Company: MMTIF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0001062993-25-003888
Chunk: 92

Company: MICROMEM TECHNOLOGIES INC
Filing Date: 2025-02-28
Form: 20-F
Item: Item 18
Chunk 92
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47,877
Loss (gain) on extinguishment of convertible debentures $ ( 28,007 $ 99,078 $ 129,579 200,650
Consolidated Statement of Changes in Equity
Amount of principal converted to common shares $ - $ - $ 712,100
Amount of interest converted to common shares $ - $ - $ 12,680
Number of common shares issued on conversion of convertible debentures - - 26,443,820 26,443,820
Consolidated Statement of Cash Flows
Amount of principal repaid in cash $ - 7,490 $ 56,000 63,490
Amount of interest repaid in cash $ 14,941 73,524 $ - 88,465
(c)Fair value of derivative liabilities outstanding
The fair value of the derivative liabilities is determined with option pricing models. The underlying assumptions are as follows:
As at As at
October 31, October 31,
2024 2023
Volatility factor (based on historical volatility) 140% - 203% 114% - 189%
Risk free interest rate 3.18% - 3.50% 5.11% - 5.48%
Expected life of conversion features (in months) 0 - 12 0 - 11
Expected dividend yield 0% 0%
CDN to USD exchange rate (as applicable) 0.7186 0.7209
Call value $ 0.02 - $ 0.04 $ 0.01 - $ 0.08
The key unobservable input in these models relates to volatility. Volatility was estimated using the historical volatility of the Company's stock prices for common shares. Changes in these assumptions may affect the fair value estimates of the derivative liabilities.

F-19

Micromem Technologies Inc.

Notes to Consolidated Financial Statements

For the years ended October 31, 2024, 2023, and 2022

(Expressed in United States dollars, unless otherwise noted)

12. Warrant liability

During the year ended October 31, 2024, the Company issued warrants as specified in note 13. These warrants were issued in connection with private placements and in debt settlement arrangements. The details of the warrants issued, including the exercise price and expiry date, are disclosed in note 13.

The Company determined that these warrants were exchangeable into a variable number of shares,