| SHARE-BASED COMPENSATION |
12. SHARE-BASED COMPENSATION
The Company’s share-based compensation plan includes stock options and Restricted Share Units (“RSU”). The Company has reserved up to 15% of the issued and outstanding Common Shares for the granting of stock options and RSU to eligible Employees, Officers, Directors and external consultants.
|
Common shares outstanding, Dec 31, 2021 |
|
|
|
111,202,690 |
|
|
|
|
| |
Share-based compensation available for issuance: 15% |
|
|
|
|
|
|
|
16,680,404 |
| |
Stock options outstanding, Dec 31, 2021 |
|
|
|
|
|
|
|
(5,257,089 |
) | |
RSU outstanding, Dec 31, 2021 |
|
|
|
|
|
|
|
(1,581,607 |
) | |
Share-based compensation available for future grants |
|
|
|
|
|
|
|
9,841,708 |
|
(a) Stock Options
The Company granted stock options to acquire common stock through our stock option plan of which the following are outstanding as December 31:
|
|
|
2021 |
|
|
2020 |
|
|
2019 |
| |
|
|
Stock Options |
|
|
Weighted Average Exercise Price |
|
|
Stock Options |
|
|
Weighted Average Exercise Price |
|
|
Stock Options |
|
|
Weighted Average Exercise Price |
| |
|
|
|
|
|
$ |
|
|
|
|
|
$ |
|
|
|
|
|
$ |
| |
Balance, January 1 |
|
|
2,923,770 |
|
|
|
1.76 |
|
|
|
1,714,421 |
|
|
|
3.60 |
|
|
|
925,782 |
|
|
|
12.70 |
| |
Granted |
|
|
3,725,845 |
|
|
|
1.87 |
|
|
|
2,076,785 |
|
|
|
0.95 |
|
|
|
879,412 |
|
|
|
2.75 |
| |
Forfeited |
|
|
(1,237,635 |
) |
|
|
2.11 |
|
|
|
(867,436 |
) |
|
|
3.10 |
|
|
|
(90,773 |
) |
|
|
15.04 |
| |
Expired |
|
|
(135,323 |
) |
|
|
2.83 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
| |
Exercised |
|
|
(19,568 |
) |
|
|
0.73 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
| |
Balance, December 31 |
|
|
5,257,089 |
|
|
|
1.73 |
|
|
|
2,923,770 |
|
|
|
1.76 |
|
|
|
1,714,421 |
|
|
|
3.60 |
| |
Exercisable, December 31 |
|
|
1,214,023 |
|
|
|
2.44 |
|
|
|
584,585 |
|
|
|
3.49 |
|
|
|
663,853 |
|
|
|
4.67 |
|
The following table summarizes the stock options outstanding and exercisable at December 31, 2021:
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|
|
|
Number Outstanding |
|
|
Weighted Average Remaining Contractual Life |
|
|
Weighted Average Exercise Price |
|
|
Number Exercisable |
|
|
Weighted Average Exercise Price |
| |
|
|
|
|
|
|
(years) |
|
|
$ |
|
|
|
|
|
$ |
| |
Range of Exercise Prices |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
$0.52 - $1.00 |
|
|
|
1,839,867 |
|
|
|
5.9 |
|
|
|
0.90 |
|
|
|
417,717 |
|
|
|
0.90 |
| |
$1.01 - $2.00 |
|
|
|
1,871,433 |
|
|
|
6.4 |
|
|
|
1.62 |
|
|
|
128,683 |
|
|
|
1.36 |
| |
$2.01 - $3.00 |
|
|
|
910,758 |
|
|
|
6.1 |
|
|
|
2.22 |
|
|
|
35,925 |
|
|
|
2.55 |
| |
$3.01 - $4.00 |
|
|
|
623,550 |
|
|
|
2.4 |
|
|
|
3.60 |
|
|
|
620,217 |
|
|
|
3.60 |
| |
$4.01 - $7.12 |
|
|
|
11,481 |
|
|
|
3.5 |
|
|
|
7.12 |
|
|
|
11,481 |
|
|
|
7.12 |
| |
Balance, December 31 |
|
|
|
5,257,089 |
|
|
|
5.7 |
|
|
|
1.73 |
|
|
|
1,214,023 |
|
|
|
2.44 |
|
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Year ended December 31, 2021, 2020 and 2019 | |
(in thousands of US dollars, except share and per share amounts, unless otherwise stated) | |
|
The Company uses the Black-Scholes valuation model to estimate the fair value. The estimated fair value of stock options granted during the year was determined using the following weighted average assumptions:
|
|
|
2021 |
|
|
2020 |
|
|
2019 |
| |
Risk-free interest rate |
|
|
0.48% |
|
|
|
0.30% |
|
|
|
1.44% |
| |
Expected hold period to exercise |
|
|
3.4 years |
|
|
|
4.0 years |
|
|
|
3.5 years |
| |
Expected share price volatility |
|
|
157.52% |
|
|
|
149.61% |
|
|
|
97.91% |
| |
Expected dividend yield |
|
|
Nil |
|
|
|
Nil |
|
|
|
Nil |
| |
Weighted average of fair value of options |
|
|
$1.59 |
|
|
|
$0.89 |
|
|
|
$1.49 |
|
(b) Restricted Share Units
The Company granted RSUs to Officers and Directors through our incentive share award plan. Grants of RSUs to Directors vest either immediately or on the date of the next Annual General Meeting. Grants of RSUs to Officers vest over a four-year period. The following RSUs are outstanding at December 31:
|
|
|
Number of RSUs |
| |
Balance at January 1, 2021 |
|
|
-- |
| |
Granted |
|
|
2,291,815 |
| |
Released |
|
|
-- |
| |
Cancelled |
|
|
(710,208 |
) | |
Balance at December 31, 2021 |
|
|
1,581,607 |
|
(c) Stock-Based Compensation
The following table shows the stock-based compensation expense.
|
|
|
Year ended December 31 |
| |
|
|
2021 |
|
|
2020 |
|
|
2019 |
| |
|
|
$ |
|
|
$ |
|
|
$ |
| |
Stock options |
|
|
1,973 |
|
|
|
1,097 |
|
|
|
1,651 |
| |
RSUs |
|
|
1,695 |
|
|
|
- |
|
|
|
- |
| |
G&A - Stock options & RSUs |
|
|
3,668 |
|
|
|
1,097 |
|
|
|
1,651 |
| |
R&D - Stock options |
|
|
368 |
|
|
|
- |
|
|
|
- |
| |
Share-based compensation expense |
|
|
4,036 |
|
|
|
1,097 |
|
|
|
1,651 |
|
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Year ended December 31, 2021, 2020 and 2019 | |
(in thousands of US dollars, except share and per share amounts, unless otherwise stated) | |
|
|