Quarterly report pursuant to Section 13 or 15(d)

Concentration of Risk

Concentration of Risk
3 Months Ended
Mar. 31, 2024
Concentration of Risk [Abstract]  


Credit risk


Credit risk is the risk of financial loss to the Company if a counterparty to a financial instrument fails to meet its payment obligations. The Company has no material counterparties to its financial instruments with the exception of the financial institutions which hold its cash. The Company manages its credit risk by ensuring that its cash is placed with a major financial institution with strong investment grade ratings by a primary ratings agency. The Company’s receivables consist of goods and services due from customers and tax due from the Canadian government.


Financial instrument risk exposure


The Company is exposed in varying degrees to a variety of financial instrument related risks. The Board approves and monitors the risk management processes.


Liquidity risk


The Company’s cash is invested in business accounts which are available on demand. The Company has not raised additional capital during the three months ended March 31, 2024.


Interest rate risk


The Company’s bank account earns interest income at variable rates. The fair value of its portfolio is relatively unaffected by changes in short-term interest rates. A 1% change in interest rates would have no significant impact on profit or loss for the year ended March 31, 2024.


Foreign exchange risk


Foreign currency exchange rate risk is the risk that the fair value of financial instruments or future cash flows will fluctuate because of changes in foreign exchange rates. The Company operates in Canada and the United States.


The Company was exposed to the following foreign currency risk as at March 31, 2024 and December 31, 2023:


    March 31,
    December 31,
    ($)     ($)  
Cash     775,479       1,630,841  
Accounts payable and accrued liabilities     (132,107 )     (105,941 )
      643,372       1,524,900  


As at March 31, 2024, with other variables unchanged, a +/- 10% change in the United States dollar to Canadian dollar exchange rate would impact the Company’s net loss by $64,300 (December 31, 2023 - $152,500).