Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2021

Summary of Options Outstanding and Exercisable on an As-Converted Basis

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

Summary of Stock Option Activity

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

4Front Holdings LLC

Summary of Stock Options Values using Black-Scholes Model with Key Assumptions

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		—			—