Quarterly report pursuant to Section 13 or 15(d)

Stock Options

v3.7.0.1
Stock Options
9 Months Ended
May 31, 2017
Stock Options [Text Block]
13.

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 2017 Activity

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.

During the nine months ended May 31, 2017, a total of 959,125 incentive stock options were exercised for proceeds of $164,762.

During the nine months ended May 31, 2017, the Company recorded $36,642 (2016 - $37,948) as stock based compensation of which $17,567 (2016 - $18,873) pertained to the stock options granted during the period with the remaining being the recognition of expense from previous grants.

A continuity schedule for stock options is presented below:

            Weighted  
      Number of     Average Exercise  
      Options     Price  
            $  
  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     0.15  
  Exercised   (959,1250 )   0.17  
  Granted   250,000     0.14  
  Balance, May 31, 2017 (vested and outstanding)   2,775,875     0.12  

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:

      May 31  
      2017  
  Expected volatility   108%  
  Risk-free interest rate   0.83%  
  Expected life   2.00 years  
  Dividend yield   0.00%  
  Estimated fair value per option   $0.07  

A summary of the stock options as at May 31 2017, is presented below:

  # of Stock Options   Weighted     Weighted     Aggregate  
      Average     Average     Intrinsic Value  
      Remaining     Exercise Price        
      Contractual Life     $     $  
  247,500   1.05 years     0.09     69,075  
  303,375   2.15 years     0.23     43,300  
  990,000   2.56 years     0.10     267,300  
  275,000   2.68 years     0.09     76,750  
  550,000   2.82 years     0.09     153,500  
  110,000   3.30 years     0.17     21,700  
  300,000   3.88 years     0.11     78,000  
  2,775,875   2.62 years     0.12     709,625