Stockholders' Equity

9 Months Ended

Sep. 30, 2021

Stockholders' Equity

Stockholders' Equity

4.    Stockholders’ Equity

Authorized capital stock

The Company’s authorized capital stock consists of an unlimited number of common shares, no par value per share.

Warrants to Purchase Common Stock

During the three and nine-months ended September 30, 2021 and 2020, there were no warrants issued or exercised. Outstanding warrants have a weighted average life of 7.35 years on September 30, 2021. The following tables detail the Company’s warrant activity for the three and nine months ended September 30, 2021 and 2020, respectively:

	Common Shares
	Issuable Upon Exercise
	of Outstanding	Weighted-Average
Investor Warrants	Warrants	Exercise Price $USD
Outstanding December 31, 2020	39	6.80
Issued	—	—
Outstanding March 31, 2021	39	6.80
Issued	—	—
Outstanding June 30, 2021	39	6.80
Issued	—	—
Outstanding September 30, 2021	39	6.80

	Common Shares
	Issuable Upon Exercise
	of Outstanding		Weighted-Average
Investor Warrants	Warrants		Exercise Price $USD
Outstanding December 31, 2019	39	$	6.80
Issued	—		—
Outstanding March 31, 2020	39	$	6.80
Issued	—		—
Outstanding June 30, 2020	39	$	6.80
Issued	—		—
Outstanding September 30, 2020	39	$	6.80

Stock option plan

Equity Incentive Plan

The Compensation Committee of the Board of Directors administers the Company’s equity incentive plan (the “Plan”). The Compensation Committee designates eligible participants to be included under the Plan and approves the number of equity instruments to be granted from time to time under the Plan. Currently, the maximum number of equity instruments issuable under the Plan, together with the Company’s prior stock option plan, is twenty-five percent (25%) of the total number of issued and outstanding common shares. Based upon the current shares outstanding, a maximum of 6,502 shares of common stock are authorized for issuance pursuant to stock options or other equity awards granted under the Plan. For all options issued under the Plan, the exercise price is the fair value of the underlying shares on the date of grant. All options vest within three years or less and are exercisable for a period of ten years from the date of grant. The Plan allows

the issuance of Canadian and U.S. dollar grants. The table below outlines recognized contractor and employee expense from equity awards for the three and nine months period ended September 30, 2021 and 2020.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Contractor options expense recognized	$	—	$	21	$	9	$	63
Employee options expense recognized		917		1,238		2,830		2,151
Total option expense recognized	$	917	$	1,259	$	2,839	$	2,214

Stock option activity

The following is a summary of option activity for the three and nine months ended September 30, 2021, and 2020 for stock options denominated in U.S. dollars. Since August of 2020, there have been no Canadian denominated options outstanding.

	Number of	Weighted-Average
US Denominated Options	Options (thousands)	Exercise Price $USD
Outstanding at December 31, 2020	2,952	$	4.82
Granted	—		—
Exercised	—		—
Outstanding at March 31, 2021	2,952	$	4.82
Granted	755		7.52
Exercised	(4)		5.91
Forfeited	(50)		8.09
Outstanding and exercisable at June 30, 2021	3,653	$	5.34
Granted	—		—
Exercised	—		—
Outstanding at September 30, 2021	3,653	$	5.34

During the three-month period ended September 30, 2021, there were no grants or exercises of U.S. denominated options. Of the 3,653 U.S. denominated options granted and outstanding at September 30, 2021, 2,586 are fully vested and exercisable.

The following is a summary of option activity for each of the quarterly periods in fiscal year 2020 for stock options denominated in Canadian dollars:

	Number of	Weighted-Average
CAD Denominated Options	Options (thousands)	Exercise Price $USD
Outstanding at December 31, 2019	648	$	2.43
Granted	—		—
Exercised	—		—
Outstanding at March 31, 2020	648	$	2.43
Granted	—		—
Exercised	—		—
Outstanding and exercisable at June 30, 2020	648	$	2.43
Granted	—		—
Exercised	(648)		2.43
Outstanding at September 30, 2020	—	$	—

The value of options issued was estimated using the Black-Scholes option pricing model using the following assumptions in the table below. The expected volatility was determined using historical volatility of our stock based on the contractual life of the award.

	Valuation Assumptions
Black-Scholes Model Assumptions	June 30, 2021
Expected dividend	0.00%
Risk free rate	1.49 - 1.62%
Expected volatility	122%
Expected life	10 years

Restricted Share Units Activity

The Plan allows for the issuance of restricted share units (“RSU’s”). The following is a summary of RSU activity for the three and nine months ended September 30, 2021, for RSU’s denominated in U.S. dollars. Prior to June 2021, there was no activity involving RSU’s. Of the 55 RSU’s granted and outstanding, 0 are vested. All RSU’s vest over three years with 1/3 vesting on the first anniversary date of the grant and then 1/24 on the last day of each subsequent month.

	Number of Restricted
US Denominated RSU's	Share Units (thousands)
Outstanding at December 31, 2020	—
Granted	—
Outstanding at March 31, 2021	—
Granted	55
Outstanding at June 30, 2021	55
Granted	—
Outstanding at September 30, 2021	55

The value of RSU’s issued was estimated using the share price on the date of the grant multiplied by the number of shares granted. The Company then applies a liquidity discount to the value to recognize the passage of time over the vesting period.