Note 9 - Stock Based Compensation

3 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

9. Stock based compensation:

At

June 30, 2020

the Corporation has in place a stock option plan for directors, officers, employees and consultants of the Corporation (“Stock Option Plan”). The terms and conditions for acquiring and exercising options are set by the Corporation's Board of Directors in accordance with and subject to the terms and conditions of the stock option plan.

The total number of shares issued to any

one

consultant within any

twelve

-month period cannot exceed

2%

of the Corporation's total issued and outstanding shares (on a non-diluted basis). The Corporation is

not

authorized to grant within any

twelve

-month period such number of options under the stock option plan that could result in a number of Common Shares issuable pursuant to options granted to (a) related persons exceeding

2%

of the Corporation's issued and outstanding Common Shares (on a non-diluted basis) on the date an option is granted, or (b) any

one

eligible person in a

twelve

-month period exceeding

2%

of the Corporation's issued and outstanding Common Shares (on a non-diluted basis) on the date an option is granted.

The following table summarizes information about activities within the stock option plan for the

three

-month periods ended:

	June 30, 2020		June 30, 2019
	Weighted average exercise price	Number of options	Weighted average exercise price	Number of options
	CAD $		CAD $
Outstanding at beginning of period	1.00	9,936,486	1.25	4,046,677
Granted	-	-	1.31	791,617
Exercised	-	-	0.77	(3,000	)
Forfeited	-	-	0.77	(1,000	)
Expired	-	-	-	-
Outstanding at end of period	1.00	9,936,486	1.26	4,834,294
Exercisable at end of period	1.28	4,132,146	1.53	2,193,033

No

stock options were granted during the

three

-month period ended

June 30, 2020.

Compensation expense recognized under the stock option plan for the

three

-month periods ended

June 30, 2020

and

2019

was as follows:

	Three-month periods ended
	June 30, 2020	June 30, 2019
	$	$
Research and development expenses	141	79
General and administrative expenses	348	148
Sales and marketing expenses	143	23
	632	250

Stock-based compensation payment transactions and broker warrants:

The fair value of stock-based compensation transactions is measured using the Black-Scholes option pricing model. Measurement inputs include share price on measurement date, exercise price of the instrument, expected volatility (based on weighted average historic volatility for a duration equal to the weighted average life of the instruments, life based on the average of the vesting and contractual periods for employee awards as minimal prior exercises of options in which to establish historical exercise experience; contractual life for broker warrants), and the risk-free interest rate (based on government bonds). Service and performance conditions attached to the transactions, if any, are

not

taken into account in determining fair value. The expected life of the stock options is

not

necessarily indicative of exercise patterns that

may

occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which

may

also

not

necessarily be the actual outcome.