Transition report pursuant to Rule 13a-10 or 15d-10

STOCK OPTIONS

v2.4.1.9
STOCK OPTIONS
9 Months Ended
Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
9.
STOCK OPTIONS
 
The Company has a stock option plan, the purpose of which is to attract, retain and motivate persons connected 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 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 granted under the Plan, shall not exceed eight (8%) percent of the issued share capital or such greater number of shares as may be determined by the Board and approved, if required, by the shareholders of the Company and by any applicable stock exchange or other regulatory authority. Optioned shares in respect of which options are not exercised shall be available for subsequent options.
 
On June 10, 2013, the Company issued 416,667 options to a shareholder. The options vested immediately and have an exercise price of $0.52 ($0.60 CAD) per share and a time to expiration of one year. These options were valued at $106,185. These options were exercised during the year (Note 8(xiv)).
 
On April 11, 2014 and June 20, 2014 the Company issued 209,000 and 84,000 options to employees and a consultant at an exercise price of $0.52 ($0.60 CAD) and $0.77 ($0.90 CAD), respectively, which all vest one-third on grant date and two thirds equally over the subsequent two years on the anniversary date. These options were valued at $153,348 and $61,142 respectively and have a time to expiration of seven years. During the period ended December 31, 2014, 40,000 of the April issuance were cancelled, which is included in a total of $112,573 that has been recorded as stock-based compensation related to the vesting of these stock options.
 
On July 1, 2014, the Company issued a further 945,000 options to employees of the Company, at an exercise price of $0.77 ($0.90 CAD), which vest 90 days after the close of a reverse merger transaction with a concurrent private placement raising a minimum of $6,000,000, see Notes 13 (c) to (f). These options were valued at $719,835 and have a time to expiration of seven years.
 
These options were valued using the Black-Scholes option pricing model with the following key assumptions:
 
Expected life
 
7 years
 
Risk free rate
 
1.59
%
Dividend yield
 
0
%
Forfeiture rate
 
0
%
Volatility (based upon similar public companies)
 
114
%
 
A summary of the Company’s outstanding and exercisable options is as follows:
 
 
 
Number of
 
Weighted Average
 
Weighted Average
 
 
 
options
 
Exercise Price
 
Remaining Contract Life
 
 
 
#
 
$
 
(Years)
 
Outstanding, March 31, 2012 and 2013
 
 
-
 
 
-
 
 
-
 
Granted during the year
 
 
416,667
 
 
0.52
 
 
-
 
Outstanding March 31, 2014
 
 
416,667
 
 
0.52
 
 
0.20
 
Exercised during the period
 
 
(416,667)
 
 
0.52
 
 
-
 
Granted during the period
 
 
1,238,000
 
 
0.73
 
 
7
 
Cancelled during the period
 
 
(40,000)
 
 
0.52
 
 
-
 
Outstanding, December 31, 2014
 
 
1,198,000
 
 
0.74
 
 
6.72