Stock Options [Text Block] |
12.
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Stock Options
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The Company has established its 2014 Stock Option Plan whereby the board of directors may, from time to time, grant up to
3,850,000
(post forward stock split) stock options to directors, officers, employees, and consultants. Stock options granted must be exercised no later than five years from the date of grant or such lesser period as determined by the Company’s 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 vesting terms of each grant are set by the board of directors.
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Fiscal 2017 Activity
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On October 10, 2016, the Company granted
250,000
stock options to a consultant for business advisory services. The exercise price of the stock options is $0.14
per share, vesting immediately and expiring on October 10, 2018.
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On June 2, 2017, the Company granted
200,000
stock options to an officer of the Company. The exercise price of the stock options is $0.37
per share, vesting immediately and expiring five years from the date of grant.
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On June 21, 2017, the Company granted
300,000
stock options to a consultant,
100,000
vesting annually for
3
years, with an exercise price of $0.295
and expiring five years from the date of grant. The company also granted
100,000
options to consultants vesting immediately with an exercise price of $0.295
and expiring five years from the date of grant.
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During the year ended August 31, 2017, the Company also recorded $113,044
of stock based compensation in Consulting on the Income Statement of which $93,969
pertained to the stock options granted during the period and $19,075
being the recognition of expense from previous grants amortized from prepaid expenses. In 2016 the Company recorded $92,270
of stock based compensation in Consulting and $29,745
in Investor Relations on the Income Statement.
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Fiscal 2016 Activity
On September 16, 2015, the Company granted
110,000
stock options to a director of the Company. The exercise price of the stock options is $0.17, vesting immediately and expiring on September 16, 2020.
On April 15, 2016, the Company granted
300,000
to an officer of the Company. The exercise price of the stock options is $0.11
per share, vesting immediately and expiring on April 15, 2021.
On June 3, 2016, the Company granted
325,000
stock options to a consultant, vesting immediately, with an exercise price of $0.14
and expiring five years from the date of grant.
A continuity schedule for stock options is presented below:
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Weighted Average |
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Number of Options |
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Exercise Price |
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$ |
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Balance, August 31, 2015 (vested and outstanding) |
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4,070,000
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0.15
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Expired |
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(385,000
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) |
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0.32
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Cancelled |
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(935,000
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) |
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0.16
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Granted |
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735,000
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0.13
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Balance, August 31, 2016 (vested and outstanding) |
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3,485,000
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0.15
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Exercised |
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(1,014,125
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) |
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0.17
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Granted |
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850,000
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0.14
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Balance, August 31, 2017 (outstanding) |
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3,320,875
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0.15
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Balance, August 31, 2017 (exercisable) |
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3,020,875
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0.14
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The fair value of options granted was estimated as of the date of the grant by using the Black-Scholes option pricing model with the following assumptions:
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August 31 |
August 31 |
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2017 |
2016 |
Expected volatility |
98% -
108%
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240% -
241%
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Risk-free interest rate |
0.83% -
1.78%
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1.22% -
1.62%
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Expected life |
2
-
5
years
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5
years
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Dividend yield |
0.00%
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0.00%
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Estimated fair value per option |
$0.07
- $0.27
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$0.11
- $0.19
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A summary of the Company’s vested and outstanding stock options as at August 31, 2017 is presented below:
Number of |
Number of Stock |
Weighted |
Weighted |
Aggregate |
Stock Options |
Options |
Average |
Average |
Intrinsic Value |
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Exercisable |
Remaining |
Exercise Price |
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Contractual Life |
$ |
$ |
247,500
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247,500
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0.80
years
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0.09
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64,125
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248,375
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248,375
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1.90
years
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0.23
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30,482
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990,000
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990,000
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2.31
years
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0.10
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247,500
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275,000
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275,000
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2.43
years
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0.09
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71,250
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550,000
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550,000
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2.57
years
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0.09
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142,500
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110,000
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110,000
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3.05
years
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0.17
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19,500
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300,000
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300,000
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3.62
years
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0.11
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72,000
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200,000
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200,000
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4.76
years
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0.37
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(4,000)
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400,000
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100,000
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4.81
years
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0.30
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22,000
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3,320,875
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3,020,875
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2.81
years
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0.15
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665,357
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