Share-Based Compensation

9 Months Ended

Sep. 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 September 30, 2023, the Company had 26,943,098 options exercisable and 84,870,266 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	60,724,666	$	0.20	3.42

Forfeited/Expired	(51,481,360)	$	0.83	—
Balance, September 30, 2023	84,870,266	$	0.38	4.52

During the three months ended September 30, 2023 and 2022, the Company recognized share-based compensation of $2.6 million and $0.9 million, respectively. During the nine months ended September 30, 2023 and 2022, the Company recognized share-based compensation of $3.9 million and $2.3 million, respectively. In determining the amount of share-based compensation during the periods ended September 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:


	Nine Months Ended September 30,
	2023		2022
Risk-Free Interest Rate	4.02	%	3.62	%
Expected Life	3.42 years		3.50 years
Expected Annualized Volatility	86.62	%	89.83	%
Forfeiture rate	—	%	—	%
Expected Dividend Yield	—	%	—	%

Restricted Share Units

On July 27, 2023, the Company issued a total of 9,853,830 restricted share units ("RSUs"), at a deemed issue price of C$0.165 based on the closing price of its Subordinate Voting Shares, to certain officers and employees of the Company in payment of fiscal year-end 2022 bonus entitlements. The RSUs are fully vested as of the grant date and expire upon the earlier of 18 months following the grant date or the occurrence of certain events. As of September 30, 2023, the Company recognized share-based compensation of $1.2 million for these fully vested RSU grants.