Common shares

The Company’s share capital consists of an unlimited amount of Class A preferred shares authorized, without par value, of which no shares are issued and outstanding; and an unlimited amount of common shares authorized, without par value, of which 397,331,853 shares and 378,169,709 shares were issued and outstanding as of March 31, 2026, and December 31, 2025, respectively.

Stock options

In 2005, the Company’s Board of Directors approved the adoption of the Company’s stock option plan (the “Option Plan”). The Option Plan was most recently approved by the shareholders on June 2, 2023. Eligible participants under the Option Plan include directors, officers, employees, and consultants of the Company. Under the terms of the Option Plan, grants of options will vest over a three-year period: one-third on the first anniversary, one-third on the second anniversary, and one-third on the third anniversary of the grant. The Company uses the straight-line method when recognizing stock option compensation. The term of the options is five years.

Activity with respect to stock options outstanding is summarized as follows:

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The exercise price of a new grant is set at the closing price for the shares on the Toronto Stock Exchange (TSX) on the trading day immediately preceding the grant date and there is no intrinsic value as of the date of grant.

The total intrinsic value of options exercised was less than $0.1 million and $0.2 million in the three months ended March 31, 2026, and 2025, respectively.

We received less than $0.1 million and $0.2 million from options exercised in the three months ended March 31, 2026, and 2025, respectively.

Stock-based compensation expense from stock options for the three months ended March 31, 2026, and 2025 was $0.4 million and $0.6 million, respectively.

As of March 31, 2026, there was approximately $2.9 million of unamortized stock-based compensation expense related to the Option Plan. The expenses are expected to be recognized over the remaining weighted-average vesting period of 2.3 years under the Option Plan.

As of March 31, 2026, outstanding stock options are as follows (expressed in U.S. dollars):

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The aggregate intrinsic value of options outstanding and options exercisable is calculated as the difference between the exercise price of the underlying options and the fair value of the Company’s shares.  The aggregate intrinsic value of the options in the preceding table represents the total pre-tax intrinsic value for stock options, with an exercise price less than the Company’s TSX closing stock price of CAD$2.06 (approximately US$1.49) as of the last trading day in the three months ended March 31, 2026, that would have been received by the option holders had they exercised their options on that date. There were 7,969,106 in-the-money stock options outstanding and 3,672,691 in-the-money stock options exercisable as of March 31, 2026.

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The fair value of the options on their respective grant dates was determined using the Black-Scholes model.

Liability-classified stock options

Activity with respect to liability-classified stock options outstanding is summarized as follows:

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The fair value of the liability-classified options as at March 31, 2026 was determined using the Black-Scholes model with the following assumptions:

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Restricted share units

On June 24, 2010, the Company’s shareholders approved the adoption of the Company’s restricted share unit plan (the “RSU Plan”). Amendments to the RSU Plan were approved by our shareholders on June 3, 2021, and the plan is now known as the Amended and Restated Restricted Share Unit and Equity Incentive Plan (the “RSU&EI Plan”). The RSU&EI Plan was approved most recently by our shareholders on June 5, 2025.

Eligible participants under the RSU&EI Plan include directors and employees of the Company. Outstanding RSUs are redeemable on the second anniversary of the grant. Upon an RSU redemption, the holder of the RSU will receive one common share, for no additional consideration, for each RSU held.

Activity with respect to RSUs outstanding is summarized as follows:

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Stock-based compensation expense from RSUs for the three months ended March 31, 2026, and 2025 was $0.2 million and $0.1 million, respectively.

The total fair value of RSUs vested was nil for the three months ended March 31, 2026.

As of March 31, 2026, there was approximately $1.0 million of unamortized stock-based compensation expense related to the RSU&EI Plan. The expenses are expected to be recognized over the remaining weighted-average vesting periods of 1.3 years under the RSU&EI Plan.

As of March 31, 2026, outstanding RSUs were as follows (expressed in U.S. dollars):

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The fair value of restricted share units on their respective grant dates is determined using the Black-Scholes model.  There were no restricted share units granted in the three months ended March 31, 2026.

Warrants

In February 2023, the Company issued 39,100,000 warrants to purchase 19,550,000 of our common shares at $1.50 per full share.

Activity with respect to warrants is summarized as follows:

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As of March 31, 2026, there were no outstanding warrants as the warrants expired in February 2026.

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The fair value of the warrants on their issue date was determined using the Black-Scholes model.  There were no warrants issued in the three months ended March 31, 2026.

Fair value calculation assumptions for stock options and restricted share units

The Company estimates expected future volatility based on daily historical trading data of the Company’s common shares. The risk-free interest rates are determined by reference to Canadian Benchmark Bond Yield rates with maturities that approximate the expected life. The Company has never paid dividends and currently has no plans to do so. Forfeitures and expected lives were estimated based on actual historical experience.