by our shareholders on May 9, 2023. The Equity Incentive Plans provide for the grant of stock options, restricted share unit awards and performance share unit awards to our employees, consultants and directors. Upon the effective date of the 2026 Plan described below, we ceased granting awards under the Equity Incentive Plans, but any awards granted under the Equity Incentive Plans will remain subject to the terms of the applicable plans.

The 2026 Incentive Award Plan (the “2026 Plan”) was approved by our shareholders at a Special Meeting of Shareholders held on January 15, 2026 and became effective on March 31, 2026. The 2026 Plan provides for the grant of options, including incentive stock options and nonqualified stock options, restricted stock, dividend equivalents, restricted stock units (“RSUs”), performance shares, other incentive awards, stock appreciation rights and cash awards, to our employees, consultants and directors.

The number of shares reserved for issuance under the 2026 Plan equals the sum of (i) 6,500,000 shares; (ii) any shares that remain available under the prior Equity Incentive Plans, as defined below; (iii) any shares that are subject to awards under the prior Equity Incentive Plans which are forfeited or lapse unexercised and which are not issued under the prior Equity Incentive Plans; and (iv) an annual increase on the first day of each calendar year beginning January 1, 2027 and ending on and including January 1, 2036, equal to the lesser of (A) 6% of the aggregate number of shares outstanding on the final day of the immediately preceding calendar year and (B) such smaller number of shares as is determined by the Board or the compensation committee.

As of March 31, 2026, we had 9,986,795 and 12,771,148 common shares reserved for issuance relating to the 2026 Plan and the Equity Incentive Plans, respectively. As of March 31, 2026, there were 9,986,795 common shares available for grant under the 2026 Plan.

We have granted inducement equity awards to certain of our key executives. These awards included stock options subject to a service condition, performance-based stock options (collectively, the “Inducement Stock Options”), and performance-based restricted share award units (“Inducement Share Awards”). The grants were made as a material inducement to employment in accordance with Nasdaq Listing Rule 5635(c)(4), and therefore did not require shareholder approval.


	Three Months Ended March 31,
	2026		2025
Stock-based compensation expense:
Pursuant to Equity Incentive Plans and Inducement Equity Awards	$	2,299	$	845
Pursuant to consulting service agreements	730		—
	$	3,029	$	845
Stock-based compensation expense in operating expenses:
Research and development	$	1,978	$	619
General and administrative	1,051		226
	$	3,029	$	845


	Stock options subject only to a service condition
	Number Outstanding	Weighted- Average Exercise Price (i)		Aggregate Intrinsic Value		Weighted- Average Remaining Contractual Life (in years)
Outstanding at December 31, 2025	17,216,957	$	1.11	$	1,576	3.8
Granted (ii)	800,000	$	0.97
Forfeited	(390,834)	$	1.01
Expired	(942,500)	$	2.69
Outstanding at March 31, 2026 (iii)	16,683,623	$	1.04	1,012		3.8
Vested and exercisable at March 31, 2026	4,393,183	$	1.42	$	68	2.2

i.The weighted-average exercise prices reflect the conversion of Canadian dollar denominated stock options translated into U.S. dollars using the applicable foreign exchange rate as of the date of grant. ii.800,000 Inducement Stock Options. iii.Includes 4,400,000 Inducement Stock Options.


	Stock options subject to a performance condition
	Number Outstanding	Weighted- Average Exercise Price (i)		Aggregate Intrinsic Value		Weighted- Average Remaining Contractual Life (in years)
Outstanding at December 31, 2025	1,900,000	$	0.42	$	868	4.4
Outstanding at March 31, 2026 (ii)	1,900,000	$	0.42	$	820	4.2
Vested and exercisable at March 31, 2026	—	$	—	$	—	—

i.The weighted-average exercise prices reflect the conversion of Canadian dollar denominated stock options translated into U.S. dollars using the applicable foreign exchange rate as of the date of grant. ii.Includes 1,900,000 Inducement Stock Options.

Our stock option activity for the three months ended March 31, 2025 was as follows:


	Stock options subject only to a service condition
	Number Outstanding	Weighted- Average Exercise Price (i)		Aggregate Intrinsic Value		Weighted- Average Remaining Contractual Life (in years)
Outstanding at December 31, 2024	6,876,345	$	1.61	$	205	2.8
Expired	(75,000)	$	2.48
Outstanding at March 31, 2025	6,801,345	$	1.60	$	—	2.6
Vested and exercisable at March 31, 2025	5,030,543	$	1.80	$	—	2.2

i.The weighted-average exercise prices reflect the conversion of Canadian dollar denominated stock options translated into U.S. dollars using the applicable foreign exchange rate as of the date of grant.

Information about our stock options outstanding and exercisable, including both stock options subject to a service condition and stock options subject to a performance condition at March 31, 2026, was as follows:


	Outstanding				Exercisable
Range of Exercise Prices	Number Outstanding	Weighted Average Exercise Price (i)		Weighted Average Remaining Contractual Life (in years)	Number Exercisable	Weighted Average Exercise Price (i)
$0.42 - $0.75	5,500,000	$	0.53	4.2	—	$	—
$0.76 - $0.99	5,016,866	$	0.92	4.2	1,330,322	$	0.80
$1.00 - $1.49	6,531,796	$	1.15	3.9	1,540,400	$	1.39
$1.50 - $1.99	576,006	$	1.71	0.7	576,006	$	1.71
$2.00 - $4.24	958,955	$	2.14	1.9	946,455	$	2.14
	18,583,623	$	0.98	3.9	4,393,183	$	1.42

i.The weighted-average exercise prices reflect the conversion of Canadian dollar denominated stock options translated into U.S. dollars using the applicable foreign exchange rate as of the date of grant.

As of March 31, 2026, unrecognized compensation expense related to unvested stock options was $4,220, including $97 of compensation cost related to unvested stock options with a performance condition. These costs are expected to be recognized over a remaining weighted-average period of 1.6 years.

Stock option grants subject only to a service condition typically vest either immediately or annually over periods ranging from one to three years. The performance-based Inducement Stock Options will vest in full upon us generating a minimum of $25,000 in cumulative proceeds from new financing transactions.

We use the Black-Scholes Model to estimate fair value. We use historical data to estimate the expected dividend yield and expected volatility of our stock in determining the fair value of the stock options. The risk-free interest rate is based on the U.S. Treasury rate applicable to the expected life of the award. The expected dividend yield is zero, as we do not expect to pay dividends for the foreseeable future.

The fair value of options granted during the three months ended March 31 was determined using the following weighted average assumptions:


	2026
Risk-free interest rate	3.8 %
Expected life (years)	5.0
Expected volatility	72.2		%
Expected dividend yield	— %
Weighted-average grant date fair value	$	0.60

The fair value of the liability-classified options as of March 31, 2026 and January 1, 2026 was determined using the following weighted-average assumptions:


	March 31, 2026			January 1, 2026
Risk-free interest rate	3.6		%	3.6		%
Expected life (years)	3.7			3.9
Expected volatility	81.0		%	77.4		%
Expected dividend yield	—		%	—		%
Weighted-average fair value	$	0.55		$	0.57
Number of liability-classified stock options outstanding	7,483,635			7,671,135


	Stock option liability
Balance at December 31, 2025	$	—
Reclassification of liability from equity	1,189
Stock-based compensation expense	1,481
Adjustment to liability	(54)
Balance at March 31, 2026	$	2,616


	Number of RSUs	Weighted- Average Grant Date Fair Value (i)		Intrinsic Value
Outstanding at December 31, 2025	497,842	$	0.95	$	435
Vested and released	(10,317)	$	1.09	$	9
Outstanding at March 31, 2026	487,525	$	0.95	$	414

i.The weighted-average grant date fair value prices reflect the conversion of Canadian dollar denominated RSUs translated into U.S. dollars using the applicable foreign exchange rate as of the date of grant.


	Number of RSUs	Weighted- Average Grant Date Fair Value (i)		Intrinsic Value
Outstanding at December 31, 2024	1,118,510	$	1.00	$	1,018
Granted	677,922	$	0.68
Vested and released	(1,098,511)	$	0.87	$	831
Outstanding at March 31, 2025	697,921	$	0.91	$	384

i.The weighted-average grant date fair value prices reflect the conversion of Canadian dollar denominated RSUs translated into U.S. dollars using the applicable foreign exchange rate as of the date of grant.

As of March 31, 2026, unrecognized compensation expense related to non-vested RSUs was $128. These costs are expected to be recognized over a remaining weighted-average period of 1.0 year.