Share-Based Compensation

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

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 10% 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 June 30, 2023, the Company had 26,859,765 options exercisable and 74,303,600 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, 2022	75,626,960	$	0.86	3.46
Granted	50,158,000	$	0.20	3.16

Forfeited/Expired	(51,481,360)	$	0.83	—
Balance, June 30, 2023	74,303,600	$	0.38	4.01

During the three months ended June 30, 2023 and 2022, the Company recognized share-based compensation of $0.2 million and $0.4 million, respectively. During the six months ended June 30, 2023 and 2022, the Company recognized share-based compensation of $1.2 million and $1.4 million, respectively. In determining the amount of share-based compensation during the periods ended June 30, 2023 and 2022, the Company used the Black-Scholes option pricing model to establish the fair value of options granted with the following key assumptions:


	Six Months Ended June 30,
	2023		2022
Risk-Free Interest Rate	4.05	%	2.42	%
Expected Life	3.17 years		5.00 years
Expected Annualized Volatility	85.32	%	71.30	%
Forfeiture rate	—	%	—	%
Expected Dividend Yield	—	%	—	%