| Stock Options [Text Block] |
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11.
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Stock Options
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On September 16, 2015, the Company granted
100,000
stock options to an officer of the Company. The exercise price of the stock options is $0.19, vesting immediately and expiring on September 16, 2020.
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On April 15, 2016, the Company granted
300,000
to an officer of the Company. The exercise price of the stock options is $0.11
per share, vesting immediately and expiring on April 15, 2021.
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For the nine months ended May 31, 2016, the Company recorded a total $80,253
(2015– $242,781) as stock based compensation expense of which $51,642
(2015 - $197,000) pertained to the stock options granted during the period with the remaining being the recognition of expense from previous grants.
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A continuity schedule for stock options is presented below:
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Weighted Average |
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Number of |
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Exercise Price |
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Options |
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$ |
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Balance, August 31, 2014 |
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2,625,000
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0.24
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Expired |
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(1,100,000
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) |
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0.23
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Granted |
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2,175,000
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0.11
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Balance, August 31, 2015 |
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3,700,000
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0.17
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Expired |
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(50,000
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) |
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0.60
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Dividend from forward split |
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375,000
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N/A |
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Issued |
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400,000
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0.13
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Balance, May 31, 2016 |
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4,425,000
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0.16
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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:
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May 31 |
August 31 |
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2016 |
2015 |
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Expected volatility |
240% -
241%
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243% -
249%
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Risk-free interest rate |
1.22% -
1.62%
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1.47% -
1.68%
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Expected life |
5.00
years
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5.00
years
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Dividend yield |
0.00%
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0.00%
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Estimated fair value per option |
$0.11
- $0.19
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$0.08
- $0.10
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A summary of the stock options as at May 31, 2016 is presented below:
| # of Stock |
Weighted |
Weighted |
| Options |
Average |
Average |
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Remaining |
Exercise Price |
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Contractual Life |
$ |
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495,000
*
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0.11
years
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0.35
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440,000
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2.05
years
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0.10
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687,500
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3.15
years
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0.25
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1,567,500
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3.56
years
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0.11
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275,000
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3.68
years
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0.10
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550,000
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3.82
years
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0.10
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110,000
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4.30
years
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0.19
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300,000
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4.88
years
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0.11
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4,425,000
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3.11
years
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0.16
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*
495,000
options expired subsequently
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