| 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 which were replaced by the Incentive Stock Option Plan (the “2013 Plan”) that was issued in May, 2013.
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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 November 30, 2014.
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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 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.
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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 November 30, 2014.
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Effective May 31, 2013, the Company adopted an incentive stock option plan (the “2013 Plan”), which replaces the stock option and stock bonus plans that were in place prior to adoption of the 2013 Plan. All outstanding options to purchase Common Shares granted by the Company under the prior plans are now governed by the 2013 Plan and the prior plans (an Incentive Stock Option Plan, a Non-Qualified Stock Option Plan, and a Stock Bonus Plan) have been terminated.
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Year ended November 30, 2014
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On March 19, 2014, the board of directors granted options to five consultants to acquire a total of
400,000
common shares. The
400,000
options were issued at an exercise price of $0.31
(CAD$0.35) 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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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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151.63%
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Market price of Company’s common stock on date of grant of options |
$ |
0.16
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Stock-based compensation cost |
$ |
47,897
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On May 9, 2014, the board of directors granted options to one director to acquire a total of
600,000
common shares. These options were issued at an exercise price of $0.32
(CAD $0.35) per share and vest immediately with an expiry term of five 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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205.42%
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Market price of Company’s common stock on date of grant of options |
$ |
0.24
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Stock-based compensation cost |
$ |
140,573
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On July 25, 2014, the board of directors granted options to two consultants to acquire a total of
150,000
common shares. These options were issued at an exercise price of $0.32
(CAD $0.35) per share and vest immediately with an expiry date of August 5, 2017. 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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152.35%
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Market price of Company’s common stock on date of grant of options |
$ |
0.28
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Stock-based compensation cost |
$ |
33,952
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On September 11, 2014, the board of directors granted options to directors and consultants to acquire a total of
1,875,000
common shares. These options were issued at an exercise price of $0.36
(CAD $0.40) per share and vest immediately with an expiry date of September 10, 2019. 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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170.42%
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Market price of Company’s common stock on date of grant of options |
$ |
0.30
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Stock-based compensation cost |
$ |
529,188
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As of November 30, 2014 there was $Nil
of unrecognized expense related to non-vested stock-based compensation arrangements granted.
Year ended November 30, 2013
The Company did not issue any options during the year ended November 30, 2013.
As of November 30, 2013 there was $Nil
of unrecognized expense related to non-vested stock-based compensation arrangements granted.
The following table summarizes the options outstanding under the Stock Option Plan:
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Number of options |
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2014 |
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2013 |
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Outstanding, beginning of year |
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1,510,000
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1,660,000
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Granted |
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3,025,000
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-
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Expired |
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(125,000
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(150,000
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Exercised |
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(50,000
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-
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Forfeited |
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(1,000,000
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-
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Cancelled |
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-
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-
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Outstanding, end of year |
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3,360,000
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1,510,000
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Exercisable, end of year |
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3,360,000
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1,510,000
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Option price |
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Number of |
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options |
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Expiry date
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per share |
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2014 |
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June 15, 2015 |
$ |
0.20
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35,000
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October 2, 2015 |
$ |
0.42
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200,000
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October 25, 2016 |
$ |
0.45
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100,000
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March 18, 2017 |
$ |
0.31
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400,000
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August 5, 2017 |
$ |
0.32
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150,000
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May 18, 2019 |
$ |
0.32
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600,000
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September 10, 2019 |
$ |
0.36
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1,875,000
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TOTAL |
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3,360,000
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Weighted average exercise price: |
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Options outstanding at end of year |
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$ |
0.35
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Options granted during the year |
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0.34
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Options exercised during the year |
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0.25
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Options expired during the year |
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0.25
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Options forfeited/cancelled during the year |
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0.45
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Option price |
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Number of |
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options |
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Expiry date
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per share |
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2013 |
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June 30, 2014 |
$ |
0.25
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175,000
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June 15, 2015 |
$ |
0.20
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35,000
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October 2, 2015 |
$ |
0.42
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200,000
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October 25, 2016 |
$ |
0.45
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1,100,000
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TOTAL |
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1,510,000
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Weighted average exercise price: |
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Options outstanding at end of year |
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$ |
0.42
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Options granted during the year |
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$ |
-
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Options exercised during the year |
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$ |
-
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Options expired during the year |
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$ |
0.50
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Options forfeited/cancelled during the year |
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$ |
-
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The share options outstanding at the end of the year had a weighted average remaining contractual life as follows:
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2014 |
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2013 |
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(Years) |
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(Years) |
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Total outstanding options |
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4.0
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2.6
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Total exercisable options |
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4.0
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2.6
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