| Stockholders' Equity | NOTE 4. STOCKHOLDERS EQUITY a) Common Stock Options and Warrants REGI has a 2000 Stock Option Plan to
issue up to 2,500,000 shares to certain key directors and employees. All transactions in which goods or services
are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration
received or the fair value of the equity instrument issued, whichever is more reliably measurable. Equity instruments issued to
employees and the cost of the services received as consideration are measured and recognized based on the fair value of the equity
instruments issued. All options granted by REGI under the
2000 plan have the following vesting schedule:
i) Up to 25% of the option may be exercised at any time during the term of the option; such initial exercise is referred to as the First Exercise.
ii) The second 25% of the option may be exercised at any time after 90 days from the date of First Exercise; such second exercise is referred to as the Second Exercise.
iii) The third 25% of the option may be exercised at any time after 90 days from the date of Second Exercise; such third exercise is referred to as the Third Exercise.
iv) The fourth and final 25% of the option may be exercised at any time after 90 days from the date of the Third Exercise.
v) The options expire 60 months from the date of grant. On April 12, 2007, REGI adopted its
2007 Stock Option Plan to issue up to 2,000,000 shares to certain key directors and employees. Pursuant to the 2007 plan, REGI
has granted stock options to certain directors and employees. All options granted under the 2007 plan
have the following vesting schedule:
i) Up to 25% of the option may be exercised 90 days after the grant of the option.
ii) The second 25% of the option may be exercised at any time after 1 year and 90 days after the grant of the option.
iii) The third 25% of the option may be exercised at any time after 2 years and 90 days after the grant of the option.
iv) The fourth and final 25% of the option may be exercised at any time after 3 years and 90 days after the grant of the option.
v) The options expire 60 months from the date of grant. During the years ended April 30, 2015
and 2014, REGI recorded stock-based compensation related to options and warrants of $68,285 and $292,890, respectively. At April
30, 2015 and 2014, REGI had $369,875 and $401,072, of total unrecognized compensation cost related to non-vested stock options
and warrants, which will be recognized over future periods. The fair value of each option and warrant
granted or modified was determined using the Black-Scholes option pricing model and the following assumptions:
April 30,
2015 2014
Risk free interest rate 0.01% - 0.05 % 0.11 - 0.36 %
Expected life 0.06-0.57 0.09 1.64 years
Annualized volatility 140% - 182 % 191 - 300 %
Expected dividends - - Option pricing models require the input
of highly subjective assumptions including the expected price volatility. The subjective input assumptions can materially affect
the fair value estimate. A summary of REGIs stock option activity for the years
ended April 30, 2015 and 2014 is as follows:
April 30, 2015 April 30, 2014
Weighted Weighted
Average Average
Exercise Exercise
Options Price Options Price
Outstanding at beginning of period 2,638,000 $ 0.15 2,638,000 $ 0.15
Granted - - - -
Exercised - - - -
Expired (100,000 ) 0.10 - -
Forfeited (50,000 ) 0.15 - -
Outstanding at end of period 2,488,000 0.15 2,638,000 0.15
Exercisable at end of period 622,000 $ 0.15 659,500 $ 0.15
Weighted average fair value of options granted $ - $ - At April 30, 2015, the range of exercise
prices and the weighted average remaining contractual life of the outstanding options was $0.10 to $0.20 per share and 2.48
years, respectively. The intrinsic value of in the money exercisable options at April 30, 2014 was $Nil. At April 30, 2014, the range of exercise
prices and the weighted average remaining contractual life of the outstanding options was $0.10 to $0.20 per share and 3.38 years,
respectively. The intrinsic value of in the money exercisable options at April 30, 2014 was $9,810. On May 5, 2014, the Company extended
the expiration date of 830,000 outstanding common stock warrants from May 27, 2014 to November 27, 2014. On October 31, 2014, the
expiration date of these warrants was further extended to May 27, 2015. The warrants are exercisable at $0.15 per share. The incremental
increase in the fair value of the warrants for each extension was determined to be $34,236 and $34,049, respectively, which were
expensed in the year ended April 30, 2015. On November 27, 2013, the Company extended
the expiration date of 1,816,200 outstanding common stock warrants from December 12, 2013 to December 12, 2014. REGI calculated
the incremental increase in the fair value using the Black-Scholes option pricing model and determined it to be $156,569 which
was expensed in year ended April 30, 2014. On July 27, 2013, the Company extended
the expiration date of 833,950 outstanding common stock warrants with expiration dates between July 30, 2012 and December 17, 2013
by one year and reduced their exercise price from $0.50 to $0.25. REGI calculated the incremental increase in the fair value using
the Black-Scholes option pricing model and determined it to be $136,321 which was expensed in the year ended April 30, 2014. A summary of REGIs common stock
warrant activity for the years ended April 30, 2015 and 2014 is as follows:
April 30, 2015 April 30, 2014
Weighted Weighted
Average Average
Exercise Exercise
Warrants Price Warrants Price
Outstanding at beginning of period 5,128,816 $ 0.18 3,730,150 $ 0.18
Issued 139,000 0.15 1,398,666 0.22
Exercised - - - -
Expired (3,558,483 ) 0.18 - -
Outstanding at end of period 1,709,333 0.19 5,128,816 0.18
Exercisable at end of period 1,709,333 $ 0.19 5,091,316 $ 0.19 At April 30, 2015, the range of exercise
prices and the weighted average remaining contractual life of the outstanding warrants was $0.15 to $0.25 per share and 0.42 year,
respectively. The intrinsic value of in the money exercisable warrants at April 30, 2014 was $Nil. At April 30, 2014, the range of exercise
prices and the weighted average remaining contractual life of the outstanding warrants was $0.10 to $0.25 per share and 0.68 year,
respectively. The intrinsic value of in the money exercisable warrants at April 30, 2014 was $375. b) Performance Stock Plan REGI has allotted 2,500,000 shares to
be issued pursuant to a performance stock plan adopted on June 27, 1997, and amended in June 2004. On April 27, 2007, REGI further
amended the plan so that the term of the plan is extended to the twentieth anniversary of the effective date. As of April 30, 2015,
775,000 shares have been issued under this plan and 1,725,000 remain unissued and issuable. c) Cash Consideration During the year ended April 30, 2015,
the Company sold an aggregate of 139,000 units in a private placement for cash proceeds of $12,306, net of issuance costs of $1,194,
at $0.10 per unit. Each unit consists of one common share and one common stock purchase warrant exercisable at $0.15 per share
for one year into the Companys common stock from the closing date of the private placement. During the year ended April 30, 2014,
the Company sold an aggregate of 434,333 units in a private placement for cash proceeds of $64,704, net of issuance costs of $446,
at $0.15 per unit. Each unit consists of one common share and two common stock purchase warrants, with one warrant exercisable
at $0.20 per share for one year and one warrant exercisable at $0.25 per share for two years into the Companys common stock
from the closing date of the private placement. During the year ended April 30, 2014,
the Company sold an aggregate of 530,000 units in a private placement for cash proceeds of $53,400, at $0.10 per unit. Each unit
consists of one common share and one common stock purchase warrant exercisable at $0.15 per share for one year into the Companys
common stock from the closing date of the private placement. |
