STOCK COMPENSATION PROGRAM

9 Months Ended

Nov. 30, 2013

STOCK COMPENSATION PROGRAM [Text Block]

10.	STOCK COMPENSATION PROGRAM
	On March 18, 2009, the board of directors approved the granting of stock options according to the 2009 Nonqualified Stock Option Plan (“2009 Option Plan”) whereby the board is authorized to grant to employees and other related persons stock options to purchase an aggregate of up to 6,000,000 shares of the Company's common stock. Subject to the adoption of the 2009 Option Plan, the options were granted and vest, pursuant to the terms of the 2009 Option Plan, in six equal instalments, with the first instalment vesting at the date of grant, and the balance vesting over 2.5 years, every six months.
	In the nine months ended November 30, 2013, the Company awarded nil options to purchase common shares (November 30, 2012 – nil) and recorded stock-based compensation expense for the vesting options of $143,860 (November 30, 2012 - $153,300). The following weighted average assumptions were used for the Black-Scholes option-pricing model to value stock options granted in 2013 and 2012:

	2013	2012
Expected volatility	-	-
Weighted-average volatility	-	-
Expected dividend rate	-	-
Expected life of options in years	-	-
Risk-free rate	-	-

There were no capitalized stock-based compensation costs at November 30, 2013 or November 30, 2012.

The summary of option activity under the 2009 Option Plan as of November 30, 2013, and changes during the period then ended, is presented below:

	Weighted	Number of		Weighted-	Aggregate
	Average	Shares		Average	Intrinsic
	Exercise			Remaining	Value
	Price			Contractual
Options	$			Term
Balance at March 1, 2013	0.29	4,961,669
Options granted	-	-
Options exercised	-	-
Options cancelled/forfeited	0.26	(2,166,669	)
Balance at November 30, 2013	0.31	2,795,000		5.94	-
Exercisable at November 30, 2013	0.31	2,795,000		5.94	-

The weighted-average grant-date fair value of options granted during the nine months ended November 30, 2013 and November 30, 2012 is $nil and $nil, respectively.

A summary of the status of the Company’s non-vested options as of November 30, 2013, and changes during the nine months ended November 30, 2013, is presented below:

			Weighted-average
			Grant-Date
Non-vested options	Shares		Fair Value
			$
Non-vested at February 28, 2013	533,332		0.25
Granted	-		-
Vested	(366,664	)	0.27
Cancelled/forfeited	(166,668	)	0.26
Non-vested at November 30, 2013	-		-

As of November 30, 2013, there was $nil of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the 2009 nonqualified stock option plan.