STOCKHOLDERS' EQUITY

12 Months Ended

Aug. 31, 2023

Stockholders' Equity Note [Abstract]

STOCKHOLDERS' EQUITY [Text Block]

6. STOCKHOLDERS' EQUITY

[a] Common stock issued and authorized

The Company is authorized to issue up to 20,000,000 shares of common stock, par value $0.001 per share.

During the year ended August 31, 2023, the Company did not issue any common stock (2022 - Nil). During the year ended August 31, 2023, the Company repurchased and cancelled 25,651 common shares for $21,135 (2022 - 143,100 common shares for $179,401).

[b] Stock option plans

Pursuant to the Company's 2015 Stock Option Plan (the "2015 Plan"), 530,000 shares of common stock have been reserved for issuance. A total of 420,000 common shares remain eligible for issuance under the 2015 Plan. On February 18, 2022 the Company received shareholder approval for the 2022 Stock Option Plan (the "2022 Plan") (together with the 2015 Plan, the "Plans"), whereby 1,000,000 common shares are reserved for issuance. As of August 31, 2023, 361,000 common shares remain eligible for issuance under the 2022 Plan.

The options generally vest over a range of periods from the date of grant, some are immediate, and others vest over 24 months. Any options that do not vest as the result of a grantee leaving the Company are forfeited and the underlying common shares are returned to the reserve. The options generally have a contractual term of five years.

Stock-Based Payment Award Activity

During the year ended August 31, 2023, the Company granted 228,000 (2022 - 561,000) share purchase options to directors, officers, employees, and consultants of the Company. The weighted-average assumptions used to estimate the fair value of stock options using the Black-Scholes option valuation model were as follows:

		2023		2022
Risk-free interest rate		5.00%		1.20%
Volatility		84.89%		72.34%
Exercise price	$	0.85	$	1.50
Dividend yield		0%		0%
Forfeiture rate		0%		0%
Expected life (years)		2.13		3.50

The summary of option activity for the years ended August 31, 2023 and 2022 were as follows:

	Number of Options			Weighted Average Exercise Price	Weighted Average Contractual Term (Years)
Outstanding at August 31, 2021	410,000		$	1.34	2.26
Granted	561,000		$	1.50	5.00
Forfeited	(91,583	)	$	1.38	3.85
Repurchased	(82,500	)	$	1.00	2.25
Expired	(203,917	)	$	1.46	0.50
Outstanding at August 31, 2022	593,000		$	1.49	3.79
Granted	228,000		$	0.85	5.00
Forfeited	(72,000	)	$	1.41	3.41
Outstanding at August 31, 2023	749,000		$	1.30	3.37
Exercisable at August 31, 2023	480,017		$	1.47	2.76

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company's common stock for the options that were in-the-money as of August 31, 2023. In all cases, the aggregate intrinsic value was $nil. There were no stock options repurchased during the year ended August 31, 2023. During the year ended August 31, 2022, the Company repurchased 82,500 stock options for $11,275.

The following table summarizes information regarding the non-vested options outstanding as of August 31, 2023 and changes during the period:

	Number of Options			Weighted Average Exercise Price
Non-vested options at August 31, 2021	98,750		$	0.48
Granted	561,000		$	1.50
Forfeited	(91,583	)	$	1.38
Vested	(239,958	)	$	1.44
Expired	(7,667	)	$	1.50
Non-vested options at August 31, 2022	320,542		$	1.50
Granted	228,000		$	0.85
Forfeited	(41,791	)	$	1.36
Vested	(237,768	)	$	1.46
Non-vested options at August 31, 2023	268,983		$	1.01

As of August 31, 2023, there was $107,208 (2022 - $179,620) of total unrecognized compensation cost related to non-vested stock-based compensation awards. The unrecognized compensation cost is expected to be recognized over a weighted average period of 0.92 years (2022 - 1.25 years).

During the years ended August 31, 2023 and 2022, the total stock-based compensation expense was reported in the consolidated statement of comprehensive income as follows:

Stock-based compensation		2023		2022
General and administrative	$	75,997	$	74,868
Sales and marketing		20,790		33,015
Product development		51,145		40,693
Total stock-based compensation	$	147,932	$	148,576

[c] Employee Stock Purchase Plan

The Company's 2011 Employee Stock Purchase Plan (the "ESPP") became effective on February 22, 2011. Under the ESPP, employees of the Company can contribute up to 5% of their annual salary into a pool which is matched equally by the Company in order to purchase the Company's common shares under certain terms. Directors can contribute a maximum of $12,500 each for a combined maximum annual purchase of $25,000. The maximum annual combined contributions will be $400,000. All purchases are made through the TSXV by a third-party plan agent. The third-party plan agent is also responsible for the administration of the ESPP on behalf of the Company and the participants.

During the year ended August 31, 2023, the Company recognized compensation expense of $111,800 (2022 - $109,637) in salaries and wages on the consolidated statement of comprehensive income in respect of the ESPP, representing the Company's employee matching of cash contributions to the ESPP. The shares were purchased on the open market at an average price of $0.69 (2022 - $1.24). The shares are held in trust by the Company for a period of one year from the date of purchase. As of August 31, 2023, 237,184 shares were held in trust by the Company.