iAnthus Capital Holdings, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Share Capital (Tables)

Share Capital (Tables)

9 Months Ended

Sep. 30, 2022

The following table summarizes certain information in respect of the Company’s warrants:


	September 30, 2022
	Units			Weighted Average Exercise Price (C$)
Warrants outstanding, beginning		22,640		$	3.56
Granted		—			—
Forfeited		(17,955	)		2.52
Expired		(4,685	)		7.53

Warrants outstanding, ending		—		$	—

Summary Of Assumptions Used To Record Fair Value of Warrants

As of September 30, 2022 and December 31, 2021, warrants classified as derivative liabilities on the unaudited interim condensed consolidated balance sheets were revalued with the following inputs:


	September 30, 2022		December 31, 2021
Risk-free interest rate		—		0.9	%
Expected dividend yield		—		0.0	%
Expected volatility		—		93.7 - 297.1	%
Expected life		—		0.9 years

Schedule Of Warrants Outstanding

Full share equivalent warrants outstanding and exercisable are as follows:


	September 30, 2022				December 31, 2021
Year of expiration	Number Outstanding		Weighted Average Exercise Price (C$)		Number Outstanding		Weighted Average Exercise Price (C$)
2022		—		—		20,855		3.47
2023		—		—		1,785		4.57

Warrants outstanding		—	$	—		22,640	$	3.56

Summary Of Potentially Dilutive Securities

The following table summarizes potentially dilutive securities, and the resulting common share equivalents outstanding as of September 30, 2022 and December 31, 2021:


	September 30, 2022		December 31, 2021
Common share options		7,877		10,504
Restricted stock units		341,984		—
Warrants		—		22,640
Secured notes		—		46,458
Debentures		—		10,135
MPX dilutive instruments (1)		—		408

Total		349,861		90,145

(1)

Prior to the acquisition of MPX Bioceutical Corporation (“MPX”) on February 5, 2019 (the “MPX Acquisition”), MPX had instruments outstanding that were potentially dilutive and as a result of the MPX Acquisition, the Company assumed certain of these instruments which were settled on August 18, 2022 by issuing 408 common shares.

Summary Of Option Activity

The following table summarizes certain information in respect of option activity during the period:


	September 30, 2022							December 31, 2021
	Units			Weighted Average Exercise Price (1)		Weighted Average Contractual Life		Units			Weighted Average Exercise Price (1)		Weighted Average Contractual Life
Options outstanding, beginning		10,504		$	3.61		—		11,510		$	3.55		—
Granted		7,877			0.05		—		—			—		—
Exercised		—			—		—		—			—		—
Cancellations		(7,111	)		3.43		—		—			—		—
Forfeitures		(3,152	)		4.27		—		—			—		—
Expirations		(241	)		0.88		—		(1,006	)		2.89		—

Options outstanding, ending (2)		7,877		$	0.05		7.78		10,504		$	3.61		6.24

(1)	The Original Awards are denominated in Canadian dollars. Exercise prices have been converted to U.S. dollar equivalents using an exchange rate of CAD$1.3707 to $1.00 as of September 30, 2022.

(2)	As of September 30, 2022, 5,252 of the stock options outstanding were exercisable (December 31, 2021 - 9,922).

Summary Of Restricted Stock Units Activity

The following table summarizes certain information in respect of RSU activity during the period:


	September 30, 2022
	Units			Weighted Average Grant Price (1)
Unvested balance, beginning		—		$	—
Granted		417,911			0.10
Vested		(220,018	)		0.10
Forfeited		(75,927	)		0.10

Unvested balance, ending		121,966		$	0.10

(1)	Weighted average grant price is presented in U.S. dollars for the three and nine months ended September 30, 2022, as compared to previously issued financial statements, which present this figure in Canadian dollars.

Summary Of Black Scholes Option Pricing Model

The Company used the Black-Scholes option pricing model to estimate the fair value of the options at the grant date using the following assumptions:


	September 30, 2022			December 31, 2021
Risk-free interest rate		3.8	%		—
Expected dividend yield		0.0	%		—
Expected volatility		128.6	%		—
Expected life		4.3 years			—