Quarterly report pursuant to Section 13 or 15(d)

Stock Options

v3.19.1
Stock Options
 6 Months Ended
Feb. 28, 2019
Notes to Financial Statements  
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, and its 2014 Stock Option Plan whereby the board of directors may, from time to time, grant up to 2,157,500 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 2019 Activity

 

The Company granted in the period ending February 28, 2019:

 

Quantity*     Exercise Price $     Life (Years)
390,000     1.27     5
240,000     1.06     5
30,000     1.16     5
660,000            

 

* Options granted vest over a period of three years.

 

Fiscal 2018 Activity

 

The Company granted in the period ending February 28, 2018, 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.

 

A continuity schedule for stock options is presented below:

 

   

Options

Outstanding

    

Weighted Average Exercise Price

$

  
Balance, August 31, 2017     3,320,875       0.15  
Exercised     (545,875 )     0.17  
Granted     2,025,000       1.49  
Balance, August 31, 2018     4,800,000       0.71  
Exercised     (380,000 )     0.14  
Expireds     (275,000 )     0.91  
Granted     660,000       0.83  
Balance, February 28, 2019 (Outstanding)     4,805,000       0.86  
Balance, February 28, 2019 (Exercisable)     4,025,000       0.84  

 

The fair value of compensation options granted was estimated as of the date of the grant by using the Black-Scholes option pricing model with the following assumptions:

 

   

February 28

2019

  
Expected volatility     144 %
Risk-free interest rate     2.89 %
Expected life   5.00 years  
Dividend yield     0.00 %
Estimated fair value per option   $ 1.07  

  

A summary of the stock options as at February 28, 2019, is presented below:

 

Number of

Stock Options

     Number of Stock Options Exercisable    

 

Weighted Average

Remaining Contractual Life

  

Weighted

Average Exercise Price

$

    

Aggregate

Intrinsic Value

$

  
  660,000       660,000     0.81 years   0.10       838,200  
  550,000       550,000     1.07 years   0.09       703,500  
  110,000       110,000     1.55 years   0.17       131,700  
  300,000       300,000     2.13 years   0.11       378,000  
  150,000       150,000     3.26 years   0.37       150,000  
  350,000       150,000     3.31 years   0.29       376,250  
  200,000       200,000     3.76 years   0.83       108,000  
  1,725,000       1,725,000     4.25 years   1.53       -  
  100,000       100,000     4.51 years   2.06       -  
  390,000       80,000     4.75 years   1.27       39,000  
  240,000       -     4.77 years   1.06       74,400  
  30,000       -     4.79 years   1.16       6,300  
  4,805,000       4,025,000     3.18 years   0.86       2,805,350