Share-Based Compensation

9 Months Ended

Sep. 30, 2021

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Compensation

10. SHARE-BASED COMPENSATION

The Company grants stock options under the Company’s Amended and Restated Stock Option Plan. Under the terms of the plan, 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 plan 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 5 years from   the date of grant. Stock options vest at the discretion of the Board.

As of September 30, 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		1.20
July 31, 2019		1.00		1,166,667		1,166,667		2.01
July 31, 2019		1.50		441,666		441,666		2.70
July 31, 2019		1.50		800,000		333,334		2.72
July 31, 2019		0.10		6,245,840		6,245,840		2.96
August 22, 2019		1.00		6,148,750		1,881,450		2.90
August 22, 2019		0.80		5,748,854		2,814,575		2.90
November 1, 2019		0.80		1,200,000		400,000		3.09
February 3, 2020		0.80		358,332		158,333		3.35
June 8, 2020		0.80		25,000		8,333		3.35
July 31, 2020		0.80		1,200,000		1,200,000		3.84
September 15, 2020		0.86		7,915,860		7,315,860		3.96
October 2, 2020		0.77		3,000,000		1,500,000		4.01
November 24, 2020		0.94		1,775,000		1,775,000		4.15
December 2, 2020		1.11		2,900,000		1,450,000		4.18
December 21, 2020		1.06		1,200,000		—		4.23
March 18, 2021		1.63		6,650,000		2,216,667		4.47
April 2, 2021		1.36		200,000		66,667		4.47
April 21, 2021		1.58		175,000		58,333		4.47
June 23, 2021		1.56		450,000		—		4.73
				55,584,301		37,016,058		3.22

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		7,875,000			1.63		4.37
Exercised		(2,032,983	)		0.93		4.97
Forfeited		(684,781	)		1.45		—
Balance, September 30, 2021		55,584,301			0.94		3.22

The Company recognized share-based compensation expense of $2,603 and $1,517 during the third quarter of 2021 and 2020 and $7,978 and $3,792 during the respective year-to-date periods.

In determining the amount of equity-based compensation during the period, the Company used the Black-Scholes option pricing model to establish fair value of options granted during the period with the following key assumption:

	September 30, 2021
Risk-Free Interest Rate	0.87% to 0.92%
Expected Life of Options (years)		5.00
Expected Annualized Volatility	86.2% to 93.53%
Expected Dividend Yield	nil