hence all potentially dilutive ordinary shares were excluded due to their anti-dilutive effect. SCHEDULE OF BASIC AND DILUTED NET LOSS PER SHARE 2022 2021 Year ended July 31, 2022 2021 Numerator: Net loss available to shareholders of ordinary shares ( 26,838,903 ) ( 13,816,200 ) Denominator: Shares used in computing net loss per ordinary shares, basic and diluted 15,494,091 4,519,579 The following items have been excluded from the diluted weighted average number of shares outstanding because they are anti-dilutive: SCHEDULE OF ANTI-DILUTIVE SECURITIES 2022 2021 Year ended July 31, 2022 2021 Employee stock options and warrants excluded from the computation of diluted per share amounts as their effect would be antidilutive 10,054,793 3,60,759 F- 28 BriaCell Therapeutics Corp Notes to the Consolidated Financial Statements For the Years Ended July 31, 2022 and 2021 (Expressed in US Dollars, except share and per share data and unless otherwise indicated) NOTE 14: LONG-LIVED ASSETS BY GEOGRAPHIC LOCATION SCHEDULE OF LONG-LIVED ASSETS 2022 2021 As of July 31, 2022 2021 United States $ 230,340 $ 245,612 Total long-lived assets* $ 230,340 $ 245,612 (*) Long-lived assets are comprised of property and equipment, net, investments and intangible assets, net. NOTE 15: SUBSEQUENT EVENTS The Company evaluated the possibility of subsequent events existing in the Company’s consolidated financial statements through October 27, 2022, the date that the consolidated financial statements were available for issuance. The Company is not aware of any subsequent events which would require recognition or disclosure in the consolidated financial statements, except as noted below. a) Approval of Omnibus Incentive Plan On August 2, 2022, the Company approved an omnibus equity incentive plan (“Omnibus Plan), which will permit the Company to grant incentive stock options, preferred share units, restricted share units (“RSU’s”), and deferred share units (collectively, the “Awards”) for the benefit of any employee, officer, director, or consultant of the Company or any subsidiary of the Company. The maximum number of Shares available for issuance under the Omnibus Plan shall not exceed 15% of the issued and outstanding Shares, from time to time, less the number of Shares reserved for issuance under all other security-based compensation arrangements of the Company, including the existing Stock Option Plan. The Omnibus Plan remains subject to approval by the shareholders of the Company (the “Shareholders”) and final approval of the Toronto Stock Exchange (“Exchange”) and will replace the Company’s existing Stock Option Plan upon receipt of such approvals (“Approvals”). The Company may make grants under the Omnibus Plan, however, the grants cannot be settled until the Approvals have been received. b) Option and RSU grants On August 2, 2022, the Company granted 180,100 options, under the Stock Option Plan, to directors, officers and employees with an exercise price of CAD$ 8.38 . The options vest quarterly in advance over a two -year period and expire on August 2, 2027 . 142,100 of the options were issued to officers of the Company. The Company also granted, under the Omnibus Plan, 19,200 RSU’s to the CEO. The RSU’s vested immediately. F- 29