Quarterly report pursuant to Section 13 or 15(d)

Stock Options

v3.19.2
Stock Options
9 Months Ended
May 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [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, 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, the 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.
  

Fiscal 2019 Activity

 

The Company granted in the period ending May 31, 2019:

 

Quantity

 

 

Exercise Price $

 

 

Life (Years)

 

390,000(1)

 

 

1.27

 

 

 

5

 

240,000(1)

 

 

1.06

 

 

 

5

 

30,000(1)

 

 

1.16

 

 

 

5

 

350,000

 

 

 

0.99

 

 

 

5

 

440,000(1)

 

 

0.99

 

 

 

5

 

48,000(1)

 

 

0.96

 

 

 

5

 

1,498,000

 

 

 

1.08

 

 

 

 

 

 

(1)Options granted vest over a period of three years.

 

Fiscal 2018 Activity

 

The Company granted in the period ending May 31, 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 and stock options with an exercise price of $1.53 to directors, officers, employees and consultants that enable the option holders to purchase up to 1,725,000 common shares of the Company.

 

A continuity schedule for stock options is presented below:

 

 

 

Options

 

 

Weighted

Average 
Exercise Price

$

 

 

Weighted Average Remaining Contractual Term

 

Aggregate 
Intrinsic Value

 

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

 

 

 

 

 

 

Expired

 

 

(1,415,000 )

 

 

0.66

 

 

 

 

 

 

Exercised

 

 

(380,000 )

 

 

0.14

 

 

 

 

 

 

Granted

 

 

1,498,000

 

 

 

1.08

 

 

 

 

 

 

Balance, May 31, 2019 (Outstanding)

 

 

4,503,000

 

 

 

0.90

 

 

3.38 years

 

$ 1,195,075

 

Balance, May 31, 2019 (Exercisable)

 

 

3,721,000

 

 

 

0.91

 

 

3.20 years

 

$ 1,195,075

 

 

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:

 

 

 

May 31

2019

 

Expected volatility

 

103% - 144%

 

Risk-free interest rate

 

2.19% - 2.89%

 

Expected life

 

5.00 years

 

Dividend yield

 

 

0.00%

Estimated fair value per option

 

$0.73 - $1.07