Warrants |
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Warrants and Rights Note Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrants | 9. WARRANTS
As part of the Company’s private placement financing, as well as other financing arrangements, the Company issued warrants to related parties, as well as unrelated third parties, which allow the holders to purchase Subordinate Voting Shares at an exercise price determined at the time of issuance. The following table summarizes the number of warrants outstanding as of December 31, 2023 and 2022:
(a) Liability Classified Warrants Outstanding In certain instances, the Company issued warrants with an exercise price denominated in Canadian dollars whereas the Company’s functional currency is USD. As a result, upon issuance and at each reporting date, the Company is required to classify such warrants as a liability and remeasures the fair value of the warrants using a Monte Carlo Simulation model. The following table summarizes the fair value of the liability classified warrants at December 31, 2023 and 2022:
During the years ended December 31, 2023, 2022 and 2021, the Company recorded gains of $1,403 thousand, $20,357 thousand, and $14,577 thousand, respectively, on the change in the fair value of the warrant liability within other income (expense) on the consolidated statements of operations. As of December 31, 2023, the warrant liability was classified as a current liability and recorded within accrued liabilities on the consolidated balance sheets.
The following table summarizes the significant assumptions used in determining the fair value of the warrant liability as of each reporting date (see Note 14—Fair Value Measurements for additional details):
9. WARRANTS (Continued)
(b) Equity Classified Warrants Outstanding In certain instances, the Company issued warrants with an exercise price denominated in USD and, consequently, classified such warrants as equity. Equity classified warrants are recorded at fair value at each respective date of issuance and not remeasured on a recurring basis. Such warrants are carried at their issuance date fair value. The following table summarizes the carrying amounts of the Company's equity classified warrants at December 31, 2023 and 2022:
The equity classified warrants were valued as of the date of issuance using a Black Scholes Option Pricing model. The following table summarizes the significant assumptions used in determining the fair value of the equity classified warrants as of each respective issuance date:
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