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Share-Based Payment Arrangements
 3 Months Ended 12 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Text Block [Abstract]    
Share-Based Payment Arrangements NOTE 13
-
SHARE BASED PAYMENT
ARRANGEMENTS
Share-based payment arrangements are discussed in Note 19 to the 2021 Annual Financial
Statements.
 
The Company recorded share-based compensation as
follows:
 
 
 
 
Three months ended March 31,
 
 
 
 
2022
 
 
2021
 
Stock options (a)   $ 192,147     $ 130,898  
Restricted share units (b)     60,786       244,376  
Total
 
$
252,933
 
 
$
375,274
 
 
 
a)
Stock
Options
 
 
Number of
Options
  
Weighted

Average
Exercise
Price
  
Weighted
Average
Remaining Contractual
Life
(years)
 
Outstanding, December 31,
2021
  
 
 
866,789
 
 
$
8.81
 
 
 
7.5
 
 
Granted
       48,199     $ 5.17       9.6  
 
Forfeited
       (92,453 )   $ 7.09       9.1  
 
Expired
       (15,801 )   $ 10.10       8.4  
 
Outstanding, March 31,
2022
  
 
 
806,734
 
 
$
8.76
 
 
 
7.5
 
 
At March 31, 2022, 285,295 stock options were exercisable at a weighted average exercise price of $10.94. Exercise prices of stock options range from $4.73 to $18.02 per option. As at March 31, 2022, unrecognized share-based compensation expense related to non-vested stock options granted is $1,231,192 (December 31, 2021
-
$1,824,812).
The weighted average fair value of stock options granted during the three months ended March 31, 2022 of $151,094, or $3.13 per option, was calculated at the date of grant using the Black-Scholes model with the following weighted average assumptions and inputs: grant date share price of $5.18, exercise price of $5.17, risk-free rate of 1.62%, expected life of 6.5 years, expected volatility of 74%, forfeiture rate of 10%, and no expected dividends. Expected volatility is estimated taking into account historical share price volatility. There were no grants of stock options during the three months ended March 31, 2021.
 
 
b)
Restricted Share Units
(“RSUs”)
The Company’s obligation to issue shares on the vesting of RSUs is an unfunded and unsecured obligation of the Company. A continuity of RSUs is as follows:
 
 
 
Number of RSUs
 
 
Outstanding, December 31,
2021
  
 
 
208,674
 
 
Granted
       34,167  
 
Exercised
       (12,031 )
 
Forfeited
       (17,517 )
 
Outstanding, March 31,
2022
  
 
 
213,293
 
 
Exercisable at March 31,
2022
  
 
 
115,257
 
 
During the three months ended March 31, 2022, 12,031 common shares were issued on the exercise of 12,031 RSUs at a weighted average share price at exercise of $6.69.
 
The fair value of each RSU is based on the market price of the Company’s common shares on the date of grant and the total fair value of RSUs granted in the three months ended March 31, 2022 was $174,329. As at March 31, 2022, unrecognized share-based compensation expense related to non-vested RSUs granted was $310,434 (December 31, 2021 - $277,686).
NOTE 20 – SHARE-BASED PAYMENT ARRANGEMENTS
The Company has an equity incentive plan (the “Plan”) which allows management to grant incentive stock options, non-statutory stock options, share appreciation rights, restricted share awards, restricted share unit awards, and other share awards to selected directors, employees, and consultants. A maximum of 10% of the issued and outstanding common shares of the Company may be reserved for issuance under the Plan.
The Company recorded share-based compensation as follows.
 
    
Year Ended December 31,
  
     
2021
     
2020
     
2019
  
Stock options (a)
    $ 908,293      $ 677,452      $ 820,613  
Restricted share units (b)
      959,622        776,783        647,748  
Total
   
$
                1,867,915
 
   
$
                1,454,235
 
   
$
                1,468,361
 
 
a)
Stock Options
The board of directors or designated committee set the terms of the share-based payment arrangements under the Plan; however, the general terms of stock options are as follows. The options have a maximum term of 10 years and vest as to 33% on each anniversary date of the date of grant over three years. In limited cases, options vest immediately. For the majority of grants, the exercise price is equal to the closing price of the Company’s common shares on the grant date. On the date the option holder ceases to be employed, vested options are exercisable for a period of three months following that date, and unvested options are forfeited. Compensation is recognized on a graded vesting basis over the vesting period.
Movement in the number of stock options outstanding and their related weighted-average exercise prices were as follows:
 
    
Number of
Options
    
Weighted
Average
Exercise
Price
     
Number of
Options
    
Weighted
Average
Exercise
Price
     
Number of
Options
    
Weighted
Average
Exercise
Price
  
    
2021
    
2021
     
2020
    
2020
     
2019
    
2019
  
Opening balance
      423,303     $ 11.01        349,657     $ 11.48        95,000     $ 11.70  
Granted
      487,775       7.10        153,828       9.99        323,278       11.20  
Exercised
      –       –        (7,639 )      10.50        (50,838 )      10.62  
Forfeited
      (40,088 )      9.87        (32,777 )      11.52        (17,783 )      10.35  
Expired
      (4,201 )      11.03        (6,433 )      10.67        –       –  
Cancelled
      –       –        (33,333 )      10.50        –       –  
Outstanding at December 31
   
 
866,789
 
  
$
8.81
 
   
 
423,303
 
  
$
11.01
 
   
 
349,657
 
  
$
11.48
 
Exercisable at December 31
   
 
275,473
 
  
$
11.10
 
   
 
161,244
 
  
$
11.70
 
   
 
17,014
 
  
$
12.87
 
 
 
The following summarizes information about the Company’s stock options outstanding at December 31, 2021:
 
 
    
Options Outstanding
 
 
 
 
    
Options exercisable
Range of prices
     
Number
     
Weighted
average
exercise price
     
Weighted
average life
(years)
              
Number
     
Weighted
average
exercise price
  
             
$5.67 - $8.70
        506,502      $ 6.88        9.0                  25,389      $ 6.56  
             
$8.71 - $10.95
        200,706      $                 10.67        4.9                  138,622      $ 10.57  
             
$10.96 - $12.59
        104,303      $ 11.78        6.1                  71,461      $                 11.78  
             
$12.60 - $18.02
        55,278      $ 14.11        6.4    
 
 
 
        40,001      $ 14.59  
             
 
     
 
866,789
 
   
$
8.81
 
   
 
7.5
 
  
 
 
 
     
 
275,473
 
   
$
11.10
 
At December 31, 2021, if all exercisable options were exercised total cash received would be $3,057,750 (December 31, 2020 - $1,886,555; December 31, 2019 - $1,206,687). Unrecognized share-based compensation expense related to unvested stock options granted was $1,824,812 at December 31, 2021 (December 31, 2020 - $710,934; December 31, 2019 - $1,061,013).
Measurement of fair values for equity-settled arrangements
The weighted average fair value of stock options granted during the year ended December 31, 2021 of $4.25 per option, or $2,061,007 (December 31, 2020 - $4.54 per option or $698,949; December 31, 2019 - $4.91 per option or $1,597,043) was calculated at the grant date using the Black-Scholes model with the following weighted average assumptions and inputs.
 
  
 
2021
  
2020
  
2019
       
Grant date share price
   $                                    7.00          $                                    8.93         
$                                10.88      
       
Exercise price
   $                                    7.10          $                                    9.74         
$                                11.13      
       
Risk-free rate
   1.32  %    0.36  %   
1.57  %
       
Expected life, years
   6.2 years    5.0 years    3.9 years
       
Expected volatility
   75  %    66  %    54  %
       
Expected dividends
   –  %    –  %    –  %
       
Forfeiture rate
   7  %    –  %   
10  %
Expected volatility is based on an evaluation of the historical volatility of the Company’s share prices since the Company commenced trading which is a reasonable approximation of the volatility over the expected term of the stock option. The expected term of the options has been based on historical experience and general option holder behavior. The forfeiture rate reflects the anticipated level of forfeitures of options in the future.
 
b)
Restricted Share Units (“RSUs”)
RSUs are granted to directors, employees and consultants and each RSU entitles the holder to one common share at the end of the vesting period. RSUs have various terms ranging from immediate vesting to vesting on either the first, second or third anniversary of the grant date, or as to 33% on each anniversary date of the grant over three years. Compensation is recognized on a graded vesting basis over the vesting period. The Company issues common shares to the RSU holder equal to the number of vested RSUs at the RSU holders’ request.
 
The Company’s obligation to issue shares on the vesting of RSUs is an unfunded and unsecured obligation of the Company. A continuity of RSUs is as follows:
 
 Number of RSUs
   
 
2021
 
   
 
2020
 
   
 
2019
 
       
 Outstanding at January 1
      222,222        151,790        101,778  
       
Granted
      73,164        123,797        71,640  
       
Exercised
1
      (71,190)        (35,877)        (11,905)  
       
Forfeited
      (7,074)        (3,332)        (9,723)  
       
Withheld
1
      (8,448)        (14,156)        –   
       
 Outstanding at December 31
   
 
208,674
 
   
 
222,222
 
   
 
151,790
 
       
 Exercisable at December 31
   
 
            115,468
 
   
 
            33,516
 
   
 
            32,036
 
 
1
 
71,190 common shares issued on exercise of 79,638 RSUs at a weighted average grant date exercise price of $8.87. Certain RSU holders elected for RSUs exercised to be settled net of any tax withholding obligations.
The fair value of each RSU is based on the market price of the Company’s common shares on the date of grant and the total fair value of RSUs granted in the year ended December 31, 2021 was $528,028 (December 31, 2020 - $1,069,042; December 31, 2019 - $829,976). Unrecognized share-based compensation expense related to unvested RSUs was $277,686 at December 31, 2021 (December 31, 2020 - $807,830; December 31, 2019 - $702,373).