Quarterly report pursuant to Section 13 or 15(d)

STOCK OPTIONS

v3.7.0.1
STOCK OPTIONS
3 Months Ended
Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
10.
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 April 11, 2014 and June 20, 2014, the Company issued 657,430 and 264,230 options to employees and a consultant at an exercise price of $0.165 and $0.23, respectively, with a term of seven years. The options vest one-third on grant date and two thirds equally over the subsequent two years on the anniversary date. During the nine-month period ended December 31, 2014, 125,824 of the 657,430 options were cancelled. On February 26, 2015, as a result of the Merger, the options were re-valued. The fair value, as re-measured, of the 531,606 options issued in April 2014 and the 264,230 options issued in June 2014, was $230,930 and $118,957 respectively. An additional 62,912 options were cancelled during the year ended March 31, 2017. Stock compensation has been fully expensed on these options
 
On July 1, 2014, the Company issued 2,972,592 options to management of the Company, at an exercise price of $0.23 with a term of 7 years, which vested May 27, 2015. On February 26, 2015, as result of the Merger, the options were re-valued at a fair value of $1,259,487,which vested immediately and were previously expensed as stock compensation expense in 2015. On October 8, 2016, 990,864 of these options were cancelled.
 
On February 17, 2015, the Company granted 314,560 options to a director, employees and a consultant with an exercise price of $0.23, that vested one third immediately and two thirds over the next two anniversary dates with an expiry date of seven years. The grant date fair value of the options was $136,613. Previously 110,100 options were cancelled and stock compensation has been fully expensed on these options.
 
On November 24, 2015, the Company granted 650,000 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, 250,000 options were cancelled and during the first quarter $35,609 in stock compensation expense was recognized.
 
On December 14, 2015, the Company granted 2,495,000 options 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 years ended March 31, 2016 and 2017, 25,000 options and 40,000 options, respectively, were cancelled, and during the first quarter of fiscal 2018, 83,334 options were cancelled and $100,289 of stock compensation expense was recognized.
 
On April 21, 2016, the Company granted 3,000,000 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 1,000,000 have an exercise price of $0.25, 1,000,000 have an exercise price of $0.95 and 1,000,000 have an exercise price of $1.05. The grant date fair value of vested options was $2,582,890 and has been recorded as part of the acquisition equation (Note 3). For options that have not yet vested $10,169 has been recognized as stock compensation expense in the first quarter of 2017.
 
On April 26, 2016, the Company granted 250,000 options to an employee with an exercise price of $1.00 that vests over three years at the anniversary date. The grant fair value was $213,750. During the quarter ended June 30, 2017, $17,813 was recognized as stock compensation expense.
 
On August 8, 2016, the Company granted 750,000 options to an employee with an exercise price of $1.00 that vests over three years at the anniversary date. The grant fair value was $652,068. During the quarter ended June 30, 2017 $54,339 of stock compensation expense was recognized.
 
On February 6, 2017, the Company granted 400,000 options to an employee with an exercise price of $0.70 that vests over three years at the anniversary date. The grant fair value was $245,200. During the quarter ended June 30, 2017, $20,433 of stock compensation expense was recognized.
 
On February 13, 2017, the Company granted 250,000 options to a consultant with an exercise price of $0.68 that vests over one and one- half years, every six months. The grant fair value was $148,750. During the quarter ended June 30, 2017, $12,396 of stock compensation expense was recognized.
 
During the quarter ended June 30, 2017, the Company recorded $251,048 in share-based compensation related to the vesting of stock options (June 30, 2016 - $159,818).
  
The following is a summary of stock options outstanding and exercisable as of June 30, 2017:
 
Exercise Price ($)
 
Number of Options
 
Expiry Date
 
Exercisable Options
 
 
0.165
 
 
264,230
 
April 1, 2021
 
 
264,230
 
 
0.23
 
 
97,514
 
June 20, 2021
 
 
97,514
 
 
0.23
 
 
1,981,728
 
July 1, 2021
 
 
1,981,728
 
 
0.23
 
 
204,471
 
February 17, 2022
 
 
204,471
 
 
1.22
 
 
400,000
 
November 24, 2022
 
 
133,333
 
 
1.00
 
 
2,316,667
 
December 14, 2022
 
 
809,994
 
 
0.95
 
 
111,937
 
March 28, 2023
 
 
111,937
 
 
1.05
 
 
433,027
 
March 28, 2023
 
 
433,027
 
 
1.00
 
 
250,000
 
April 26, 2023
 
 
-
 
 
1.00
 
 
750,000
 
August 8, 2023
 
 
-
 
 
0.70
 
 
400,000
 
February 6, 2024
 
 
-
 
 
0.68
 
 
250,000
 
February 13, 2024
 
 
-
 
 
0.95
 
 
31,620
 
March 3, 2024
 
 
31,620
 
 
1.05
 
 
122,324
 
March 3, 2024
 
 
122,324
 
 
0.95
 
 
15,810
 
March 14, 2024
 
 
15,810
 
 
1.05
 
 
61,162
 
March 14, 2024
 
 
61,162
 
 
0.95
 
 
82,213
 
September 30, 2024
 
 
82,213
 
 
1.05
 
 
318,042
 
September 30, 2024
 
 
318,042
 
 
0.95
 
 
7,431
 
June 2, 2025
 
 
7,431
 
 
1.05
 
 
28,747
 
June 2, 2025
 
 
28,747
 
 
0.25
 
 
906,077
 
July 28, 2025
 
 
906,077
 
 
0.95
 
 
671,859
 
July 29, 2025
 
 
671,859
 
 
0.25
 
 
66,298
 
December 30, 2025
 
 
53,909
 
 
0.95
 
 
49,160
 
December 30, 2025
 
 
27,261
 
 
 
 
 
9,820,317
 
 
 
 
6,362,689
 
 
The weighted-average remaining contractual term of the outstanding options was 5.81 (March 31, 2017 – 5.12) and for the options that are exercisable the weighted average was 5.70 (March 31, 2017 – 6.02)