Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2020

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

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

Summary of Stock Option Activity

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

Equity Based Compensation Options | 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 assumption:

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