Annual report pursuant to Section 13 and 15(d)

STOCK OPTIONS

v3.19.2
STOCK OPTIONS
12 Months Ended
Mar. 31, 2019
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 issued 4,334 options granted to employees that vest at an exercise price of $183.00 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. During the year ended March 31, 2019, $92,585, (March 31, 2018 -$142,438) in stock compensation expense was recognized and these options are now fully expensed.
 
On December 14, 2015, the Company issued 16,634 options granted to employees, directors and consultants at an exercise price of $150 that vest over three years at the anniversary date. The grant date fair value of the options was $1,260,437. In years previous to March 31, 2018, 434 options were cancelled. For the year ended March 31, 2019 1,889 options were cancelled (March 31, 2018 - 2,912), $105,121, (March 31, 2018 - $479,315) of stock compensation expense was recognized and these options are now fully expensed.
 
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 in fiscal 2016, $Nil (March 31, 2018 -$29,524) has been recognized as stock compensation expense for the year ended March 31, 2019. These options are now fully expensed.
 
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, 2019 557 options were cancelled (March 31, 2018 – Nil) and $63,333 (March 31, 2018 - $71,250) 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, 2019, $48,301, (March 31, 2018 -$217,356) of stock compensation expense was recognized, 3,335 of the options were cancelled during the year ended March 31, 2019 as a result of this employee leaving.
 
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, 2019, $81,733 (March 31, 2018 - $81,733) 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, 2019, $92,821, (March 31, 2018 -$49,583) of stock compensation expense was recognized and these options are now fully expensed.
 
On August 3, 2017, 13,334 options at $31.50 per share to an executive officer, which vest equally over three years. In addition, this executive officer was also granted up to 10,000 additional performance options based on meeting sales targets for the years ended 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 $7,546 (March 31,2018 - $60,371) was recognized as share compensation expense for the year ended March 31, 2019. This officer left in April 2018 and all options were cancelled.
 
On September 1, 2017, the Company granted 81,436 options at $24.15 per share equally to an executive officer and a consultant, who is now the Chairman of the Company. 27,148 options have vested and 50% of the remaining options vest on performance being met and 50% vest annually over 5 years for the CEO, for our Chairman the options vest over 5 years. The grant date fair value was $1,832,304 and $343,557 is the current expense for the year ended March 31, 2019. (March 31, 2018 - $381,730)
 
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. 7,334 options were cancelled for the year ended March 31, 2019 (March 31, 2018 - $Nil). The grant fair value was $491,036 and $140,540 is the current stock compensation expense for the year ended March 31, 2019. (March 31, 2018 - $27,280)
 
On April 30, 2018, the Company granted to an executive officer, 40,000 options with an exercise price of $9.74 that vest immediately with a 10-year expiry. These options were valued using the Black Scholes model and the following inputs were used: expected life 10 years, expected volatility 114% and a risk-free rate of 1.59%. As these options vested immediately as of the grant date and $363,714 of stock compensation expense was recorded for the year ended March 31, 2019.
 
On June 11, 2018, the Company granted to a sales 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 $8,147 of stock compensation was recognized for year ended March 31, 2019.
 
During the year ended March 31, 2019, the Company recorded $1,347,399 in share-based compensation related to the vesting of stock options (March 31, 2018 - $1,540,580).
 
The following is a summary of stock options outstanding and exercisable as of March 31, 2019.
 
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
 
 
2.89
 
 
 
1.59
%
 
 
0
%
 
 
0
%
 
 
114
%
 
$
136,613
 
July 1, 2014
 
 
2.25
 
 
 
1.59
%
 
 
0
%
 
 
0
%
 
 
114
%
 
$
1,259,487
 
June 20, 2014
 
 
2.22
 
 
 
1.59
%
 
 
0
%
 
 
0
%
 
 
114
%
 
$
118,957
 
November 24, 2015
 
 
3.65
 
 
 
1.59
%
 
 
0
%
 
 
0
%
 
 
114
%
 
$
694,384
 
December 14, 2015
 
 
3.71
 
 
 
1.59
%
 
 
0
%
 
 
0
%
 
 
114
%
 
$
1,260,437
 
April 21, 2016
 
 
5.11
 
 
 
1.59
%
 
 
0
%
 
 
0
%
 
 
114
%
 
$
2,582,890
 
April 26, 2016
 
 
4.07
 
 
 
1.59
%
 
 
0
%
 
 
0
%
 
 
114
%
 
$
213,750
 
February 6, 2017
 
 
4.86
 
 
 
1.59
%
 
 
0
%
 
 
0
%
 
 
114
%
 
$
245,200
 
February 13, 2017
 
 
4.88
 
 
 
1.59
%
 
 
0
%
 
 
0
%
 
 
114
%
 
$
148,750
 
September 1, 2017
 
 
8.43
 
 
 
1.59
%
 
 
0
%
 
 
0
%
 
 
114
%
 
$
1,832,304
 
January 24, 2018
 
 
5.82
 
 
 
1.59
%
 
 
0
%
 
 
0
%
 
 
114
%
 
$
491,036
 
April 30, 2018
 
 
9.06
 
 
 
1.59
%
 
 
0
%
 
 
0
%
 
 
114
%
 
$
363,714
 
June 11, 2018
 
 
6.20
 
 
 
1.59
%
 
 
0
%
 
 
0
%
 
 
114
%
 
$
30,341
 
 
 
 
Number of

Options
 
 
Weighted-Average

Exercise Price
 
Outstanding, March 31, 2018
 
 
170,675
 
 
 
75.00
 
Issued
 
 
45,000
 
 
 
9.42
 
Cancelled
 
 
(32,679
)
 
 
65.93
 
Outstanding, March 31, 2019
 
 
182,996
 
 
 
37.73
 
 
The following is a summary of stock options outstanding and exercisable as of March 31, 2019:
  
Exercise Price ($)
 
 
Number of Options
 
 
Expiry Date
 
Exercisable Options
 
 
34.500
 
 
 
630
 
 
20-Jun-21
 
 
630
 
 
34.500
 
 
 
13,212
 
 
01-Jul-21
 
 
13,212
 
 
34.500
 
 
 
944
 
 
17-Feb-22
 
 
944
 
 
183.000
 
 
 
2,667
 
 
24-Nov-22
 
 
2,667
 
 
150.000
 
 
 
11,400
 
 
14-Dec-22
 
 
11,400
 
 
142.500
 
 
 
359
 
 
28-Mar-23
 
 
359
 
 
157.500
 
 
 
1,387
 
 
28-Mar-23
 
 
1,387
 
 
150.000
 
 
 
1,112
 
 
26-Apr-23
 
 
1,112
 
 
105.000
 
 
 
2,667
 
 
06-Feb-24
 
 
1,778
 
 
102.000
 
 
 
1,667
 
 
13-Feb-24
 
 
1,667
 
 
142.500
 
 
 
106
 
 
03-Mar-24
 
 
106
 
 
157.500
 
 
 
408
 
 
03-Mar-24
 
 
408
 
 
142.500
 
 
 
43
 
 
14-Mar-24
 
 
43
 
 
157.500
 
 
 
164
 
 
14-Mar-24
 
 
164
 
 
142.500
 
 
 
485
 
 
30-Sep-24
 
 
485
 
 
157.500
 
 
 
1,876
 
 
30-Sep-24
 
 
1,876
 
 
142.500
 
 
 
24
 
 
02-Jun-25
 
 
24
 
 
157.500
 
 
 
90
 
 
02-Jun-25
 
 
90
 
 
37.500
 
 
 
221
 
 
30-Dec-25
 
 
221
 
 
142.500
 
 
 
164
 
 
30-Dec-25
 
 
164
 
 
24.150
 
 
 
81,436
 
 
01-Sep-27
 
 
27,148
 
 
23.250
 
 
 
16,934
 
 
24-Jan-25
 
 
5,867
 
 
9.735
 
 
 
40,000
 
 
19-Apr-28
 
 
40,000
 
 
6.930
 
 
 
5,000
 
 
10-Jun-25
 
 
-
 
 
 
 
 
 
182,996
 
 
 
 
 
111,752
 
 
The weighted-average remaining contractual term of the outstanding options is 7.20 years (March 31, 2018 – 7.46 years) and for the options that are exercisable the weighted average is 6.80 years (March 31, 2018 – 5.74 years).