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Share Based Compensation Plan | 12 Months Ended
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Dec. 31, 2019
Share-based Payment Arrangement [Abstract] |
Share Based Compensation Plan |
16 | SHARE-BASED COMPENSATION PLAN
The Company’s Share-Based Compensation Plan (the “Plan”), dated January 1, 2010 was most recently approved by Shareholders on June 14, 2018. The Plan provides that the number of Common Shares reserved for issuance upon the exercise or redemption of awards granted under the Plan is a rolling maximum of ten percent ( 10 %) of the outstanding Common Shares at any point in time. Approximately 2,074,000 shares remain available for issuance at December 31, 2019. Stock options have been granted with an exercise price equal to the fair market value of the common stock on the date of grants and have a ten-year contractual term. The stock options vest ratably over a 3- year period. Compensation expense is recognized on a straight-line basis. The fair market value of stock options is estimated using the Black-Scholes-Merton valuation model and the Company uses the following methods to determine its underlying assumptions: expected volatilities are based on the historical volatilities of the weekly closing price of the Company’s common stock; the expected term of options granted is based historical exercises and forfeitures; the risk-free interest rate is based on Canadian Treasury bonds issued with similar life terms to the expected life of the grant; and the expected dividend yield is based on the current annual dividend amount divided by the stock price on the date of grant. Forfeitures are recorded when incurred. The following key assumptions were used in the valuation model to value stock option grants for each respective period:
|  | 2019 |  |  | 2018 |  |  | 2017 |
Expected volatility |  |  | 60.7 | % |  |  | 55.5 | % |  |  | 50.8 | %
Dividend |  |  | $nil |  |  |  | $nil |  |  |  | $nil |
Risk-free interest rate |  |  | 1.86 | % |  |  | 2.30 | % |  |  | 1.43 | %
Expected life |  |  | 5.7 years |  |  |  | 5.9 years |  |  |  | 6.0 years |
Fair value |  |  | CA$9.7259 |  |  |  | CA$3.2541 |  |  |  | CA$3.1869 |
Stock option transactions under the Company’s plan for the years ended December 31, 2019, 2018 and 2017 are summarized as follows:
|  | Number of Options |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Term (years) |  |  | Aggregate Intrinsic Value |
Outstanding at January 1, 2017 |  |  | 2,116,065 |  |  |  | CA$1.19 |  |  |  | 6.24 |  |  |  |  |
Granted during 2017 |  |  | 320,000 |  |  |  | CA$4.04 |  |  |  | 9.71 |  |  |  |  |
Exercised during 2017 |  |  | (91,667 | ) |  |  | CA$0.90 |  |  |  | 4.09 |  |  |  |  |
Forfeited/expired during 2017 |  |  | (6,666 | ) |  |  | CA$1.48 |  |  |  |  |  |  |  |  |
Outstanding at December 31, 2017 |  |  | 2,337,732 |  |  |  | CA$1.59 |  |  |  | 5.89 |  |  | $ | 14,125 |
Exercisable at December 31, 2017 |  |  | 1,752,739 |  |  |  | CA$1.20 |  |  |  | 4.86 |  |  | $ | 11,295 |
Granted during 2018 |  |  | 203,000 |  |  |  | CA$5.79 |  |  |  | 9.44 |  |  |  |  |
Exercised during 2018 |  |  | (365,733 | ) |  |  | CA$0.98 |  |  |  | 2.68 |  |  |  |  |
Forfeited during 2018 |  |  | (10,000 | ) |  |  | CA$1.48 |  |  |  |  |  |  |  |  |
Outstanding at December 31, 2018 |  |  | 2,164,999 |  |  |  | CA$2.10 |  |  |  | 5.69 |  |  | $ | 5,553 |
Exercisable at December 31, 2018 |  |  | 1,648,670 |  |  |  | CA$1.43 |  |  |  | 4.74 |  |  | $ | 5,012 |
Granted |  |  | 510,000 |  |  |  | CA$16.32 |  |  |  | 9.19 |  |  |  |  |
Exercised |  |  | (212,332 | ) |  |  | CA$1.29 |  |  |  | 4.85 |  |  |  |  |
Forfeited |  |  | (10,001 | ) |  |  | CA$2.20 |  |  |  |  |  |  |  |  |
Outstanding at December 31, 2019 |  |  | 2,452,666 |  |  |  | CA$5.12 |  |  |  | 5.60 |  |  | $ | 11,435 |
Exercisable at December 31, 2019 |  |  | 1,707,337 |  |  |  | CA$1.78 |  |  |  | 4.18 |  |  | $ | 10,736 |
The weighted-average grant-date fair value of options granted during the years 2019, 2018 and 2017 was $9.58, $3.22 and $2.09, respectively. The total intrinsic value of options exercised during the years ended December 31, 2019, 2018 and 2017, was $1,999, $2,162 and $219, respectively. A summary of the status of the Company’s non-vested stock options, and the changes during the year ended December 31, 2019, is presented below:
|  | Number of Options |  |  | Weighted Average Grant Date Fair Value |  |  | Aggregate Intrinsic Value |
Non-vested at January 1, 2019 |  |  | 516,329 |  |  |  | CA$2.27 |  |  |  |  |
Granted |  |  | 510,000 |  |  |  | CA$9.58 |  |  |  |  |
Vested |  |  | (270,999 | ) |  |  | CA$1.89 |  |  |  |  |
Forfeited |  |  | (10,001 | ) |  |  | CA$1.06 |  |  |  |  |
Non-vested at December 31, 2019 |  |  | 745,329 |  |  |  | CA$7.43 |  |  | $ | CA$699 |
As of December 31, 2019, there was $855 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the stock option plan; that cost is expected to be recognized over a period of 8.98 years. The Company has also issued performance-based restricted share units to Village Farms employees involved with future developments of the Company. Once a performance target is met and the share units are deemed earned and vested, compensation expense is recognized, based on the fair value of the share units on the grant date. Performance-based restricted share unit activity for the years ended December 31, 2019, 2018 and 2017 is as follows :
|  | Number of Performance-based Restricted Share Units |  |  | Weighted Average Grant Date Fair Value |
Outstanding at January 1, 2017 |  |  | — |  |  |  |  |
Issued |  |  | 885,000 |  |  |  | CA$2.20 |
Issued |  |  | 21,000 |  |  |  | CA$6.00 |
Exercised |  |  | (768,000 | ) |  |  | CA$2.20 |
Forfeited/expired |  |  | (10,000 | ) |  |  | CA$2.20 |
Outstanding at December 31, 2017 |  |  | 128,000 |  |  |  | CA$2.82 |
Earned but unissued at December 31, 2017 |  |  | — |  |  |  | — |
Issued |  |  | 979,000 |  |  |  | CA$5.79 |
Exercised |  |  | (50,334 | ) |  |  | CA$3.06 |
Forfeited |  |  | — |  |  |  | — |
Outstanding at December 31, 2018 |  |  | 1,056,666 |  |  |  | CA$5.56 |
Earned but unissued at December 31, 2018 |  |  | 175,333 |  |  |  | CA$5.08 |
Issued |  |  | 355,000 |  |  |  | CA$14.94 |
Exercised |  |  | (442,666 | ) |  |  | CA$7.82 |
Forfeited/expired |  |  | (230,000 | ) |  |  | CA$12.90 |
Outstanding at December 31, 2019 |  |  | 739,000 |  |  |  | CA$6.58 |
Earned but unis s ued at December 31, 2019 |  |  | 30,000 |  |  |  | CA$12.87 |
A summary of the status of the Company’s non-vested performance-based restricted share units, and the changes during the year ended December 31, 2019, is presented below:
|  | Number of Performance-based Restricted Share Units |  |  | Weighted Average Grant Date Fair Value |
Non-vested at January 1, 2019 |  |  | 881,333 |  |  |  | CA$5.63 |
Granted |  |  | 355,000 |  |  |  | CA$14.94 |
Vested |  |  | (297,333 | ) |  |  | CA$7.54 |
Forfeited |  |  | (230,000 | ) |  |  | CA$12.90 |
Non-vested at December 31, 2019 |  |  | 709,000 |  |  |  | CA$10.21 |
Total share-based compensation expense for the years ended December 31, 2019, 2018 and 2017 of $4,714, $1,454 and $1,519, respectively, was recorded in selling, general and administrative expenses and the corresponding amount credited to additional paid in capital.

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- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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