SHARE-BASED COMPENSATION

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock options

Stock options vest over a prescribed service period and are approved by the Company's board of directors on an award-by-award basis. Options have a prescribed service period generally lasting up to four years, with certain options vesting immediately upon issuance. Upon the exercise of any stock options, the Company issues shares to the award holder from the pool of authorized but unissued common shares.

There were no options granted for the nine months ended September 30, 2024. The fair values of options granted for the nine months ended September 30, 2023 were determined using a Black-Scholes model. The following principal inputs were used in the valuation of awards issued for the nine months ended September 30, 2023:


									Nine Months Ended September 30,
									2023
Expected volatility									88.8%
Expected term (years)									5.5-6.5
Risk-free interest rate									3.4%
Expected dividend yield									0%
Value of underlying share									$0.36

Detail of the number of stock options outstanding for the nine months ended September 30, 2024 under the Company's 2015 legacy option plan and the Company's amended 2018 long term incentive plan (collectively, the "Plans") is as follows:


	Number of Options	Weighted- Average Exercise Price per Option		Weighted- Average Remaining Contract Term (in years)	Aggregate Intrinsic Value
Outstanding as of December 31, 2023	5,780,134	$	0.75	8.56	$	—
Granted	—	—
Exercised	—	—
Forfeited (and expired)	(2,038,039)	0.56
Outstanding as of September 30, 2024	3,742,095	$	0.86	7.56	$	—

Exercisable/vested as of September 30, 2024	2,810,305	$	0.93	7.19	$	—

There were no options granted during the nine months ended September 30, 2024. The weighted average grant-date fair value of options granted during the nine months ended September 30, 2023 was $0.38.

There were no options exercised during the nine months ended September 30, 2024 and 2023.

Restricted share units

The Company has issued time-based restricted share units to certain employees as permitted under the 2018 long term incentive plan ("the 2018 Plan"). The restricted share units granted vest in accordance with the board-approved agreement, typically over equal installments up to four years. Upon vesting, one share of the Company’s common shares is issued for each restricted share unit awarded. The fair value of each restricted share unit granted is equal to the market price of the Company’s shares at the date of the grant. The fair value of shares vested during the nine months ended September 30, 2024 and 2023 was $1,024 and $1,150, respectively.

Details of the number of restricted share units outstanding under the 2018 Plan is as follows:


	Number of Shares	Weighted- Average Grant Date Fair Value
Outstanding as of December 31, 2023	7,250,766	$	0.31
Granted	3,256,276	$	0.21
Forfeited	(1,385,840)	$	0.23
Vested	(3,429,863)	$	0.30
Shares withheld upon vesting	(735,172)	$	0.46
Outstanding as of September 30, 2024	4,956,167	$	0.26

Share-based Compensation Expense

Share-based compensation expense for all equity arrangements for the three months ended September 30, 2024 and 2023 was $217 and $647, respectively, included in selling, general and administrative expense in the condensed consolidated statements of operations. Share-

based compensation expense for all equity arrangements for the nine months ended September 30, 2024 and 2023 was $1,296 and $1,646, respectively, included in selling, general and administrative expense in the condensed consolidated statements of operations.

As of September 30, 2024, $1,461 of total unrecognized share-based compensation expense related to unvested options and restricted stock units granted to employees is expected to be recognized over a weighted-average period of 2.11 years.