| Stock Options [Text Block] |
|
12.
|
Stock Options
|
| |
|
| |
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.
|
| |
|
| |
Fiscal 2015 Activity
|
| |
|
| |
On December 22, 2014, the Company granted
1,567,500
stock options to certain directors, officers and consultants, with
1,347,500
vesting immediately,
110,000
vesting in six months, and
110,000
vesting in
12
months. The options have an exercise price of $0.10
per share and expire on December 22, 2019.
|
| |
|
| |
On February 4, 2015, the Company granted
275,000
stock options to consultants with an exercise price of $0.09, vesting immediately, expiring February 3, 2020.
|
| |
|
| |
On March 26, 2015, the Company granted
550,000
stock options to an officer of the Company. The exercise price of the stock options is $0.09, vesting immediately and expiring on March 26, 2020.
|
| |
|
| |
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.
|
During the year ended August 31, 2016, the Company recorded a total $122,015
(2015– $256,051) as stock based compensation expense of which $83,865
(2015 - $200,734) pertained to the stock options granted during the year with the remaining being the recognition of expense from previous grants.
A continuity schedule for stock options is presented below:
| |
|
|
|
|
|
Weighted Average |
|
| |
|
|
Number of |
|
|
Exercise Price |
|
| |
|
|
Options |
|
|
$ |
|
| |
Balance, August 31, 2014 (vested and outstanding) |
|
2,887,500
|
|
|
0.22
|
|
| |
Expired |
|
(1,210,000
|
) |
|
0.21
|
|
| |
Granted |
|
2,392,500
|
|
|
0.10
|
|
| |
Balance, August 31, 2015 (vested and outstanding) |
|
4,070,000
|
|
|
0.15
|
|
| |
Expired |
|
(385,000
|
) |
|
0.32
|
|
| |
Cancelled |
|
(935,000
|
) |
|
0.16
|
|
| |
Granted |
|
735,000
|
|
|
0.13
|
|
| |
Balance, August 31, 2016 (vested and outstanding) |
|
3,485,000
|
|
|
0.13
|
|
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:
| |
August 31 |
August 31 |
| |
2016 |
2015 |
| Expected volatility |
240% -
241%
|
243% -
249%
|
| Risk-free interest rate |
1.22% -
1.62%
|
1.47% -
1.66%
|
| Expected life |
5.00
years
|
5.00
years
|
| Dividend yield |
0.00%
|
0.00%
|
| Estimated fair value per option |
$0.11
- $0.19
|
$0.08
- $0.10
|
A summary of the Company’s vested and outstanding stock options as at August 31, 2016 is presented below:
| # of Stock |
Weighted |
|
Weighted |
|
|
Aggregate |
|
| Options |
Average |
|
Average |
|
|
Intrinsic Value |
|
| |
Remaining |
|
Exercise Price |
|
|
|
|
| |
Contractual Life |
|
$ |
|
|
$ |
|
|
247,500
|
1.80
years
|
|
0.09
|
|
|
4,950
|
|
|
660,000
|
2.90
years
|
|
0.23
|
|
|
(85,800
|
) |
|
1,017,500
|
3.31
years
|
|
0.10
|
|
|
10,175
|
|
|
275,000
|
3.43
years
|
|
0.09
|
|
|
5,500
|
|
|
550,000
|
3.57
years
|
|
0.09
|
|
|
11,000
|
|
|
110,000
|
4.05
years
|
|
0.17
|
|
|
(7,700
|
) |
|
300,000
|
4.62
years
|
|
0.11
|
|
|
3,000
|
|
|
325,000
|
4.76
years
|
|
0.14
|
|
|
(6,500
|
) |
|
3,485,000
|
3.45
years
|
|
0.13
|
|
|
(65,375
|
) |
|