Stock-based Compensation Plans
 3 Months Ended
May 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 was reserved for issuance under the Plan with an automatic share reserve increase, effective March 1, 2018.

 

On March 1, 2018, in accordance with the provisions of the Plan, the number of shares available for issuance increased by 1,500,000 shares, resulting in 3,211,448 shares available for issuance.

   

Warrants

 

The following table summarizes the continuity of the Company’s warrants during the three months ended May 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     -       -       550,000       5.25  
Exercised     (20,000 )     0.80       (22,548 )     0.80  
Forfeited     (100,000 )     5.25       -       -  
Expired     -       -       (314,667 )     6.00  
Outstanding, end of period     2,395,248     $ 8.40       1,860,455     $ 3.11  
Exercisable, end of period     1,066,916     $ 7.32       836,705     $ 2.82  

 

The following table summarizes information concerning outstanding warrants as at May 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       7.50       912,452       0.51  
$ 3.00       12,500       -       75,000       1.02  
$ 5.25       430,000       8.19       550,000       9.98  
$ 6.00       -       -       323,003       0.08  
$ 12.00       840,667       7.84       -       -  
$ 13.49       250,000       9.38       -       -  
$ 13.89       280,000       9.44       -       -  
Outstanding, end of period       2,395,248       8.13       1,860,455       3.26  
Exercisable, end of period       1,066,916       6.98       836,705       0.35  

 

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

 

    2018     2017  
Exercise price   $ -     $ 5.25  
Risk-free interest rate     -       2.02 %
Expected dividend yield     -       0 %
Expected volatility     -       110.72 %
Expected life     -     6 years  
                 

During the three months ended May 31, 2018, an expense of $1.0 million (2017 – $0.2 million) 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 May 31:

 

    2018     2017  
    Number of RSUs     Number of RSUs  
Outstanding, beginning of period     34,102       -  
Granted     24,450       -  
Vested     (35,797 )     -  
Outstanding, end of period     22,755       -  
Weighted average remaining life (in years)     3.02       -  

 

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