8. Equity Investment and Royalties

Upon the completion of the Merger on April 22, 2022, the Company acquired Live Current's investment in warrants of Cell MedX Corp ("CMXC"). On March 21, 2019, Live Current entered an agreement with CMXC to purchase the direct rights to distribute the eBalance device from CMXC. On January 29, 2020 Live Current and CMXC entered a buyback agreement to sell the exclusive distribution rights to the eBalance microcurrent device back to CMXC.

On June 30, 2022, the fair value of the warrants was $3,948. The Company recognized a change in the fair value of the warrant of a loss of $28,165 during the three and six month period ended June 30, 2022. The fair value of the warrants at June 30, 2022 was calculated based on the following assumptions.

Assumptions:
Risk-free rate (%)		0.09
Expected stock price volatility (%)		161.30
Expected dividend yield (%)		0
Expected life of options (years)		0.58

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 June 30, 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.