SHARE-BASED COMPENSATION

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

The Company has adopted a stock option plan under which the Company may grant SVS stock options. Under the terms of the plan, the maximum number of stock options which may be granted are a total of 15% of the number of shares outstanding assuming conversion of all shares to SVS. The exercise price for stock options issued under the plans is set by the Board of Directors but will not be less than the greater of the closing price of the Company’s SVS on the Canadian Securities Exchange on the grant date or the trading day before 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 September 30, 2024, the Company had 50,916,209 options exercisable and 82,483,506 options outstanding, with exercise prices ranging from C$0.10 to C$1.63. The following table summarizes the Company’s stock option activity and related information:


	Number of Options	Weighted Average Price (CAD$)		Weighted Average Years
Balance, December 31, 2023	91,702,766	$	0.34	3.78
Granted	1,730,000	$	0.14	3.48

Forfeited/Expired	(10,949,260)	$	0.49	—
Balance, September 30, 2024	82,483,506	$	0.31	4.56

During the three months ended September 30, 2024 and 2023, the Company recognized share-based compensation of $0.7 million and $2.6 million, respectively. During the nine months ended September 30, 2024 and 2023, the Company recognized share-based compensation of $2.5 million and $3.9 million, respectively. In determining the amount of share-based compensation during the nine months ended September 30, 2024 and 2023, the Company used the Black-Scholes option pricing model to establish the fair value of options granted with the following key assumptions:


	Nine Months Ended September 30,
	2024		2023
Risk-Free Interest Rate	3.78	%	4.02	%
Expected Life (in Years)	3.5 years		3.4 years
Expected Annualized Volatility	96.50	%	86.62	%
Forfeiture Rate	—	%	—	%
Expected Dividend Yield	—		—