| STOCK BASED COMPENSATION [Text Block] |
| 6. |
STOCK BASED COMPENSATION
|
| |
|
| |
Effective October 30, 2006 the Company adopted the following stock option and stock bonus plans.
|
| |
|
| |
Incentive Stock Option Plan
. The Company’s Incentive Stock Option Plan authorizes the issuance of shares of its Common Stock to persons that exercise options granted pursuant to the Plan. Only employees may be granted options pursuant to the Incentive Stock Option Plan. The option exercise price is determined by its directors but cannot be less than the market price of its common stock on the date the option is granted. The Company has reserved
1,000,000
common shares under this plan. No options have been issued under this plan as at August 31, 2012.
|
| |
|
| |
Non-Qualified Stock Option Plan
. The Company’s Non-Qualified Stock Option Plan authorizes the issuance of shares of its Common Stock to persons that exercise options granted pursuant to the Plans. The Company’s employees, directors, officers, consultants and advisors are eligible to be granted options pursuant to the Plans, provided however that bona fide services must be rendered by such consultants or advisors and such services must not be in connection with the offer or sale of securities in a capital-raising transaction. By a resolution of the Board of Directors, the Company amended this plan to increase the number of common shares available under this plan from
2,250,000
to
4,500,000
effective October 10, 2007. The Company further amended its Non-Qualified Stock Option Plan to increase the number of Common Shares available under this plan to
5,000,000
and filed an S-8 registration statement on April 10, 2008.
|
| |
|
| |
Stock Bonus Plan
. The Company’s Stock Bonus Plan allows for the issuance of shares of common stock to its employees, directors, officers, consultants and advisors. However bona fide services must be rendered by the consultants or advisors and such services must not be in connection with the offer or sale of securities in a capital-raising transaction. The Company has reserved
150,000
common shares under this plan. No options have been issued under this plan as at August 31, 2012.
|
Year ended November 30, 2011
The Company did not issue any options during the year ended November 30, 2011.
Nine months ended August 31, 2012
On January 4, 2012, the board of directors granted options to three directors to acquire a total of
775,000
common shares, one officer to acquire
20,000
common shares and two consultants to acquire a total of
110,000
common shares. The
905,000
options were issued at an exercise price of $0.13
per share and vest immediately with an expiry term of four years. The fair value of each option used for the purpose of estimating the stock compensation is calculated using the Black-Scholes option pricing model with the following weighted average assumptions:
| |
Risk free rate |
|
2.00%
|
|
| |
Expected dividends |
|
0%
|
|
| |
Forfeiture rate |
|
0%
|
|
| |
Volatility |
|
206.87%
|
|
| |
Market price of Company’s common stock on date of grant of options |
$ |
0.13
|
|
| |
Stock-based compensation cost |
$ |
113,292
|
|
On September 19, 2012 the board of directors approved the cancellation of all the
905,000
options issued on January 4, 2012, as detailed above and to be exchanged into
905,000
warrants on terms identical to the terms of the existing stock options in the Company. This is conditional and to be effective when the holder agrees to the cancellation and exchange in the form acceptable to the Company (see Note 12)
|