Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Note 16 - Share-based Payments

v3.8.0.1
Note 16 - Share-based Payments
12 Months Ended
Mar. 31, 2018
Statement Line Items [Line Items]  
Disclosure of share-based payment arrangements [text block]
16.
Share-based payments:
 
At
March 31, 2018,
the Corporation has the following share-based payment arrangement:
 
(a) Corporation stock option plan:
 
The Corporation has in place a stock option plan for directors, officers, employees and consultants of the Corporation. The plan provides for the granting of options to purchase Class A shares (Common Shares). The exercise price of the stock options granted under this plan is
not
lower than the closing price of the shares listed on the TSXV at the close of markets the day preceding the grant. Under this plan, the maximum number of Class A shares (Common Shares) that
may
be issued upon exercise of options granted under the plan is
2,940,511,
representing
20%
of the number of Class A shares (Common Shares) issued and outstanding as at
February
29,
2016.
The terms and conditions for acquiring and exercising options are set by the Corporation’s Board of Directors, subject among others, to the following limitations: the term of the options cannot exceed
ten
years and every stock option granted under the stock option plan will be subject to conditions
no
less restrictive than a minimum vesting period of
18
months and a gradual and equal acquisition of vesting rights
not
shorter than on a quarterly basis. The total number of shares issued to any
one
consultant cannot exceed
2%
of the Corporation’s total issued and outstanding shares. The Corporation is
not
authorized to grant such number of options under the stock option plan that could result in a number of Class A shares (Common Shares) issuable pursuant to options granted to (a) related persons exceeding
10%
of the Corporation’s issued and outstanding Class A shares (Common Shares) (on a non-diluted basis) on the date an option is granted, or (b) any
one
eligible person in a
twelve
month period exceeding
5%
of the Corporation’s issued and outstanding Class A shares (Common Shares) (on a non-diluted basis) on the date an option is granted.
 
The following tables summarize information about activities within the stock option plan:
 
      March 31, 2018       Thirteen-month period ended
March 31, 2017
 
      Weighted average
exercise price
      Number of
options
      Weighted average
exercise price
      Number of
options
 
      $               $          
Outstanding at beginning of period    
2.58
     
1,424,788
     
13.52
     
454,151
 
Granted    
1.75
     
1,121,500
     
1.69
     
1,300,400
 
Forfeited    
1.89
     
(199,800
)    
13.27
     
(190,138
)
Expired    
18.06
     
(62,100
)    
15.38
     
(139,625
)
Outstanding at end of period    
1.81
     
2,284,388
     
2.58
     
1,424,788
 
                                 
Exercisable at end of period    
1.92
     
591,113
     
6.44
     
238,482
 
 
 
      Month ended
March 31, 2017
      Twelve-month period ended
February 28, 2017
 
      (Unaudited)       (Unaudited)  
      Weighted average
exercise price
      Number of
options
      Weighted average
exercise price
      Number of
options
 
      $               $          
Outstanding at beginning of period    
2.59
     
1,427,288
     
13.52
     
454,151
 
Granted    
     
     
1.69
     
1,300,400
 
Forfeited    
11.50
     
(2,500
)    
13.29
     
(187,638
)
Expired    
     
     
15.38
     
(139,625
)
Outstanding at end of period    
2.58
     
1,424,788
     
2.59
     
1,427,288
 
                                 
Exercisable at end of period    
6.44
     
238,482
     
6.49
     
240,982
 
 
 
      February 29, 2016  
      Weighted average
exercise price
      Number of
options
 
      $          
Outstanding at beginning of period    
15.33
     
429,625
 
Granted    
4.65
     
109,188
 
Exercised    
2.50
     
(250
)
Forfeited    
9.40
     
(66,912
)
Expired    
18.57
     
(17,500
)
Outstanding at end of period    
13.52
     
454,151
 
                 
Exercisable at end of period    
15.28
     
375,563
 
 
The weighted average of the fair value of the options granted to employees and directors of the Company during the period ended
March 31, 2018
is
$1.22
(
thirteen
-month period ended
March 31, 2017
is
$1.40
and during the
twelve
-month period ended
February 28, 2017
is
$1.40
(unaudited) (
2016
-
$2.14
)). There were
no
options granted during the month ended
March 31, 2017
and
no
options granted to consultants during the
thirteen
-month period ended
March 
31,
 
2017
and years ended
February
29,
2016.
 
No
options were exercised during the period ended
March 31, 2018 (
nil
for the
thirteen
-month period ended
March 31, 2017).
The weighted average share price at the date of exercise for share options exercised during the year ended
February
29,
2016
was
$4.20.
Stock-based compensation recognized under this plan for the period ended
March 31, 2018
was
$929
(
thirteen
-month and
one
-month periods ended
March 31, 2017
amounted to
$674
and
$86
(unaudited), respectively and amounted to
$588
(unaudited) for the
twelve
-month period ended
February 28, 2017
and
$234
for
2016
).
 
The fair value of options granted was estimated using the Black-Scholes option pricing model, resulting in the following weighted average assumptions for options granted during the periods ended:
 
              Thirteen-month
period ended
      Twelve-month
Period ended
         
      March 31, 2018       March 31, 2017       February 28, 2017
(Unaudited)
      February 29, 2016  
                                 
Exercise price    
$1.75
     
$1.69
     
$1.69
     
$4.65
 
Share price    
$1.75
     
$1.69
     
$1.69
     
$4.65
 
Dividend    
     
     
     
 
Risk-free interest    
1.21
%    
0.87
%    
0.87
%    
0.66
%
Estimated life (in years)    
5.89
     
4.94
     
4.94
     
4.20
 
Expected volatility    
82.4
%    
123.5
%    
123.5
%    
65.63
%
 
The expected life of the stock options is based on historical data and current expectation and is
not
necessarily indicative of exercise patterns that
may
occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which
may
also
not
necessarily be the actual outcome.
 
The following tables summarize the status of the outstanding and exercisable options of the Corporation:
 
 
 
 
 
March 31, 2018
 
 
 
 
Options outstanding
 
Exercisable options
Exercise price
 
 
Weighted remaining
contractual life
outstanding
 
 
 
Number of options
outstanding
 
 
 
Weighted average
exercise price
$
 
 
 
Number of options
exercisable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$1.56
-
$1.58
 
 
5.11
 
 
 
525,000
 
 
 
1.56
 
 
 
306,250
 
$1.59
-
$1.71
 
 
8.90
 
 
 
415,000
 
 
 
1.65
 
 
 
141,667
 
$1.72
-
$1.88
 
 
9.20
 
 
 
992,500
 
 
 
-
 
 
 
-
 
$1.89
-
$2.25
 
 
5.16
 
 
 
286,700
 
 
 
1.99
 
 
 
95,568
 
$2.26
-
$6.50
 
 
3.67
 
 
 
65,188
 
 
 
4.87
 
 
 
47,628
 
 
 
 
 
 
7.54
 
 
 
2,284,388
 
 
 
1.92
 
 
 
591,113
 
 
Share-based payment transactions and broker warrants:
 
The fair value of share-based payment transaction is measured using the Black-Scholes valuation model. Measurement inputs include share price on measurement date, exercise price of the instrument, expected volatility (based on weighted average historic volatility), weighted average expected life of the instruments (based on historical experience and general option holder behaviour unless
no
entity-specific information exists in which case the average of the vesting and contractual periods is used), expected dividends, and the risk-free interest rate (based on government bonds). Service and non-market performance conditions attached to the transactions, if any, are
not
taken into account in determining fair value.
 
b) Corporation equity incentive plan:
 
The Corporation established an equity incentive plan for employees, directors and consultants. The plan provides for the issuance of restricted share units (“RSU”), performance share units, restricted shares, deferred share units and other share-based awards, subject to restricted conditions as
may
be determined by the Board of Directors. There are
no
such awards outstanding as of
March 31, 2018,
March 31, 2017,
and
February 
28,
2017
and
no
stock-based compensation was recognized for the period ended
March 31, 2018 (
nil
for the
one
-month and
thirteen
-month periods ended
March 31, 
2017
and
$64
for the
twelve
-month period ended
February
29,
2016
).