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SHARE-BASED COMPENSATION AND OTHER BENEFITS
 6 Months Ended
Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]  
SHARE-BASED COMPENSATION AND OTHER BENEFITS
 13. SHARE-BASED COMPENSATION AND OTHER BENEFITS
The components of share-based compensation expense are as follows:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Stock options$3,955 $769 $9,799 $1,698 
Restricted stock446 1,705 1,279 4,243 
Warrants283 259 570806
Total share-based compensation expense$4,684 $2,733 $11,648 $6,747 
Equity Incentive Plan
Under the Company’s 2019 Equity Incentive Plan, as amended (the “Plan”), non-transferable options to purchase SVS and restricted SVS of the Company may be issued to directors, officers, employees, or consultants of the Company. The Plan authorizes the issuance of up to 15% (plus an additional 2% inducements for hiring employees and senior management) of the number of outstanding shares of common stock (of all classes) of the Company (the “Share Reserve”). Incentive stock options are limited to the Share Reserve as of June 6, 2019. As of June 30, 2022, the maximum number of incentive awards available for issuance under the 2019 Plan, including additional awards available for certain new hires, was 10.5 million.
(a)Stock Options
The stock options issued by the Company are options to purchase SVS of the Company. All stock options issued have been issued to employees of certain subsidiaries of the Company under the Company’s Plan. Such options generally expire in ten years from the date of grant and generally vest ratably over three years from the grant date. The options generally may be net share settled.
The following table summarizes the status of stock options and related transactions:
Number of Stock OptionsWeighted-Average Per Share Exercise Price
Issued and Outstanding as of January 1, 202220,429,120 $3.20 
Granted (1)
1,667,000 $2.45 
Exercised (2)
(254,998)$1.69 
Forfeited/expired(340,002)$3.83 
Issued and Outstanding as of June 30, 202221,501,120 $3.15 
Exercisable as of June 30, 202210,639,594 $2.50 
(1)The weighted-average per share grant date fair value was $1.56.
(2)The weighted-average share price at the date of exercise was $3.99.
The following table summarizes the issued and outstanding stock options as of June 30, 2022:
Expiration YearStock Options OutstandingExercise PriceStock Options Exercisable
2028720,000
$1.00 - $1.35
720,000
20297,019,668
$1.26 - $2.75
6,799,664
2030852,500
$0.91 - $3.98
423,326
203111,266,952
$3.70 - $6.53
2,696,604
20321,642,000 
$1.6 - $4.2
— 
21,501,12010,639,594
As of June 30, 2022, stock options outstanding have a weighted-average remaining contractual life of 8.39 years.
In determining the amount of share-based compensation expense related to stock options issued, the Company used the Black-Scholes option-pricing model to establish the measurement date fair value of stock options granted during the period. The following assumptions were applied at the time of grant:
Six Months Ended June 30,
20222021
Stock price
$1.60 - $3.94
$5.71 - $6.53
Risk-free annual interest rate
1.83% - 3.24%
0.45% - 1.25%
Expected annual dividend yield0%0%
Volatility74%77%
Expected life of stock options
5.2 - 7.5 years
5 - 7.48 years
Forfeiture rate0%0%
Volatility was estimated by using a weighting of the Company’s historical volatility and the average historical volatility of comparable companies from a representative peer group of publicly traded cannabis companies. The expected life in years represents the period of time that stock options issued are expected to be outstanding, using the simplified method. The simplified method represents the Company’s best estimate of the expected term of the options, given the Company’s limited history available. The risk-free rate is based on U.S. Treasury bills with a remaining term equal to the expected life of the options. The Company does not anticipate paying dividends in the foreseeable future, and as a result, the expected annual dividend yield is expected to be 0%.
(b)Restricted Stock Grants
The Company grants restricted SVS to independent directors, management, former owners of acquired businesses or assets, and to consultants and other employees. The restricted SVS are included in the issued and outstanding SVS. The following table summarizes the status of restricted stock and related transactions:
Number of Restricted Subordinate Voting Shares
Unvested restricted stock as of January 1, 20222,859,151
Granted (1)
5,952 
Cancelled(7,813)
Vested(1,644,588)
Unvested restricted stock as of June 30, 20221,212,702
(1)     The weighted-average per share grant date fair value was $4.20
Generally, restricted stock awards will vest either one-third on each anniversary of service from the vesting start date or will be fully vested on the completion of one year of full service from the vesting start date, depending on the award. As of June 30, 2022, unvested restricted stock awards have a weighted-average remaining vesting period of 0.81 years.