During the nine months ended September 30, 2025 and 2024, the Company recognized stock option expense of $2,090 and $1,703, respectively, for the vested portion of the stock options. During the three months ended September 30, 2025 and 2024, the Company recognized stock option expense of $461 and $885, respectively, for the vested portion of the stock options.

The Company recognized share-based compensations in connection with two stockholder approved equity plans. The Stock Option Plan (the “Stock Option Plan”) which was adopted in 2015 and later amended in 2021, and the 2024 Long Term Incentive Plan (the “LTIP”) which was adopted in 2024 and replaced the Stock Option Plan. Both plans are detailed below.

Under the Stock Option Plan the Company was authorized to grant options to officers, directors, employees and consultants, enabling them to acquire common shares of the Company upon exercise of the options. The number of shares reserved for issuance under the Stock Option Plan could not exceed 10% of the outstanding common shares at the time of the grant. The options could be granted for a maximum of five years and vested as determined by the Company’s Board of Directors (the “Board”). No further grants are authorized under Stock Option Plan as a result of the adoption of the LTIP. See further details on the LTIP below.


	Number of stock options	Weighted average exercise price (CAD)
Balance, December 31, 2024	8,649,726	C$3.99

Exercisable, December 31, 2024	6,169,340	C$3.55
Exercised	(899,586)	1.21
Forfeited/expired	(1,651,041)	4.26
Balance, September 30, 2025	6,099,099	C$4.33
Exercisable, September 30, 2025	5,168,349	C$4.08


		Options Outstanding		Options Exercisable
		September 30, 2025		September 30, 2025
Option price per share (CAD)	Options #	Weighted average remaining life (years)	Weighted average exercise price (CAD)	Options #	Weighted average exercise price (CAD)

C$2.40 - 3.79	2,076,431	0.79	C$2.95	2,076,431	C$2.95
C$4.20 - 5.76	4,022,668	1.65	5.04	3,091,918	4.85
	6,099,099	2.44	C$4.33	5,168,349	C$4.08

As of September 30, 2025, the aggregate intrinsic value of all outstanding stock options granted and vested was estimated at $2,674. As of September 30, 2025, the unrecognized compensation cost related to unvested stock options was $691, which is expected to be recognized over a weighted average period of 0.4 years.


	Number of Shares	Weighted Average Grant Date Fair Value (CAD)
Outstanding, December 31, 2024	2,480,386	C$2.52

Vested	(556,511)	2.02
Forfeited	(961,875)	2.56
Outstanding, September 30, 2025	962,000	C$2.76

The Company granted an aggregate of 2,379,000 and 2,804,000 stock options to directors, officers, employees, and an accounting advisory consultant of the Company during the three and nine months ended September 30, 2024, respectively. A fair value of $4,730 and $5,685 was calculated for these options as measured at the grant date using the Black-Scholes option pricing model during the three and nine months ended September 30, 2024, respectively.

The Company’s standard stock option vesting schedule calls for 25% every six months commencing six months after the grant date.

In August 2024, the Company adopted the LTIP to replace the Stock Option Plan. Awards previously issued and outstanding pursuant to the Stock Option Plan will continue to be governed by the Stock Option Plan.

The number of common shares reserved for issuance pursuant to awards granted under the LTIP will not, in the aggregate, exceed 10% of the issued and outstanding common shares at the time of the grant. No award, other than an option, may vest before the date that is one year following the date on which the award is granted, except in the case of accelerated vesting as defined in the LTIP.


	Number of stock options	Weighted average exercise price (USD)
Balance, December 31, 2024	225,000	$4.07

Granted	545,000	$3.10
Exercised	-	-
Forfeited/expired	(168,750)	4.07
Balance, September 30, 2025	601,250	$3.19
Exercisable, September 30, 2025	56,250	$4.07


		Options Outstanding		Options Exercisable
		September 30, 2025		September 30, 2025
Option price per share	Options #	Weighted average remaining life (years)	Weighted average exercise price (USD)	Options #	Weighted average exercise price (USD)
$3.10- $4.07	601,250	0.45	$3.19	56,250	$4.07


	601,250	0.45	$3.19	56,250	$4.07


	Number of Shares	Weighted Average Grant Date Fair Value (USD)
Outstanding, December 31, 2024	225,000	$2.05
Granted	545,000	1.72
Vested	(56,250)	2.05
Forfeited	(168,750)	2.05
Outstanding and unvested, September 30, 2025	545,000	$1.72

As of September 30, 2025, the aggregate intrinsic value of all outstanding stock options granted and vested was estimated at $60. As of September 30, 2025, the unrecognized compensation cost related to unvested stock options was $927, which is expected to be recognized over a weighted average period of 1.4 years.

A fair value of $935 was calculated for these options as measured at the grant date using the Black-Scholes option pricing model during the three and nine months ended September 30, 2025, respectively. There were 545,000 options granted during the nine months ended September 30, 2025. The weighted average assumptions used in calculating the fair values as of September 30, 2025, are as follows:


	September 30, 2025

Exercise price	$3.10
Share price	$3.12
Risk-free rate	2.46	%
Expected life (in years)	3.75
Expected volatility	74.09	%
Expected dividend yield	0.00	%
Weighted average grant date fair value	$1.72

The Company has elected to utilize the simplified method for determining the expected life of the options. This is due to the options granted being considered “plain vanilla” in accordance with SAB Topic 14 in ASC 718. This simplified method allows for the average of the vesting period and contractual life.

Under the LTIP, restricted stock units (“RSUs”) may be granted to the participants and typically vest over a four-year period for officers, employees and consultants and annually for directors. During the nine months ended September 30, 2025, the Company granted 1,225,000 RSUs to officers under its LTIP. 225,000 RSUs vest 25% annually over four years and 1,000,000 RSUs vest in full on the fifth anniversary from the grant date. The following table summarizes the Company’s RSU activity for the nine months ended September 30, 2025:


	Number of RSUs	Weighted Average Remaining Life (years)	Weighted Average Grant Date Fair Value (USD)
Balance, December 31, 2024	-	-	-

Granted	1,225,000	2.39	$3.12
Vested	-	-	-
Forfeited	-	-	-
Balance, September 30, 2025	1,225,000	2.39	$3.12

The Company recognized $16 of compensation expense related to RSUs during both the three and nine months ended September 30, 2025. As of September 30, 2025, unrecognized compensation cost related to unvested RSUs was $3,806, which is expected to be recognized over a weighted average period of 2.39 years.