5.	STOCKHOLDERS’ EQUITY

[a] Common stock issued and authorized

The Company is authorized to issue up to 100,000,000 shares of common stock, par value $0.001 per share.

During the nine months ended May 31, 2019, no shares were issued.

[b] Stock option plans

The Company has two existing stock option plans (the “Plans”), namely the 2006 Stock Option Plan and the 2015 Stock Option Plan, under which up to 7,750,000 shares of the common stock, has been reserved for issuance. A total of 1,536,515 common shares remain eligible for issuance under the Plans. The options generally vest over a range of periods from the date of grant, some are immediate, and others are 12 or 24 months. Any options that do not vest as the result of a grantee leaving the Company are forfeited and the common shares underlying them are returned to the reserve. The options generally have a contractual term of five years.

Stock-Based Payment Award Activity

A summary of option activity under the Plans as of May 31, 2019, and changes during the period then ended is presented below:

				Weighted
			Weighted	Average	Aggregate
			Average	Remaining	Intrinsic
			Exercise Price	Contractual	Value
Options	Shares		$	Term	$
Outstanding at August 31, 2018	1,631,250		0.39	3.49	—
Granted	—		—	—	—
Forfeited	(33,334	)	0.40	—	—
Expired	(131,250	)	0.40	—	—
Outstanding at May 31, 2019	1,466,666		0.39	3.01	—
Exercisable at May 31, 2019	1,385,416		0.39	2.99	—

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 at May 31, 2019.

The following table summarizes information regarding the non-vested stock purchase options outstanding as of May 31, 2019 and changes during the period then ended:

			Weighted
			Average
			Grant Date
	Number of Options		Fair Value
			$
Non-vested options at August 31, 2018	614,584		0.07
Granted	—		—
Forfeited	(33,334	)	0.07
Vested	(500,000	)	0.07
Non-vested options at May 31, 2019	81,250		0.07

As of May 31, 2019, there was $5,934 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 0.59 years.

During the three and nine months ended May 31, 2019, the total stock-based compensation expense of $10,363 and $34,470, respectively (2018: $13,611 and $41,880 respectively) is reported in the statement of comprehensive income as follows:

	Three Months Ended		Nine Months Ended
	May 31	May 31	May 31	May 31
	2019	2018	2019	2018
	$	$	$	$
Stock-based compensation:
General and administrative	6,983	8,243	21,285	25,777
Sales and marketing	1,690	1,788	6,593	5,363
Research and development	1,690	3,580	6,592	10,740
Total stock-based compensation	10,363	13,611	34,470	41,880

Subsequent to May 31, 2019 the Company issued 50,000 stock purchase options exercisable at $0.21 per share, and 100,000 stock purchase options exercisable at $0.35 per share, each for a period of five years from the date of issuance. In addition, subsequent to May 31, 2019, the Company repriced 50,000 stock purchase options exercisable at $0.40 to $0.21 and 100,000 stock purchase options exercisable at $0.40 to $0.35.

[c] Employee Stock Purchase Plan

The Company’s 2011 Employee Stock Purchase Plan (the “Plan”) became effective on February 22,2011. Under the Plan, employees of Destiny are able to contribute up to 5% of their annual salary into a pool which is matched equally by Destiny in order to purchase Company shares under certain terms. Independent directors are able to 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 Toronto Stock Exchange by a third-party plan agent. The third-party plan agent is also responsible for the administration of the Plan on behalf of Destiny and the participants.

During the three and nine months ended May 31, 2019, the Company recognized compensation expense of $20,324 and $53,657, respectively (2018: $26,545 and $53,026, respectively) in salaries and wages on the consolidated statement of comprehensive income in respect of the Plan, representing the Company’s employee matching of cash contributions to the Plan. The shares were purchased on the open market at an average price of $0.23 (2018: $0.24) . The shares are held in trust by the Company for a period of one year from the date of purchase.