| Stock options, retention securities and warrants |
18.Stock options, retention securities and warrants Stock Options: Stock option transactions for the years ended December 31, 2025 and 2024 are set forth below: | | | | | | | Number of shares | | Weighted average | | | issuable under | | exercise price | | | options | | $ | Balance outstanding at December 31, 2023 | | 10,545,500 | | 1.91 | Granted | | 2,268,200 | | 2.47 | Exercised | | (887,000) | | 1.44 | Forfeited/Expired | | (149,000) | | 2.14 | Balance outstanding at December 31, 2024 | | 11,777,700 | | 2.05 | Granted | | 2,349,700 | | 3.27 | Exercised | | (2,434,000) | | 1.84 | Forfeited/Expired | | (2,417,500) | | 2.46 | Balance outstanding at December 31, 2025 | | 9,275,900 | | 2.31 |
The following table summarizes information about stock options outstanding at December 31, 2025: | | | | | | | | | | | | | | | | | Weighted | | | | | | Weighted | | | | | | | average | | | | | | average | | | | | Number of | | remaining | | Weighted | | Number of | | remaining | | Weighted | | | Options | | contractual | | average exercise | | Options | | contractual | | average exercise | Exercise Price ($) | | Outstanding | | life (Years) | | Price ($) | | Exercisable | | life (Years) | | Price ($) | 1.01-1.50 | | 98,000 | | 4.27 | | 1.13 | | 98,000 | | 4.27 | | 1.13 | 1.51-2.00 | | 5,215,000 | | 5.40 | | 1.79 | | 5,215,000 | | 5.40 | | 1.79 | 2.01-2.50 | | 928,000 | | 2.89 | | 2.14 | | 903,000 | | 2.74 | | 2.14 | 2.51-3.00 | | 926,500 | | 7.62 | | 2.83 | | 549,250 | | 6.69 | | 2.82 | 3.01-3.50 | | 1,165,900 | | 5.40 | | 3.24 | | 1,139,900 | | 5.34 | | 3.23 | 3.51-4.00 | | 942,500 | | 2.73 | | 3.83 | | 328,646 | | 1.37 | | 3.88 | | | 9,275,900 | | 5.09 | | 2.31 | | 8,233,796 | | 5.01 | | 2.17 |
18.Stock options, retention securities and warrants cont’d The fair value of options granted is calculated on the grant date using the Black-Scholes option pricing model using the following assumptions: | | | | | | | | December 31, 2025 | | December 31, 2024 | | | | (Restated – see Note 4) | | (Restated – see Note 4) | | Risk-free interest rate | | 2.72% - 3.19 | % | 3.02% - 3.76 | % | Expected term in years | | 4.0 - 9.2 years | | 5-10 years | | Expected stock price volatility | | 65.7% - 73.7 | % | 68.6% - 70.0 | % | Dividend yield | | — | | — | |
Retention Securities: The Company has granted 590,000 retention securities to its former President and Chief Executive Officer in connection with his appointment on April 10, 2023. As a result of the resignation of the former President and Chief Executive Officer in July 2025, 98,333 retention securities were forfeited and the expiry date of the remaining retention securities was adjusted to July 16, 2026. Each retention security is exercisable into one Common Share at a price of $1.78 per share for a period of 10 years and the retention securities vested equally every month over a three-year period. The weighted average remaining contractual life of the retention securities is 0.54 years and 491,667 retention securities were exercisable as at December 31, 2025. The retention securities were granted outside of the Company’s stock option plan, as an inducement grant to the former President and Chief Executive Officer of the Company pursuant to Section 6.4 of TSX-V Policy 4.4. Warrants: Warrant transactions for the years ended December 31, 2025 and 2024 are set forth below: | | | | | | | | | Number of shares | | Weighted average | | Weighted average | | | issuable under | | exercise price | | exercise price | | | warrants | | US$ | | $ | Balance outstanding at December 31, 2023 | | 5,075,000 | | 1.75 | | 2.32 | Granted | | 5,066,250 | | | | 2.98 | Exercised | | (47,500) | | | | 2.93 | Balance outstanding at December 31, 2024 | | 10,093,750 | | 1.75 | | 2.75 | Granted | | 2,392,832 | | 2.65 | | 3.63 | Exercised | | (1,146,734) | | | | 2.98 | Balance outstanding at December 31, 2025 | | 11,339,848 | | 2.65 | | 2.88 |
The following table summarizes information about warrants outstanding at December 31, 2025: | | | | | | | Exercise Price ($) | | Number of Warrants Outstanding | | Grant Date | | Expiry Date | 2.44 | | 5,075,000 | | July 13, 2022 | | July 13, 2027 | 3.00 | | 3,780,097 | | March 28, 2024 | | March 28, 2027 | 2.35 | | 91,919 | | March 28, 2024 | | March 28, 2026 | 3.63 (US 2.65) | | 2,392,832 | | November 19, 2025 | | November 19, 2028 | | | 11,339,848 | | | | |
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