| Stock options and restricted share units |
| 11. | Stock
options and restricted share units |
The
following table presents share-based compensation expense by instrument type:
Three
Months Ended March 31, | |
2026 | | |
2025 | |
| Stock options | |
$ | 654,108 | | |
$ | 417,843 | |
| Restricted share units | |
| 698,867 | | |
| 410,920 | |
| | |
$ | 1,352,975 | | |
$ | 828,763 | |
The
Corporation has a stock option plan whereby the maximum number of shares subject to the plan, in the aggregate, shall not exceed 10%
of the Corporation’s issued and outstanding shares. The exercise price shall be no less than the discount market price as determined
in accordance with relevant exchange policies. These option awards generally vest immediately or up to 1 year of continuous service. The
following table reflects the continuity of stock options for the periods presented below:
| | |
Number of
Stock Options | | |
Weighted Average
Exercise Price
(CAD$) | |
| Balance, December 31, 2024 | |
| 482,954 | | |
| 4.60 | |
| Granted | |
| 362,500 | | |
| 1.85 | |
| Expired / cancelled | |
| (158,333 | ) | |
| 2.88 | |
| Balance, March 31, 2025 | |
| 687,121 | | |
| 3.55 | |
| Balance, December 31, 2025 | |
| 2,943,793 | | |
| 3.74 | |
| Granted | |
| 250,000 | | |
| 5.32 | |
| Expired / cancelled | |
| (143,663 | ) | |
| 6.18 | |
| Balance, March 31, 2026 | |
| 3,050,130 | | |
| 3.75 | |
The
fair value of options granted for the three months ended March 31, 2026 and 2025 was $562,396 and $415,588, respectively.
The
fair value of the Corporation’s options has been determined using the Black-Scholes pricing model and the following weighted average
assumptions:
| | | Granted in 2026 | | | Spot price (in CAD$) | | $ | 3.48 | | | Risk-free interest rate | | | 2.98 | % | | Expected annual volatility | | | 143 | % | | Expected life (years) | | | 5.00 | | | Dividend | | | nil | | | Fair value of option | | $ | 3.06 | |
The
aggregate intrinsic value of stock options outstanding and exercisable as at March 31, 2026 is $699,064. As of March 31, 2026, there
was $29,384 of total unrecognized compensation cost related to nonvested options granted to be recognized over the next 0.4 years.
The
following table reflects the stock options issued and outstanding as of March 31, 2026:
Expiry
Date | | Exercise Price
(CAD$) | | | Weighted Average
Remaining
Contractual
Life (years) | | | Number of
Options
Outstanding | | | Number of
Options
Vested
(exercisable) | | | Number of
Options
Unvested | | | May 17, 2026 | | | 7.35 | | | | 0.13 | | | | 35,131 | | | | 35,131 | | | | - | | | June 22, 2026 | | | 4.20 | | | | 0.23 | | | | 19,999 | | | | 19,999 | | | | - | | | March 5, 2030 | | US$ | 1.25 | | | | 3.93 | | | | 200,000 | | | | 200,000 | | | | - | | | June 6, 2030 | | | 2.09 | | | | 4.19 | | | | 1,040,000 | | | | 1,040,000 | | | | - | | | August 18, 2030 | | | 3.23 | | | | 4.39 | | | | 25,000 | | | | 12,500 | | | | 12,500 | | | August 27, 2030 | | US$ | 2.25 | | | | 4.41 | | | | 50,000 | | | | 25,000 | | | | 25,000 | | | November 19, 2030 | | | 4.90 | | | | 4.64 | | | | 1,430,000 | | | | 1,430,000 | | | | - | | | January 30, 2031 | | US$ | 2.60 | | | | 4.84 | | | | 100,000 | | | | 100,000 | | | | - | | | January 30, 2031 | | US$ | 6.00 | | | | 4.84 | | | | 100,000 | | | | 100,000 | | | | - | | | March 23, 2031 | | US$ | 2.39 | | | | 4.98 | | | | 50,000 | | | | 50,000 | | | | - | | | | | | 3.75 | | | | 4.37 | | | | 3,050,130 | | | | 3,012,630 | | | | 37,500 | |
| (b) | Restricted
share units |
The
Corporation has an RSU plan whereby there is a fixed cap of shares that can be granted under the plan. The exercise price shall be no
less than the discount market price as determined in accordance with relevant exchange policies.
The
following table reflects the continuity of RSUs for the periods presented below:
| | |
Number of
RSUs | |
| Balance, December 31, 2024 | |
| 2,828,336 | |
| Granted (i) | |
| 45,000 | |
| Converted | |
| (792,669 | ) |
| Cancelled | |
| (6,500 | ) |
| Balance, March 31, 2025 | |
| 2,074,167 | |
| Balance, December 31, 2025 | |
| 2,283,943 | |
| Granted (ii) | |
| 1,050,000 | |
| Converted | |
| (379,664 | ) |
| Balance, March 31, 2026 | |
| 2,954,279 | |
| (i) | During
the three months ended March 31, 2025, the Corporation granted 45,000 RSUs to consultants. These RSUs vest one-third on each of the first,
second and third anniversaries of the date of grant. The grant date fair value of the RSUs was $67,297, which was measured based on the
quoted price of the Corporation’s shares on the date of grant. |
| (ii) | During
the three months ended March 31, 2026, the Corporation granted an aggregate of 1,050,000 RSUs to one officer of the Corporation and one
consultant of the Corporation. These RSUs vest one-third on each of the first, second and third anniversaries of the date of grant. The
grant date fair value of the RSUs was $2,897,380, which was measured based on the quoted price of the Corporation’s shares on the
date of grant. |
The aggregate intrinsic value of RSUs outstanding as at March 31, 2026
is $5,997,186. As of March 31, 2026, there was $6,874,380 of total unrecognized compensation cost related to nonvested RSUs granted to
be recognized over the next 2.25 years. The fair value of RSUs is generally measured as the grant date price of the Corporation’s
share.
For
the three months ended March 31, 2026, the Corporation recorded share-based compensation of $698,867 related to vesting of RSUs (three
months ended March 31, 2025 - $410,920).
|