| STOCKHOLDERS' EQUITY [Text Block] | 6. STOCKHOLDERS' EQUITY
[a] Common stock issued and authorized On May 1, 2023, the Company commenced a Normal Course Issuer Bid ("NCIB"), pursuant to which the Company may purchase up to a maximum of 599,092 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-month period ended May 31, 2022, the Company did not issue any common stock. During the nine-month period ended May 31, 2023, the Company repurchased and cancelled 5,685 common shares for $4,463. 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 options to be granted 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, 2023, 549,000 options to be granted 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 options 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, 2023, and changes during the period were the following:
Number of Weighted Average Weighted Average Aggregate Intrinsic
Outstanding at August 31, 2021 410,000 $ 1.34 2.26 $ -
Granted 561,000 $ 1.50 5.00 $ -
Forfeited (91,583 ) $ 1.38 3.85 $ -
Repurchased (82,500 ) $ 1.00 2.25
Expired (203,917 ) $ 1.46 0.50 $ -
Outstanding as at August 31, 2022 593,000 $ 1.49 3.79 $ -
Forfeited (19,806 ) $ 1.50 3.68 $ -
Expired (17,194 ) $ 1.50 3.68 $ -
Outstanding at May 31, 2023 563,000 $ 1.49 3.15 $ -
Exercisable at May 31, 2023 441,208 $ 1.49 3.16 $ - 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, 2023. As of May 31, 2023, there was $72,153 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. [b] Stock option plans During the three and nine months ended May 31, 2023, the total stock-based compensation expense is reported in the condensed consolidated statement of comprehensive income (loss) as follows:
Three Months Ended May 31, Nine Months Ended May 31,
Stock-based compensation 2023 2022 2023 2022
General and administrative $ 19,177 $ 53,916 $ 57,503 $ 82,324
Sales and marketing 7,587 1,151 21,860 39,029
Product development 11,321 20,096 33,964 48,504
Total stock-based compensation $ 38,085 $ 75,163 $ 113,327 $ 169,857 [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 TSX Venture 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 three and nine months period ended May 31, 2023, the Company recognized compensation expense of $112,046 and $182,216 respectfully (May 31, 2022 - $18,429 and $95,956) in salaries and wages on the condensed 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 $1.09 (May 31, 2022 - $1.25). 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, 2023 the outstanding options, in the amount of 549,000, were anti-dilutive and have been excluded from the calculation of diluted income (loss) per share. |
