Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2021

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

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

Grant Date	Strike Price in C$		Options Outstanding		Exercisable Options		Life Remaining (years)
July 31, 2019		1.00		7,983,332		7,983,332		1.70
July 31, 2019		1.00		1,166,667		1,166,667		2.52
July 31, 2019		1.50		516,666		344,444		3.20
July 31, 2019		1.50		800,000		333,334		3.22
July 31, 2019		0.10		6,245,840		6,245,840		3.46
August 22, 2019		0.80		5,900,484		2,922,737		3.40
August 22, 2019		1.00		6,150,000		1,881,450		3.40
November 1, 2019		0.80		1,200,000		400,000		3.59
November 6, 2019		0.80		15,040		5,013		3.61
February 3, 2020		0.80		425,000		158,333		3.85
June 8, 2020		0.80		25,000		—		3.85
July 31, 2020		0.80		1,500,000		933,344		4.34
September 15, 2020		0.86		8,265,920		3,832,960		4.46
October 2, 2020		0.77		3,000,000		—		4.51
November 24, 2020		0.94		1,775,000		1,331,250		4.65
December 2, 2020		1.11		2,900,000		—		4.68
December 21, 2020		1.06		1,200,000		—		4.73
March 18, 2021		1.63		6,850,000		—		4.97
				55,918,949		27,538,704		3.72

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, 2019		40,028,465			0.86		4.12
Granted		19,190,960			0.90		—
Exercised		—			—		—
Forfeited		(8,792,360	)		1.04		—
Balance December 31, 2020		50,427,065			0.84		3.72
Granted		6,850,000			1.63		4.97
Exercised		(1,358,116	)		0.93		4.97
Balance March 31, 2021		55,918,949			0.93		3.71

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:

	March 18, 2021
Risk-Free Interest Rate		0.16	%
Expected Life of Options (years)		5.00
Expected Annualized Volatility		93.53	%
Expected Dividend Yield	nil