Quarterly report pursuant to Section 13 or 15(d)

Stock Options

v2.4.1.9
Stock Options
 6 Months Ended
Feb. 28, 2015
Stock Options [Text Block]
12.

Stock Options

During the period ended February 28, 2015, 1,425,000 stock options were granted on December 22, 2014 to Directors, Officers and consultants. The exercise price of the stock options is $0.11, 1,125,000 vesting immediately, 100,000 vesting in six month, and 100,000 vesting in 12 months expiring on December 22, 2019.

On February 4, 2015, the Company granted 250,000 stock options to consultants with an exercise price of $0.10, vesting immediately, expiring February 3, 2020.

For the six months ended February 28, 2015, the Company recorded $174,720 (February 28, 2014 – $Nil) stock based compensation expenses which has been included in consulting fees.

A summary of the changes in stock options for the six months ended February 28, 2015 is presented below:

      Options Outstanding  
            Weighted  
            Average  
      Number     Exercise  
      of Shares     Price  
     Balance, August 31, 2014   2,625,000   $ 0.24  
     Expired   (950,000 )   0.20  
     Granted   1,675,000     0.11  
     Balance, February 28, 2015   3,350,000   $ 0.20  

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

    February 28, August 31,
    2015 2014
  Expected volatility 243% 219%
  Risk-free interest rate 1.68% 1.72%
  Expected life 5.00 years 5.00 years
  Dividend yield 0.00% 0.00%
  Estimated fair value per option $0.09 - $0.05 -

A summary of the stock options as at ended February 28, 2015 is presented below:

  February 28, 2015   Options outstanding     Options exercisable  
  Range of Exercise   Number of     Weighted average     Weighted average     Number of     Weighted average  
  prices   shares     remaining contractual life     exercise price     shares     exercise price  
  $0.20   150,000     0.46 years   $ 0.20     150,000   $ 0.20  
  $0.35   450,000     1.36years   $ 0.35     450,000   $ 0.35  
  $0.10   400,000     3.30 years   $ 0.20     400,000   $ 0.10  
  $0.60   50,000     4.07 years   $ 0.60     50,000   $ 0.60  
  $0.25   625,000     4.40 years   $ 0.25     625,000   $ 0.25  
  $0.11   1,425,000     4.82 years   $ 0.11     1,225,000   $ 0.11  
  $0.10   250,000     4.93 years   $ 0.10     250,000   $ 0.10  
  Total   3,350,000     2.26 years   $ 0.20     3,150,000   $ 0.20