Quarterly report pursuant to Section 13 or 15(d)

Common Shares, Warrants and Options

v3.23.1
Common Shares, Warrants and Options
 6 Months Ended
Feb. 28, 2023
Common Shares, Warrants and Options  
Common Shares, Warrants and Options

11.  Common Shares, Warrants and Options

 

There was no change to our issued and outstanding shares during the six-months ended February 28, 2023.

 

During the six months ended February 28, 2023, no warrants were issued or exercised.

 

A continuity schedule for warrants for the six months ended February 28, 2023, is presented below:

 

 

 

Number of Warrants

 

 

Weighted Average Exercise Price

 

Balance August 31, 2022

 

 

 2,421,983

 

 

 $ 8.04

 

Cancelled/expired

 

 

 (7,500 )

 

 $ 24.00

 

Balance February 28, 2023

 

 

 2,414,483

 

 

 $ 7.99

 

A summary of warrants outstanding as of February 28, 2023, is presented below:

 

Number of

Warrants

 

 

Weighted Average Exercise Price

 

 

Weighted Average Remaining Contractual Life (years)

 

 

 

 

60,798

 

 

 $ 36.00

 

 

1.71 - 1.75

 

 

317,190

 

 

 $ 10.50

 

 

 

2.19

 

 

116,667

 

 

 $ 9.00

 

 

1.13 - 2.05

 

 

200,000

 

 

 $ 7.00

 

 

 

1.13

 

 

1,719,828

 

 

 $ 6.58

 

 

 

2.88

 

 

2,414,483

 

 

 $ 7.99

 

 

 

2.54

 

 

Stock Options

 

The Company has established an Equity Incentive Plan whereby the board of directors may grant up to 510,433 stock options to directors, officers, employees, and consultants. Stock options granted must be exercised within five years from the date of grant or such lesser period as determined by the Company’s board of directors. The vesting terms of each grant are also set by the board of directors. The exercise price of an option is equal to or greater than the closing market price of the Company’s common shares on the day preceding the date of grant.

 

The Company granted the following options during the six months ended February 28, 2023:

 

Options

 

 

Weighted Average Exercise Price

 

 

Contractual Life

(years)

 

 

41,200

 

 

 $

1.96

 

 

 

5

 

 

5,000

 

 

 $

2.73

 

 

 

5

 

 

3,400

 

 

 $

3.04

 

 

 

5

 

Total

49,600

 

 

 $

2.11

 

 

 (Avg. Remaining Life) 4.64

 

 

A continuity schedule for stock options is presented below:

 

 

 

Options

 

 

Weighted

Average Exercise

Price

 

 

Weighted Average Remaining Contractual

Term (years)

 

 

Aggregate

Intrinsic

Value

 

Balance August 31, 2021

 

 

 206,170

 

 

 $ 8.90

 

 

 

 

 

 

 

Cancelled/expired

 

 

 (3,334 )

 

 

 9.60

 

 

 

 

 

 

 

Granted

 

 

 222,000

 

 

 

 4.21

 

 

 

 

 

 

 

Balance August 31, 2022

 

 

 424,836

 

 

 

 6.45

 

 

 

 3.69

 

 

 $ 5,175

 

Granted

 

 

 49,600

 

 

 

 2.11

 

 

 

 4.64

 

 

 

 55,748

 

Balance February 28, 2023 (granted)

 

 

 474,436

 

 

 $ 5.32

 

 

 

 3.68

 

 

 $ 90,938

 

Balance February 28, 2023 (exercisable)

 

 

 446,936

 

 

 $ 5.38

 

 

 

 3.68

 

 

 $ 41,200

 

The fair value of stock options granted in the six months ended February 28, 2023 were estimated as of the date of the grant by using the Black-Scholes option pricing model with the following assumptions:

 

Expected volatility

 

98%-119

% 

Risk-free interest rate

 

0.75-4.12

% 

Expected life

 

5 years

 

Dividend yield

 

 

 0 %

Estimated fair value per option

 

$1.60 - $2.58

 

 

As of February 28, 2023, the total unrecognized non-cash compensation costs are $95,369 related to 27,500 non-vested stock options with a weighted average price of $4.40. These costs are expected to be recognized over a weighted average period of 0.37 years.  All non-vested options are attributable to employees.