Stock Options (Tables)

12 Months Ended

Aug. 31, 2019

Stock Options Tables

Assumptions

The Company employs the following key weighted-average assumptions in determining the fair value of stock options, using the Black-Scholes option pricing model and the simplified method to estimate the expected term of “plain vanilla” options:

	Years Ended August 31,
	2019			2018
Expected dividend yield		–			–
Expected stock price volatility	87.42	–	87.84%	83.43%	–	83.55%
Risk-free interest rate		1.84%		2.27%	-	2.33%
Expected term (in years)	4.5	–	5.0		7.67
Exercise price		$3.54		$4.87	-	$5.35
Weighted-average grant date fair-value	$2.35	–	$2.43	$3.76	-	$5.64

Stock option activity

A summary of the Company’s stock option activity for the years ended August 31, 2019 and 2018 and related information follows:

	Number of Shares Subject to Option Grants			Weighted Average Exercise Price ($)		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value ($)
Outstanding at August 31, 2017		2,125,001			2.84
Grants		1,263,000			5.25
Exercises		(291,667	)		3.32
Forfeitures and cancellations		(1,805,000	)		2.74
Outstanding at August 31, 2018		1,291,334			5.22
Grants		1,506,000			3.54
Forfeitures and cancellations		(20,000	)		4.87
Outstanding at  August 31, 2019		2,777,334			4.31		8.33		0
Exercisable at  August 31, 2019		1,716,234			4.17		9.00		0

Share-based compensation cost

The following table sets forth the share-based compensation cost resulting from stock option grants, including those previously granted and vesting over time, that were recorded in the Company’s Statements of Operations for the years ended August 31, 2019 and 2018:

	Years ended August 31,
	2019		2018
Stock based compensation expense related to the following:
Stock Options:
SG&A	$	2,993,532	$	1,018,351
R&D		965,835		796,974
Total		3,959,367		1,815,325
Restricted stock issuances:
SG&A		-		1,022,700
R&D		-		-
Total		-		1,022,700
Total stock based compensation expense	$	3,959,367	$	2,838,025

Stock options outstanding and exercisable

The following table summarizes information about stock options outstanding and exercisable at August 31, 2019:

	Stock Options Outstanding						Stock Options Exercisable
Range of Exercise Prices	Number of Shares Subject to Outstanding Options		Weighted Average Contractual Life (years)		Weighted Average Exercise Price ($)		Number of Shares Subject To Options Exercise		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price ($)
3.28		7,500		7.21		3.28		7,500		7.21		3.28
3.46		35,000		6.35		3.46		35,000		6.35		3.46
3.54		1,506,000		8.53		3.54		1,032,900		9.76		3.54
4.87		187,500		8.23		4.87		187,500		8.23		4.87
5.35		1,008,000		8.35		5.35		420,000		8.35		5.35
5.94		33,334		1.32		5.94		33,334		1.32		5.94
Total		2,777,334		8.33		4.31		1,716,234		9.00		4.17