Quarterly report pursuant to Section 13 or 15(d)

STOCK OPTIONS

v3.20.2
STOCK OPTIONS
3 Months Ended
Jun. 30, 2020
STOCK OPTIONS  
STOCK OPTIONS

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.

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 $57,259 is the current expense for the quarter ended June 30, 2020 (June 30, 2019 - $57,259).

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 and 266 for the three-month period ended June 30, 2020. The grant fair value was $491,036 and $28,554 is the current stock compensation expense for the quarter ended June 30, 2020 (June 30, 2019 - $28,554).

On May 31, 2019 169,882 options were issued to employees and directors of the Company with an exercise price of $3.16 per share that vest over 1 year and 6 months, of which one-third immediately vest and one-third vest over each of the next two 6-month periods. The options 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 $453,585 and $50,755 of stock compensation was recognized for the quarter ended June 30, 2020.

On July 26, 2019, 484,612 options were granted to employees and consultants at an exercise price of $3.595. The options were 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 $1,525,525. 11,461 options were cancelled for the year ended March 31, 2020 and 1,286 were canceled and stock compensation of $269,579 was recognized in the quarter ended June 30, 2020.

On September 3, 2019, 5,000 options were granted to an employee at an exercise price of $3.20 which will vest over three years starting September 3, 2020. 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 $14,010 and $1,168 of stock compensation expense was recognized in the quarter ended June 30, 2020.

During the quarter ended June 30, 2020, the Company recorded $407,315  in share-based compensation related to the vesting of stock options (June 30, 2019 – $287,757).

The following is a summary of stock options outstanding and exercisable as of June 30, 2020:

 

 

 

 

 

 

 

 

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

105.000

 

2,667

 

06-Feb-24

 

2,667

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

 

327

 

30-Sep-24

 

327

157.500

 

1,264

 

30-Sep-24

 

1,264

24.150

 

81,436

 

01-Sep-27

 

40,722

23.250

 

13,064

 

24-Jan-25

 

9,132

9.735

 

40,000

 

19-Apr-28

 

40,000

3.16

 

168,283

 

31-May-26

 

168,283

3.595

 

473,151

 

26-July-26

 

56,417

3.20

 

5,000

 

03-Sep-26

 

 —

 

 

818,179

 

 

 

351,798

 

The weighted-average remaining contractual term of the outstanding options is 6.02 years (March 31, 2020 – 6.28 years) and for the options that are exercisable the weighted average is 5.84 years (March 31, 2020 – 6.12 years).