Loop Industries, Inc. - 10-Q filing on 2022-01-11

ShareBased Payments	9 Months Ended
Nov. 30, 2021
ShareBased Payments
16. Share-Based Payments	16. Share-based Payments Stock Options During the three-month period ended November 30, 2021, the Company granted no stock options (2020 – nil), 17,081 options were exercised with a weighted average exercise price of $0.80 (2020 – nil), no stock options were forfeited (2020 – nil) and no stock options expired (2020 – nil). During the nine-month period ended November 30, 2021, the Company granted no stock options (2020 – nil), 17,081 options were exercised with a weighted average exercise price of $0.80 (2020 – nil), no stock options were forfeited (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 nine-month periods ended November 30, 2021 and 2020. The total number of stock options outstanding as at November 30, 2021 was 1,570,000 (2020 – 1,587,081) with a weighted average exercise price of $6.87 (2020 - $6.81), of which 1,286,667 were exercisable (2020 – 986,248) with a weighted average exercise price of $7.48 (2020 – $8.18). During the three-month periods ended November 30, 2021 and 2020, stock-based compensation expense attributable to stock options amounted to $311,004 and $551,720, respectively, and is included in operating expenses. During the nine-month periods ended November 30, 2021 and 2020, stock-based compensation expense attributable to stock options amounted to $1,203,975 and $1,662,155, respectively, and is included in operating expenses. Restricted Stock Units During the three-month period ended November 30, 2021, the Company granted 62,638 restricted stock units (“RSUs”) (2020 – 57,859) with a weighted average fair value of $13.64 (2020 – $12.96), settled 200,000 RSUs (2020 – 200,000) with a weighted average fair value of $0.80 (2020 – $0.80) and 17,988 RSUs were forfeited (2020 – nil) with a weighted average fair value of $8.73 (2020 – nil). During the nine-month period ended November 30, 2021, the Company granted 349,580 restricted stock units (“RSUs”) (2020 – 180,232) with a weighted average fair value of $10.16 (2020 – $10.18), settled 231,660 RSUs (2020 – 224,436) with a weighted average fair value of $1.90 (2020 – $1.78) and 313,512 RSUs were forfeited (2020 – 2,989) with a weighted average fair value of $7.97 (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 November 30, 2021 was 4,014,928 (2020 – 4,171,609), of which 525,313 were vested (2020 – 691,327). During the three-month periods ended November 30, 2021 and 2020, stock-based compensation attributable to RSUs amounted to $331,005 and $345,274, respectively, and is included in operating expenses. During the nine-month periods ended November 30, 2021 and 2020, stock-based compensation attributable to RSUs amounted to $157,769 and $1,028,152, respectively, and is included in operating expenses. During the nine-month period ended November 30, 2021, the Company recorded a reversal of expenses for forfeitures for a total of $963,022 (2020 – $4,005). Stock-Based Compensation Expenses During the three-month periods ended November 30, 2021 and 2020, stock-based compensation included in research and development expenses amounted to $362,435 and $350,393, respectively, and in general and administrative expenses amounted to $279,574 and $546,601, respectively. During the nine-month periods ended November 30, 2021 and 2020, stock-based compensation included in research and development expenses amounted to $1,152,506 and $1,054,682, respectively, and in general and administrative expenses amounted to $209,236 and $1,720,067, respectively. Stock-based compensation included in general and administrative expenses in the nine-month period ended November 30, 2021 includes reversal of expenses for forfeitures for a total of $935,837 (2020 – $4,005).

ShareBased Payments

9 Months Ended

Nov. 30, 2021

16. Share-based Payments

Stock Options

During the three-month period ended November 30, 2021, the Company granted no stock options (2020 – nil), 17,081 options were exercised with a weighted average exercise price of $0.80 (2020 – nil), no stock options were forfeited (2020 – nil) and no stock options expired (2020 – nil).

During the nine-month period ended November 30, 2021, the Company granted no stock options (2020 – nil), 17,081 options were exercised with a weighted average exercise price of $0.80 (2020 – nil), no stock options were forfeited (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 nine-month periods ended November 30, 2021 and 2020.

The total number of stock options outstanding as at November 30, 2021 was 1,570,000 (2020 – 1,587,081) with a weighted average exercise price of $6.87 (2020 - $6.81), of which 1,286,667 were exercisable (2020 – 986,248) with a weighted average exercise price of $7.48 (2020 – $8.18).

During the three-month periods ended November 30, 2021 and 2020, stock-based compensation expense attributable to stock options amounted to $311,004 and $551,720, respectively, and is included in operating expenses.

During the nine-month periods ended November 30, 2021 and 2020, stock-based compensation expense attributable to stock options amounted to $1,203,975 and $1,662,155, respectively, and is included in operating expenses.

Restricted Stock Units

During the three-month period ended November 30, 2021, the Company granted 62,638 restricted stock units (“RSUs”) (2020 – 57,859) with a weighted average fair value of $13.64 (2020 – $12.96), settled 200,000 RSUs (2020 – 200,000) with a weighted average fair value of $0.80 (2020 – $0.80) and 17,988 RSUs were forfeited (2020 – nil) with a weighted average fair value of $8.73 (2020 – nil).

During the nine-month period ended November 30, 2021, the Company granted 349,580 restricted stock units (“RSUs”) (2020 – 180,232) with a weighted average fair value of $10.16 (2020 – $10.18), settled 231,660 RSUs (2020 – 224,436) with a weighted average fair value of $1.90 (2020 – $1.78) and 313,512 RSUs were forfeited (2020 – 2,989) with a weighted average fair value of $7.97 (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 November 30, 2021 was 4,014,928 (2020 – 4,171,609), of which 525,313 were vested (2020 – 691,327).

During the three-month periods ended November 30, 2021 and 2020, stock-based compensation attributable to RSUs amounted to $331,005 and $345,274, respectively, and is included in operating expenses.

During the nine-month periods ended November 30, 2021 and 2020, stock-based compensation attributable to RSUs amounted to $157,769 and $1,028,152, respectively, and is included in operating expenses. During the nine-month period ended November 30, 2021, the Company recorded a reversal of expenses for forfeitures for a total of $963,022 (2020 – $4,005).

Stock-Based Compensation Expenses

During the three-month periods ended November 30, 2021 and 2020, stock-based compensation included in research and development expenses amounted to $362,435 and $350,393, respectively, and in general and administrative expenses amounted to $279,574 and $546,601, respectively.

During the nine-month periods ended November 30, 2021 and 2020, stock-based compensation included in research and development expenses amounted to $1,152,506 and $1,054,682, respectively, and in general and administrative expenses amounted to $209,236 and $1,720,067, respectively. Stock-based compensation included in general and administrative expenses in the nine-month period ended November 30, 2021 includes reversal of expenses for forfeitures for a total of $935,837 (2020 – $4,005).