Quarterly report pursuant to Section 13 or 15(d)

STOCK OPTIONS

v3.10.0.1
STOCK OPTIONS
6 Months Ended
Sep. 30, 2018
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 4,334 options granted to employees at an exercise price of $183.00 per share 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, 1,667 options were cancelled and during the three and six month period ended September 30, 2018, $35,609 and $71,219 (September 30, 2017 – $35,609 and $71,218) in stock compensation expense was recognized.
 
On December 14, 2015, the Company granted 16,634 options to employees, directors and consultants at an exercise price of $150 per share 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, 2017 and 2018 and for the six month period ended September 30, 2018, 167 options, 267 options, 2,912 options and 789 options, respectively, were cancelled and for the three and six month period ended September 30, 2018, $36,275 and $77,625 (September 30, 2017 – $298,573 and $396,523) of stock compensation expense was recognized.
 
On April 21, 2016, the Company granted 20,000 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 6,667 have an exercise price
of 
$37.50 per share, 6,667 have an exercise price of $142.50 per share and 16,666 have an exercise price of $157.50 per share. The grant date fair value of vested options was $2,582,890 and has been recorded as part of the original acquisition equation. The options are fully expensed.
 
On April 26, 2016, the Company granted 1,667 options to an employee with an exercise price of $150 per share that vest over three years at the anniversary date. The grant fair value was $213,750. During the three and six months ended September 30, 2018, $17,813 and $35,625 (September 30, 2017- $17,813 and $35,625) was recognized as stock compensation expense.
 
On August 8, 2016, the Company granted 5,000 options to an employee with an exercise price of $150 per share that vest over three years at the anniversary date. The grant fair value was $652,068. The employee left in April 2018 and 3,334 options that had not vested were cancelled and the remaining 1,667 options will expire in November 2018. During the three and six months ended September 30, 2018, $18,113 and $36,226 (September 30, 2017 – $54,339 and $108,678) of stock compensation expense was recognized.
 
On February 6, 2017, the Company granted 2,667 options to an employee with an exercise price of $105.00 per share that vest over three years at the anniversary date. The grant fair value was $245,200. During the three and six months ended September 30, 2018, $20,433 and $40,867 (September 30, 2017 – $20,433 and $40,867) of stock compensation expense was recognized.
 
On February 13, 2017, the Company granted 1,667 options to a consultant with an exercise price of $102.00 per share that vest over one and one-half years, every six months. The grant fair value was $148,750. During the three and six months ended September 30, 2018, $80,425 and $92,821 (September 30, 2017 – $12,396 and $24,792) of stock compensation expense was recognized. These options are now fully vested.
 
On August 3, 2017, 10,000 options with an exercise price of $31.50 per share were granted to an executive officer, which vest equally over three future years. In addition, this executive officer was also granted up to 13,334 additional performance options based on meeting sales targets for the years ended March 31, 2018 and 2019. The grant value was $387,209 and $7,546
was expensed as stock compensation for the three and six months ended September 30, 2018. Th
e executive left in April 2018 and all of these options were cancelled.
 
On September 1, 2017, the Company granted 
81,436 options with an exercise price of $24.15 per share equally to an executive officer and a consultant who is now the Chairman of the Company. Of such options, 13,573 have vested at issuance and
(a) with respect to the executive officer, 50
% of the remaining options vest on performance goals being met and
50
% vest over
5
years, 
and (b) with respect to the Chairman,
the remaining options vest over 5 years.
The grant fair value was $1,832,304 and for the three and six months ended September 30, 2018, $190,865 and $229,037 in stock compensation expense was recognized.
 
On January 24, 2018, the Company granted
24,267
options with an exercise price of $
23.25
per share to employees that vest equally on January 24, 2019, 2020 and 2021, The grant fair value was $
491,036
. During the six month period ended September 30, 2018,
2,834
options were cancelled and for the three and six months ended September 30, 2018, $
37,266
and $
76,968
in stock compensation expense was recognized.
 
On April 20, 2018, the Company granted to an executive officer,
40,000
options with an exercise price of $
9.74
per share that vest immediately with a
10
-year expiry. The Options were valued using the Black-Scholes model and the following inputs were used: expected life of
10
years, expected volatility of
114
% and a risk free rate of
1.59
%. As these options fully vested on the grant date, $
363,714
of stock based compensation was recognized
 during the six months ended September 30, 2018.
 
On June 11, 2018, the Company granted to a newly-hired executive officer
5,000
options with an exercise price of $
6.93
per share that vest over three years from the anniversary of the grant and expire in
7
years. The Options were valued using the Black-Scholes model and the following inputs were used: expected life of 7 years, expected volatility of
114
% and a risk free rate of
1.59
%. The grant fair value was $
30,341
, and $
2,528
and $
3,090
of stock compensation expense was recognized in the three and six months ended September 30, 2018
, respectively.
 During the three and six months ended September 30, 2018, the Company recorded $
439,328
and $
1,034,740
in share-based compensation related to the vesting of stock options (September 30, 2017 – $
762,208
and $
1,013,256)
.
 
The following is a summary of stock options outstanding and exercisable as of September 30, 2018:
 
Exercise Price ($)
 
 
 
         
Number of Options
         
 
 
 
         
Expiry Date
         
 
 
         
Exercisable Options
         
 
 
24.75
 
 
 
1,028
 
 
April 1, 2021
 
 
1,028
 
 
34.50
 
 
 
630
 
 
June 20, 2021
 
 
630
 
 
34.50
 
 
 
13,212
 
 
July 1, 2021
 
 
13,212
 
 
34.50
 
 
 
944
 
 
February 17, 2022
 
 
944
 
 
183.00
 
 
 
2,667
 
 
November 24, 2022
 
 
1,778
 
 
150.00
 
 
 
12,912
 
 
December 14, 2022
 
 
10,889
 
 
142.50
 
 
 
747
 
 
March 28, 2023
 
 
747
 
 
157.50
 
 
 
2,887
 
 
March 28, 2023
 
 
2,887
 
 
150.00
 
 
 
1,667
 
 
April 26, 2023
 
 
1,112
 
 
150.00
 
 
 
1,667
 
 
August 8, 2023
 
 
1,667
 
 
105.00
 
 
 
2,667
 
 
February 6, 2024
 
 
889
 
 
102.00
 
 
 
1,667
 
 
February 13, 2024
 
 
1,667
 
 
142.50
 
 
 
211
 
 
March 3, 2024
 
 
211
 
 
157.50
 
 
 
816
 
 
March 3, 2024
 
 
816
 
 
142.50
 
 
 
43
 
 
March 14, 2024
 
 
43
 
 
157.50
 
 
 
164
 
 
March 14,2024
 
 
164
 
 
142.50
 
 
 
485
 
 
September 30, 2024
 
 
485
 
 
157.50
 
 
 
1,876
 
 
September 30, 2024
 
 
1,876
 
 
142.50
 
 
 
24
 
 
June 2, 2025
 
 
24
 
 
157.50
 
 
 
90
 
 
June 2, 2025
 
 
90
 
 
37.50
 
 
 
442
 
 
December 30, 2025
 
 
442
 
 
142.50
 
 
 
328
 
 
December 30, 2025
 
 
182
 
 
24.15
 
 
 
81,436
 
 
September 1, 2027
 
 
20,360
 
 
23.25
 
 
 
22,434
 
 
January 24, 2025
 
 
-
 
 
9.735
 
 
 
40,000
 
 
April 19, 2028
 
 
40,000
 
 
6.93
 
 
 
5,000
 
 
June 10, 2025
 
 
-
 
 
 
 
 
 
196,044
 
 
 
 
 
102,143
 
 
The weighted-average remaining contractual term of the outstanding options was
7.53
(March 31, 2018 –
5.81)
and for the options that are exercisable the weighted average was
7.15
(March 31, 2018 –
5.70)
.