DERIVATIVE WARRANT LIABILITY

12 Months Ended

Dec. 31, 2021

Derivative Warrant Liability [Abstract]

DERIVATIVE WARRANT LIABILITY [Text Block]

10. DERIVATIVE WARRANT LIABILITY

The Company's derivative warrant liability arises as a result of the issuance of warrants exercisable in CAD. As the denomination is different from the Company's USD functional currency, the Company recognizes a derivative liability for these warrants and remeasures the liability at the end of each reporting period.

Changes in respect of the Company's derivative warrant liability are as follows:

Balance, December 31, 2019 and 2020	$	-
Fair value of warrants issued		925,737
Fair value adjustment		(658,626	)
Balance, December 31, 2021	$	267,111

Valuation of the derivative warrant liability requires the use of highly subjective estimates and assumptions. The expected volatility used is based on the Company's historical share prices. The risk-free interest rate for the periods within the expected life of the warrants is based on Canadian government benchmark bond with an approximate equivalent term. The expected life is based on the contractual term. Changes in the underlying assumptions can materially affect the fair value estimates.

On December 31, 2021, the Company revalued the derivative warrant liability at an estimated fair value of $267,111. The Company uses an option pricing model to estimate the liability's fair value. The following weighted average assumptions were used:

	As of December 31, 2021	At Issuance - March 4, 2021
Risk-free interest rate	0.95%	0.28%
Expected life	1.17 years	2.00 years
Annualized volatility	96.32%	81.02%
Dividend yield	0.00%	0.00%
Fair value per warrant	$0.08	$0.26