Annual report pursuant to Section 13 and 15(d)

EQUITY (Tables)

v3.23.1
EQUITY (Tables)
12 Months Ended
Dec. 31, 2022
Equity [Abstract]  
Schedule of Warrants Outstanding and Exercisable The following table summarizes the status of our warrants and related transactions for each of the presented years:
Non-Derivative Warrants Derivative Warrants Total Number of Warrants Weighted - Average Exercise Price Per Warrant Aggregate Intrinsic Value Weighted Average Remaining Contractual Life (in Years)
Balance, January 1, 2021 (1)
36,764,244 42,017,892 78,782,136 $ 1.31  $ 358,319  5.3
Granted (2)
300,000 —  300,000 $ 4.18 
Exercised (7,658,196) (1,893,537) (9,551,733) $ 2.26  $ 31,343 
Cancelled (250,000) —  (250,000) $ 1.50 
Balance, December 31, 2021
29,156,048 40,124,355 69,280,403 $ 1.19  $ 142,791  4.7
Granted (2)(3)
1,600,000  19,512,280  21,112,280  $ 2.06 
Exercised (82,413) (4,261,433) (4,343,846) $ 1.26  $ 9,746 
Balance, December 31, 2022
30,673,635 55,375,202 86,048,837 $ 1.40  $ 1,081  3.9
Exercisable, December 31, 2022
28,323,635 55,375,202 83,698,837 $ 1.38  $ 1,081  3.9
(1)Total number of outstanding warrants reflects the conversion of warrants to acquire Super Voting Shares and Multi-Voting shares into warrants to acquire Subordinate Voting Shares.
(2)The non-derivative warrants were issued for consulting or other services, therefore, these compensatory warrants are accounted for as share-based payment arrangements.
(3)Derivative warrants were issued to the Second Lien Notes Holders and the Acquisition Facility Lender. Refer to Note 14 - Derivative Liabilities for more information.
Schedule of Share-Based Payment Award, Warrants, Valuation Assumptions The following assumptions were used for the calculations at date of issuance.
Year Ended December 31,
2022 2021 2020
Weighted average stock price $1.74 $4.18 $2.08
Weighted average expected stock price volatility 81% 73% 81%
Expected annual dividend yield —% —% —%
Weighted average expected life of warrants 5.0 years 3.5 years 2.7 years
Weighted average risk-free annual interest rate 3.48% 1.06% 0.35%
Weighted average grant date fair value $1.13 $2.14 $1.00
Summary of Stock Options Outstanding The following table summarizes the status of the Company’s options and related transactions for each of the presented years:
Stock Options Weighted Average Exercise Price per Stock Options Aggregate Intrinsic Value Weighted Average Remaining Contractual Life (in Years)
Balance, January 1, 2021
9,573,834  $ 2.00  $ 36,909  8.4
Granted 11,486,952  $ 4.16 
Exercised (291,664) $ 1.90  $ 881 
Forfeited/expired (340,002) $ 3.23 
Balance, December 31, 2021
20,429,120  $ 3.20  $ 11,583  8.7
Granted 13,686,806  $ 1.95 
Exercised (324,998) $ 1.67  $ 620 
Forfeited/expired (3,038,669) $ 4.02 
Balance, December 31, 2022
30,752,259  $ 2.58  $ —  8.5
Exercisable, December 31, 2022
12,166,594  $ 2.46  $ —  7.2
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions The following assumptions were used for the calculation at date of grant:
Year Ended December 31,
2022 2021 2020
Weighted average stock price $1.95 $4.16 $2.78
Weighted average expected stock price volatility 74.1% 73.0% 80.9%
Expected annual dividend yield —% —% —%
Weighted average expected life 5.7 years 6.0 years 5.9 years
Weighted average risk-free annual interest rate 2.88% 1.23% 0.52%
Weighted average grant date fair value $1.35 $2.61 $1.78
Summary of Restricted Stock Activity The following table summarized the status of our restricted stock and related transactions for each presented years:
Unvested Restricted Stock Weighted-Average Grant-date Fair Value Price per Restricted Stock Average Intrinsic Value Weighted Average Remaining Vesting Term
(in Years)
Issued and Outstanding as of January 1, 2021 6,438,186 $ 1.85  $ 37,728  1.7
Granted 65,398 $ 3.66 
Vested and Released (3,424,954) $ 1.63  $ 14,251 
Cancelled (219,479) $ 2.45 
Issued and Outstanding as of December 31, 2021 2,859,151 $ 2.13  $ 9,292  1.2
Granted 86,952  $ 2.05 
Vested and Released (1,789,784) $ 1.96  $ 3,601 
Issued and Outstanding as of December 31, 2022 1,156,319  $ 2.45  $ 881  0.3
Components of Share-based Compensation Expense
As of December 31, 2022, the Company had $19,246 of unrecognized share-based compensation cost related to unvested stock options, restricted stocks and warrants and is expected to be recognized as share-based compensation cost over a weighted average period of 1.4 years as follows:

2023 $ 13,485 
2024 4,333 
2025 1,128 
2026 275 
2027 25 
$ 19,246