Annual report pursuant to Section 13 and 15(d)

STOCK OPTIONS

v3.20.2
STOCK OPTIONS
12 Months Ended
Mar. 31, 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.

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 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, 2020, $73,001 (March 31, 2019 - $81,733) of stock compensation expense was recognized.

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 $305,384 is the current expense for the year ended March 31, 2020. (March 31, 2019 - $343,557)

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.  3,870 options were cancelled for the year ended March 31, 2020 (March 31, 2019 - $7,334). The grant fair value was $491,036 and $88,729 is the current stock compensation expense for the year ended March 31, 2020. (March 31, 2019 - $140,540)

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 $Nil of stock compensation was recognized for year ended March 31, 2020. (March 31, 2019 - $8,147). The employee left during the year ended March 31, 2020 and all options were cancelled.

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 18 months, with one third immediately vesting and one third vesting in each of the following two 6-month periods 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 $453,585 and 1,599 options were cancelled and $414,581 of stock compensation was recognized for the year ended March 31, 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 and $908,140 of stock compensation was recognized for the year ended March 31, 2020

On September 3, 2019, 5,000 options were granted to an employee at an exercise price of $3.20 which 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 $2,685 of stock compensation was recognized for the year ended March 31, 2020.

During the year ended March 31, 2020, the Company recorded $1,781,612 in share-based compensation related to the vesting of stock options (March 31, 2019 - $1,347,399).

The following is a summary of stock options outstanding and exercisable as of March 31, 2020.

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

 

1.89

 

1.59

%  

 0

%  

 0

%  

114

%  

$

136,613

July 1, 2014

 

1.25

 

1.59

%  

 0

%  

 0

%  

114

%  

$

1,259,487

June 20, 2014

 

1.22

 

1.59

%  

 0

%  

 0

%  

114

%  

$

118,957

November 24, 2015

 

2.65

 

1.59

%  

 0

%  

 0

%  

114

%  

$

694,384

December 14, 2015

 

2.71

 

1.59

%  

 0

%  

 0

%  

114

%  

$

1,260,437

April 21, 2016

 

4.11

 

1.59

%  

 0

%  

 0

%  

114

%  

$

2,582,890

April 26, 2016

 

3.07

 

1.59

%  

 0

%  

 0

%  

114

%  

$

213,750

February 6, 2017

 

3.86

 

1.59

%  

 0

%  

 0

%  

114

%  

$

245,200

February 13, 2017

 

3.88

 

1.59

%  

 0

%  

 0

%  

114

%  

$

148,750

September 1, 2017

 

7.43

 

1.59

%  

 0

%  

 0

%  

114

%  

$

1,832,304

January 24, 2018

 

4.82

 

1.59

%  

 0

%  

 0

%  

114

%  

$

491,036

April 30, 2018

 

8.06

 

1.59

%  

 0

%  

 0

%  

114

%  

$

363,714

June 11, 2018

 

5.20

 

1.59

%  

 0

%  

 0

%  

114

%  

$

30,341

May 31, 2019

 

7.00

 

1.59

%  

 0

%  

 0

%  

114

%  

$

453,585

July 26, 2019

 

7.00

 

1.59

%  

 0

%  

 0

%  

114

%  

$

1,525,525

September 3, 2019

 

7.00

 

1.59

%  

 0

%  

 0

%  

114

%  

$

14,010

 

 

 

 

 

 

 

    

Number of

    

Weighted-Average

 

 

Options

 

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

Issued

 

659,494

 

3.48

Cancelled

 

(24,311)

 

(19.80)

Outstanding, March 31, 2020

 

818,179

 

10.63

 

The following is a summary of stock options outstanding and exercisable as of March 31, 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

 

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

 

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

 

112,922

3.595

 

473,151

 

26-Jul-26

 

56,417

3.20

 

5,000

 

03-Sep-26

 

 —

 

 

818,179

 

 

 

295,548

 

The weighted-average remaining contractual term of the outstanding options is 6.28 years (March 31, 2019 - 7.20 years) and for the options that are exercisable the weighted average is 6.12 years (March 31, 2019 – 6.80 years).