CONVERTIBLE DEBENTURES (Tables)

12 Months Ended

Dec. 31, 2018


	December 31, 2018			December 31, 2017
Fair value of 2016 Debentures, beginning of period	$	90,742,373		$	70,811,801
Fair value adjustment during the period		(18,260,998	)		19,930,572
Interest payable		354,480			350,900

2016 Debentures and interest payable	$	72,835,855		$	91,093,273
Less: interest payable included in accounts payable & accrued liabilities		(354,480	)		(350,900	)

2016 Debentures, end of period	$	72,481,375		$	90,742,373

The inputs used in the 2016 Debentures pricing model as at December 31, 2018 and December 31, 2017 are as follows:


	December 31, 2018			December 31, 2017
Volatility		38	%		39.00	%
Expected life in years		3.56 years			4.56 years
Risk free interest rate		2.58	%		2.23	%
Expected dividend yield		0	%		0	%
Credit spread		25.79	%		25.35	%
Underlying share price of the Company	$	2.41		$	3.21
Conversion exercise price	US$	2.3261		US$	2.3261
Exchange rate (C$:US$)	$	0.7330		$	0.7971


	December 31, 2018			December 31, 2017
Fair value of 2017 Debentures, beginning of period	$	80,627,593		$	73,035,180
Fair value adjustment during the period		(14,918,084	)		7,592,413
Interest payable		354,480			350,900

2017 Debentures and interest payable	$	66,063,989		$	80,978,493
Less: interest payable included in accounts payable & accrued liabilities		(354,480	)		(350,900	)

2017 Debentures, end of period	$	65,709,509		$	80,627,593

The inputs used in the 2017 Debentures pricing model as at December 31, 2018 and December 31, 2017 are as follows:


	December 31, 2018			December 31, 2017
Volatility		38	%		39.00	%
Expected life in years		3.56 years			4.56 years
Risk free interest rate		2.58	%		2.23	%
Expected dividend yield		0	%		0	%
Credit spread		25.79	%		25.35	%
Underlying share price of the Company	$	2.41		$	3.21
Conversion exercise price	US$	2.6919		US$	2.6919
Exchange rate (C$:US$)	$	0.7330		$	0.7971