DERIVATIVE LIABILITIES |
3 Months Ended |
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Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE LIABILITIES | 7. DERIVATIVE LIABILITIES
In connection with warrants, the Company records derivative liabilities since the strike price is denominated in a currency other than the Company’s functional currency. The warrants are valued on the date of issuance and revalued at each reporting period.
The derivative liabilities were revalued at USD$171,126, resulting in a loss of $303,469 for the period ended March 31, 2022, related to the change in fair market value of the derivative liabilities. The derivative liabilities were revalued using the Black-Scholes option pricing model with the following assumptions: an exercise price of CAD$ , our stock price on the date of valuation of CAD$ , expected dividend yield of 0%, average expected volatility of 51.37%, average risk-free interest rate of 1.14%, an average expected term of 0.71 years and foreign exchange rate of 1.2496.
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