CAPITAL STOCK

3 Months Ended

Oct. 31, 2015

CAPITAL STOCK [Text Block]

NOTE 9: CAPITAL STOCK

Share Transactions

Period / Description	Common		Value per Share				Issuance
	Shares Issued		Low		High		Value
Balance, July 31, 2015	97,834,087
Bonus Shares for Debt Facility	752,320	$	1.20	$	1.20	$	900,000
Consulting Services	274,982		1.03		1.38		305,595
Share Compensation	33,315		1.00		1.12		35,264
Balance, October 31, 2015	98,894,704

Share Purchase Warrants

A summary of share purchase warrants outstanding and exercisable at October 31, 2015 are as follows:

	Weighted			Weighted Average
	Average	Number of Warrants	Expiry Date	Remaining Contractual
	Exercise Price	Outstanding		Life (Years)
$	1.00	500,000	March 1, 2016	0.33
	1.95	50,000	June 3, 2016	0.59
	2.35	2,850,000	June 25, 2018	2.65
	2.50	2,600,000	July 30, 2018	2.75
	2.60	1,859,524	October 23, 2016	0.98
$	2.37	7,859,524		2.13

Stock Options

At October 31, 2015, the Company had one stock option plan, the 2015 Stock Incentive Plan (the “2015 Plan”). The 2015 Plan provides for 9,600,250 shares of the Company that may be issued pursuant to awards that may be granted and an additional 10,569,301 shares of the Company that may be issued pursuant to stock options previously granted under the Company’s prior 2014 Stock Incentive Plan (the “2014 Plan”). The 2015 Plan supersedes and replaces the Company’s prior 2014 Plan, which superseded and replaced the Company’s prior 2013, 2009 and 2006 Stock Option Plans, such that no further shares are issuable under these prior plans.

A summary of stock options granted by the Company during the three months ended October 31, 2015, including corresponding grant date fair values and assumptions using the Black Scholes option pricing model, is as follows:

	Options		Exercise	Term		Fair	Expected	Risk-Free	Dividend	Expected
Date	Issued		Price	(Years)		Value	Life (Years)	Interest Rate	Yield	Volatility
August 7, 2015	105,000	$	1.32	5	$	68,824	2.90	1.04%	0.00%	77.17%
October 14, 2015	1,000,000		1.14	5		563,195	2.90	0.81%	0.00%	77.01%
Total	1,105,000				$	632,019

A continuity schedule of outstanding stock options for the underlying common shares for the three months ended October 31, 2015 is as follows:

					Weighted Average
	Number of Stock			Weighted Average	Remaining Contractual
	Options			Exercise Price	Term (Years)
Balance, July 31, 2015	10,581,975		$	1.38	3.68
Issued	1,105,000			1.16	4.94
Forfeited	(5,000	)		1.32	3.89
Balance, October 31, 2015	11,681,975		$	1.36	3.79

At October 31, 2015, the aggregate intrinsic value under the provisions of ASC 718 of all outstanding stock options was estimated at $1,362,316 (vested: $1,362,316 and unvested: $Nil).

At October 31, 2015, unrecognized stock-based compensation expense related to the unvested portion of stock options granted under the Company’s 2015 Plan totaled $751,157 to be recognized over the next 0.66 years.

A summary of stock options outstanding and exercisable at October 31, 2015 is as follows:

	Options Outstanding			Options Exercisable
Range of Exercise Prices	Outstanding at		Weighted Average	Exercisable at		Weighted Average
	October 31, 2015		Exercise Price	October 31, 2015		Exercise Price
$0.33 to $0.70	1,901,801	$	0.41	1,901,801	$	0.41
$0.71 to $2.45	8,827,500		1.36	5,873,750		1.41
$2.46 to $5.90	952,674		3.30	952,674		3.30
	11,681,975	$	1.36	8,728,225	$	1.40

Stock-Based Compensation

A summary of stock-based compensation expense is as follows:

		Three Months Ended October 31,
		2015		2014
Stock-Based Compensation for Consultants
Common stock issued for consulting services	$	325,595	$	330,331
Stock options issued to consultants		8,635		100,379
		334,230		430,710
Stock-Based Compensation for Management
Common stock issued to management		15,264		-
Stock options issued to management		180,315		572,276
		195,579		572,276
Stock-Based Compensation for Employees
Stock options issued to employees		96,633		451,310
		96,633		451,310
	$	626,442	$	1,454,296