Share-Based Compensation

6 Months Ended

Jun. 30, 2022

Share-based Payment Arrangement [Abstract]

Note 12: 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 10 years from the date of grant. Stock options vest at the discretion of the Board.

As of June 30, 2022, the Company had the following options outstanding and exercisable on an

as-converted

basis:


Grant Date	Strike Price in CAD$		Outstanding Options		Exercisable Options		Life Remaining (years)
July 31, 2019		0.10		6,245,840		6,245,840		2.22
July 31, 2019		1.00		7,783,332		7,783,332		0.45
July 31, 2019		1.00		1,166,667		1,166,667		1.27
July 31, 2019		1.50		508,333		508,333		1.95
July 31, 2019		1.50		800,000		800,000		1.96
August 22, 2019		0.80		5,237,720		4,459,942		2.15
August 22, 2019		1.00		6,150,000		5,522,222		2.15
November 1, 2019		0.80		1,200,000		1,000,000		2.34
February 3, 2020		0.80		348,333		148,333		2.60
June 8, 2020		0.80		25,000		12,500		2.94
July 31, 2020		0.80		1,200,000		1,150,000		3.09
September 15, 2020		0.86		7,315,860		7,315,860		3.21
October 2, 2020		0.77		3,000,000		3,000,000		3.26
November 24, 2020		0.94		1,675,000		1,675,000		3.41
December 2, 2020		1.11		2,900,000		2,900,000		3.43
December 21, 2020		1.06		1,200,000		600,000		3.48
March 18, 2021		1.63		6,375,000		4,158,333		3.72
April 2, 2021		1.36		166,667		100,000		3.76
April 21, 2021		1.58		175,000		116,667		3.81
June 23, 2021		1.56		250,000		216,667		3.98
November 11, 2021		1.33		25,000		6,250		4.37
January 25, 2022		0.89		975,000		209,896		4.58
February 1, 2022		0.84		100,000		20,556		4.59
February 17, 2022		0.85		100,000		14,167		4.64
March 1, 2022		1.09		200,000		33,333		4.67
April 27, 2022		0.90		1,200,000		71,111		4.83
June 17, 2022		0.77		3,735,000		723,661		4.97

				60,057,752		49,958,670		2.72

Stock option activity is summarized as follows:


	Number of Options			Weighted Average Price CAD$		Weighted Average Years
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
Granted		6,435,000			0.83		5.00
Exercised		(51,975	)		0.80		—
Forfeited/ Expired		(608,025	)		1.62		—

Balance June 30, 2022		60,057,752			0.92		2.72

During the six months ended June 30, 2022 and 2021, the Company recognized share-based compensation of $1,428 and $5,375. During the three months ended June 30, 2022 and 2021, the Company recognized share-based compensation of $390

and $2,979, respectively.

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:


	2022			2021
Risk-Free Interest Rate		2.42	%		0.87	% to 0.92%
Expected Life (years)		5.00			5.00
Expected Annualized Volatility		71.30	%		86.2	% to 93.53%
Forfeiture rate		—	%		—	%
Expected Dividend Yield		—	%		—	%