Quarterly report pursuant to Section 13 or 15(d)

STOCK OPTIONS

v3.20.2
STOCK OPTIONS
6 Months Ended
Sep. 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. 54,299 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 and $114,519 is the expense for the three and six months ended September 30, 2020 (September 30, 2019 - $133,605  and $190,865).

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 and 2,377 for the six-month period ended September 30, 2020. The grant fair value was $491,036 and  $14,490 and $42,044 is the stock compensation expense for the three and six months ended September 30, 2020 (September 30, 2019 - $26,306 and $54,480).

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 three and six months ended September 30, 2020. (September 30, 2019 - $84,601 and $260,995). These options are now fully expensed.

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 15,260 were canceled and stock compensation of $269,579 and $424,091  was recognized in the three and six months ended September 30, 2020. (September 30, 2019- $372,923).

On September 3, 2019, 5,000 options were granted to an employee at an exercise price of $3.20 which will vest overs six 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 and $2,335 of stock compensation expense was recognized in the three and six months ended September 30, 2020.

During the three and six months ended September 30, 2020, the Company recorded $212,939 and $620,254 in share-based compensation related to the vesting of stock options (September 30, 2019 - $638,219 and $925,976).

 

 

 

 

 

 

    

Number of Options

    

Weighted Average Exercise Price

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

Cancelled

 

(35,173)

 

(41.19)

Outstanding September 30, 2020

 

783,006

 

9.25

 

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

 

 

 

 

 

 

 

 

Exercise Price ($)

    

Number of Options

    

Expiry Date

    

Exercisable Options

34.500

 

105

 

20-Jun-21

 

105

34.500

 

6,606

 

01-Jul-21

 

6,606

34.500

 

944

 

17-Feb-22

 

944

183.000

 

2,667

 

24-Nov-22

 

2,667

150.000

 

4,501

 

14-Dec-22

 

4,501

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

 

264

 

30-Sep-24

 

264

157.500

 

1,109

 

30-Sep-24

 

1,019

24.150

 

81,436

 

01-Sep-27

 

54,299

23.250

 

10,687

 

24-Jan-25

 

8,533

9.735

 

40,000

 

19-Apr-28

 

40,000

3.16

 

165,085

 

31-May-26

 

165,085

3.595

 

457,891

 

26-July-26

 

416,732

3.20

 

5,000

 

03-Sep-26

 

1,677

 

 

783,006

 

 

 

709,222

 

The weighted-average remaining contractual term of the outstanding options is 5.86 years (March 31, 2020 – 6.28 years) and for the options that are exercisable the weighted average is 5.83 years (March 31, 2020 – 6.12 years).