Stock-based Compensation Plans
 6 Months Ended
Aug. 31, 2018
Notes to Financial Statements  
Note 8. Stock-based Compensation Plans

Equity Incentive Plan

 

On July 6, 2017, the Company adopted the 2017 Equity Incentive Plan (the “Plan”). A total of 3,000,000 shares of common stock were reserved for issuance under the Plan with annual automatic share reserve increases amounting to the lessor of (i) 1,500,000 shares, (ii) 5% of the outstanding shares on the last day of the immediately preceding fiscal year, or (iii) or such number of shares determined by the Administrator of the Plan.

 

On March 1, 2018, in accordance with the provisions of the Plan, the number of shares available for issuance were increased by 1,500,000 to a total of 3,235,898. At August 31, 2018, total number of shares available for issuance, net of shared issued, forfeited and expired amounted to 3,271,496.

 

Warrants

 

The following table summarizes the continuity of the Company’s warrants during the six months ended August 31:

 

    2018     2017  
   

Number of

warrants

   

Weighted

average

exercise

price

    

Number of

warrants

    

Weighted

average

exercise

price

  
Outstanding, beginning of period     2,515,248     $ 8.21       1,647,670     $ 2.91  
Granted     13,209       11.52       1,080,000       5.25  
Exercised     (20,000 )     0.80       (213,770 )     5.52  
Forfeited     (100,000 )     5.25       (65,418 )     2.90  
Expired     (62,500 )     4.80       (443,900 )     6.00  
Outstanding, end of period     2,345,957     $ 8.44       2,004,582     $ 3.21  
Exercisable, end of period     1,071,915     $ 7.67       616,457     $ 1.19  

 

The following table summarizes information concerning outstanding warrants as at August 31:

 

      2018     2017  
Exercise price    

Number of

warrants outstanding

    

Weighted

average

remaining

life

    

Number of

warrants

outstanding

    

Weighted

average

remaining

life

  
$ 0.80       582,081       7.25       912,082       6.50  
$ 3.00       -       -       12,500       0.76  
$ 5.25       380,000       8.99       1,080,000       9.93  
$ 11.52       13,209       9.86       -       -  
$ 12.00       840,667       7.59       -       -  
$ 13.49       250,000       9.13       -       -  
$ 13.89       280,000       9.19       -       -  
Outstanding, end of period       2,345,957       8.10       2,004,582       8.31  
Exercisable, end of period       1,071,915       7.22       616,457       6.66  

 

Warrants were valued using the Black-Scholes pricing model. The following table shows key inputs into the valuation model for the six months ended August 31:

 

    2018     2017  
Exercise price   $ 11.52     $ 5.25  
Risk-free interest rate     2.82 %     1.60 to 2.02 %
Expected dividend yield     0 %     0 %
Expected volatility     78 %     82% to 84 %
Expected life     6.5 years       4 to 6 years  

 

During the three and six months ended August 31, 2018, an expense of $0.8 million and $1.8 million, respectively (2017 – $0.7 million and $0.9 million, respectively) was recorded in the condensed consolidated statement of operations in relation to warrants.

 

Restricted Stock Units

 

The following table summarizes the continuity of the restricted stock units (“RSUs”) during the three months ended August 31:

 

    2018     2017  
   

Number of

RSUs

    

Number of

RSUs

  
Outstanding, beginning of period     34,102       -  
Granted     102,818       -  
Vested     (35,797 )     -  
Forfeited     (1,625 )     -  
Outstanding, end of period     99,498       -  
Weighted average remaining life (in years)     2.21       -  

 

During the three and six months ended August 31, 2018, an expense of $0.2 million and $0.4 million, respectively (2017 – $nil) was recorded in the condensed consolidated statement of operations in relation to RSUs.