Stock-based compensation [Text Block] | 10. Stock-based Compensation The Company has established a stock option plan whereby officers, directors, employees and service providers may be granted options to purchase common shares at a fixed price. Vesting and expiry provisions are determined at the date of grant. The plan provides for the issuance of stock options to acquire up to 10% of the Company's issued and outstanding capital. The plan is a rolling plan as the number of shares reserved for issuance pursuant to the grant of stock options will increase as the Company's issued and outstanding share capital increases. Year ended January 31, 2021 a) In October 2018, the Company granted options to a consultant to acquire a total of 250,000 common shares. These options were issued at an exercise price of $0.10 per share and vested 75,000 immediately, 37,500 at the date of engineering milestone (vested during the quarter ended July 31, 2019) and balance 137,500 on completion of additional milestones, including 75,000 on model development (vested during the quarter ended October 31, 2019) and 62,500 on project handover with an expiry term of two years. These options expired unexercised in October 2020. The fair value of each option used for the purpose of estimating the stock-based compensation was estimated using the Black-Scholes option pricing model with the following assumptions: Risk free rate 2.26% Expected dividends 0% Expected forfeiture rate 0% Expected volatility 100% Expected life 2 years Unvested stock-based compensation expense as of January 31, 2021 $ - During the year ended January 31, 2021, the Company expensed $3,311, resulting in unvested stock-based compensation expense of $nil as of January 31, 2021. b) In November 2018, the Company granted options to a consultant to acquire a total of 100,000 common shares. These options were issued at an exercise price of $0.10 per share and vested 25,000 immediately, and 25,000 each on April 1, 2019, September 1, 2019 and March 1, 2020 with an expiry term of three years. The fair value of each option used for the purpose of estimating the stock-based compensation is estimated using the Black-Scholes option pricing model with the following assumptions: Risk free rate 2.30% Expected dividends 0% Expected forfeiture rate 0% Expected volatility 100% Expected life 3 years Unvested stock-based compensation expense as of January 31, 2021 $ - During the year ended January 31, 2021, the Company expensed $260, resulting in unvested stock-based compensation expense of $nil as of January 31, 2021. c) On April 6, 2020, the Company granted options to its directors, officers and consultants to purchase up to 9,850,000 common shares. These options were issued at an exercise price of $0.15 per share and have varying vesting periods, with the majority being in equal installments over a quarterly basis throughout the term. These options have a term of one (1) year expiring on April 6, 2021. The fair value of each option used for the purpose of estimating the stock-based compensation is estimated using the Black-Scholes option pricing model with the following assumptions: Risk free rate 0.47% Expected dividends 0% Expected forfeiture rate 0% Expected volatility 135% Expected life 1 year Unvested stock-based compensation expense as of January 31, 2021 $ - During the year ended January 31, 2021, the Company expensed $742,833 relating to the vesting of options, resulting in unvested stock-based compensation expense of $nil as of January 31, 2021. d) On July 17, 2020, the Company granted options to a consultant to purchase up to 80,000 common shares. These options were issued at an exercise price of $1.02 per share and vest one year after date of grant. These options have a term of five (5) years expiring on July 17, 2025. The fair value of each option used for the purpose of estimating the stock-based compensation is estimated using the Black-Scholes option pricing model with the following assumptions: Risk free rate 0.35% Expected dividends 0% Expected forfeiture rate 0% Expected volatility 207% Expected life 5 years Unvested stock-based compensation expense as of January 31, 2021 $ 34,246 During the year ended January 31, 2021, the Company expensed $40,603 relating to the vesting of options, resulting in unvested stock- based compensation expense of $34,246 as of January 31, 2021. e) On September 10, 2020, the Company granted options to a consultant to purchase up to 70,000 common shares. These options were issued at an exercise price of $0.54 per share and vest on completion of milestones, including 40,000 upon approval of a McGill University study and 30,000 upon completion of the study. The Company did not record any stock-based compensation on these options, as they have not yet vested as at January 31, 2021. f) On September 17, 2020, the Company granted options to a consultant to purchase up to 200,000 common shares. These options were issued at an exercise price of $0.54 per share and vest on date of grant. These options expire on March 30, 2022. The fair value of each option used for the purpose of estimating the stock-based compensation is estimated using the Black-Scholes option pricing model with the following assumptions: Risk free rate 0.26% Expected dividends 0% Expected forfeiture rate 0% Expected volatility 189% Expected life 1.5 years Unvested stock-based compensation expense as of January 31, 2021 $ - During the year ended January 31, 2021, the Company expensed $81,979, relating to the vesting of options, resulting in unvested stock- based compensation expense of $nil as of January 31, 2021. g) On September 21, 2020, the Company granted options to a consultant to purchase up to 250,000 common shares. These options were issued at an exercise price of $0.59 per share and vest in equal installments over a quarterly basis throughout the term. These options have a term of one (1) year expiring on September 21, 2021. The fair value of each option used for the purpose of estimating the stock-based compensation is estimated using the Black-Scholes option pricing model with the following assumptions: Risk free rate 0.23% Expected dividends 0% Expected forfeiture rate 0% Expected volatility 188% Expected life 1 year Unvested stock-based compensation expense as of January 31, 2021 $ 18,958 During the year ended January 31, 2021, the Company expensed $77,375 relating to the vesting of options, resulting in unvested stock- based compensation expense of $18,958 as of January 31, 2021. As of January 31, 2021, there was $53,204 of unvested stock-based compensation expense. Year ended January 31, 2022 (a) (b) (c) Risk free rate 0.26% Expected dividends 0% Expected forfeiture rate 0% Expected volatility 134.3% Expected life 1 year Unvested stock-based compensation expense as of January 31, 2022 $ 1,834 During the year ended January 31, 2022, the Company expensed $50,675 relating to the vesting of options, resulting in unvested stock- based compensation expense of $1,834 as of January 31, 2022. (d) Risk free rate 0.32% Expected dividends 0% Expected forfeiture rate 0% Expected volatility 146.38% Expected life 1.5 years Unvested stock-based compensation expense as of January 31, 2022 $ 6,778 During the year ended January 31, 2022, the Company expensed $48,672 relating to the vesting of options, resulting in unvested stock- based compensation expense of $6,778 as of January 31, 2022. Year ended January 31, 2022 (e) Risk free rate 0.38% Expected dividends 0% Expected forfeiture rate 0% Expected volatility 131.33% Expected life 1.5 years Unvested stock-based compensation expense as of January 31, 2022 $ 7,826 During the year ended January 31, 2022, the Company expensed $30,445 relating to the vesting of options, resulting in unvested stock- based compensation expense of $7,826 as of January 31, 2022. As of January 31, 2022, there was a total of $16,438 of unvested stock-based compensation expense. Continuity of the Company's options is as follows: Number of Weighted Average Outstanding, January 31, 2020 350,000 $ 0.10 Granted 10,450,000 $ 0.18 Expired (250,000 ) $ 0.10 Exercised (1,455,000 ) $ 0.15 Outstanding, January 31, 2021 9,095,000 $ 0.18 Granted 750,000 $ 0.32 Expired (4,776,250 ) $ 0.17 Exercised (3,968,750 ) $ 0.15 Outstanding January 31, 2022 1,100,000 $ 0.42 As at January 31, 2022, the Company had the following share purchase options outstanding and exercisable: Outstanding Exercisable Exercise Price Remaining Life Expiry Date 80,000 80,000 $1.02 3.46 July 17, 2025 70,000 - $0.54 0.11 March 10, 2022 200,000 200,000 $0.54 0.17 March 30, 2022 250,000 187,500 $0.36 0.15 March 23, 2022 250,000 125,000 $0.35 0.86 December 9, 2022 250,000 125,000 $0.25 1.50 July 30, 2023 1,100,000 780,000 $0.42 0.86 |