Common Stock

3 Months Ended

Jul. 31, 2019

Common Stock [Text Block]

Note 8	Common Stock
	Stock Options
	During the three months ended July 31, 2018, the Company granted 7,500 stock options to an  employee of the Company. No stock options were granted during the same period in the current year.  The weighted-average fair value of options granted during the three months ended July 31, 2018 was  $2.47. The weighted-average assumptions utilized to determine such value is presented in the  following table:

	Three Months Ended
	July 31, 2018
Risk-free interest rate	2.86%
Expected volatility	76.3%
Expected term	3.7 years
Dividend yield	0%

During the three months ended July 31, 2018, the Company issued 6,958 shares pursuant to cashless exercises of 35,500 stock options and remitted employee tax withholdings of approximately $2,386 on the behalf of its employees. No stock options were exercised during the same period in the current year.

The following is a summary of the status of the Company’s stock options as of July 31, 2019 and the stock option activity during the three months ended July 31, 2019:

	Weighted Average
	Number of			Exercise Price
	Options			per Share
Outstanding at April 30, 2019	616,449		$	2.27
Granted	–		$	–
Forfeited/Cancelled	(22,396	)	$	2.16
Expired	(39,500	)	$	2.50
Exercised	–		$	–
Outstanding at July 31, 2019	554,553		$	2.25
Exercisable at July 31, 2019	212,397		$	2.61
Exercisable at April 30, 2019	239,551		$	2.58

Employee and non-employee stock-based compensation amounts classified in the Company’s consolidated statements of operations for the three months ended July 31, 2019 and 2018 are as follows:

		Three Months Ended
		July 31,
		2019		2018
Cost of sales	$	11,220	$	14,569
Sales and marketing		15,724		22,482
Research and development		10,303		15,031
General and administrative		10,768		26,648
Total stock-option based compensation	$	48,015	$	78,730

Employee Stock Purchase Plan

Under the terms of the Employee Stock Purchase Plan (the “ESPP”) all regular salaried (non-probationary) employees can purchase up to 6% of their base salary in shares of the Company’s common stock at market price. The Company matches 50% of the shares purchased by issuing or purchasing in the market up to 3% of the respective employee’s base salary in shares. During the three months ended July 31, 2019, the Company matched $5,263 (2018 - $7,890) in shares purchased by employees under the ESPP. During the three months ended July 31, 2019, 6,624 shares (2018 – 5,960 shares) were purchased on the open market and 3,134 shares (2018 – 2,172) were issued from treasury under the ESPP.

A total of 220,000 shares have been reserved for issuance under the ESPP. As of July 31, 2019, a total of 145,550 shares were available for issuance under the ESPP.

Deferred Share Unit Plan

During the three months ended July 31, 2019, zero (2018 — 136,981) deferred stock units (“DSUs”) were issued under the Deferred Stock Unit Plan (“DSUP”). As of July 31, 2019, a total of 42,495 shares were available for issuance under the DSUP.

The following table summarizes the Company’s outstanding DSU awards as of July 31, 2019, and changes during the period then ended:

			Weighted
			Average Grant
			Date Fair
	Number of DSUs		Value Per DSU
DSUs outstanding at April 30, 2019	633,491	$	5.20
Granted	−	$	−
Cancelled	−	$	−
DSUs outstanding at July 31, 2019	633,491	$	5.20

Employee and non-employee DSU based compensation amounts classified in the Company’s consolidated statements of operations for the three months ended July 31, 2019 and 2018 are as follows:

		Three Months Ended
		July 31,
		2019		2018
Cost of sales	$	1,175	$	−
Sales and marketing		4,700		−
Research and development		1,175		−
General and administrative		13,276		188,682
	$	20,326	$	188,682

Normal Course Issuer Bid Plan

On March 27, 2018, the Company filed a normal course issuer bid commencing on March 29, 2018 and expiring March 28, 2019. Under this normal course issuer bid plan, the Company was authorized to purchase up to 284,278 shares of its common stock through the facilities of the TSX and other Canadian marketplaces or U.S. marketplaces. No shares were repurchased under the normal course issuer bid plan during the effective period.