Warrants

3 Months Ended

Mar. 31, 2024

Warrants

Warrants

14. Warrants

During the three months ended March 31, 2024, in connection with the sale of 2,372,240 shares of common stock, the Company also sold 1,477,892 pre-funded warrants and issued 7,700,264 warrants exercisable for a total of 7,700,264 shares of common stock for $0.0001 and $0.74, respectively, per share. The Company received net proceeds of $1,093,492 associated with the sale of the pre-funded warrants. The pre-funded warrants are immediately exercisable until all of the pre-funded warrants are exercised.

During the year ended December 31, 2023, in connection with the sale of 1,925,000 shares of common stock the Company in a registered direct offering, the Company also sold 1,575,000 pre-funded warrants and 7,000,000 warrants exercisable for 7,000,000 shares of common stock for $0.0001 and $1.34, respectively, per share. The Company received net proceeds of $2,110,342 associated with the sale of the pre-funded warrants. During the same period 887,000 pre-funded warrants were exercised for 887,000 shares of common stock for $89. During the three months ended March 31, 2024, the remaining 688,000 pre-funded warrants were exercised for 688,000 shares of common stock for $69.

During the year ended December 31, 2023, the Company and a stock options holder agreed to cancel all 400,000 stock options in exchange for extending the exercisable period of 300,000 warrants to December 31, 2024. Later in the year ended December 31, 2023, the expiration date for these warrants was extended to December 31, 2026, and the stock option holder was issued an additional 400,000 restricted stock units.

As of March 31, 2024, the Company has the following warrants outstanding:

Exercise price		Number outstanding		Remaining Contractual Life (Years)		Expiry date
$	6.05		130,909		0.34	August 3, 2024
$	6.05		3,446,515		0.35	August 6, 2024
$	2.40		62,500		0.97	March 20, 2025
$	4.00		300,000		2.75	December 31, 2026
$	1.34		7,000,000		5.09	May 2, 2029
$	0.74		7,700,264		5.48	September 20, 2029
$	0.0001		1,477,892		N/A	Never
			20,118,080

The average remaining contractual life of outstanding warrants that expire is 3.97

	March 31, 2024					December 31, 2023
	Number of warrants			Weighted average price		Number of warrants			Weighted average price
Balance, beginning of year		11,627,924		$	2.78		3,939,924		$	5.84
Issuance		9,178,156		$	0.62		8,575,000		$	1.09
Exercise		(688,000	)	$	0.0001		(887,000	)	$	0.0001
Balance, end of period		20,118,080		$	1.89		11,627,924		$	2.78