Share-based Payments
 6 Months Ended
Aug. 31, 2019
Share-based Payment Arrangement [Abstract]  
Share-based Payments

Stock Options

 

The following tables summarize the continuity of the Company’s stock options during the six-month periods ended August 31:

 

    2019     2018  
    Number of stock options     Weighted average exercise price     Number of stock options     Weighted average exercise price  
Outstanding, beginning of period     1,962,400     $ 7.53       2,374,581     $ 7.99  
Granted     -       -       13,209       11.52  
Exercised     (5,000 )     0.80       (20,000 )     0.80  
Forfeited     (39,902 )     9.67       (100,000 )     5.25  
Expired     (260,417 )     13.59       (62,500 )     4.80  
Outstanding, end of period     1,657,081     $ 6.55       2,205,290     $ 8.29  
Exercisable, end of period     958,748     $ 6.26       931,248     $ 6.98  

 

   2019  2018
Exercise price  Number of stock options outstanding  Weighted average remaining life (yrs.)  Number of stock options outstanding  Weighted average remaining life (yrs.)
$0.8    577,081    6.25    582,081   7.25
$3    —      —      —     -
$5.25    380,000    7.99    380,000   8.99
$8.75    —      —      —     -
$11.52    —      —      13,209   9.86
$12    700,000    8.04    700,000   9.04
$13.49    —      —      250,000   9.13
$13.89    —      —      280,000   9.19
 Outstanding, end of period    1,657,081    7.41    2,205,290   8.59
 Exercisable, end of period    958,748    7.33    931,248   8.32

  

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. The following table shows key inputs into the valuation model for the six months ended August 31:

 

    2018  
Exercise price   $ 11.52  
Risk-free interest rate     2.82 %
Expected dividend yield     0 %
Expected volatility     78 %
Expected life   6.5 years  

 

 

There were no new issuances of stock options for the six-month period ended August 31, 2019.

 

During the three- and six-month periods ended August 31, 2019, stock-based compensation expense attributable to stock options amounted to $498,198 and $1,073,711, respectively (2018 - $823,978 and $1,801,085, respectively), and is included in operating expenses.

 

Restricted Stock Units

 

The following table summarizes the continuity of the restricted stock units (“RSUs”) during the six-month periods ended August 31, 2019 and 2018:

 

    2019     2018  
    Number of units     Weighted average fair value price     Number of units     Weighted average fair value price  
Outstanding, beginning of period     402,868     $ 8.77       34,102     $ 13.00  
Granted     4,114,567       1.06       102,818       11.54  
Issued as common stock     (43,932 )     10.36       (35,797 )     13.06  
Forfeited     (53,750 )     9.82       (1,625 )     12.31  
Outstanding, end of period     4,419,753     $ 1.56       99,498     $ 11.48  
Outstanding vested, end of period     1,031,684     $ 1.12       -     $ -  

 

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 closing share price at grant date multiplied by the number of restricted stock unit awards granted.

 

During the three- and six-month periods ended August 31, 2019, stock-based compensation attributable to RSUs amounted to $305,130 and $660,307, respectively (2018 - $181,492 and $389,145, respectively), and is included in operating expenses.

 

During the three- and six-month periods ended August 31, 2019, stock-based compensation included in Research and development expenses amounted to $317,353 and $629,788, respectively (2018 - $250,242 and $660,455, respectively), and in General and administrative expenses amounted to $485,975 and $1,104,230, respectively (2018 - $755,229 and $1,530,686, respectively).