Stock-based compensation |
12.Stock-based compensation Under the Company’s share-based payment arrangements, total stock-based compensation of $893,655 and $2,623,033 was recognized in the condensed consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2023, respectively (September 30, 2022 – $1,334,360 and $4,174,820 for the three and nine months, respectively). | | | | | | | | | | | | | | | Three months ended | | Three months ended | | Nine months ended | | Nine months ended | Share-based compensation expense recorded in | | September 30, 2023 | | September 30, 2022 | | September 30, 2023 | | September 30, 2022 | General and administrative expenses | | $ | 907,174 | | $ | 1,165,026 | | $ | 2,493,524 | | $ | 3,491,445 | Research and development expenses | | | (2,616) | | | 142,589 | | | 68,218 | | | 601,821 | Sales and marketing expenses | | | (10,903) | | | 26,745 | | | 61,291 | | | 81,554 | | | $ | 893,655 | | $ | 1,334,360 | | $ | 2,623,033 | | $ | 4,174,820 |
Stock options The Company adopted its 2020 Stock Incentive Plan (the “Stock Incentive Plan”) on July 9, 2020, which provides that the Board of Directors of the Company may from time to time, in its discretion, grant to directors, officers, employees and consultants of the Company certain stock-based compensation awards including non-transferable stock options to purchase common shares, provided that the number of common shares reserved for issuance will not exceed 30,000,000. Such stock options may be exercisable for a period of up to 10 years from the date of grant. Stock options may be exercised no later than 90 days following cessation of the optionee’s position with the Company unless any exercise extension has been approved in advance by the administrator of the Stock Incentive Plan. Stock options granted may vest based on the terms and conditions set out in the applicable stock option agreement. On exercise, each stock option allows the holder to purchase one common share of the Company, including on a cashless basis, based on the formula as set forth in the applicable stock option agreement. During the nine months ended September 30, 2023 and 2022, the Company issued 1,266,454 and 2,908,849 options, respectively. Details of stock options outstanding as of September 30, 2023 were as follows: | | | | | | | | | Weighted average | | Number of options | | Number of options | Exercise price | | contractual life | | outstanding | | exercisable | $2.00 CAD | | 0.68 | | 65,000 | | 65,000 | $0.535 | | 6.48 | | 500,000 | | — | $0.57 | | 6.61 | | 42,427 | | 27,428 | $0.59 | | 6.71 | | 400,000 | | — | $0.99 | | 6.31 | | 135,496 | | 83,702 | $1.08 | | 6.06 | | 42,556 | | 20,385 | $1.11 | | 6.19 | | 3,750,000 | | — | $1.50 | | 5.90 | | 506,335 | | 350,788 | $1.91 | | 2.30 | | 2,955,000 | | 2,893,890 | $1.94 | | 5.55 | | 78,163 | | 47,233 | $2.13 | | 5.35 | | 21,120 | | 13,640 | $2.45 | | 2.85 | | 1,250,000 | | 1,250,000 | $2.53 | | 1.48 | | 50,000 | | 50,000 | $3.01 | | 1.18 | | 750,000 | | 750,000 | $3.40 | | 1.62 | | 1,035,000 | | 1,035,000 | $3.41 | | 2.03 | | 520,000 | | 520,000 | $3.55 | | 4.79 | | 5,000 | | 3,645 | $3.56 | | 5.12 | | 99,097 | | 70,204 | $3.77 | | 1.18 | | 50,000 | | 50,000 | $4.15 | | 1.18 | | 750,000 | | 750,000 | $5.00 | | 0.17 | | 193,629 | | 193,629 | $7.75 | | 4.39 | | 30,000 | | 26,875 | $9.60 | | 9.60 | | 50,000 | | 50,000 | | | | | 13,278,823 | | 8,251,419 |
The fair value of options granted has been estimated using the Black-Scholes option pricing model and based on the weighted average of certain assumptions. See Note 6 in the consolidated financial statements and accompanying notes included in the 2022 Form 10-K for additional information regarding such assumptions. During the three and nine months ended September 30, 2023, the Company recognized stock-based compensation expense of $558,769 and $1,850,005, respectively, relating to stock options granted (September 30, 2022 – $925,767 and $3,130,348 for the three and nine months, respectively). DSUs Deferred Stock Units (“DSUs”) are stock-based awards that may be granted by the Company to certain eligible participants pursuant to the Stock Incentive Plan. The Company allows the holders of the DSUs to settle the DSUs in cash (subject to the approval of the Plan Administrator (as defined in the Stock Incentive Plan)) or common shares. During the three months ended September 30, 2023 and 2022, the Company issued 172,610 and 42,879 DSUs, respectively. The number and weighted average share prices of DSUs was as follows as of September 30, 2023 and December 31, 2022: | | | | | | | | | | | | | September 30, 2023 | | December 31, 2022 | | | Number of | | Weighted average | | Number of | | Weighted average | | | DSUs | | share price | | DSUs | | share price | DSUs outstanding | | 284,841 | | $ | 1.71 | | 127,460 | | $ | 3.02 | DSUs exercisable | | 284,841 | | $ | 1.71 | | 127,460 | | $ | 3.02 |
The fair value of the DSUs liabilities was estimated using the stock price as of September 30, 2023 and December 31, 2022. During the three and nine months ended September 30, 2023, the Company recognized stock-based compensation expense of $116,920 and $126,238, respectively. relating to DSUs granted (September 30, 2022 - $40,351 and $223,107 for the three and nine months, respectively). RSUs RSUs are stock-based awards that may be granted by the Company to certain eligible participants pursuant to the Stock Incentive Plan. RSUs are accounted for as equity-settled share-based payment transactions as the obligations under an RSU will be settled through the issuance of common shares. Details of RSUs outstanding as of September 30, 2023 and December 31, 2022 were as follows: | | | | | | | | | | | | | September 30, 2023 | | December 31, 2022 | | | Number of | | Weighted average | | Number of | | | | | RSUs | | share price | | RSUs | | Deemed value | RSUs outstanding | | 1,875,000 | | $ | 1.02 | | 1,875,000 | | $ | 1.02 | RSUs exercisable | | — | | $ | — | | — | | $ | — |
During the three and nine months ended September 30, 2023, the Company recognized stock-based compensation expense of $217,966 and $646,790 relating to RSUs granted (September 30, 2022 - $368,242 and $821,365 for the three and nine months, respectively).
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