Stock Options

During the three-month period ended May 31, 2020, the Company granted 3,389 stock options (2019 – nil) with a weighted average exercise price of $8.78 (2019 – nil), no stock options were forfeited (2019 – 10,010; weighted average exercise price: $8.75) or exercised (2019 – nil) and no stock options expired (2019 – 260,417; weighted average exercise price: $13.89).

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 principal components of the pricing model were as follows:

During the three-month periods ended May 31, 2020 and 2019, stock-based compensation expense attributable to stock options amounted to $556,895 and $575,513, respectively, and is included in operating expenses.

Restricted Stock Units

During the three-month period ended May 31, 2020, the Company granted 83,725 restricted stock units (“RSUs”) (2019 – 25,145) with a weighted average fair value of $8.71 (2019 – 9.79), settled 6,131 RSUs (2019 – 7,043) with a weighted average fair value of $9.55 (2019 – 12.16) and 2,989 RSUs were forfeited (2019 – 17,203) with a weighted average fair value of $8.78 (2019 – $8.75).

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-month periods ended May 31, 2020 and 2019, stock-based compensation attributable to RSUs amounted to $370,487 and $355,178, respectively, and is included in operating expenses.

During the three-month periods ended May 31, 2020 and 2019, stock-based compensation included in research and development expenses amounted to $352,007 and $312,435, respectively, and in general and administrative expenses amounted to $659,817 and $618,255, respectively.