STOCK OPTIONS AND WARRANTS [Text Block] | 9. STOCK OPTIONS AND WARRANTS Stock Options On July 15, 2014, the shareholders approved and adopted at the Annual General Meeting the Company's 2014 Stock Option Plan. On April 14, 2011, the shareholders approved and adopted at the Annual General Meeting to consolidate the Company's 2007 Equity compensation plan and the Company's 2010 Equity Compensation Plan into a new Company 2011 Stock Option Plan. The purpose of these Plans is to advance the interests of the Corporation, through the grant of Options, by providing an incentive mechanism to foster the interest of eligible persons in the success of the Corporation and its affiliates; encouraging eligible persons to remain with the Corporation or its affiliates; and attracting new Directors, Officers, Employees and Consultants. For the year ended August 31, 2021, the Company recorded $297,691 (2020 - $17,308) stock-based compensation expense. A summary of the changes in stock options is presented below: Options Outstanding Weighted Average Number of Shares Exercise Price Balance, August 31, 2019 8,320,000 $ 0.07 Issued 2,000,000 0.02 Expired (1,000,000 ) 0.10 Balance, August 31, 2020 9,320,000 $ 0.06 Issued 5,150,000 0.10 Expired (1,100,000 ) 0.05 Exercised (3,293,224 ) 0.02 Balance, August 31, 2021 10,076,776 $ 0.08 The fair value of options granted has been estimated as of the date of the grant by using the Black-Scholes option pricing model with the following assumptions: August 31, 2021 August 31, 2020 Expected volatility 91% - 149% 163% Risk-free interest rate 0.40% -0.68% 1.16% Expected life 5 years 2 years Dividend yield NIL NIL Estimated fair value per option $0.02 -$0.12 $0.01 The Company has the following options outstanding and exercisable. Issue Date Expiry Date Exercise Number of Remaining September 19, 2016 September 19, 2021 0.07 500,000 0.05 years January 20, 2017 January 20, 2022 0.07 1,200,000 0.39 years January 31, 2017 January 31, 2022 0.07 1,250,000 0.42 years May 2, 2017 May 2, 2022 0.10 500,000 0.67 years October 27, 2017 October 27, 2022 0.05 800,000* 1.16 years May 11, 2018 May 11, 2023 0.06 500,000* 1.69 years May 22, 2018 May 22, 2023 0.07 450,000 1.72 years February 25, 2020 February 25, 2022 0.02 226,776* 0.49 years December 14, 2020 December 14, 2025 0.05 2,100,000* 4.29 years January 28, 2021 January 28, 2026 0.14 2,000,000 4.41 years February 4, 2021 February 4, 2026 0.18 100,000 4.43 years February 5, 2021 February 5, 2026 0.18 300,000 4.44 years April 27, 2021 April 27, 2026 0.12 100,000 4.66 years May 28, 2021 May 28, 2026 0.12 50,000 4.74 years 0.08 10,076,776 2.40 years *As at August 31, 2021 the market price of the Company's common shares was $0.0629 per share. A total of 3,626,776 incentive stock options were in the money with an intrinsic value of $48,589. Warrants During the year ended August 31, 2021, the Company issued 1,500,000 warrants attached to units in private placements with no finders fees being paid. There were no warrants issued during the year ended August 31, 2020. A summary of warrants as at August 31, 2021 and August 31, 2020 is as follows: Weighted Average Number of warrants Exercise Price Balance, August 31, 2019 26,141,459 $ 0.06 Expired (12,904,590 ) 0.07 Balance, August 31, 2020 13,236,869 $ 0.05 Issued 1,500,000 0.09 Forfeited (2,300,000 ) 0.05 Exercised (2,720,000 ) 0.04 Balance, August 31, 2021 9,716,869 $ 0.05 The Company has the following warrants outstanding: August 31, 2021 Issue Date Expiry Date Exercise Number of September 21, 2018 September 21, 2021 0.05 2,427,500 March 27, 2019 March 27, 2023 0.04 5,789,369 January 14, 2021 January 14, 2022 0.09 1,500,000 0.05 9,716,869 *Each warrant entitles a holder to purchase one common share. |