Warrants |
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| Warrants | 16. Warrants
A continuity of the Company’s outstanding share purchase warrants for the year ended December 31, 2022 and the year ended December 31, 2021 is presented below:
As at December 31, 2022, the weighted average remaining contractual life of outstanding warrants is years (2021 – years).
During the year ended December 31, 2021, in connection to a prior private placement in which warrants were owed to certain subscribers, the Company issued 75,000 warrants with an exercise price of US$ per warrant and a contractual life of 24 months. The fair value of the warrants on issuance was determined to be $15,616 which was recognized in the consolidated statements of loss and comprehensive loss.
TRILLION ENERGY INTERNATIONAL INC. Notes to the Consolidated Financial Statements For the years ended December 31, 2022 and 2021 (Expressed in U.S. dollars)
As at December 31, 2021, the Company had warrants issued in connection with private placements, or debt settlements. The exercise price of such warrants was denominated in CAD, when the functional currency prior to January 1, 2022 was the USD. As such the warrants were classified as derivate liabilities with a fair value of $. As a result of the change in functional currency of the Company to CAD on January 1, 2022, such warrants were reclassified to equity.
Due to the change in functional currency of the Company, warrants with a carrying value of $163,162 were reassessed to be derivative liabilities as the exercise prices are denominated in USD, when the new functional currency is the CAD. Immediately before the reclassification, the fair value of the warrants were remeasured using the Black-Scholes option pricing model, with the following assumptions (weighted average): expected dividend yield - %, expected volatility - %, risk-free interest rate – % and an expected remaining life – years. The Company recognized a loss in fair value change on the derivative liabilities of $ on January 1, 2022. As at December 31, 2022, the fair value of the warrants were remeasured at $ using Black-Scholes option pricing model, with the following assumptions (weighted average): expected dividend yield - %, expected volatility - %, risk-free interest rate – % and an expected remaining life of years. The Company recognized a loss on fair value change of $ for the year ended December 31, 2022.
The following is a continuity of the Company’s derivative warrant liability:
The fair values for finder’s warrants granted during the year ended December 31, 2022 and the warrants granted during the year ended December 31, 2021, have been estimated using the Black-Scholes option pricing model using the following assumptions:
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