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Note 12 - Stock-based Compensation
9 Months Ended
Apr. 30, 2019
Notes to Financial Statements  
Share-based Payment Arrangement [Text Block]
NOTE
12
:     
STOCK-BASED COMPENSATION
 
At
April 30, 2019,
we had
one
stock option plan, the
2018
Stock Incentive Plan, which superseded and replaced our prior equity compensation plan, being our
2017
Stock Incentive Plan (collectively, the “Stock Incentive Plan”).
 
Stock Options
 
During the
nine
months ended
April 30, 2019,
we granted stock options under the Stock Incentive Plan to certain employees to purchase a total of
130,000
shares of the Company exercisable at
$1.25
to
$1.44
per share with a term of
five
years.
 
These stock options are subject to a
24
-month vesting provision whereby at the end of the
first
three
and
six
months after the grant date,
12.5%
of the total stock options become exercisable, and whereby at the end of each of
12,
18
and
24
months after the grant date,
25%
of the total stock options become exercisable.

A summary of stock options granted by the Company during the
nine
months ended
April 30, 2019,
including corresponding grant date fair values and assumptions using the Black Scholes option pricing model is as follows:
 
Date
 
Options
Granted
   
Exercise
Price
   
Term
(Years)
   
Fair
Value
   
Expected
Life (Years)
   
Risk-Free
Interest Rate
   
Dividend Yield
   
Expected
Volatility
 
January 3, 2019
   
40,000
    $
1.25
     
5.00
    $
24,164
     
3.70
     
2.34
%    
0.00
%    
63.70
%
April 11, 2019
   
90,000
     
1.44
     
5.00
     
58,047
     
3.70
     
2.29
%    
0.00
%    
58.06
%
Total
   
130,000
     
 
     
 
    $
82,211
     
 
     
 
     
 
     
 
 
 
A continuity schedule of outstanding stock options for the underlying shares for the
nine
months ended
April 30, 2019
is as follows:
 
   
Number of Stock
Options
   
Weighted Average
Exercise Price
 
Balance, July 31, 2018
   
14,911,625
    $
1.41
 
Granted
   
130,000
     
1.38
 
Exercised
   
(217,750
)    
1.11
 
Forfeited
   
(87,500
)    
1.42
 
Balance, April 30, 2019
 
 
14,736,375
   
$
1.41
 
 
During the
nine
months ended
April 30, 2019,
we issued
118,985
shares upon exercise of stock options, of which
66,250
stock options were exercised in cash for proceeds of
$72,363,
and
151,500
stock options were exercised on a forfeiture basis resulting in
52,735
net shares issued. The intrinsic value of these exercised options totaled
$124,405.
 
A continuity schedule of outstanding unvested stock options at
April 30, 2019,
and the changes during the periods, is as follows:
 
   
Number of Unvested
Stock Options
   
Weighted Average
Grant-Date Fair Value
 
Balance, July 31, 2018
   
3,479,500
    $
0.68
 
Granted
   
130,000
     
0.63
 
Vested
   
(1,554,250
)    
0.68
 
Forfeited
   
(75,000
)    
0.67
 
Balance, April 30, 2019
 
 
1,980,250
   
$
0.67
 
 
At
April 30, 2019,
the aggregate intrinsic value under the provisions of ASC
718
of all outstanding stock options was estimated at
$2,066,559
(vested:
$2,008,016
and unvested:
$58,543
).
 
At
April 30, 2019,
unrecognized stock-based compensation expense related to the unvested portion of stock options totaled
$545,992
to be recognized over the next
0.83
year.
 
A summary of stock options outstanding and exercisable at
April 30, 2019
is as follows:
  
 
 
Options Outstanding
   
Options Exercisable
 
Range of
Exercise Prices
 
Outstanding at
April 30, 2019
   
Weighted
Average
Exercise Price
   
Weighted Average Remaining Contractual Term (Years)
   
Exercisable at
April 30, 2019
   
Weighted
Average
Exercise Price
   
Weighted Average Remaining Contractual Term (Years)
 
$0.93
to
$1.41
   
11,384,875
    $
1.23
     
1.33
     
10,942,625
    $
1.23
     
1.25
 
$1.42
to
$3.86
   
3,351,500
     
2.04
     
3.23
     
1,813,500
     
2.48
     
2.36
 
 
 
 
   
14,736,375
    $
1.41
     
1.76
     
12,756,125
    $
1.40
     
1.40
 
 
Stock
-
Based Compensation
 
A summary of stock-based compensation expense is as follows:
 
   
Three Months Ended April 30,
   
Nine Months Ended April 30,
 
   
2019
   
2018
   
2019
   
2018
 
Stock-Based Compensation for Consultants
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock issued for consulting services
 
$
155,813
    $
168,107
   
$
516,423
    $
606,885
 
Amortization of stock option expenses
 
 
37,336
     
43,463
   
 
122,056
     
385,082
 
   
 
193,149
     
211,570
   
 
638,479
     
991,967
 
Stock-Based Compensation for Management
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock issued to management
 
 
33,126
     
34,265
   
 
104,109
     
103,509
 
Amortization of stock option expenses
 
 
70,395
     
45,926
   
 
427,099
     
226,907
 
   
 
103,521
     
80,191
   
 
531,208
     
330,416
 
Stock-Based Compensation for Employees
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock issued to employees
 
 
132,638
     
120,711
   
 
381,333
     
497,747
 
Amortization of stock option expenses
 
 
125,424
     
106,113
   
 
592,578
     
440,844
 
   
 
258,062
     
226,824
   
 
973,911
     
938,591
 
                                 
Settlement of share issuance obligation
 
 
-
     
-
   
 
-
     
(127,615
)
   
$
554,732
    $
518,585
   
$
2,143,598
    $
2,133,359