Here is the Explanation (note 17)
17. AMENDMENT Subsequent to the approval of the condensed consolidated interim financial statements for the period ended September 30, 2020, on November 20, 2020, it came to the Company’s attention that in calculating the remeasurement of the warrant liability for the period then ended that some inputs were not correctly valued by the Company’s software and a few other factors were not correctly reflected in the valuations. Management utilizes an external option tracking software for measures of volatility, it came to the Company’s attention that the stock consolidated in September was causing much higher historical volatility measures in this software than actually realized over the period. The result was to overstate the valuation of the warrants measured using the external option tracking software. In valuing the warrants, the Company mistakenly included broker warrants in their revaluation; however, these warrants are accounted for under IFRS 2 and are accordingly not remeasured at FVTPL. The inclusion of these warrants in the remeasurement of the warrant liability served to overstate the warrant liability. Further, in performing the remeasurement of the warrant liability, there were several exercises of the January 9, 2019, Lind warrants that had not been derecognized from the warrant liability, which resulted in an overstatement of the warrant liability and understatement of equity for the corresponding amount of the liability that was exercised, as remeasured at the exercise date. StageZero Life Sciences, Ltd. Page 29 In valuing the Convertible Debenture Private Placement in February 2020, the valuation model utilizes a discount for lack of marketability to account for the hold period contained in the agreements. The assumption related to the hold period used in the original valuation methodology was that the restriction would apply after conversion; however, it was subsequently determined that the restriction is for four months from the issuance date of the convertible debenture itself. The resulting impact is to overstate the fair value of the convertible debenture and understate the value of share capital and warrants issued on conversion as well as the loss on remeasurement at FVTPL. The revaluation also impacts the results of previously reported quarterly financial information for three months ended June 30, 2020 and March 31, 2020, in the amount of $252,500 and $30,000, respectively, and $282,500 for the six months ended June 30, 2020, as increases to the fair value of the convertible debenture liability and a corresponding increase in loss as a result of the remeasurement to FVTPL. Lastly, there was a clerical error that resulted in adjustments to the warrant liability pertaining to the period ended June 30, 2020, being booked again in the period ended September 30, 2020, which further overstated the warrant liability.
Originally i thought mabye this would get deffered to subsiquent Q's ...but in simple terms, looks like it was mainly a computer error which is very postive for us in the long term
Goodluck folks