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Shareholders' Equity
 12 Months Ended
Dec. 31, 2020
Disclosure of Shareholder's Equity [Abstract]  
Shareholders' Equity
12.
SHAREHOLDERS’ EQUITY
 
i.
Authorized share capital
Unlimited common shares, without par value.
 
ii.
Share capital
The number of common shares issued and fully paid as at December 31, 2020 is 210,490,807.
No dividends were declared and paid in the year ended December 31, 2020 and 2019.
 
iii.
Stock options, RSUs, DSUs and share-based payments reserve
The Company has a long-term equity incentive plan (the “Plan”) which, among other things, allows for the maximum number of shares that may be reserved for issuance under the Plan to be 10% of the Company’s issued and outstanding shares at the time of the grant. The Board of Directors has the authority and discretion to grant stock option, RSU and DSU awards within the limits identified in the Plan, which includes provisions limiting the issuance of options to qualified persons and employees of the Company to maximums identified in the Plan.
As at December 31, 2020, the aggregate maximum number of shares pursuant to options granted under the Plan will not exceed 21,049,081 shares. All stock options are settled by the issuance of common shares.
The following table summarizes information about the stock options outstanding and exercisable:
 
    
 
Year ended December 31, 2020
 
   
 
Year ended December 31, 2019
 
 
 
  
 
 
Number of options
 
 
 
  
 
 
 
 
 
 
Weighted average
 
exercise price
 
 
 
 
 
 
   
 
 
Number of options
 
 
 
 
 
 
 
 
 
 
 
Weighted average
 
exercise price
 
 
 
 
 
     
Balance at beginning of the year
  
 
3,518,335
 
  
$
 3.26
 
   3,130,000  $ 4.17 
     
Granted during the yea
r
  
 
-
 
  
 
-
 
   1,090,000   1.30 
     
Expired during the year
  
 
(980,000
)
 
  
 
4.29
 
   (600,000)   4.36 
Forfeited during the year
 
 
 
(83,333
)
 
 
 
 
2.17
 
 
 
(101,665
)
 
 
3.48
 
     
Balance at end of the year
  
 
2,455,002
   
$
2.89
    3,518,335  $ 3.26 
     
Options exercisable at the end of the year
  
 
1,711,669
 
  
$
3.51
 
   1,972,223  $4.32 
The fair value of the stock options granted have been estimated on the date of grant using the Black-Scholes option pricing model. The assumptions are presented below for options granted during the December 31, 2019 period. Expected volatility is calculated by reference to the weekly closing share price for a period that reflects the expected life of the options. The 1,090,000 stock options issued on December 27, 2019 vest 1/3 on December 27, 2020, 1/3 on December 27, 2021 and 1/3 on December 27, 2022.
 
    
December 31,
 
2019
 
Exercise price
  $1.30 
Expected volatility
   43.33% 
Expected option life
   5 years 
Contractual option life
   5 years 
Expected forfeiture
   none 
Expected option cancellation
   none 
Expected dividend yield
   0% 
  
Risk-free interest rate
   1.64% 

 
The following tables reflect the number of stock options outstanding, the weighted average of stock options outstanding, and the exercise price of stock options outstanding at December 31, 2020. The Black-Scholes values are measured at the grant date.
 
At December 31, 2020
                
Expiry Date
  
Black-Scholes
 
Value
   
Number of
 
Options
   
Number of
 
Exercisable Options
   
Exercise
 
Price
 
     
June 30, 2021
   120    100,000    100,000    6.35 
     
November 3, 2021
   214    100,000    100,000    6.96 
     
February 5, 2022
   171    100,000    100,000    5.86 
     
December 21, 2022
   931    875,002    875,002    3.48 
     
June 30, 2023
   203    200,000    133,333    3.30 
     
June 30, 2023
   41    40,000    40,000    3.30 
     
December 27, 2024
   416    1,040,000    363,334    1.30 
     
 
  $                 2,096    2,455,002    1,711,669   $         2.89 
Subsequent to the year ended December 31, 2020, 1,085,000 stock options were granted, with an exercise price of $0.65, and a fair value of $344.
The weighted average remaining contractual life of the options outstanding at December 31, 2020 is 2.72 years (2019 - 2.86 years).
The restricted and deferred share unit plans are full value phantom shares that mirror the value of the Company’s publicly traded common shares. Grants under the RSU and DSU plan are made on a discretionary basis to qualified persons and employees of the Company subject to the Board of Directors’ approval. Under the RSU and DSU plan, RSUs vest according to the terms set out in the award agreement which are determined on the initial grant date on an individual basis at the discretion of the Board of Directors. Vesting under the RSU and DSU plan is subject to special rules for death, disability and change in control. The awards can be settled through issuance of common shares or paid in cash, at the discretion of the Board of Directors. These awards are accounted for as equity settled RSUs.
The fair value of each RSU issued is determined at the closing share price on the grant date.
The following table shows the RSU awards which have been granted and settled during the year:
 
    
December 31, 2020
 
   
December 31, 2019
 
 
RSU
 
  
Number of units
 
   
    Weighted average value
grant date fair value
 
   
    Number of units
 
   
    Weighted average value
grant date fair value
 
 
     
Balance at beginning of year
  
 
1,065,000
 
  
$
 1.31
 
   368,997   $ 5.01 
     
Awards and payouts during the year (net):
                    
     
RSUs awarded
  
 
-
 
  
 
-
 
   990,000    1.13 
     
RSUs settled and common shares issued
  
 
(98,334)
 
  
 
2.79
 
   (289,997)    5.35 
     
RSUs forfeited
  
 
(103,333)
 
  
 
1.36
 
   (4,000)    6.49 
     
Balance at end of the year*
  
 
863,333
 
  
$
1.13
 
   1,065,000   $1.31 
*As at December 31, 2020, 287,778 RSUs (2019, 16,667 RSUs) have vested and have not yet been settled.
 
Subsequent to the year ended December 31, 2020, 1,000,000 RSUs were granted with a fair value of $0.64 per unit.
No DSU awards have been granted to date, therefore as at December 31, 2020 there are no DSUs outstanding.
The share-based payments recognized as an expense for the year ended December 31, 2020 and 2019 are as follows:
 
    
Year ended
   Year ended 
   
    
December 31, 2020
   December 31, 2019 
Expense recognized in the year
for share-based payments
  
$
 983
   $ 789 
The share-based payment expense for the year ended December 31, 2020 and 2019 is included in selling, general and administrative expenses.
 
iv.
Loss per share
The following table sets forth the computation of basic and diluted loss per share:
 
    
Year ended
 
December 31, 2020
  
Year ended
 
December 31, 2019
 
Numerator
         
   
Net loss for the year
  
$
(263,429
) 
 $(128,758) 
   
Denominator
         
   
For basic - weighted average number of shares  outstanding
  
 
210,406,658
   210,134,192 
   
Effect of dilutive securities
  
 
-
   
-
 
   
For diluted - adjusted weighted average number of  shares outstanding
  
 
210,406,658
   210,134,192 
   
Loss Per Share
         
Basic
  
$
(1.25
) 
 $(0.61) 
Diluted
  
$
(1.25
) 
 $(0.61) 
For the year ended December 31, 2020, 2,455,002 stock options and 863,333 RSUs were not included in the calculation of diluted loss per share since to include them would be anti-dilutive (2019—3,518,335 stock options and 1,065,000 RSUs).