15.

Stock Options

The Company has established the 2014 Stock Option Plan whereby the board of directors may, from time to time, grant up to 62,917 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 261,290 stock options to directors, officers, employees, and consultants. Stock options granted must be exercised within 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 May 31, 2021:

Quantity

12,000

43,500

26,000

81,500

A continuity schedule for stock options is presented below:

Balance August 31, 2019

Cancelled/expired

Exercised

Granted

Balance August 31, 2020

Cancelled

Granted

Balance May 31, 2021 (Outstanding)

Balance May 31, 2021 (Exercisable)

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

Expected volatility

Risk-free interest rate

Expected life

5 years

Dividend yield

Estimated fair value per option