Share-Based Compensation

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Note 16: SHARE-BASED COMPENSATION

The Company adopted two equity incentive plans where the Company may grant Class A stock options. Under the terms of the plans, the maximum number of stock options which may be granted are a total of 10% of the number

of shares outstanding assuming conversion of all shares to SVS. The exercise price for stock options issued under the plans will be set by the compensation committee of the board of directors but will not be less than 100% of the fair market value of the Company’s shares on the grant date. Stock options have a maximum term of

years from the date of grant. Stock options vest at the discretion of the Board.

As of December 31, 2021, the Company had the following options outstanding and exercisable on an as-converted basis:


Grant Date	Strike Price in CADS		Outstanding Options		Exercisable Options		Life Remaining (years)
July 31, 2019		0.10		6,245,840		6,245,840		2.71
July 31, 2019		1.00		7,783,332		7,783,332		0.95
July 31, 2019		1.00		1,166,667		1,166,667		1.76
July 31, 2019		1.50		508,333		508,333		2.45
July 31, 2019		1.50		800,000		800,000		2.46
August 22, 2019		0.80		5,237,720		3,421,053		2.64
August 22, 2019		1.00		6,150,000		4,266,667		2.64
November 1, 2019		0.80		1,200,000		800,000		2.84
February 3, 2020		0.80		375,000		141,667		3.10
June 8, 2020		0.80		25,000		8,333		3.44
July 31, 2020		0.80		1,200,000		1,133,333		3.58
September 15, 2020		0.86		7,315,860		7,315,860		3.71
October 2, 2020		0.77		3,000,000		3,000,000		3.76
November 24, 2020		0.94		1,675,000		1,675,000		3.90
December 2, 2020		1.11		2,900,000		2,900,000		3.92
December 21, 2020		1.06		1,200,000		400,000		3.98
March 18, 2021		1.63		6,650,000		2,216,667		4.21
April 2, 2021		1.36		200,000		66,667		4.25
April 21, 2021		1.58		175,000		58,333		4.31
June 23, 2021		1.56		450,000		250,000		4.48
November 11, 2021		1.33		25,000		—		4.87
				54,282,752		44,157,752		2.97

Stock option activity is summarized as follows:


	Number of Options			Weighted Average Price CAD$		Weighted Average Years
Balance December 31, 2019		40,028,465			0.86		4.12
Granted		19,190,960			0.90		5.00
Exercised		—			—		—
Forfeited/ Expired		(8,792,360	)		1.04		—

Balance December 31, 2020		50,427,065			0.84		3.72
Granted		7,900,000			1.62		5.00
Exercised		(2,737,326	)		1.04		—
Forfeited/ Expired		(1,306,987	)		0.43		—

Balance December 31, 2021		54,282,752			0.94		2.97

During the year ended December 31, 2021 and 2020, the Company recognized share-based compensation of $10,081 and $5,306 respectively.

Cashless Exercises

During the year ended December 31, 2021, the Company issued an aggregate of 2,228,439 shares of the Company’s Class A shares pursuant to the exercise of 2,737,326 options. As part of the Company’s equity incentive plans, the Company has a cashless exercise option. The Company withheld exercised shares from the holders to cover the strike price upon issuance. The number of options exercised under the cashless method was 908,220, with shares withheld to cover these costs as of December 31, 2021 being 508,887, resulting in total shares issued to option holders upon cashless exercise of options of

being

399,333.

In determining the amount of equity-based compensation during the year, the Company used the Black-Scholes option pricing model to establish fair value of options granted during the year with the following key assumptions:


	2021			2020
Risk-Free Interest Rate		0.87	%		0.38	%
Expected Life (years)		5.00			5.00
Expected Annualized Volatility		86.20	%		87.73	%
Expected Dividend Yield		—			—