General form of registration statement for all companies including face-amount certificate companies

STOCK OPTIONS

v3.10.0.1
STOCK OPTIONS
6 Months Ended 12 Months Ended
Sep. 30, 2018
Mar. 31, 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 6,666 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
)
.
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 issued 4,334 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, 1,667 options were cancelled and stock compensation expense of $62,317 was recognized. During the year ended March 31, 2018, $142,438, (March 31, 2017 -$142,438) in stock compensation expense was recognized.
 
On December 14, 2015, the Company issued 16,634 options granted 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 year ended March 31, 2016, 167 options were cancelled and for the year ended March 31, 2017, 267 options were cancelled and for the year ended March 31, 2018, 2,912 options were cancelled, and the year ended March 31, 2018, $479,315, (March 31, 2017 - $407,208) of stock compensation expense was recognized.
 
On April 21, 2016, the Company issued 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 6.666 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 acquisition equation (Note 4). For options that have not yet vested $29,524, (March 31, 2017 -$102,989) has been recognized as stock compensation expense.
 
On April 26, 2016, the Company issued 1,667 options to an employee with an exercise price of $150.00 per share that will vest over three years at the anniversary date. The grant fair value was $213,750. During the year ended March 31, 2018, $71,250, (March 31, 2017 - $66,104) was recognized as stock compensation expense.
 
On August 8, 2016, the Company issued 5,000 options to an employee with an exercise price of $150.00 per share that will vest over three years at the anniversary date. The grant fair value was $652,068. During the year ended March 31, 2018, $217,356, (March 31, 2017 -$140,230) of stock compensation expense was recognized.
 
On February 6, 2017, the Company issued 2,667 options to an employee with an exercise price of $105.00 per share that will vest over three years at the anniversary date. The grant fair value was $245,200. During the year ended March 31, 2018, $81,733, (March 31, 2017 - $12,163) of stock compensation expense was recognized.
 
On February 13, 2017, the Company issued 1,667 options to a consultant with an exercise price of $102.00 per share that will vest over one and one- half years, every six months. The grant fair value was $148,750. During the year ended March 31, 2018, $49,583, (March 31, 2017 -$6,345) of stock compensation expense was recognized.
 
On August 3, 2017, 10,000 options at $31.50 per share to an executive officer, which vest equally over three future years. In addition, this executive officer was also granted up to 3,334 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 $60,371 was recognized for the year ended March 31, 2018. 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 81,436 options at $24.15 per share equally to an executive officer and a consultant. 13,573 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 $381,730 is the current expense for the year ended March 31, 2018. 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%.
 
 
On January 24, 2018, the Company granted 24,267 options at $23.25 per share to employees that vest equally on January 24, 2019, 2020 and 2021. The grant fair value was $491,036 and $27,280 is the current stock compensation expense for the year ended March 31, 2018. 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 year ended March 31, 2018, the Company recorded $1,540,580 in share-based compensation related to the vesting of stock options (March 31, 2017 - $844,162).
 
The following is a summary of stock options outstanding and exercisable as of March 31, 2018:
 
These options at their respective grant dates were valued using the Black-Scholes option pricing model with the following key assumptions:
 
   
Expected life
   
Risk free
   
Dividend
   
Forfeiture
   
Expected
   
Grant date
 
Grant date
 
in years
   
rate
   
rate
   
rate
   
volatility
   
fair value
 
February 17, 2015     3.89       1.59 %     0 %     0 %     114 %   $ 136,613  
July 1, 2014     3.25       1.59 %     0 %     0 %     114 %   $ 1,259,487  
June 20, 2014     3.22       1.59 %     0 %     0 %     114 %   $ 118,957  
April 1, 2014     3.01       1.59 %     0 %     0 %     114 %   $ 230,930  
November 24, 2015     4.65       1.59 %     0 %     0 %     114 %   $ 694,384  
December 14, 2015     4.71       1.59 %     0 %     0 %     114 %   $ 1,260,437  
April 21, 2016     6.11       1.59 %     0 %     0 %     114 %   $ 2,582,890  
April 26, 2016     5.07       1.59 %     0 %     0 %     114 %   $ 213,750  
August 8, 2016     5.36       1.59 %     0 %     0 %     114 %   $ 652,068  
February 6, 2017     5.86       1.59 %     0 %     0 %     114 %   $ 245,200  
February 13, 2017     5.88       1.59 %     0 %     0 %     114 %   $ 148,750  
August 3, 2017     6.35       1.59 %     0 %     0 %     114 %   $ 387,209  
September 1, 2017     9.43       1.59 %     0 %     0 %     114 %     1,832,304  
January 24, 2018     6.82       1.59 %     0 %     0 %     114 %   $ 491,036  
 
         
Weighted-Average
 
   
Number of Options
   
Exercise Price ($)
 
Outstanding, March 31, 2017
    66,024       88.50  
Issued     119,036       23.25  
Exercised     -       -  
Expired     -       -  
Cancelled     (14,385 )     97.50  
Outstanding, March 31, 2018
    170,675       75.00  
 
 
The following is a summary of stock options outstanding and exercisable as of March 31, 2018:
 
Exercise Price ($)
 
Number of Options
   
Expiry Date
 
Exercisable Options
 
24.75     1,762     April 1, 2021     1,762  
34.50     651     June 20, 2021     651  
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     13,289     December 14, 2022     11,178  
142.50     747     March 28, 2023     747  
157.50     2,887     March 28, 2023     2,887  
150.00     1,667     April 26, 2023     556  
150.00     5,000     August 8, 2023     1,667  
105.00     2,667     February 6, 2024     889  
102.00     1,667     February 13, 2024     1,111  
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     23     June 2, 2025     23  
157.50     90     June 2, 2025     90  
37.50     442     December 30, 2025     442  
142.50     328     December 30, 2025     182  
31.50     13,334     August 3, 2024     -  
24.15     81,436     September 1, 2027     13,573  
23.25     24,267     January 24, 2025     -  
      170,675           55,287  
 
The weighted-average remaining contractual term of the outstanding options is 7.46 (March 31, 2017 – 5.12) and for the options that are exercisable the weighted average is 5.74 (March 31, 2017 – 6.02).
 
Reclassification of Fair Value
 
As the Company does not have sufficient authorized shares of common stock to cover its options issued, a valuation of these options was done at March 31, 2018 and the resulting liability of $1,451,393 has been recorded in the consolidated balance sheet as shares to be issued, stock options and warrants.
 
Grant Date
 
Expected Life
   
Risk Free

rate
   
Dividend

rate
   
Forfeiture

Rate
   
Expected

Volatility
   
Remeasured

Fair Value
 
February 17, 2015     3.89       1.59 %     0 %     0 %     135 %   $ 7,122  
July 1, 2014     3.25       1.59 %     0 %     0 %     135 %   $ 90,472  
June 20, 2014     3.22       1.59 %     0 %     0 %     135 %   $ 4,428  
April 1, 2014     3.01       1.59 %     0 %     0 %     135 %   $ 12,437  
November 24, 2015     4.65       1.59 %     0 %     0 %     135 %   $ 16,327  
December 14, 2015     4.71       1.59 %     0 %     0 %     135 %   $ 85,833  
April 21, 2016     6.39       1.59 %     0 %     0 %     118 %   $ 53,853  
April 26, 2016     5.07       1.59 %     0 %     0 %     114 %   $ 11,430  
August 8, 2016     5.36       1.59 %     0 %     0 %     114 %   $ 35,722  
February 6, 2017     5.86       1.59 %     0 %     0 %     114 %   $ 16,969  
February 13, 2017     5.88       1.59 %     0 %     0 %     114 %   $ 10,703  
August 3, 2017     6.35       1.59 %     0 %     0 %     114 %   $ 109,970  
September 1, 2017     9.43       1.59 %     0 %     0 %     114 %   $ 782,966  
January 24, 2018     6.82       1.59 %     0 %     0 %     114 %   $ 213,161  
                                              1,451,393