16. Share-based Payments

Stock Options

During the three-month period ended August 31, 2021, the Company granted no stock options (2020 – nil), no stock options were forfeited (2020 – nil) or exercised (2020 – nil) and no stock options expired (2020 – nil).

During the six-month period ended August 31, 2021, the Company granted no stock options (2020 – nil), no stock options were forfeited (2020 – nil) or exercised (2020 – nil) and no stock options expired (2020 – nil).

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 three- and six-month periods ended August 31, 2021 and 2020.

The total number of stock options outstanding as at August 31, 2021 was 1,587,081 (2020 – 1,587,081) with a weighted average exercise price of $6.81 (2020 - $6.81), of which 1,278,748 were exercisable (2020 – 1,083,748) with a weighted average exercise price of $7.30 (2020 – $7.05).

During the three-month periods ended August 31, 2021 and 2020, stock-based compensation expense attributable to stock options amounted to $343,653 and $553,540, respectively, and is included in operating expenses.

During the six-month periods ended August 31, 2021 and 2020, stock-based compensation expense attributable to stock options amounted to $892,971 and $1,110,435, respectively, and is included in operating expenses.

Restricted Stock Units

During the three-month period ended August 31, 2021, the Company granted 33,184 restricted stock units (“RSUs”) (2020 – 38,648) with a weighted average fair value of $13.05 (2020 – $9.20), settled 12,031 RSUs (2020 – 18,305) with a weighted average fair value of $8.48 (2020 – $9.85) and no RSUs were forfeited (2020 – nil).

During the six-month period ended August 31, 2021, the Company granted 286,942 restricted stock units (“RSUs”) (2020 – 122,373) with a weighted average fair value of $9.41 (2020 – $8.86), settled 31,660 RSUs (2020 – 24,436) with a weighted average fair value of $8.82 (2020 – $9.78) and 295,524 RSUs were forfeited (2020 – 2,989) with a weighted average fair value of $7.93 (2020 – $8.78).

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.

The total number of RSUs outstanding as at August 31, 2021 was 4,170,278 (2020 – 4,313,750), of which 725,313 were vested (2020 – 891,327).

During the three-month periods ended August 31, 2021 and 2020, stock-based compensation attributable to RSUs amounted to $379,165 and $312,390, respectively, and is included in expenses.

During the six-month periods ended August 31, 2021 and 2020, stock-based compensation attributable to RSUs amounted to ($173,238) and $682,877, respectively, and is included in operating expenses. The net reversal in expenses attributable to RSUs in the three-month period ended August 31, 2021 is due to forfeitures recorded in the period for a total of $935,837 (2020 – $4,005).

Stock-Based Compensation Expenses

During the three-month periods ended August 31, 2021 and 2020, stock-based compensation included in research and development expenses amounted to $394,527 and $352,282, respectively, and in general and administrative expenses amounted to $313,282 and $513,649, respectively.

During the six-month periods ended August 31, 2021 and 2020, stock-based compensation included in research and development expenses amounted to $790,072 and $704,289, respectively, and in general and administrative expenses amounted to ($70,338) and $1,173,466, respectively. The net reversal in stock-based compensation included in general and administrative expenses in the six-month period ended August 31, 2021 is due to forfeitures recorded in the period for a total of $935,837 (2020 – $4,005).