Q3 results reviewummm...nothing looks good AT ALL!
Revenue keeps shrinking
COGS is going up
Change in fair value of derivative liabilities ??? adding in over 7M to their books???
On October 19, 2021, the Company issued 7,500,000 common share purchase warrants with an exercise price of US$2.35 and expiry date of October 19, 2026. Due to the variable nature of the proceeds from exercise of these warrants, the Company recognized a derivative liability of $11,864,649 at the issuance date. The fair value of these liabilities will be revalued at the end of every reporting period and the change in fair value will be reported in profit or loss as a gain or loss on derivative financial instruments. On June 2, 2022, the Company issued 32,500,000 common share purchase warrants with an exercise price of US$0.2582 and expiry date of June 2, 2027. Due to the variable nature of the proceeds from exercise of these warrants, the Company recognized a derivative liability of $8,064,712 at the issuance date. The fair value of these liabilities will be revalued at the end of every reporting period and the change in fair value will be reported in profit or loss as a gain or loss on derivative financial instruments. On June 2, 2022, the Company issued 19,400,000 common share equivalents (“Prefunded Warrants”) with an exercise price of US$0.0001. Due to the variable nature of the proceeds from exercise of these Prefunded Warrants, the Company recognized a derivative liability of $4,977,054 at the issuance date. The fair value of these liabilities will be revalued at the end of every reporting period and the change in fair value will be reported in profit or loss as a gain or loss on derivative financial instruments.