At March 31, 2021, the Corporation has the following stock-based compensation arrangement:

The Corporation has in place a stock option plan for directors, officers, employees, and consultants of the Corporation. An amendment of the stock option plan was approved by shareholders on August 26, 2021. The amendment provides for an change to the existing limits for Common Shares reserved for issuance under the Stock Option Plan.

The Stock Option Plan continues to provide for the granting of options to purchase common shares. The exercise price of the stock options granted under this amended plan is not lower than the closing price of the common shares on the TSXV at the close of markets the day preceding the grant. The maximum number of common shares that may be issued upon exercise of options granted under the amended Stock Option Plan shall not exceed 10% of the aggregate number of issued and outstanding shares of the Corporation. This resulted in an increase from 1,816,735 representing 15% of the issued and outstanding common shares as of August 26, 2020, to 4,428,818 representing 10% of the issued and outstanding common shares as of March 31, 2022. The terms and conditions for acquiring and exercising options are set by the Corporation’s Board of Directors, subject among others, to the following limitations: the term of the options cannot exceed ten years and (i) all options granted to a director will be vested evenly on a monthly basis over a period of at least twelve (12) months, and (ii) all options granted to an employee will be vested evenly on a quarterly basis over a period of at least thirty-six (36) months.

The total number of shares issued to any one consultant within any twelve-month period cannot exceed 2% of the Corporation’s total issued and outstanding Common Shares (on a non-diluted basis). The Corporation is not authorized to grant within any twelve-month period such number of options under the stock option plan that could result in a number of Common Shares issuable pursuant to options granted to (a) related persons exceeding 2% of the Corporation’s issued and outstanding Common

Shares (on a non-diluted basis) on the date an option is granted, or (b) any one eligible person in a twelve-month period exceeding 2% of the Corporation’s issued and outstanding Common Shares (on a non-diluted basis) on the date an option is granted.

The following tables summarize information about activities within the stock option plan:


	Number of options			Weighted average exercise price		Weighted average grant date fair value
				CAD $		CAD $
Outstanding, March 31, 2020		1,241,611			7.97		6.62
Granted		—			—		—
Exercised		(30,220	)		4.93		3.73
Forfeited		(299,520	)		7.16		5.90
Expired		—			—		—
Outstanding, March 31, 2021		911,871			8.33		6.96
Granted		2,115,400			2.04		1.75
Exercised		—			—		—
Forfeited		(37,890	)		4.00		3.06
Expired		—			—		—
Outstanding, March 31, 2022		2,989,381			3.94		3.32

Exercisable at end of year		989,911			7.45		6.19


	March 31, 2022		March 31, 2021
Weighted average fair value of the options granted to employees and directors of the Corporation-		1.75		—

Compensation expense recognized under the stock option plan is summarized as follows:


	March 31, 2022		March 31, 2021
	$		$
Research and development expenses		447		353
General and administrative expenses		842		828
Sales and marketing expenses		48		(7	)
		1,337		1,174

As of March 31, 2022, there was CAD $1,794 (March 31, 2021– CAD $476) of total unrecognized compensation cost, related to non-vested share options, which is expected to be recognized over a remaining weighted average vesting period of 1.36 years (March 31, 2021 - 1.03 years).

A summary of the non-vested stock option activity and related information for the Corporation’s stock options granted is as follows:


	Number of options			Weighted average grant date fair value CAD ($)
Non- vested, March 31, 2021		283,637			5.97
Options granted		2,115,400			1.75
Options vested		(369,672	)		4.15
Options forfeited and cancelled		(29,895	)		1.93
Non- vested, March 31, 2022		1,999,470			1.91

The following tables summarize information about activities within the stock option plan:


March 31, 2022
Exercise price CAD					Weighted average remaining contractual life		Number of options outstanding		Number of options exercisable
$	1.64	—	$	1.84		9.88		37,500		—
$	1.85	—	$	3.15		9.62		2,050,399		190,701
$	3.16	—	$	5.20		8.00		298,376		211,095
$	5.21	—	$	8.20		6.26		190,819		190,819
$	8.21	—	$	11.36		7.04		206,445		191,454
$	11.37	—	$	12.84		1.11		65,625		65,625
$	12.85	—	$	13.68		4.90		13,542		13,542
$	13.69	—	$	15.04		5.20		90,313		90,313
$	15.05	—	$	38.40		1.05		36,362		36,362
						8.62		2,989,381		989,911

The fair value of stock-based compensation transactions is measured using the Black-Scholes option pricing model. Measurement inputs include share price on measurement date, exercise price of the instrument, expected volatility (based on weighted average historic volatility for a duration equal to the weighted average life of the instruments, life based on the average of the vesting and contractual periods for employee awards as minimal prior exercises of options in which to establish historical exercise experience; contractual life for broker warrants), and the risk-free interest rate (based on government bonds). Service and performance conditions attached to the transactions, if any, are not considered in determining fair value. The expected life of the stock options is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may also not necessarily be the actual outcome.

The Corporation established an equity incentive plan for employees, directors and consultants. The plan provides for the issuance of restricted share units (RSUs), performance share units, restricted shares, deferred share units and other stock-based awards, subject to restricted conditions as may be determined by the Board of Directors. There were no such awards outstanding as of March 31, 2022, and March 31, 2021, and no stock-based compensation was recognized for the period ended March 31, 2022 and March 31, 2021.