Warrants

12 Months Ended

Dec. 31, 2023

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:

	Liability Classified							Equity Classified
	Number of Shares			Weighted Average Exercise Price (C$)		Weighted Average Remaining Contractual Life		Number of Shares			Weighted Average Exercise Price (USD)		Weighted Average Remaining Contractual Life
Balance as of December 31, 2022		1,997,208	C$		18.03		1.50		1,737,347	$		31.83		3.38
Balance as of December 31, 2023		1,997,208	C$		18.03		0.50		1,737,347	$		31.83		2.38

(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:

				Fair Value
Warrant Liability	Strike Price	Warrants Outstanding		December 31, 2023		December 31, 2022		Change
				(in thousands)
Private Placement Financing Warrants Issued May 2019	C$19.39		1,606,533	$	1,673	$	3,125	$	(1,452	)
Modification Warrants Issued November 2019	C$12.04		316,947		1,151		1,139		12
Additional Modification Warrants Issued May 2020	C$14.03		73,728		293		256		37
Totals			1,997,208	$	3,117	$	4,520	$	(1,403	)

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):

	December 31,	December 31,
Significant Assumptions	2023	2022
Volatility	61.76% - 74.31%	70.44% - 78.21%
Remaining Term	0.39-1.39 years	1.39 - 2.39 years
Risk Free Rate	3.91%	3.82% - 4.07%

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:

					Issuance Date Fair Value
			Warrants		December 31,		December 31,
Warrants Included in Contributed Surplus	Strike Price		Outstanding		2023		2022
					(in thousands)
Mortgage Warrants Issued June 2020	$	9.10		35,000	$	181	$	181
Private Placement Refinance Warrants Issued April 2021	$	32.68		1,459,044		22,259		22,259
Private Placement Refinance Warrants Issued October 2021	$	30.02		243,303		2,616		2,616
Totals				1,737,347	$	25,056	$	25,056

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:

Significant Assumptions	Private Placement Refinancing Warrants	Private Placement Refinancing Warrants	Mortgage Warrants
Date of Issuance	October 15, 2021	April 30, 2021	June 5, 2020
Volatility	73%	73%	80%
Estimated Term	4 years	4 years	5 years
Risk Free Rate	1.12%	0.74%	0.37%