Derivative Liabilities

12 Months Ended

Dec. 31, 2023

Note 9 - Derivative Liabilities

As a result of the functional currency change of the Company's reporting entity from Canadian dollars to US dollars on January 1, 2023, the Company reclassified $1,286 of reserves related to warrants previously issued and priced in Canadian dollars, as a derivative liability. Upon reclassification, the Company recognized a loss of $589 on the revaluation of derivative liabilities.

Note 9 - Derivative Liabilities (continued)

As at December 31, 2023, the fair value of derivative liabilities was $754 (2022 - $Nil). During the year ended December 31, 2023, the Company recognized a gain of $551 (2022 - $Nil) on the revaluation of derivative liabilities. The fair values of derivative liabilities were estimated using the Black-Scholes pricing model with weighted average assumptions as follows:


		As at December 31,
	2023		2022
Risk free interest rate (%)	3.67		N/A
Expected life (years)	3.29		N/A
Expected volatility (%)	42.80		N/A
Dividend yield (%)	-		N/A

During the years ended December 31, 2023 and 2022, the change in warrants outstanding was as follows:


	Number	Weighted Average Exercise Price (C$)
Balance as at December 31, 2021	3,399,280	$	3.98
Issued	3,812,121	4.45
Expired	(149,282)	3.50
Balance as at December 31, 2022	7,062,119	4.47
Expired	(3,249,998)	4.50
Balance as at December 31, 2023	3,812,121	$	4.45

The following table summarizes information about the warrants which were outstanding as at December 31, 2023:


Date Issued	Number of Warrants	Exercisable	Exercise Price (C$)		Expiry Date
April 14, 2022	3,812,121	3,812,121	$	4.45	April 14, 2027
Total	3,812,121	3,812,121