Quarterly report [Sections 13 or 15(d)]

EQUITY

v3.26.1
EQUITY
 3 Months Ended
Mar. 31, 2026
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, 2026, the Company had 199,696,597 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, 2026
57,994,087 21,400,000 79,394,087 $ 0.95 
Balance as of March 31, 2026
 57,994,087 21,400,000 79,394,087 $ 0.95 
Exercisable as of March 31, 2026
56,624,087 21,400,000 78,024,087 $ 0.96 
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 7,407,169 as of March 31, 2026.
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, 2026 26,597,918  $ 0.75 
Cancelled/forfeited/expired (56,666) $ 0.66 
Issued and Outstanding as of March 31, 2026 26,541,252  $ 0.75 
Exercisable as of March 31, 2026 19,465,889  $ 0.83 
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,
2026 2025
Weighted average stock price — $0.29
Weighted average expected stock price volatility — 92.0%
Expected annual dividend yield — 0%
Weighted average expected life — 5.0 years
Weighted average risk-free annual interest rate — 4.0%
Weighted average grant date fair value — $0.21
Restricted Shares

During the three months ended March 31, 2026, 3,000,000 restricted SVS vested and were released. There was no unvested restricted SVS as of March 31, 2026.
Share-based Compensation Cost
The components of share-based compensation expense, net, are as follows:
Three Months Ended March 31,
2026 2025
Stock options expense (forfeiture)
 $ 265  $ (381)
Restricted stock 68  — 
Warrants 59  74 
Total share-based compensation expense (forfeiture), net
 $ 392  $ (307)
As of March 31, 2026, the Company had $1,387 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 1.6 years.