Warrants

9 Months Ended

Sep. 30, 2022

Warrants

Warrants

17. Warrants

During the nine months ended September 30, 2022, an aggregate of 250,121 warrants were exercised for 103,771 common shares and 1,099,179 Reg-A public offering warrants expired. During the year ended December 31, 2021, the Company issued 130,909 representative warrants to the Company’s underwriters. The representative warrants are exercisable for 130,909 common shares at $6.05 per share until August 3, 2024. As of September 30, 2022, the Company recognized a value of $273,993 for the representative warrants to share issuance cost.

During the year ended December 31, 2021, the Company issued 1,502,409 and 2,040,990 warrants convertible to 1 and 2 common shares each exercisable for a period of 12 and 18 months, respectively. The warrants were issued in connection with the Reg-A public offering and private placement offering, respectively. The exercise price of the warrants is $4.00 per share. During the nine months ended September 30, 2022 the Company and a warrant holder reached an agreement to extend the exercisable period of 300,000 warrants for an additional 12 months. During the same period, the Company issued 3,763,636 warrants convertible to 1 common share at an exercise price of $6.05 per share exercisable for a period of 36 months. 3,272,727 warrants were purchased through the underwritten public offering and 490,909 over-allotment warrants were purchased by the underwriter. The warrants were issued in connection with the underwritten public offering.

During the year ended December 31, 2021, the Company and warrant holder reached an agreement to amend a previous warrant agreement. The Company will issue an additional 150,000 warrants for a total of 250,000 warrants valued at $37,000. The exercisable period of the warrants was also amended to a period of five years beginning on January 14, 2021. The warrants are convertible to 1 common share each exercisable at $2.00 per share.

During the year ended December 31, 2021, an aggregate of 26,815 warrants expired.

As of September 30, 2022, the Company has the following warrants outstanding:

Exercise price		Number outstanding		Remaining Contractual Life (Years)		Expiry date
$	4.05		500,000		0.10	November 5, 2022
$	4.00		300,000		0.48	September 25, 2024
$	6.05		3,446,515		1.84	August 3, 2024
$	6.05		130,909		1.85	August 6, 2024
$	2.40		62,500		2.47	March 20, 2025
			4,439,924		1.60

	September 30, 2022						December 31, 2021
	Number of warrants			Weighted average price			Number of warrants			Weighted average price
Balance, beginning of year		5,658,315		$	4.40			716,815		$	4.00
Issuance		130,909		$	6.05			7,457,036		$	4.30
Expired		(1,099,179	)	$	(4.00	)		(26,815	)	$	(4.00	)
Exercise		(250,121	)	$	(2.00	)		(2,494,209	)	$	(4.00	)
Balance, end of period		4,439,924		$	5.63			5,658,315		$	4.40