SHAREHOLDERS' EQUITY

6 Months Ended

Jun. 30, 2025

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY

7. SHAREHOLDERS’ EQUITY

Stock-based compensation

As of June 30, 2025, the Company had 2,685,000 issued and outstanding stock options that were issued under the 10% Rolling Stock Option Plan, as amended and restated (the “2011 Plan”) and 1,020,000 issued and outstanding stock options that were issued under its 2022 Equity Incentive Plan (the “2022 Plan”).

The 2011 Plan was replaced in 2022 by the 2022 Plan and, as such, no additional stock options can be granted under the 2011 Plan. The maximum term of any stock option grant under the 2011 Plan was 10 years.

Under the 2022 Plan, as approved by our shareholders at the annual meeting of shareholders on August 23, 2022, our Board of Directors (the “Board”) is authorized to grant stock options, stock appreciation rights, restricted stock units, performance stock units and other cash and share-based awards to eligible directors, officers, employees, or consultants up to a maximum of 17,236,689 common shares. The maximum term of any grant under the 2022 Plan is 10 years.

The following table summarizes our stock option activity for each of the six months ended June 30, 2025 and 2024:


		Six Months Ended June 30,
		2025						2024
				Weighted						Weighted
				Average						Average
		Number of Stock		Exercise				Number of Stock		Exercise
		Options		Price				Options		Price
Outstanding, beginning of period		4,405,000		$	1.24			4,725,000		$	1.18
Exercised		(400,000)		$	0.83			(50,000)		$	0.07
Cancelled/Expired		(300,000)		$	0.83			(270,000)		$	0.42
Outstanding, end of period		3,705,000		$	1.32			4,405,000		$	1.24

Exercisable, end of period		3,705,000		$	1.32			4,363,333		$	1.24
Non-vested, end of period		—		$	—			41,667		$	1.20

The 400,000 options exercised during the six months ended June 30, 2025, resulted in the issuance of 23,155 common shares on a net settlement basis. On February 13, 2025, being the exercise date, these 400,000 options had an intrinsic value of $20.

The following table summarizes the intrinsic value and weighted average remaining life for stock options as of June 30, 2025:


					Weighted
					Average
					Remaining
As of June 30, 2025:			Intrinsic Value ⁽¹⁾		Life (Years)
Stock options outstanding		$	367		6.6
Stock options exercisable		$	367		6.6

(1)

Intrinsic value is a measure of the value of those in-the-money stock options at June 30, 2025, where (i) in-the-money value is determined by comparing the option’s exercise price to the Company’s closing share price on June 30, 2025 and (ii) only options having an exercise price less than the Company’s closing share price on June 30, 2025 are deemed to have an intrinsic or inherent value.

Stock-based compensation expense is included in corporate administration expenses within the Company’s interim condensed consolidated statements of operations. For the three and six months ended June 30, 2025, the Company recognized stock-based compensation expense of $nil and $4, respectively. For the three and six months ended June 30, 2024, the Company recognized negative stock-based compensation expense of $64 and $46, respectively, due to the forfeiture of certain stock options that resulted in the reversal of previously recognized stock-based compensation expense.

As of June 30, 2025, all outstanding stock options are fully vested and exercisable.