The maximum number of Voting Shares issuable pursuant to share-based payment arrangements, including stock options, restricted share units and performance share units, is 5,460,000.

The Company grants stock options to directors, officers, employees and consultants as compensation for services, pursuant to its Amended Stock Option Plan (the “Stock Option Plan”). The maximum price shall not be less than the closing price of the Company’s shares on the last trading day preceding the date on which the grant of options is approved by the Board of Directors. Options have a maximum expiry period of ten years from the grant date. Vesting conditions are determined by the Board of Directors in its discretion with certain restrictions in accordance with the Stock Option Plan.

The following is a summary of stock option activities for the three months ended March 31, 2022 and 2021:


	Number of stock options			Weighted average exercise price		Weighted average grant date fair value
Outstanding, January 1, 2021		1,387,000		$	0.25	$	0.21
Granted		—			—		—
Exercised		—			—		—
Forfeited		—			—		—
Outstanding M arch 31, 2021		1,387,000			0.25		0.21

Outstanding January 1, 2022		920,668			0.25		0.049
Granted		—
Exercised		—
Forfeited		(16,667	)		0.25		0.57
Outstanding, March 31, 2022		904,001		0.25		0.48

As of March 31, 2022, the following stock options were outstanding and exercisable:


Outstanding		Exercisable		Exercise Price		Remaining life (years)		Expiry Date
	150,000		150,000		0.48		1.25	June 29, 2023
	704,001		333,331		0.25		3.23	June 23, 2025
	50,000		33,333		0.62		3.48	September 23, 2025
	904,001		516,664

As of March 31, 2021, the following stock options were outstanding and exercisable:


Outstanding		Exercisable		Exercise Price		Remaining life (years)		Expiry Date
	150,000		75,000		0.48		2.25	June 29, 2023
	1,187,000		412,328		0.25		4.23	June 23, 2025
	50,000		16,666		0.62		4.48	September 23, 2025
	1,387,000		503,994

The Company recognizes share-based payments expense for all stock options granted based on the grant date fair value with the expense recognized ratably over the service period. The fair value of stock options is determined by the Black-Scholes Option Pricing Model with assumptions for risk-free interest rates, dividend yields, volatility factors of the expected market price of the Company’s shares, forfeiture rate, and expected life of the options.

There were no stock options granted during the quarter ended March 31,2022 and March 31, 2021. The following weighted average assumptions were used to estimate the weighted average grant date fair value of stock options granted upon issuance.

The Company grants restricted share units (“RSUs”) to directors, officers, employees and consultants as compensation for services, pursuant to its Amended RSU Plan (the “RSU Plan”). One restricted share unit has the same value as a Voting Share. The number of RSUs awarded and underlying vesting conditions are determined by the Board of Directors in its discretion.

At the election of the Board of Directors, upon each vesting date, participants receive (a) the issuance of Voting Shares from treasury equal to the number of RSUs vesting, or (b) a cash payment equal to the number of vested RSUs multiplied by the fair market value of a Voting Share, calculated as the closing price of the Voting Shares on the TSXV for the trading day immediately preceding such payment date; or (c) a combination of (a) and (b).

On the grant date of RSUs, the Company determines whether it has a present obligation to settle in cash. If the Company has a present obligation to settle in cash, the RSUs are accounted for as liabilities, with the fair value remeasured at the end of each reporting period and at the date of settlement, with any changes in fair value recognized in profit or loss for the period. The Company has a present obligation to settle in cash if the choice of settlement in shares has no commercial substance, or the Company has a past practice or a stated policy of settling in cash, or generally settles in cash whenever the counterparty asks for cash settlement.

If no such obligation exists, RSUs are accounted for as equity settled share-based payments and are valued using the share price on grant date. Upon settlement:

The following is a summary of RSU activities for the years ended March 31, 2022 and 2021:


	Number of RSUs			Weighted average grant date fair value per RSU
Outstanding, January 1, 2021		685,000			0.67
Granted		352,500			1.48
Issuance of common stock		(40,000	)		0.69
Forfeited		(10,000	)		1.48
Outstanding March 31, 2021		987,500			0.67

Outstanding, January 1, 2022		2,067,500		$	1.16
Granted		620,000			1.37
Issuance of common stock		—			—
Forfeited		(400,000	)		1.48
Outstanding, December 31, 2021		2,287,500			1.02

During the three months ended March 31, 2022 and 2021, the Company recognized share-based payments expense with respect to stock options and RSUs of $382,612 and $120,411, respectively.

The remaining compensation that has not been recognized as of March 31, 2022 with regards to stock options and RSUs and the weighted average period they will be recognized are $ 2,283,630 and 1.67 years for stock options and $8,958 and 0.26 years for RSUs.