Note 11 - Derivative Warrant Liabilities
|12 Months Ended|
Mar. 31, 2020
|Notes to Financial Statements|
|Derivative Instruments and Hedging Activities Disclosure [Text Block]||
The warrants issued as part of the public offering of units composed of Common Shares and Common Share purchase warrants on
May 9, 2018and
May 14, 2018 (see note
13) are derivative warrant liabilities given the warrant indenture contains certain contingent provisions that allow for cash settlement.
Warrants issued as part of a public offering of units composed of Common Shares and Common Share purchase warrants on
December 27, 2017are derivative warrant liabilities given the currency of the exercise price is different from the Corporation’s functional currency.
The derivative warrant liabilities are measured at fair value at each reporting period and the reconciliation of changes in fair value is presented in the following tables:
The fair value of the derivative warrant liabilities was estimated using the Black-Scholes option pricing model and based on the following assumptions:
The Corporation measured its derivative warrant liabilities at fair value on a recurring basis. These financial liabilities were measured using level
3inputs (see Note
March 31, 2020,the effect of an increase or a decrease of
5%of the volatility used, which is the significant unobservable input in the fair value estimate, would result in a loss of
$167or a gain of
March 31, 2020,the effect of a
5%strengthening of the U.S. dollar against the Canadian dollar, would result in a loss of
5%weakening of the U.S. dollar against the Canadian dollar would have an equal but opposite effect on the basis that all other variables remained constant.
The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef