Share-based Compensation Plans

3 Months Ended

Mar. 31, 2022

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

11.

Share-based compensation plans

Share-based payments expense

Total share-based payments expense was as follows:


	For the Three Months Ended
		March 31, 2022		March 31, 2021
Stock options		$	2,590	$	3,450
Restricted share units			766		117
Total share-based payments		$	3,356	$	3,567

The Board of Director's fees are expected to be settled in restricted share units during the year ended December 31, 2022.

Stock Options

The following table summarizes the stock option activity for the three months ended March 31, 2022:


	Number of Stock Options			Weighted average remaining contractual life (in years)		Weighted Average Exercise Price (per share) $		Aggregate intrinsic value		Weighted average fair value of nonvested options (per share) $
Outstanding, December 31, 2021		12,854,519			4.84	$	4.85	$	27,557	$	4.22
Granted		470,021					5.55
Replacement options granted on acquisition of Gage		4,940,364					2.99
Exercised		(68,215	)				4.68
Forfeited (1)		(206,218	)				7.11
Expired		(141,733	)				8.70
Outstanding, March 31, 2022		17,848,738			4.16	$	4.37		36,952		4.43

Exercisable, March 31, 2022		11,928,817			3.21	$	3.22		32,642	N/A

Nonvested, March 31, 2022		5,919,921			6.09	$	6.68		4,309	N/A

(1)

For stock options forfeited, represents one share for each stock option forfeited.

The Gage acquisition included consideration in the form of 4,940,364 replacement options that had been issued before the acquisition date to employees of Gage. The post-combination options vest over a 1-3 year period. The fair value of the replacement options were estimated using the Black-Scholes option pricing model with the following assumptions:


	March 10, 2022
Volatility	55.0%-80.0%
Risk-free interest rate	1.22%-1.94%
Expected life (years)	2.00-5.00
Dividend yield		0	%

The fair value of the various stock options granted were estimated using the Black-Scholes option pricing model with the following assumptions:


	March 31, 2022			December 31, 2021
Volatility		77.92	%	79.05% - 81.51%
Risk-free interest rate		2.30	%	0.90% - 1.72%
Expected life (years)	9.62-9.96			4.57 - 10.05
Dividend yield		0	%		0	%
Forfeiture rate		23.73	%	23.21% - 27.73%

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between Company’s closing stock price on March 31, 2022 and December 31, 2021, respectively, and the exercise price, multiplied by the number of the in-the-money options) that would have been received by the option holders had all option holders exercised their in-the-money options on March 31, 2022 and December 31, 2021, respectively.

The total pre-tax intrinsic value (the difference between the market price of the Company’s Common Stock on the exercise date and the price paid by the option holder to the exercise the option) related to stock options exercised during the three months ended March 31, 2022 and 2021, was $61 and $3,077 respectively. The total estimated fair value of stock options that vested during the three months ended March 31, 2022 and 2021 was $2,511 and $2,994, respectively.

Volatility was estimated by using the historical volatility of the Company's stock price. The expected life in years represents the period of time that the options issued are expected to be outstanding. The risk-free rate is based on US treasury bond issues with a remaining

term approximately equal to the expected life of the options. Dividend yield is zero since the Company has never paid cash dividends and does not expect to pay cash dividends in the foreseeable future.

As of March 31, 2022, there was $21,796 of total unrecognized compensation cost related to unvested options.

Restricted Share Units

The following table summarizes the activities for the unvested RSUs for the three months ended March 31, 2022:


	Number of RSUs			Number of RSUs vested		Weighted average remaining contractual life (in years)
Outstanding, December 31, 2021		192,171			13,294	N/A
Vested		(42,526	)
Outstanding, March 31, 2022		149,645			13,050	N/A

As of March 31, 2022, there was $1,462 of total unrecognized compensation cost related to unvested RSUs.