Quarterly report [Sections 13 or 15(d)]

EQUITY

v3.26.3
EQUITY
 9 Months Ended
Sep. 30, 2026
Equity [Abstract]  
EQUITY
 10. EQUITY
Authorized, Issued and Outstanding
The authorized share capital of the Company consists of 3,000,000,000 shares of capital stock, of which (i) 2,000,000,000 shares are designated as Common Stock, par value $0.001 per share, and (ii) 1,000,000,000 shares are designated as preferred stock, par value $0.001 per share. As part of the Continuance, the previously authorized, issued and outstanding Subordinate Voting Shares of the Company were deemed to be exchanged on the Effective Date for authorized, issued and outstanding shares of Common Stock on a one-for-one basis. The Subordinate Voting Shares are no longer part of the authorized capital structure of the Company. Refer to Note 1 - Nature of Operations for more information on the Continuance.

As of September 30, 2026, the Company had 199,708,263 shares of Common Stock issued and outstanding.
Warrants
Each warrant entitles the holder to purchase one share of Common Stock. 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 
Granted 100,000  —  100,000  $ 0.48 
Balance as of September 30, 2026
 58,094,087 21,400,000 79,494,087 $ 0.95 
Exercisable as of September 30, 2026
56,874,087 21,400,000 78,274,087 $ 0.95 
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 $0.49
Weighted average expected stock price volatility 106.4%
Expected annual dividend yield 0%
Weighted average expected life of warrants
 5.0 years
Weighted average risk-free annual interest rate 4.2%
Weighted average grant date fair value $0.39
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 Common Stock and restricted Common Stock 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 6,929,152 as of September 30, 2026.
Stock Options
The stock options issued by the Company are options to purchase Common Stock 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 
Granted 635,000  $ 0.52 
Exercised
 (11,666) $ 0.46 
Cancelled/forfeited/expired (200,000) $ 0.64 
Issued and Outstanding as of September 30, 2026 27,021,252  $ 0.74 
Exercisable as of September 30, 2026 21,261,558  $ 0.80 
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:
Nine Months Ended September 30,
2026 2025
Weighted average stock price $0.52 $0.41
Weighted average expected stock price volatility 104.1% 92.8%
Expected annual dividend yield 0% 0%
Weighted average expected life 5.4 years 5.1 years
Weighted average risk-free annual interest rate 4.5% 3.9%
Weighted average grant date fair value $0.41 $0.30
Restricted Shares

During the nine months ended September 30, 2026, 3,000,000 restricted Subordinate Voting Shares (now Common Stock) vested and were released. There was no unvested restricted Common Stock as of September 30, 2026.
Share-based Compensation Cost
The components of share-based compensation expense, net, are as follows:
Three Months Ended September 30, Nine Months Ended September 30,
2026 2025 2026 2025
Stock options expense $ 227  $ 261  $ 747  $ 187 
Restricted stock —  —  68  — 
Warrants 60  96  176  237 
Total share-based compensation expense, net $ 287  $ 357  $ 991  $ 424 
As of September 30, 2026, the Company had $1,043 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 2.0 years.