Quarterly report [Sections 13 or 15(d)]

EQUITY

v3.25.1
EQUITY
 3 Months Ended
Mar. 31, 2025
Equity [Abstract]  
EQUITY
 10. EQUITY
Authorized, Issued and Outstanding
The authorized share capital of the Company consists of an unlimited number of SVS, Multiple Voting Shares, Super Voting Shares, and Preferred Shares. As of March 31, 2025, the Company had 196,696,597 SVS issued and outstanding and no Multiple Voting Shares, Super Voting Shares or Preferred Shares issued and outstanding.
Warrants
Each warrant entitles the holder to purchase one SVS. Certain warrants may be net share settled. The following table summarizes the status of warrants and related transactions:
Non-Derivative (Equity) Warrants
Derivative Liabilities Warrants
 Total Number of Warrants Weighted - Average Exercise Price
Balance as of January 1, 2025
50,518,536 21,400,000 71,918,536 $ 1.03 
Granted (1)
8,010,626  —  8,010,626  $ 0.48 
Balance as of March 31, 2025
 58,529,162 21,400,000 79,929,162 $ 0.98 
Exercisable as of March 31, 2025
56,959,162 21,400,000 78,359,162 $ 0.98 
(1)In February 2025, the Company issued 8,010,626 warrants in connection with Second Lien Notes issuances. Refer to Note 8 - Debt for more information.
The grant date fair value of the non-derivative warrants issued was determined using the Black-Scholes option-pricing model. The following assumptions were used for the calculation at date of issuance:
Weighted average stock price $0.33
Weighted average expected stock price volatility 91.8%
Expected annual dividend yield 0%
Weighted average expected life of warrants
 5.0 years
Weighted average risk-free annual interest rate 4.1%
Weighted average grant date fair value $0.22
Share-based Payment Award Plans
Plan summary and description
Under the Company’s 2019 Equity Incentive Plan, as amended, (the “2019 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 2019 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, and the maximum number of incentive awards available for issuance under the 2019 Plan, including additional awards available for certain new hires, was 8,727,669 as of March 31, 2025.
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 directors and employees under the Company’s 2019 Plan. Such options generally expire 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 Options Weighted-Average Per Share Exercise Price
Issued and Outstanding as of January 1, 2025 26,769,419  $ 0.79 
Granted 670,000  $ 0.30 
Cancelled/forfeited/expired (2,728,667) $ 0.76 
Issued and Outstanding as of March 31, 2025 24,710,752  $ 0.78 
Exercisable as of March 31, 2025 14,060,630  $ 0.96 
The fair value of the stock options granted was determined using the Black-Scholes option-pricing model. The following assumptions were used for the calculation at date of grant:
Three Months Ended March 31,
2025 2024
Weighted average stock price $0.29 $0.70
Weighted average expected stock price volatility 92.0% 77.1%
Expected annual dividend yield 0% 0%
Weighted average expected life 5.0 years 5.1 years
Weighted average risk-free annual interest rate 4.0% 4.3%
Weighted average grant date fair value $0.21 $0.46
Share-based Compensation Cost
The components of share-based compensation expense are as follows:
Three Months Ended March 31,
2025 2024
Stock options expense (forfeiture)
 $ (381) $ 1,355 
Restricted stock —  1 
Warrants 74  168 
Total share-based compensation expense (forfeiture)
 $ (307) $ 1,524 
As of March 31, 2025, the Company had $1,532 of unrecognized share-based compensation cost related to unvested stock options and warrants, which is expected to be recognized as share-based compensation cost over a weighted average period of 1.5 years.