| Stock Options [Text Block] |
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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
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 2018 Activity
On December 1, 2017, Lexaria granted
200,000
stock options with an exercise price of $0.83
and an expiration date of December 1, 2022 to an officer of the Company, pursuant to an existing management contract.
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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February 28 |
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2018 |
| Expected volatility |
100%
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| Risk-free interest rate |
2.13%
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| Expected life |
5.00
years
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| Dividend yield |
0.00%
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| Estimated fair value per warrant |
$0.61
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A continuity schedule for stock options is presented below:
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Weighted |
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Options |
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Average Exercise |
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Outstanding |
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Price |
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$ |
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Balance, August 31, 2016
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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
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3,320,875
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0.15
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| Exercised |
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(298,375
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) |
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0.19
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| Granted |
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200,000
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0.83
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Balance, February 28, 2018
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3,222,500
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0.18
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A summary of the stock options as at February 28, 2018, is presented below:
| Number of Stock |
Number of Stock |
Weighted |
Weighted |
Aggregate |
| Options |
Options |
Average |
Average |
Intrinsic Value |
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Exercisable |
Remaining |
Exercise Price |
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Contractual Life |
$ |
$ |
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247,500
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247,500
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0.30
years
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0.09
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316,575
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990,000
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990,000
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1.81
years
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0.10
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1,257,300
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275,000
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275,000
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1.93
years
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0.09
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351,750
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550,000
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550,000
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2.07
years
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0.09
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703,500
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110,000
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110,000
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2.55
years
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0.17
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131,700
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300,000
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300,000
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3.13
years
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0.11
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378,000
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200,000
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200,000
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4.26
years
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0.37
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200,000
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350,000
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50,000
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4.31
years
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0.29
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376,250
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200,000
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200,000
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4.76
years
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0.83
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108,000
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3,222,500
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2,922,500
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2.51
years
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0.18
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3,823,075
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