| STOCK OPTIONS AND RESTRICTED STOCK UNITS |
| 15. |
STOCK OPTIONS AND RESTRICTED STOCK UNITS |
The Company’s board of directors adopted the 2020 Equity Incentive Plan (the “Plan”) on July 21, 2020. The maximum number of common shares that may be issued in respect of awards under the Plan is equal to 20% of the total SV Shares outstanding. The Company may issue stock options, stock appreciation rights, restricted stock and restricted stock units (“RSU’s”).
The following table summarizes the stock option movements for the six months ended June 30, 2026 and year ended December 31, 2025:
| Schedule of stock option |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Number of
stock options |
|
|
Weighted
average
exercise price |
|
|
Aggregate
intrinsic value
($USD) |
|
| Balance, December 31, 2024 |
|
|
|
15,365,000 |
|
|
$ |
0.37(CAD$0.51 |
) |
|
$ |
4,527,243 |
|
| Granted |
|
|
|
2,330,000 |
|
|
$ |
0.61(CAD$0.83 |
) |
|
|
- |
|
| Exercised |
|
|
|
(2,764,167 |
) |
|
$ |
0.15(CAD$0.21 |
) |
|
|
703,068 |
|
| Forfeited |
|
|
|
(1,040,833 |
) |
|
$ |
0.43(CAD$0.60 |
) |
|
|
- |
|
| Balance, December 31, 2025 |
|
|
|
13,890,000 |
|
|
$ |
0.45(CAD$0.61 |
) |
|
$ |
1,835,510 |
|
| Granted(1)(2) |
|
|
|
625,000 |
|
|
$ |
0.35(CAD$0.49 |
) |
|
|
- |
|
| Exercised(3) |
|
|
|
(200,000 |
) |
|
$ |
0.11(CAD$0.15 |
) |
|
|
64,813 |
|
| Forfeited |
|
|
|
(300,000 |
) |
|
$ |
0.46(CAD$0.66 |
) |
|
|
- |
|
| Balance, June 30, 2026 |
|
|
|
14,015,000 |
|
|
$ |
0.43(CAD$0.61 |
) |
|
$ |
1,229,767 |
|
|
(1) |
On January 22, 2026, the Company granted stock options to employees of the Company. The stock options have an exercise price of $(CAD$) and expire on . The options vest in three equal tranches on each of December 31, 2026, December 31, 2027 and December 31, 2028. |
|
(2) |
On April 17, 2026, the Company granted stock options to employees of the Company. The stock options have an exercise price of $ (CAD$) and expire on . The options vest in three equal tranches on each of April 16, 2027, December 31, 2027 and December 31, 2028. |
|
(3) |
During the six months ended June 30, 2026, options were exercised into SV shares for gross proceeds of $ (CAD$30,000). |
The following is a summary of the outstanding stock options as at June 30, 2026:
| Schedule of outstanding stock options |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expiry Date |
|
Outstanding
(#) |
|
|
Aggregate
intrinsic value
($) |
|
|
Exercisable
(#) |
|
|
Aggregate
intrinsic value
($) |
|
|
Exercise price
($) |
|
|
Remaining
contractual life
(years) |
|
| January 10, 2027 |
|
|
3,525,000 |
|
|
|
1,017,065 |
|
|
|
3,525,000 |
|
|
|
1,017,065 |
|
|
$ |
0.11(CAD$0.15 |
) |
|
|
0.53 |
|
| March 21, 2027 |
|
|
300,000 |
|
|
|
86,559 |
|
|
|
300,000 |
|
|
|
86,559 |
|
|
$ |
0.11(CAD$0.15 |
) |
|
|
0.72 |
|
| August 31, 2027 |
|
|
4,560,000 |
|
|
|
- |
|
|
|
3,039,988 |
|
|
|
- |
|
|
$ |
0.21(CAD$0.3 |
) |
|
|
1.17 |
|
| September 14, 2027 |
|
|
200,000 |
|
|
|
36,594 |
|
|
|
133,333 |
|
|
|
24,396 |
|
|
$ |
0.27(CAD$0.39 |
) |
|
|
1.21 |
|
| November 16, 2027 |
|
|
500,000 |
|
|
|
59,817 |
|
|
|
500,000 |
|
|
|
59,817 |
|
|
$ |
0.59(CAD$0.84 |
) |
|
|
1.38 |
|
| March 18, 2028 |
|
|
30,000 |
|
|
|
- |
|
|
|
10,000 |
|
|
|
- |
|
|
$ |
0.65(CAD$0.93 |
) |
|
|
1.72 |
|
| December 31, 2028 |
|
|
500,000 |
|
|
|
- |
|
|
|
166,666 |
|
|
|
- |
|
|
$ |
0.61(CAD$0.87 |
) |
|
|
2.51 |
|
| February 3, 2029 |
|
|
2,000,000 |
|
|
|
- |
|
|
|
708,333 |
|
|
|
- |
|
|
$ |
0.52(CAD$0.74 |
) |
|
|
2.60 |
|
| August 31, 2028 |
|
|
75,000 |
|
|
|
- |
|
|
|
49,999 |
|
|
|
- |
|
|
$ |
0.59(CAD$0.84 |
) |
|
|
2.17 |
|
| April 16, 2029 |
|
|
400,000 |
|
|
|
28,149 |
|
|
|
- |
|
|
|
- |
|
|
$ |
0.32(CAD$0.46 |
) |
|
|
2.80 |
|
| September 3, 2029 |
|
|
300,000 |
|
|
|
- |
|
|
|
75,000 |
|
|
|
- |
|
|
$ |
0.43(CAD$0.61 |
) |
|
|
3.18 |
|
| August 31, 2029 |
|
|
1,400,000 |
|
|
|
- |
|
|
|
933,333 |
|
|
|
- |
|
|
$ |
0.59(CAD$0.84 |
) |
|
|
3.17 |
|
| December 31, 2029 |
|
|
225,000 |
|
|
|
1,583 |
|
|
|
- |
|
|
|
- |
|
|
$ |
0.39(CAD$0.55 |
) |
|
|
3.51 |
|
| Balance, June 30, 2026 |
|
|
14,015,000 |
|
|
|
1,229,767 |
|
|
|
9,441,652 |
|
|
|
1,187,837 |
|
|
$ |
0.43(CAD$0.61 |
) |
|
|
1.59 |
|
During the three and six months
ended June 30, 2026, the Company recognized share-based compensation expense of $149,087
and $304,081,
respectively (three and six months ended June 30, 2025 - $336,825
and $1,772,735
respectively) related to vesting of stock options. As at June 30, 2026, the Company has unrecognized stock-based compensation expense
of $690,314
associated with outstanding stock options.
The Company computes the fair value of stock options granted using the Black-Scholes option pricing model. The expected term used for options issued to non-employees is the contractual life and the expected term used for options issued to employees and directors is the estimated period of time that options granted are expected to be outstanding. The Company utilizes the “simplified” method to develop an estimate of the expected term of “plain vanilla” employee share purchase option grants. The Company is utilizing an expected volatility figure based on a review of the historical volatilities, over a period of time, equivalent to the expected life of the instrument being valued, of similarly positioned public companies within its industry. The risk-free interest rate was determined from the implied yields from U.S. Treasury zero-coupon bonds with a remaining term consistent with the expected term of the instrument being valued.
The Company applied the following inputs in the Black-Scholes option pricing model for the six months ended June 30, 2026 and year ended December 31, 2025:
| Schedule of summarizes the rsu movements |
|
|
|
|
|
|
|
|
| |
|
June 30,
2026 |
|
|
December 31,
2025 |
|
| Share price |
|
$ |
0.36(CAD$0.49 |
) |
|
$ |
0.60(CAD$0.94 |
) |
| Expected life options (years) |
|
|
2.66 |
|
|
|
2.53 |
|
| Expected volatility |
|
|
84.91 |
% |
|
|
94.77 |
% |
| Expected dividend yield |
|
|
0 |
% |
|
|
0 |
% |
| Risk-free interest rate |
|
|
2.84 |
% |
|
|
2.62 |
% |
| Black-Scholes value of each option |
|
$ |
0.19 |
|
|
$ |
0.34 |
|
| 15.2 |
Restricted stock units |
The following table summarizes the RSU’s movements for the six months ended June 30, 2026 and year ended December 31, 2025:
| Schedule of summarizes the rsu movements |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Number of
RSUs
(#) |
|
|
Weighted average
issue price
($) |
|
|
Aggregate
intrinsic value
($) |
|
| Balance, December 31, 2024 |
|
|
725,700 |
|
|
$ |
0.63(CAD$0.86 |
) |
|
|
469,040 |
|
| Granted to employees |
|
|
1,234,375 |
|
|
$ |
0.66(CAD$0.91 |
) |
|
|
729,045 |
|
| Exercised |
|
|
(463,575 |
) |
|
$ |
0.66(CAD$0.90 |
) |
|
|
257,250 |
|
| Balance, December 31, 2025 |
|
|
1,496,500 |
|
|
$ |
0.65(CAD$0.89 |
) |
|
|
764,300 |
|
| Balance, June 30, 2026 |
|
|
1,496,500 |
|
|
$ |
0.65(CAD$0.89 |
) |
|
|
589,754 |
|
The following is a summary of the outstanding RSU’s as at June 30, 2026:
| Schedule of outstanding RSU |
|
|
|
|
|
|
|
|
|
|
|
|
| Expiry Date |
|
Outstanding at
June 30,
2026 |
|
|
Weighted average
grant date
fair value
($) |
|
|
Weighted
average
remaining
vesting period
(years) |
|
| December 31, 2026 |
|
$ |
60,000 |
|
|
|
0.66(CAD$0.91 |
) |
|
|
0.50 |
|
| January 1, 2027 |
|
$ |
1,436,500 |
|
|
|
0.61(CAD$0.83 |
) |
|
|
0.51 |
|
| |
|
$ |
1,496,500 |
|
|
|
0.65(CAD$0.89 |
) |
|
|
0.51 |
|
The Company computes the fair value of RSU’s granted based on the Company’s share price at the grant date. During the three and six months ended June 30, 2026, share-based compensation expense includes $nil 0 and $nil 0, respectively, related to RSU’s (three and six months ended June 30, 2025 – $nil 0 and $1,123,281, respectively). As of June 30, 2026, there was no unrecognized compensation cost related to outstanding RSU’s.
|