Deferred share units

12 Months Ended

Dec. 31, 2021

Deferred Share Units

Deferred share units

12. Deferred share units

Effective April 21, 2020, the Board of Directors approved a Deferred Share Unit (“DSU”) Plan to grant DSUs to its directors. The DSU Plan permits the eligible directors to defer receipt of all or a portion of their retainer or compensation until termination of their services and to receive such fees in the form of cash at that time.

Upon vesting of the DSUs or termination of service as a director, the director will be able to redeem DSUs based upon the then market price of the Company’s common share on the date of redemption in exchange for cash.

The following table summarizes the DSU activity during the years ended December 31, 2021 and 2020:

				Weighted
				average
				grant date
				fair value
	Number of			per share
	shares			(C$)
Unvested as at June 30, 2019		-		$	-
Granted (i)		7,500,000			1.03
Unvested as at June 30, 2020 and December 31, 2020		7,500,000		$	1.03
Vested		(1,875,000	)		1.03
Unvested as at December 31, 2021		5,625,000		$	1.03

(i) On April 21, 2020, the Company granted 7,500,000 DSUs. The DSUs vest in one fourth increments upon each anniversary of the grant date and expire in 5 years. During the year ended December 31, 2021, the Company recognized $421,284 stock-based compensation related to the DSUs (six months ended December 31, 2020 - $560,461 and the year ended June 30, 2020 - $549,664), which is included in operation and administration expenses on the consolidated statements of loss and comprehensive loss. The fair value at December 31, 2021 was $1,531,409