Quarterly report pursuant to Section 13 or 15(d)

Stock Options

v3.20.1
Stock Options
6 Months Ended
Feb. 29, 2020
Share-based Payment Arrangement [Abstract]  
Stock Options

13.        Stock Options

 

The Company has established its 2007 Equity Incentive Plan, whereby the board of directors may grant up to 412,500 stock options to eligible employees and directors, the 2010 Stock Option Plan whereby the board of directors may, from time to time, grant up to 1,512,500 stock options to officers and employees; the 2014 Stock Option Plan whereby the board of directors may, from time to time, grant up to 1,997,500 stock options to directors, officers, employees, and consultants; and the 2019 Equity Incentive Plan whereby the board of directors may, from time to time, grant up to 7,838,713 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.

 

The Company granted the following options during the quarter ended February 29, 2020:

 

Quantity

 

 

Exercise Price $

 

 

Life (Years)

 

550,000

 

 

 

0.47

 

 

 

5

 

60,000(1)

 

 

 

0.43

 

 

 

5

 

610,000

 

 

 

0.47

 

 

 

 

 

            

(1) Options granted vest 20,000 on grant and 20,000 annually thereafter until fully vested.

 

A continuity schedule for stock options is presented below:

 

 

 

Options

 

 

Weighted Average Exercise Price $

 

 

Weighted Average Remaining Contractual Term 

(Years)

 

Aggregate Intrinsic Value $

Balance August 31, 2018

 

 

4,800,000

 

 

 

0.71

 

 

 

 

 

Cancelled/expired

    (1,415,000

)

    0.66    

Exercised

 

 

(430,000 )

 

 

0.15

 

 

 

 

 

Granted

 

 

2,048,000

 

 

 

1.00

 

 

 

 

 

Balance August 31, 2019

 

 

5,003,000

 

 

 

0.89

 

 

 

 

 

Cancelled/expired

   

(550,000

)    

0.09

         

Exercised

   

(110,000

)    

0.10

         

Granted

 

 

1,610,000

 

 

 

0.54

 

 

 

 

 

Balance February 29, 2020 (Outstanding)

 

 

5,953,000  

 

 

0.88

 

 

3.69

 

  94,510

Balance February 29, 2020 (Exercisable)

 

 

4,397,341

 

 

 

0.94

 

 

3.46

 

  90,910

 

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:
 

 

 

February 29

2020

 

Expected volatility

 

 

95%-96% 

 

Risk-free interest rate

 

 

1.45%—1.68%

 

Expected life

 

 

5 years

 

Dividend yield

 

 

0.00%

 

Estimated fair value per option

 

 

$0.30 - $0.39