| STOCKHOLDERS' EQUITY [Text Block] | 6. STOCKHOLDERS' EQUITY [a] Common stock issued and authorized The Company is authorized to issue up to 20,000,000 shares of common stock, par value $0.001 per share. On January 15, 2021, the Company commenced a Normal Course Issuer Bid ("NCIB"), pursuant to which the Company may purchase up to a maximum of 522,532 common shares, through the TSX Venture Exchange at the market price at the time of purchase, subject to daily limits and compliance with the applicable rules of the TSX and Canadian securities laws. During the nine months ended May 31, 2022 that Company did not issue any common stock (May 31, 2021 - Nil). During the nine months ended May 31, 2022, the Company repurchased and cancelled 143,100 common shares for $179,401 (August 31, 2021 - 185,285 common shares for $260,405).
[b] Stock option plans Pursuant to the Company's 2015 Stock Option Plan (the "2015 Plan"), 530,000 shares of common stock have been reserved for issuance. A total of 41,250 common shares remain eligible for issuance under the 2015 Plan. On February 18, 2022 the Company received shareholder approval for the 2022 Stock Option Plan (the "2022 Plan") (together with the 2015 Plan, the "Plans"), whereby 1,000,000 common shares are reserved for issuance. As at May 31, 2022, 507,833 common shares remain eligible for issuance under the 2022 Plan. The options generally vest over a range of periods from the date of grant, some are immediate, and others vest over 12 or 24 months. Any options that do not vest as the result of a grantee leaving the Company are forfeited and the underlying common shares are returned to the reserve. The options generally have a contractual term of five years.
Stock-Based Payment Award Activity A summary of stock option activity under the Plans as of May 31, 2022, and changes during the period were the following:
Number of Weighted Average Weighted Average Aggregate Intrinsic
Outstanding at August 31, 2020 400,000 $ 1.35
3.24
$ -
Granted 10,000 $ 1.00
4.16
$ -
Outstanding at August 31, 2021 410,000 $ 1.34
2.26
$ -
Granted 561,000 $ 1.50
5.00
$ -
Forfeited (90,083 ) $ 1.38
4.09
$ -
Exercised (30,000 ) $ 1.00
2.07
$ -
Outstanding at May 31, 2022 850,917 $ 1.45
3.15
$ -
Exercisable at May 31, 2022 471,667 $ 1.42
2.11
$ -
The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company's common stock for the options that were in-the-money as of May 31, 2022. The following table summarizes information regarding the non-vested options outstanding as of May 31, 2022 and changes during the period:
Number of Weighted Average
Non-vested options at August 31, 2020 203,750 $ 0.48
Granted 10,000 $ 0.34
Vested (115,000 ) $ 0.47
Non-vested options at August 31, 2021 98,750 $ 0.48
Granted 561,000 $ 1.50
Forfeited (90,083 ) $ 1.38
Vested (190,417 ) $ 1.43
Non-vested options at May 31, 2022 379,250 $ 1.50
As of May 31, 2022, there was $359,312 of total unrecognized compensation cost related to non-vested stock-based compensation awards. The unrecognized compensation cost is expected to be recognized over a weighted average period of 1.5 years.
During the nine months ended May 31, 2022, the total stock-based compensation expense is reported in the statement of comprehensive income (loss) as follows:
Nine Months Ended May 31,
Stock-based compensation 2022 2021
General and administrative $ 82,324 $ 13,594
Sales and marketing 39,029 14,502
Product development 48,504 11,021
Total stock-based compensation $ 169,857 $ 39,117
[c] Employee Stock Purchase Plan The Company's 2011 Employee Stock Purchase Plan (the "ESPP") became effective on February 22, 2011. Under the ESPP, employees of the Company can contribute up to 5% of their annual salary into a pool which is matched equally by the Company in order to purchase the Company's common shares under certain terms. Directors can contribute a maximum of $12,500 each for a combined maximum annual purchase of $25,000. The maximum annual combined contributions will be $400,000. All purchases are made through the Toronto Stock Exchange by a third-party plan agent. The third-party plan agent is also responsible for the administration of the ESPP on behalf of the Company and the participants. During the nine months period ended May 31, 2022, the Company recognized compensation expense of $95,956 (May 31, 2021 - $71,938) in salaries and wages on the consolidated statement of comprehensive income (loss) in respect of the ESPP, representing the Company's employee matching of cash contributions to the ESPP. The shares were purchased on the open market at an average price of $1.25 (May 31, 2021 - $0.99). The shares are held in trust by the Company for a period of one year from the date of purchase. [d] Earnings Per Share Net income (loss) per common share (basic) is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Net income (loss) per common share (diluted) is calculated by dividing net income (loss) for the period by the weighted average number of common shares outstanding during the period, plus the dilutive effect of outstanding common share equivalents. This method requires that the dilutive effect of outstanding options and warrants issued be calculated using the treasury stock method. Under the treasury stock method, all common share equivalents have been exercised at the beginning of the period (or at the time of issuance, if later), and that the funds obtained thereby were used to purchase common shares of the Company at the average trading price of common shares during the period, but only if dilutive. For the three and nine months ended May 31, 2022 the outstanding options, in the amount of 850,917, were anti-dilutive and have been excluded from the calculation of diluted income (loss) per share. |
