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 March 31, 2022, 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.

As of December 31, 2021 the fair value of the equity investment was calculated to be $52,054.

As of March 31, 2022, the fair value of the equity investment was calculated to be $32,113 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 (%)	135.03
Expected dividend yield (%)	0
Expected life of options (years)	0.83

On March 31, 2022 the equity investment was recalculated resulting in a loss of $19,942. During the prior period ending March 31, 2021 the revaluation resulted in a loss of $138,226.

During the three months period ended March 31, 2022, no CMXC warrants were sold and no realized gain or loss from sale of equity investment was realized.