Share-Based Compensation

12 Months Ended

Dec. 31, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

18.	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 ten percent 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 December 31, 2020, the Company had the following options outstanding and exercisable on an as-converted basis:

	Strike Price in		Options		Exercisable		Life Remaining
Grant Date	CAD$		Outstanding		Options		(years)
July 31, 2019		1.00		8,883,332		8,883,332		1.95
July 31, 2019		1.00		1,166,667		1,166,667		2.76
July 31, 2019		1.50		516,666		344,444		3.45
July 31, 2019		1.50		800,000		333,334		3.46
July 31, 2019		0.10		6,245,840		6,245,840		3.71
August 22, 2019		0.80		6,358,600		2,922,737		3.64
August 22, 2019		1.00		6,150,000		1,881,450		3.64
November 1, 2019		0.80		1,200,000		400,000		3.84
November 6, 2019		0.80		15,040		5,013		3.85
February 3, 2020		0.80		425,000		25,000		4.10
June 8, 2020		0.80		25,000	-			4.44
July 31, 2020		0.80		1,500,000		933,344		4.58
September 15, 2020		0.86		8,265,920	-			4.71
October 2, 2020		0.77		3,000,000	-			4.76
November 24, 2020		0.94		1,775,000		1,331,250		4.90
December 2, 2020		1.11		2,900,000	-			4.92
December 21, 2020		1.06		1,200,000	-			4.98
				50,427,065		24,472,411	3.75

Stock option activity is summarized as follows:

	Number of			Weighted Average		Weighted Average
	Options			Price CAD$		Years
Balance December 31, 2018		—			—		—
Granted		40,028,465			0.86		—
Exercised		—			—		—
Forfeited/Expired		—			—		—
Balance December 31, 2019		40,028,465			0.86		4.12
Granted		19,190,960			0.90		—
Exercised		—			—		—
Forfeited/Expired		(8,792,360	)		1.04		—
Balance December 31, 2020		50,427,065			0.84		3.72

Through December 31, 2020, 8,792,360 stock options were expired, cancelled or forfeited. During the year ended December 31, 2020 and 2019, the Company recognized share-based compensation of $5,306 and $5,913 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 assumption:

Risk-Free Interest Rate		0.38	%
Expected Life (years)		5
Expected Annualized Volatility		87.73	%
Expected Dividend Yield	nil