ShareBased Payments
 12 Months Ended
Feb. 28, 2023
ShareBased Payments  
Share-based Payments

17. Share-Based Payments

 

Stock Options

 

The following tables summarizes the continuity of the Company’s stock options during the years ended February 28, 2023 and February 28, 2022:

 

 

 

2023

 

 

2022

 

 

 

Number of

stock options

 

 

Weighted

average

exercise price

 

 

Number of

stock options

 

 

Weighted

average

exercise price

 

Outstanding, beginning of year

 

 

1,570,000

 

 

$6.87

 

 

 

1,587,081

 

 

$6.81

 

Granted

 

 

972,000

 

 

 

2.68

 

 

 

-

 

 

 

-

 

Exercised

 

 

-

 

 

 

-

 

 

 

(17,081)

 

 

-

 

Forfeited

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Expired

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Outstanding, end of year

 

 

2,542,000

 

 

$5.27

 

 

 

1,570,000

 

 

$6.87

 

Exercisable, end of year

 

 

1,670,000

 

 

$6.84

 

 

 

1,311,667

 

 

$7.57

 

 

 

 

 

2023

 

 

2022

 

Exercise price

 

 

Number of

stock options outstanding

 

 

Weighted

average

remaining life

(years)

 

 

Number of

stock options

outstanding

 

 

Weighted

average

remaining life

(years)

 

$0.80

 

 

 

490,000

 

 

 

2.75

 

 

 

490,000

 

 

 

3.75

 

$2.68

 

 

 

972,000

 

 

 

9.75

 

 

 

-

 

 

 

-

 

$5.25

 

 

 

380,000

 

 

 

4.50

 

 

 

380,000

 

 

 

5.49

 

$12.00

 

 

 

700,000

 

 

 

4.54

 

 

 

700,000

 

 

 

5.54

 

Outstanding, end of year

 

 

 

2,542,000

 

 

 

6.18

 

 

 

1,570,000

 

 

 

4.97

 

Exercisable, end of year

 

 

 

1,670,000

 

 

 

5.16

 

 

 

1,311,667

 

 

 

5.13

 

 

The Company applies the fair value method of accounting for stock-based compensation awards granted. Fair value is calculated based on a Black-Scholes option pricing model. There were no new issuances of stock options for the years ended February 28, 2022. The principal components of the pricing model for the stock options granted in the year ended February 28, 2023 were as follows:

 

Exercise price

 

$2.68

 

Risk-free interest rate

 

 

3.88%

Expected dividend yield

 

 

0%

Expected volatility

 

 

73%

Expected life

 

5 years

 

 

During the year ended February 28, 2023, stock-based compensation expense attributable to stock options amounted to $1,316,084 (2022 – $1,513,211).

Restricted Stock Units

 

The following table summarizes the continuity of the restricted stock units (“RSUs”) during the years February 28, 2023 and February 28, 2022:

 

 

 

2023

 

 

2022

 

 

 

Number of units

 

 

Weighted average fair value price

 

 

Number of units

 

 

Weighted average fair value price

 

Outstanding, beginning of year

 

 

4,018,567

 

 

$7.42

 

 

 

4,210,520

 

 

$1.98

 

Granted

 

 

151,605

 

 

 

5.14

 

 

 

353,219

 

 

 

10.15

 

Settled

 

 

(81,168)

 

 

11.72

 

 

 

(231,660)

 

 

1.90

 

Forfeited

 

 

(200,386)

 

 

10.34

 

 

 

(313,512)

 

 

7.97

 

Outstanding, end of year

 

 

3,888,618

 

 

$7.09

 

 

 

4,018,567

 

 

$7.42

 

Outstanding vested, end of year

 

 

1,563,497

 

 

$6.29

 

 

 

537,966

 

 

$3.28

 

 

The Company applies the fair value method of accounting for awards granted through the issuance of restricted stock units. Fair value is calculated based on the intrinsic value at grant date multiplied by the number of restricted stock unit awards granted.

 

During the year ended February 28, 2023, stock-based compensation attributable to RSUs amounted to $8,770,102 (2022 - $549,155). During the year ended February 28, 2023, the Company recorded a stock-based compensation expense of $7,740,000 related to the achievement of a performance milestone for 1,000,000 RSUs granted to the Company’s CEO (Note 13). During the year ended February 28, 2023, the Company recorded a reversal of expenses for RSU forfeitures in the amount of $288,413 (2022 - $963,022).

 

Stock-Based Compensation Expense

 

During the year ended February 28, 2023, stock-based compensation included in research and development expenses amounted to $1,337,167 (2022 – $1,536,734), and in general and administrative expenses amounted to $8,749,019 (2022 – $525,632). The amount recorded in general and administrative expenses for the year ended February 28, 2023 includes $7,740,000 related to the achievement of a performance milestone for 1,000,000 RSUs granted to the Company’s CEO (Note 13). During the year ended February 28, 2023, the Company recorded a reversal of stock-based compensation for forfeitures included in research and development expenses of $79,096 (2022 – $27,185), and in general and administrative expenses of $209,317 (2022 – $935,837).