Common Shares and Warrants |
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Common Shares and Warrants |
11. Common Shares and Warrants
During the quarter ended November 30, 2023, the Company completed the following issuances of common shares and warrants:
A continuity schedule for warrants for the three months ended November 30, 2023, is presented below:
A summary of warrants outstanding as of November 30, 2023, is presented below:
Stock Options
The Company has established an Equity Incentive Plan which was most recently amended by the Company’s shareholders on May 9, 2023. Pursuant to the amendments, the Equity Incentive Plan now has an evergreen formula, whereby on January 1 each year commencing January 1, 2024, the number of shares issuable pursuant to the Equity Incentive Plan may be increased to a number equal to up to 10% of the issued share capital on December 31 of the previous year. The Company is currently in the process of preparing its S-8 Registration Statement to register an additional 527,111 common shares issuable pursuant to the Equity Incentive Plan, for an aggregate 1,037,544 common shares issuable under the Equity Incentive Plan. Stock options currently 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.
A continuity schedule for stock options is presented below:
On October 26, 2023, the Company granted 85,000 options to its officers and employees with an exercise price of $1.15 and a term of 5 years. The fair value of stock options granted in the three-months ended November 30, 2023, were estimated as of the date of the grant by using the Black-Scholes option pricing model with the following assumptions:
Stock-based compensation expense for the three-month periods ended November 30, 2023, and November 30, 2022, totaled $53,953 and $68,776, respectively. The expense for the three months ended November 30, 2023, relates entirely to options awarded during the quarter.
As of November 30, 2023, the total unrecognized non-cash compensation costs are $39,117 related to 11,750 non-vested stock options with a $3.27 weighted average price. These costs are expected to be recognized over a weighted average period of 0.32 years. All non-vested options are attributable to employees. |