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SHARE-BASED COMPENSATION | 12 Months Ended
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Dec. 31, 2024
SHARE-BASED COMPENSATION |
SHARE-BASED COMPENSATION | 8.SHARE-BASED COMPENSATION 2015 Stock Option Plan The Company maintains the 2015 Stock Option Plan (“2015 Option Plan”), originally referred to as the 2007 Option Plan. In June 2015, the 2015 Option Plan was amended from a fixed option plan to a rolling share option plan pursuant to which the Company is authorized to grant options of up to 20% of its issued and outstanding Common Shares. Share options granted vest at various rates and have a term not exceeding ten years. As of December 31, 2024 and 2023, the Company had 2,963,385 and 471,843 options, respectively, available for grant under the 2015 Option Plan. Share options under the 2015 Option Plan are granted in either US$ or C$. Upon the change in the Company’s functional currency, effective July 1, 2023, C$ share options previously classified as equity were reclassified as liabilities. All grants following the Company’s change in functional currency are in US$. Canadian Dollar Share Options The following table summarizes the activity of the C$ share options under the 2015 Option Plan for the years ended December 31, 2024 and 2023. All amounts are denominated in Canadian dollars, except year and share amounts: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ |  | ​ | ​ |  | Weighted |  | ​ | ​
​ |  | ​ |  | Weighted |  | Average |  | ​ | ​
​ |  | ​ |  | Average |  | Remaining |  | ​ | ​
​ | ​ | Number of |  | Exercise |  | Contractual | ​ | Aggregate
​ | ​ | Share |  | Price Per |  | Term | ​ | Intrinsic
​ | ​ | Options | ​ | Share |  | (years) | ​ | Value
Outstanding as of January 1, 2023 |  | 1,043,025 | ​ | $ | 5.60 |  | 6.1 | ​ | $ | 1,183,860
Granted |  | — | ​ |  | ​ |  | ​ | ​ |  | ​
Forfeited |  | (143,230) | ​ |  | 7.10 |  | ​ | ​ |  | ​
Expired |  | (1,533) | ​ |  | 15.76 |  | ​ | ​ |  | ​
Outstanding as of December 31, 2023 |  | 898,262 | ​ | $ | 7.58 |  | 6.5 | ​ | $ | —
Expired |  | (79,769) | ​ |  | 9.16 |  | ​ | ​ |  | ​
Outstanding as of December 31, 2024 |  | 818,493 | ​ |  | 7.36 |  | 6.6 | ​ | ​ | —
Vested and exercisable as of December 31, 2024 |  | 768,319 | ​ | $ | 7.59 |  | 6.6 | ​ | $ | —
​ The aggregate intrinsic value of options outstanding, exercisable, and vested and exercisable is calculated as the difference between the exercise price of the underlying options, and the fair value of the Company’s Common Shares. There were no C$ share options granted during the years ended December 31, 2024 or 2023. Upon the change in the Company’s functional currency effective July 1, 2023 C$ share options previously classified as equity were reclassified as liabilities. The C$ options were re-measured as of December 31, 2024 and had a fair value of $199,263. A summary of share-based compensation liability activity, measured using level 3 fair value inputs, for the year ended December 31, 2024 is as follows: ​
​ | ​ | ​ | ​
​ |  | December 31,
​ | ​ | 2024
Fair value at December 31, 2023 | ​ | $ | 422,002
Increase in additional paid-in-capital due to decrease in fair value of share-based compensation liability | ​ | ​ | (222,739)
Fair value at December 31, 2024 | ​ | $ | 199,263
​ A summary of share-based compensation liability activity for the year ended December 31, 2023 is as follows: ​
​ | ​ | ​ | ​
​ |  | December 31,
​ | ​ | 2023
Fair value at December 31, 2022 | ​ | $ | —
Share-based compensation liability of C$ options at reclassification on change in functional currency | ​ | ​ | 1,768,515
Reduction in share-based compensation expense due to decrease in fair value of share-based compensation liability | ​ | ​ | (332,603)
Increase in additional paid-in-capital due to decrease in fair value of share-based compensation liability | ​ | ​ | (1,013,910)
Fair value at December 31, 2023 | ​ | $ | 422,002
​ The following table summarizes the weighted average of significant assumptions used to calculate the fair value of C$ share options using the Black Scholes option pricing model: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Period Ended |
​ | ​ | December 31, | ​ | December 31, | ​ | July 1, | ​
​ |  | 2024 |  | 2023 | ​ | 2023 | ​
Weighted average fair value of C$ Options | ​ | C$ | 0.26 | ​ | C$ | 1.30 | ​ | C$ | 2.54 | ​
Expected volatility |  | ​ | 99.7 | % | ​ | 116.3 | % | ​ | 83.3 | %
Risk-free interest rate |  | ​ | 4.40 | % | ​ | 4.04 | % | ​ | 4.30 | %
Expected dividend yield |  | ​ | — | % | ​ | — | % | ​ | — | %
Expected term (years) |  | ​ | 6.6 |  | ​ | 6.5 | ​ | ​ | 6.8 | ​
​ Expected volatility is based on historical volatility of the Company’s Common Shares over the expected life of the option, as the Company’s options are not readily tradable. U.S. Dollar Share Options The Company began making share option grants denominated in US$ following the Company’s change in functional currency in July 2023. The following table summarizes the US$ share options outstanding under the 2015 Option Plan for the years ended December 31, 2024 and 2023. All amounts are denominated in US$, except year and share amounts: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ |  | ​ | ​ |  | Weighted |  | ​ | ​
​ |  | ​ |  | Weighted |  | Average |  | ​ | ​
​ |  | ​ |  | Average |  | Remaining |  | ​ | ​
​ | ​ | Number of |  | Exercise |  | Contractual | ​ | Aggregate
​ | ​ | Share |  | Price Per |  | Term | ​ | Intrinsic
​ | ​ | Options | ​ | Share |  | (years) | ​ | Value
Outstanding as of January 1, 2023 |  | — | ​ | $ | — |  | ​ | ​ | $ | —
Granted |  | 69,000 | ​ |  | 1.87 |  | ​ | ​ |  | ​
Outstanding as of December 31, 2023 |  | 69,000 | ​ | $ | 1.87 |  | ​ | ​ | $ | —
Granted |  | 2,686,960 | ​ |  | 1.11 |  |  | ​ |  | —
Outstanding as of December 31, 2024 |  | 2,755,960 | ​ |  | 1.13 |  | 9.7 | ​ | ​ | —
Vested and exercisable as of December 31, 2024 |  | 631,607 | ​ | $ | 1.17 |  | 9.5 | ​ | $ | —
​ The grant date fair value of 2,196,622 and 69,000 US$ share options granted during the years ended December 31, 2024 and 2023, respectively, was estimated using Black Scholes with the following assumptions: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Period Ended
​ | ​ | December 31, | ​ | December 31, | ​
​ | ​ | 2024 | ​ | 2023 | ​
Weighted average fair value of US$ Options | ​ | $ | 0.88 | ​ | $ | 1.53 | ​
Expected volatility | ​ | ​ | 101.7 | % | ​ | 101.9 | %
Risk-free interest rate | ​ | ​ | 3.95 | % | ​ | 4.77 | %
Expected dividend yield | ​ | ​ | — | % | ​ | — | %
Expected term (years) | ​ | ​ | 5.7 |  | ​ | 6.1 |
​ In October 2024, the Company granted its Chief Executive Officer 490,338 options with an exercise price of $1.15 which will begin vesting if and when the Company’s 10-day VWAP of its Common Shares trading on the Nasdaq Capital Market meets or exceeds $3.45. The Company determined the share price requirement to begin vesting represented a market condition and performed a Monte-Carlo simulation to determine the fair value of the award, discounted for the likelihood of achieving the market condition. The resulting fair value of the option award was $383,000, with $39,344 recognized during the year ended December 31, 2024 in the accompanying consolidated statement of operations and comprehensive income (loss), with the remaining $343,656 expected to be recognized over approximately 2.4 years. ​ DSU Plan The Company has a Deferred Share Unit plan (“DSU Plan”) for senior officers. Under the DSU Plan, rights to the Company’s Common Shares may be awarded on a deferred payment basis up to a maximum of 16,666 common share units. Each common share unit will fully vest upon cessation of employment with the Company and then can be redeemed for one common share of the Company by the unitholder. The Company has 1,061 units outstanding as of December 31, 2024. Share-based Payment Expense The following table summarizes total share-based compensation for both the C$ and US$ share options included in the Company’s accompanying consolidated statements of operations and comprehensive income (loss): ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31,
​ | ​ | 2024 |  | 2023
Research and development | ​ | $ | 49,405 | ​ | $ | 80,825
General and administrative | ​ |  | 776,403 | ​ |  | 190,717
Total share-based compensation | ​ | $ | 825,808 | ​ | $ | 271,542
​ As of December 31, 2024, there was $30,318 of unrecognized share-based compensation liability related to C$ options outstanding but unvested, which is expected to be recognized over weighted-average remaining service period of 1.0 years. As of December 31, 2024, there was $1,593,563 of unrecognized share-based compensation related to US$ options outstanding, which is expected to be recognized over a weighted-average remaining service period of 2.3 years.

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