Note 10 - Stock Based Compensation

6 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

10. Stock based compensation:

At

September 30, 2020

the Corporation has in place a stock option plan for directors, officers, employees and consultants of the Corporation (“Stock Option Plan”). An amendment of the Plan was approved by shareholders on

September 30, 2020.

The amendment provides for an increase to the existing limits for Common Shares reserved for issuance under the Stock Option Plan as well as certain changes to the minimum vesting period applicable to options granted to directors under the Stock Option Plan. The stock option plan continues to provide for the granting of options to purchase Common Shares. The exercise price of the stock options granted under this amended plan is

not

lower than the closing price of the Common Shares on the TSXV at the close of markets the day preceding the grant. The maximum number of Common Shares that

may

be issued upon exercise of options granted under the amended Stock Option Plan was increased from

11,719.910

representing

15%

of the issued and outstanding Common Shares of the Company as of

April 9, 2019,

to

14,533,881

representing

15%

of the issued and outstanding Common Shares of the Company as of

August 26, 2020.

The terms and conditions for acquiring and exercising options are set by the Corporation's Board of Directors, subject among others, to the following limitations: the term of the options cannot exceed

ten

years and (i) all options granted to a director will be vested evenly on a monthly basis over a period of at least

twelve

(

12

) months, and (ii) all options granted to an employee will be vested evenly on a quarterly basis over a period of at least

thirty-six

(

36

) months.

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

six

-month periods ended:

	September 30, 2020			September 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	-	-		1.29	2,154,517
Exercised	-	-		0.77	(22,166	)
Forfeited	0.68	(359,000	)	0.77	(1000	)
Outstanding at end of period	1.01	9,577,486		1.27	6,178,028
Exercisable at end of period	1.21	4,848,149		1.46	2,567,349

No

stock options were granted during the

three

and

six

-month periods ended

September 30, 2020.

Compensation expense recognized under the stock option plan for the

three

-month periods ended

September 30, 2020

and

2019

was as follows:

	Three-month periods ended		Six-month periods ended
	September 30, 2020	September 30, 2019	September 30, 2020	September 30, 2019
	$	$	$	$
Research and development expenses	105	142	246	220
General and administrative expenses	184	426	532	574
Sales and marketing expenses	112	82	255	106
	401	650	1,033	900

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.