DERIVATIVE LIABILITY

2 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE LIABILITY [Text block]

13. DERIVATIVE LIABILITY

A summary of the Company's derivative liability is as follows:

	Earn out shares
	$
Balance, January 31, 2023	239,700
Loss on change in fair value of derivative liability	451,372
Settlement	(575,136	)
Effect of foreign exchange	(7,703	)
Balance, January 31, 2024	108,233
Gain on change in fair value of derivative liability	(22,189	)
Effect of foreign exchange	(1,173	)
Balance, March 31, 2024	84,871

Upon the May 24, 2019 acquisition of Swell Companies, the vendors can earn up to 6,000,000 'earn out' shares over a period of seven years. The conditions were based on the Company's common shares exceeding certain share prices during the period. Additionally, the 50% of the earn out shares are earned upon a change of control of the Company. The fair value of the derivative liability is derived using a Monte Carlo simulation.

During the year ended January 31, 2024, the Company settled the obligation to issue 4,792,800 common shares by making cash payments of $575,136. As at March 31, 2024 and January 31, 2024, the total number of remaining earn out shares is 1,207,200.