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Common Stock and Warrants (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Weighted Average Assumptions Used in Estimating Fair Value of Warrants

The fair value of all warrants classified as derivative financial instruments outstanding as of December 31, 2018 and 2017 were estimated using the Black-Scholes option-pricing model with the following weighted average assumptions:

	As of December 31,
	2018			2017
Stock price	CAD$12.80			CAD$12.32
Exercise price	CAD$10.89			CAD$10.25
Warrant term	1.71 years			1.91 years
Expected volatility		75.31	%		62.20	%
Risk-free interest rate		1.80	%		1.83	%
Dividend rate		0.00	%		0.00	%

Summary of Warrants Accounted for as Liabilities and Recorded as Derivative Financial Instruments

The following table summarizes the activities of warrants that the Company accounts for as liabilities and records as derivative financial instruments for the years ended December 31, 2018 and 2017 (amounts in thousands):

	Year Ended December 31,
	2018			2017
Fair value of warrants at beginning of year	$	6,941		$	2,857
Issuance of warrants		7,372			3,016
Exercise of warrants		(3,012	)		(1,200	)
Fair value of previously classified equity warrants		5,049			—
Fair value of previously classified liability warrants reclassified to additional paid-in capital		(2,478	)		—
Foreign exchange gains		(872	)		—
Change in fair value of warrants during the year		769			2,268
Fair value of warrants at end of year	$	13,769		$	6,941

Summary of Warrant Activity

The following is a summary of warrant activity during the years ended December 31, 2018 and 2017:

	Number of Warrants (by currency denomination of exercise price)						Weighted-Average Exercise Price
	CAD$			USD$			CAD$		USD$
Outstanding as of December 31, 2016		1,111,530			905,721		$	7.30	$	8.10
Granted		25,063			646,016			7.50		12.25
Exercised		(125,088	)		(208,333	)		6.50		7.20
Outstanding as of December 31, 2017		1,011,505			1,343,404			7.38		10.25
Granted		2,476,843			—			12.22		—
Expired		(22,699	)		(136,528	)		5.00		15.00
Exercised		(112,665	)		(555,556	)		9.88		6.75
Outstanding and exercisable as of December 31, 2018		3,352,984			651,320		$	10.89	$	12.24

Warrants Outstanding and Exercisable

The following table summarizes the Company’s warrants outstanding and exercisable as of December 31, 2018:

Number of Warrants Outstanding		Exercise Price	Expiration Date
	3,795	US$10.75	June 26, 2020
	1,509	US$10.75	July 17, 2020
	960,699	CAD$7.50	April 18, 2019
	270,915	US$12.25	December 22, 2020
	171,020	US$12.25	December 28, 2020
	204,081	US$12.25	December 29, 2020
	2,392,285	CAD$12.25	April 21, 2021
	4,004,304

April 2016 Offering

Summary of Weighted Average Assumptions Used in Estimating Fair Value of Warrants

The following table summarizes the weighted average assumptions used in estimating the fair value of the warrants granted in the April 2016 Offering using the Black-Scholes option pricing model as of the grant date and as of April 1, 2018 and December 31, 2018:

	December 31, 2018			April 1, 2018			Grant Date
Stock price	CAD$12.80			CAD$12.87			CAD$5.45
Exercise price	CAD$7.50			CAD$7.50			CAD$7.50
Warrant term	0.30 years			1.05 years			3.0 years
Expected volatility		83.56	%		71.13	%		83.83	%
Risk-free interest rate		1.64	%		1.60	%		0.60	%
Dividend rate		0.00	%		0.00	%		0.00	%

December 2017 Financing

Summary of Weighted Average Assumptions Used in Estimating Fair Value of Warrants

The following table summarizes the weighted average assumptions used in estimating the fair value of the warrants granted in the December 2017 financing using the Black-Scholes option pricing model as of the grant dates and on April 1, 2018.

	April 1, 2018			December 29, 2017			December 28, 2017			December 22, 2017
Stock price	$	10.11		$	12.32		$	12.45		$	10.60
Exercise price	$	12.25		$	12.25		$	12.25		$	12.25
Warrant term	2.7 years			3.0 years			3.0 years			3.0 years
Expected volatility		65.40	%		60.24	%		60.24	%		60.24	%
Risk-free interest rate		2.39	%		1.98	%		2.00	%		2.01	%
Dividend rate		0.00	%		0.00	%		0.00	%		0.00	%

April 2018 Offering

Summary of Weighted Average Assumptions Used in Estimating Fair Value of Warrants

The following table summarizes the weighted average assumptions used in estimating the fair value of the warrants granted in the April 2018 Offering using the Black-Scholes option pricing model as of the date of the initial closing of the offering and the date of the closing of the over-allotment option, as well as of December 31, 2018.

	December 31, 2018			April 24, 2018			April 13, 2018
Stock price	CAD $12.80			CAD $10.76			CAD $9.85
Exercise price	CAD $12.25			CAD $12.25			CAD $12.25
Warrant term	2.28 years			3.0 years			3.0 years
Expected volatility		71.99	%		64.49	%		64.20	%
Risk-free interest rate		1.86	%		2.02	%		1.99	%
Dividend rate		0.00	%		0.00	%		0.00	%

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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