Post by
Froggy1 on Mar 13, 2021 10:52am
Derivative Liability
A profit of $560,000 for the quarter but then other expenses include :
"loss in fair value of derivative liability" (note 17a) of $1.4m and interest expense of $395k.
I read that note, very confusing, does anyone know what it means? Specially is this "derivative liability" going to be an ongoing problem?
Comment by
Flyer123 on Mar 17, 2021 12:38am
It is a non cash adjustment. My understanding is that it gets adjusted over time - to matuirity of the debt. The face amount of the Debt is convertible into shares at about 1.56 per share.
Comment by
Froggy1 on Mar 17, 2021 1:45pm
Interesting, so I should think about it as Steve repayment of the $8 million loan. That means it's going to be a recurring cost until the debt is repaid, is that right?