Quarterly report pursuant to Section 13 or 15(d)

Stock Options

v3.19.2
Stock Options
3 Months Ended
Jun. 30, 2019
Share-based Payment Arrangement [Abstract]  
Stock Options
15. Stock Options

 

The following table summarizes the continuity of stock options:

 

    Number of
options
    Weighted average exercise price
$
    Weighted average remaining contractual life (years)     Aggregate intrinsic value
$
 
                         
Balance, March 31, 2018     537,500       0.01       0.7       478,375  
                                 
Granted     3,065,000       1.59                  
Exercised     (150,000 )     0.01                  
Balance, March 31, 2019     3,452,500       1.41       2.3       5,481,125  
                                 
Granted     50,000       1.86       2.5          
                                 
Balance, June 30, 2019     3,502,500       1.43       2.1       8,140,000  

 

Additional information regarding stock options outstanding as at June 30, 2019 is as follows:

 

Exercisable     Unvested  
Number of shares     Weighted average remaining contractual
life (years)
    Range of
Exercise price
$
    Number of shares     Weighted Average
Exercise price
$
 
                           
  537,500       0.7       0.01                  
  2,915,000       2.7       1.70       50,000       1.86  
                                     
  3,452,500                       50,000          

 

During the three months ended June 30, 2019, the Company granted 50,000 stock options to an officer of the Company. The stock options are exercisable at a discount to market, estimated at an average of $1.86 per share, and anticipated to vest on August 26, 2020. The options have an estimated fair value of $3.62 per share. The estimated fair value of the stock options are being recorded over the requisite service period to vesting. For the three months ended, June 30, 2019, the fair value of $13,828 (June 30, 2018 - $nil) is recorded as stock-based compensation. The unrecognized fair value of $167,117 at June 30, 2019, is anticipated to be recorded in fiscal 2020 and 2021 as $108,251 and $58,866, respectively.

 

The Company previously issued 312,500 stock options with an exercise price of $0.01 per share to the Company’s president which were due to expire on April 30, 2019. On April 27, 2019, those stock options were extended for 60 days until June 30, 2019. On June 30, 2019, the Company agreed to a further extension for the stock options till October 31, 2019. The extension of the stock options has not resulted in any material incremental fair value to be recorded.

 

The fair values were estimated using the Black-Scholes option pricing model assuming no expected dividends or forfeitures and the following weighted average assumptions:

 

    Three months ended
June 30,
2019
 
       
Risk-free interest rate     2.48 %
Expected life (in years)     2.5  
Expected volatility     190 %