VISCOUNT SYSTEMS INC | 2013 | FY | 3


      Derivative           Derivative        
      liability –     Derivative liability     liability – series        
      warrants     – conversion option     A dividends     Total  
  Balance, December 31, 2011 $ 317,003   $   -   $   -   $ 317,003  
  Preferred share conversion option   -     1,293,769     -     1,293,769  
  Preferred share dividends   -     -     32,956     32,956  
  Share purchase warrants issued   1,006,162     -     -     1,006,162  
  Total fair value adjustment   146,123     227,106     42     373,271  
  Balance, December 31, 2012   1,469,288     1,520,875     32,998     3,023,161  
  Preferred share dividends   -     -     112,079     112,079  
  Allocation to APIC   186,030     -     -     186,030  
  Conversion to common shares   -     (195,475 )   -     (195,475 )
  Total fair value adjustment   793,462     1,131,059     68,138     1,992,659  
  Balance, December 31, 2013 $ 2,448,780   $ 2,456,459   $ 213,215   $ 5,118,454  

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    December 31, 2013 December 31, 2012
  Volatility 92% - 186% 157% - 181%
  Dividend yield - -
  Risk-free interest rate 0.63% - 1.39% 0.36% - 0.77%
  Expected life 2.19 – 4.75 yrs 2.93 – 5.00 yrs

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