EQUITY INVESTMENT AND ROYALTIES

9 Months Ended

Sep. 30, 2021

Equity Investment And Royalties [Abstract]

EQUITY INVESTMENT AND ROYALTIES [Text Block]

5. EQUITY INVESTMENT AND ROYALTIES

On March 21, 2019, the Company entered an agreement with Cell MedX Corp. ("CMXC") to purchase the direct rights to distribute the eBalance device from CMXC. On January 29, 2020 the Company and CMXC entered a buyback agreement to sell the exclusive distribution rights to the eBalance microcurrent device back to CMXC.

The sales price included a retained royalty on future sales of the eBalance device capped at US$507,500 and share purchase warrants for 2,000,000 shares of CMXC of which 1,000,000 are exercisable at $0.50 and 1,000,000 exercisable at $1.00. As at September 30, 2021, the Company's equity investment consists of 2,000,000 share purchase warrants. Each CMXC share purchase warrant is exercisable for a period of three years, expiring on January 31, 2023. CMXC has the right to accelerate the expiry date of the warrants based on the trading price of CMXC's shares.

The initial recognition of the equity investment in CMXC resulted in a $351,134 gain on sale of distribution license from fair value of equity investments received. On December 31, 2020 the equity investment was revalued resulting in a cumulative gain of $398,308.

As at September 30, 2021, the fair value of the equity investment was calculated to be $67,009 based on the market common share using a Black Scholes Options Pricing model with the following assumptions.

Assumptions:
Risk-free rate (%)	0.09
Expected stock price volatility (%)	106.06
Expected dividend yield (%)	0
Expected life of options (years)	1.33

On September 30, 2021 the equity investment was recalculated resulting in a loss of $133,861 and $331,298 for the three and nine months ended September 30, 2021 respectively. During the prior year period ending September 30, 2020 the revaluation resulted in a loss of $320,600 and gain of $329,807 for the three and nine months ended September 30, 2020 respectively

During the nine months period ended September 30, 2021, no CMXC warrants were sold and no realized gain or loss from sale of equity investment was realized.