The Company has established its 2014 Stock Option Plan whereby the board of directors may, from time to time, grant up to 3,850,000 (post forward stock split) 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 2017 Activity

On October 10, 2016, the Company granted 250,000 stock options to a consultant for business advisory services. The exercise price of the stock options is $0.14 per share, vesting immediately and expiring on October 10, 2018.

On November 1, 2016, a total of 55,000 incentive stock options were exercised for proceeds of $12,500.

During the three months ended November 30, 2016, the Company recorded $27,104 (2015 - $28,410) as stock based compensation of which $17,567 (2015 - $18,873) pertained to the stock options granted during the period with the remaining being the recognition of expense from previous grants.

A continuity schedule for stock options is presented below:

The fair value of options granted during the three months ended November 30, 2016 was estimated as of the date of the grant by using the Black-Scholes option pricing model with the following assumptions:

A summary of the stock options as at November 30, 2016 is presented below: