Note 7 - Stock Options

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

7. STOCK OPTIONS  

During the period ended March 31, 2022 and year ended December 31, 2021, the Company adopted a Rolling Stock Option Plan. Up to 10% of the Company’s issued and outstanding common shares may be reserved for granting of stock options.

During the period ended March 31, 2022, the Company:

i) granted 100,000 stock options to a consultant, exercisable into 100,000 shares at an exercise price of $0.80CAD and an expiry date of August 1, 2024. The options have a fair value of $54,600CAD, calculated using the Black-Scholes option pricing model using the following inputs (i) Volatility of 119.10%; (ii) Term of 3 years; (iii) Discount rate of 1.24%; (iv) Dividend rate of Nil; and (v) market stock price of $0.78CAD. The options vest 20% every 6 months starting August 1, 2022. During the period ended March 31, 2022, the Company recorded $7,957CAD ($6,281) of share-based compensation relating to the vesting period.

During the year ended December 31, 2021, the Company:

i) granted 500,000 stock options to consultants, exercisable into 500,000 shares at an exercise price of $1.20CAD and an expiry date of January 29, 2024. The options have a fair value of $424,300CAD, calculated using the Black-Scholes option pricing model using the following inputs (i) Volatility of 125.00%; (ii) Term of 3 years; (iii) Discount rate of 0.14%; (iv) Dividend rate of Nil; and (v) market stock price of $1.18CAD. The options vest 20% every 6 months starting July 29, 2021. During the period ended March 31, 2021, the Company recorded $65,035CAD ($51,351) of share-based compensation relating to the vesting period. During the period ended March 31, 2022, the Company recorded $39,576CAD ($31,242) of share-based compensation relating to the vesting period.

ii) granted 375,000 stock options to consultants, exercisable into 375,000 shares at an exercise price of $0.80CAD and an expiry date of June 10, 2024. The options have a fair value of $211,700CAD, calculated using the Black-Scholes option pricing model using the following inputs (i) Volatility of 120.80%; (ii) Term of 3 years; (iii) Discount rate of 0.25%; (iv) Dividend rate of Nil; and (v) market stock price of $0.80CAD. The options vest 20% every 6 months starting December 10, 2021. During the period ended March 31, 2021, the Company recorded $Nil of share -based compensation relating to the vesting period. During the period ended March 31, 2022, the Company recorded $26,787CAD ($21,146) of share-based compensation relating to the vesting period.

iii) granted 590,000 stock options to consultants, exercisable into 590,000 shares at an exercise price of $0.60CAD and an expiry date of October 14, 2024. The options have a fair value of $219,100CAD, calculated using the Black-Scholes option pricing model using the following inputs (i) Volatility of 119.89%; (ii) Term of 3 years; (iii) Discount rate of 0.63%; (iv) Dividend rate of Nil; and (v) market stock price of $0.54CAD. The options vest 20% every 6 months starting April 14, 2021. During the period ended March 31, 2021, the Company recorded $Nil of share -based compensation relating to the vesting period. During the period ended March 31, 2022, the Company recorded $49,406CAD ($39,002) of share-based compensation relating to the vesting period.

During the year ended December 31, 2020, the Company:

i) granted 3,600,000 stock options to consultants, directors and officers exercisable into 3,600,000 shares at an exercise price of $0.35CAD and an expiry date of July 21, 2023. The options have a fair value of $909,900CAD, calculated using the Black-Scholes option pricing model using the following inputs (i) Volatility of 125%; (ii) Term of 3 years; (iii) Discount rate of 0.27%; (iv) Dividend rate of Nil; and (v) market stock price of $0.35CAD. The options vest 20% every 6 months starting January 21, 2021. During the period ended March 31, 2021, the Company recorded $135,829CAD ($107,248) of stock-based compensation relating to the vesting period. During the period ended March 31, 2022, the Company recorded $47,316CAD ($37,352) of share-based compensation relating to the vesting period.

ii) granted 250,000 stock options to consultants, directors and officers exercisable into 250,000 shares at an exercise price of $0.45CAD and an expiry date of December 21, 2023. The options have a fair value of $75,800CAD, calculated using the Black-Scholes option pricing model using the following inputs (i) Volatility of 125%; (ii) Term of 3 years; (iii) Discount rate of 0.02%; (iv) Dividend rate of Nil; and (v) market stock price of $0.425CAD. The options vest 20% every 6 months starting June 21, 2021. During the period ended March 31, 2021, the Company recorded $23,925CAD ($18,890) of stock-based compensation relating to the vesting period. During the period ended March 31, 2022, the Company recorded $5,859CAD ($4,625) of share-based compensation relating to the vesting period.

The changes in options are as follows:

	Number of options		Weighted average exercise price		Aggregate Intrinsic Value
Options outstanding, December 31, 2020		3,850,000	$	0.36	$	3,363,000
Granted		1,465,000		0.86		-
Options outstanding, December 31, 2021		5,315,000		0.49		3,910,950
Granted		100,000		0.80		-
Options outstanding, March 31, 2022		5,415,000	$	0.50	$	745,000

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 March 31, 2022.

Details of options outstanding as at March 31, 2022 are as follows:

Exercise price (CAD)		Number of options outstanding		Expiry date	Number of options exercisable		Remaining contractual life (years)
$	0.350		3,600,000	July 21, 2023		2,160,000		1.31
$	0.450		250,000	December 21, 2023		100,000		1.73
$	1.200		500,000	January 29, 2024		200,000		1.83
$	0.800		375,000	June 10, 2024		75,000		2.20
$	0.600		590,000	October 14, 2024		-		2.54
$	0.80		100,000	January 31, 2025		-		2.84
			5,415,000			2,535,000