| STOCK BASED COMPENSATION [Text Block] |
| 6. |
STOCK BASED COMPENSATION
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Effective October 30, 2006 the Company adopted the following stock option and stock bonus plans.
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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 February 28, 2013.
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Non-Qualified Stock Option Plan
. SDI’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. SDI’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 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.
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Stock Bonus Plan
. SDI’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 February 28, 2013.
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Year ended November 30, 2012
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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:
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Risk free rate |
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2.00%
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Expected dividends |
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0%
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Forfeiture rate |
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0%
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Volatility |
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206.87%
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Market price of Company’s common stock on date of grant of options |
$ |
0.13
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Stock-based compensation cost |
$ |
113,292
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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. The cancellation of
905,000
options and issuance of
905,000
warrants in lieu thereof was effective October 8, 2012.
On March 9, 2012, all of the issued and outstanding stock options for common shares in the Company’s capital stock previously issued to Elad, Ilan Shalev and Haim Danon (being principals of Elad) were exchanged into warrants on terms identical to the terms of the existing stock options in the Company. The Company thus cancelled
850,000
options having an exercise price of $0.25
per common share and expiring on June 30, 2014 and issued
850,000
warrants at exercise price of $0.25
per common share and expiring June 30, 2014.
On October 3, 2012, the board of directors granted options to two consultants to acquire
100,000
common shares each for a total of
200,000
common shares. The
200,000
options were issued at an exercise price of $0.42
per share and vest immediately with an expiry term of three 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:
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Risk free rate |
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1.50%
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Expected dividends |
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0%
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Forfeiture rate |
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0%
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Volatility |
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199.60%
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Market price of Company’s common stock on date of grant of options |
$ |
0.42
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Stock-based compensation cost |
$ |
77,096
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On October 26, 2012, the board of directors granted options to one director to acquire a total of
1,000,000
common shares and to another director to acquire
100,000
common shares for a total of
1,100,000
options. These
1,100,000
options were issued at an exercise price of $0.45
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:
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Risk free rate |
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1.65%
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Expected dividends |
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0%
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Forfeiture rate |
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0%
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Volatility |
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217.15%
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Market price of Company’s common stock on date of grant of options |
$ |
0.50
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Stock-based compensation cost |
$ |
534,905
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As of November 30, 2012 there was $Nil
of unrecognized expense related to non-vested stock-based compensation arrangements granted.
Three months ended February 28, 2013
The Company did not issue any options during the three month period ended February 28, 2013
As of February 28, 2013 there was $Nil
of unrecognized expense related to non-vested stock-based compensation arrangements granted.
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