Stockholders' Equity

6 Months Ended

Jun. 30, 2022

Stockholders' Equity

Stockholders' Equity

4.    Stockholders’ Equity

Authorized capital stock

The Company’s authorized capital stock consists of an unlimited number of common shares, no par value per share.

Warrants to Purchase Common Stock

During the three and six months ended June 30, 2022, there were no warrants issued or exercised. Outstanding warrants have a weighted average life of 6.60 years on June 30, 2022. The following tables detail the Company’s warrant activity for the three and six months ended June 30, 2022:

	Common Shares
	Issuable Upon Exercise
	of Outstanding	Weighted-Average
Investor Warrants	Warrants	Exercise Price $USD
Outstanding December 31, 2021	39	$	6.80
Issued	—		—
Outstanding June 30, 2022	39		6.80
Issued	—		—
Outstanding June 30, 2022	39	$	6.80

Equity Incentive Plan

The Compensation Committee of the Board of Directors administers the Company’s equity incentive plan (the “Plan”). The Compensation Committee designates eligible participants to be included under the Plan and approves the number of equity instruments to be granted from time to time under the Plan. Currently, the maximum number of equity instruments

issuable under the Plan, together with the Company’s prior stock option plan, is twenty-five percent (25%) of the total number of issued and outstanding common shares. Based upon the current shares outstanding, a maximum of 6,517 shares of common stock are authorized for issuance pursuant to stock options or other equity awards granted under the Plan. For all options issued under the Plan, the exercise price is the fair value of the underlying shares on the date of grant. All options vest within three years or less and are exercisable for a period of ten years from the date of grant. The Plan allows the issuance of Canadian and U.S. dollar grants. The table below outlines recognized contractor and employee expense from equity awards for the three and six month period ended June 30, 2022 and 2021.

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Contractor options expense recognized	$	35	$	—	$	69	$	9
Employee options expense recognized		1,008		1,326		1,407		1,913
Total option expense recognized	$	1,043	$	1,326	$	1,476	$	1,922

Stock Option Activity

The following is a summary of option activity for the three and six months ended June 30, 2022, for stock options denominated in U.S. dollars. Since August of 2020, there have been no Canadian denominated options outstanding.

	Number of	Weighted-Average
US Denominated Options	Options (thousands)	Exercise Price $USD
Outstanding at December 31, 2021	4,259	$	5.13
Granted	200		5.64
Exercised	(26)		0.58
Forfeited	(382)		6.13
Outstanding at March 31, 2022	4,051		5.34
Granted	305		5.71
Exercised	(19)		2.38
Outstanding at June 30, 2022	4,337	$	5.14

During the three and six month periods ended June 30, 2022, there were 305 and 505 options granted, respectively. During the three and six month periods ended June 30, 2022, there were 26 and 45 exercises of options, respectively. This resulted in a cash inflow of $46 and $61, respectively. Of the 4,337 U.S. denominated options granted and outstanding at June 30, 2022, 3,050 are fully vested and exercisable.

The value of options issued was estimated using the Black-Scholes option pricing model using the assumptions in the table below. The expected volatility was determined using historical volatility of our stock based on the expected term of the award.

	Valuation Assumptions
Black-Scholes Model Assumptions	June 30, 2022
Expected dividend	0.00%
Risk free rate	2.99 - 3.65%
Expected volatility	69 - 73%
Expected life	5 - 6 years

Restricted Share Units Activity

The Plan allows for the issuance of restricted share units (“RSU’s”). The following is a summary of RSU activity for the three and six months ended June 30, 2022, for RSU’s denominated in U.S. dollars. During the quarter ended June 30,

2022, there were 8 RSU’s released from restriction. During the six months ended June 30, 2022, there were 88 RSU’s forfeited by departing employees.  All RSU’s vest over one to three years.

	Number of Restricted
US Denominated RSUs	Share Units (thousands)
Outstanding at December 31, 2021	219
Awarded	—
Forfeited	(88)
Outstanding at March 31, 2022	131
Awarded	—
Released	(8)
Outstanding at June 30, 2022	123

The value of RSU’s issued was estimated using the share price on the date of the award multiplied by the number of shares granted.