Quarterly report pursuant to Section 13 or 15(d)

STOCK OPTIONS

v3.8.0.1
STOCK OPTIONS
9 Months Ended
Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
11.
STOCK OPTIONS
 
The purpose of the Company’s equity incentive plan, is to attract, retain and motivate persons of training, experience and leadership to the Company, including their directors, officers and employees, and to advance the interests of the Company by providing such persons with the opportunity, through share options, to acquire an increased proprietary interest in the Company.
 
Options or other securities may be granted in respect of authorized and unissued shares, provided that the aggregate number of shares reserved for issuance upon the exercise of all options or other securities granted under the Plan shall not exceed 15% of the shares of common stock and Exchangeable Shares issued and outstanding (determined as of January 1 of each year). Optioned shares in respect of which options are not exercised shall be available for subsequent options.
 
On November 24, 2015, the Company granted 650,000 options granted to employees that vest over three years at the anniversary date. The grant date fair value of the options was $694,384. During the year ended March 31, 2016, 250,000 options were cancelled and in the three and nine months ended December 31, 2017, $35,609 and $106,828 in share compensation expense was recognized.
 
On December 14, 2015, the Company granted 2,495,000 options to employees, directors and consultants that vest over three years at the anniversary date. The grant date fair value of the options was $1,260,437. During the years ended March 31, 2016 and 2017, 25,000 options and 40,000 options, respectively, were cancelled, and in the first nine months ended December 31, 2017, 351,667 options were cancelled. On September 1, 2017, 666,667 options that were to vest equally December 14, 2017 and 2018 immediately vested. In the three and nine months ended December 31, 2017 $45,396 and $450,690 in compensation was recognized.
 
On April 21, 2016, the Company granted 3,000,000 stock options to employees of Bionik, Inc., the Company’s wholly-owned subsidiary (formerly IMT) in exchange for 3,895,000 options that existed before the Company purchased IMT of which 1,000,000 have an exercise price of $0.25, 1,000,000 have an exercise price of $0.95 and 1,000,000 have an exercise price of $1.05. The grant date fair value of vested options was $2,582,890 and has been recorded as part of the acquisition equation (Note 3). For options that have not yet vested, share compensation expense in the first three months and the nine months ended December 31, 2017 was $10,169 and $30,508 was recognized.
 
On April 26, 2016, the Company granted 250,000 options to an employee with an exercise price of $1.00 that vests over three years at the anniversary date. The grant date fair value was $213,750. During the three and nine months ended December 31, 2017, $17,813 and $53,438 was recognized as share compensation expense.
 
On August 8, 2016, the Company granted 750,000 options to an employee with an exercise price of $1.00 that vests over three years at the anniversary date. The grant date fair value was $652,068. During the three months and nine months ended December 31, 2017 $54,339 and $163,017 of share compensation expense was recognized.
 
On February 6, 2017, the Company granted 400,000 options to an employee with an exercise price of $0.70 that vests over three years at the anniversary date. The grant date fair value was $245,200. Share compensation expense was recognized for the three and nine months ended December 31, 2017 of $20,433 and $61,300 was recognized.
 
On February 13, 2017, the Company granted 250,000 options to a consultant with an exercise price of $0.68 that vests over one and one-half years, every six months. The grant date fair value was $148,750. During the three months and nine months ended December 31 2017, $12,390 and $37,188 of share compensation expense was recognized.
 
On August 3, 2017, 1,500,000 options at $0.21 to an executive officer, which vest equally over three future years. In addition, this executive officer was also granted up to 500,000 additional performance options based on meeting sales targets for the years ending March 31, 2018 and 2019. The performance options will vest at market price if the performance objectives are met. This grant had a grant date fair value of $387,209 and a share compensation expense of $22,639 and $37,370 was recognized for the three and nine months ended December 31, 2017. These options were valued using the Black-Scholes model and the following inputs: expected life of 7 years, expected volatility 114% and a risk-free rate of 1.73%.
 
On September 1, 2017, the Company granted 12,215,354 options at $0.161 equally to an executive officer and a consultant. 2,035,892 options have vested and 50% of the remaining options vest on performance being met and 50% vest annually over 5 years. The grant date fair value was $1,832,304 and $38,173 and $343,919 is the current expenses for the three and nine months ended December 31, 2017. These options were valued using the Black-Scholes model and the following inputs: expected life of 10 years, expected volatility 114% and a risk-free rate of 1.91%.
 
During the three and nine months ended December 31, 2017, the Company recorded $271,001 and $1,284,257 in share-based compensation related to the vesting of stock options (December 31, 2016 - $227,540 and $592,130).
 
The following is a summary of stock options outstanding and exercisable as of December 31, 2017:
 
Exercise Price ($)
 
Number of Options
 
Expiry Date
 
Exercisable Options
 
 
 
0.165
 
 
264,230
 
April 1, 2021
 
 
264,230
 
 
 
0.23
 
 
97,514
 
June 20, 2021
 
 
97,514
 
 
 
0.23
 
 
1,981,728
 
July 1, 2021
 
 
1,981,728
 
 
 
0.23
 
 
204,471
 
February 17, 2022
 
 
204,471
 
 
 
1.22
 
 
400,000
 
November 24, 2022
 
 
266,667
 
 
 
1.00
 
 
2,078,333
 
December 14, 2022
 
 
1,803,333
 
 
 
0.95
 
 
111,937
 
March 28, 2023
 
 
111,937
 
 
 
1.05
 
 
433,027
 
March 28, 2023
 
 
433,027
 
 
 
1.00
 
 
250,000
 
April 26, 2023
 
 
83,333
 
 
 
1.00
 
 
750,000
 
August 8, 2023
 
 
250,000
 
 
 
0.70
 
 
400,000
 
February 6, 2024
 
 
-
 
 
 
0.68
 
 
250,000
 
February 13, 2024
 
 
166,667
 
 
 
0.95
 
 
31,620
 
March 3, 2024
 
 
31,620
 
 
 
1.05
 
 
122,324
 
March 3, 2024
 
 
122,324
 
 
 
0.95
 
 
15,810
 
March 14, 2024
 
 
15,810
 
 
 
1.05
 
 
61,162
 
March 14, 2024
 
 
61,162
 
 
 
0.95
 
 
82,213
 
September 30, 2024
 
 
82,213
 
 
 
1.05
 
 
318,042
 
September 30, 2024
 
 
318,042
 
 
 
0.95
 
 
7,431
 
June 2, 2025
 
 
7,431
 
 
 
1.05
 
 
28,747
 
June 2, 2025
 
 
28,747
 
 
 
0.25
 
 
906,077
 
July 28, 2025
 
 
906,077
 
 
 
0.95
 
 
671,859
 
July 29, 2025
 
 
671,859
 
 
 
0.25
 
 
66,298
 
December 30, 2025
 
 
49,160
 
 
 
0.95
 
 
49,160
 
December 30, 2025
 
 
27,261
 
 
 
0.21
 
 
2,000,000
 
August 3, 2024
 
 
-
 
 
 
0.161
 
 
12,215,354
 
September 1, 2027
 
 
2,035,892
 
 
 
 
 
 
23,797,337
 
 
 
 
10,025,505
 
 
The weighted-average remaining contractual term of the outstanding options was 7.76 (March 31, 2017 – 5.12) and for the options that are exercisable the weighted average was 6.23 (March 31, 2017 – 6.02)