In we completed, a non-brokered private placement of units with each unit consisting of common share and half of common share purchase warrant. Accordingly, we issued warrants. In conjunction with this offering, the Company also issued an aggregate of compensation warrants. Each warrant entitled the holder to purchase common share at a price of at any time prior to expiry in

 

As the warrant exercise price was stated in Canadian dollars and the Company’s functional currency, the warrants were deemed to be derivative instruments. Accordingly, we recorded a warrant liability on the Company’s consolidated balance sheet for the initial estimated fair value of the warrants with subsequent changes in the estimated fair value recognized in the consolidated statements of operations and comprehensive loss. We allocated of the net proceeds to the warrant liability and, for the compensation warrants, was included in the issuance costs. The balance of the net proceeds were allocated to the common shares. The Company estimated the value of these warrants by using a Black-Scholes pricing model with the following assumptions: expected volatilities of – risk-free interest rates of – and expected life of years.

 

During common shares were issued on the exercise of warrants for gross proceeds of approximately and the remaining warrants expired.

 

The fair values at the time of exercise of the warrants were estimated using the following valuation assumptions: expected volatilities of risk-free interest rates of and expected life of - years.

 

The following is a rollforward of the fair value of the warrants (in thousands):

 

		Warrant Liability
Ending balance December 31, 2017		$	84
Change in fair value			39
Exercises			(123	)
Ending balance December 31, 2018		$	—