Quarterly report pursuant to Section 13 or 15(d)

Stock based Compensation

v3.19.2
Stock based Compensation
9 Months Ended
May 31, 2019
Notes to Financial Statements  
Note 6: Stock based Compensation

The Company granted options to purchase an aggregate total of 1,192,903 shares of common stock during the nine months ended May 31, 2019. The Company recognized approximately ($4,743) and $153,571 in the three and nine months ended May 31, 2019, respectively. The Company recognized approximately $72,312 and $169,407 of compensation expense in the three and nine months ended May 31, 2018.

 

The weighted average remaining contract life of the options is 9.1 and 9.42 years, respectively. The total intrinsic value of options as of May 31, 2019, and 2018, is $0 and $6,287 respectively.

 

The Company estimated the fair value of the stock options based on the black Scholes valuation model. The key valuation assumptions used consists, in part, of the price of the Company’s common stock,  risk free interest rate based on the average yield (2.30%-2.55%) of a Treasury note and expected volatility of the Company’s common stock all as of the measurement dates (120%-122%).

 

Stock option activity during the nine months ended May 31, 2019, is summarized as follows:

 

   

Options

Outstanding

   

Weighted

Average

Exercise Price

 
Options outstanding at August 31, 2018     1,348,745     $ 3.45  
Exercised     -     $ -  
Granted     1,192,903       1.83  
Forfeited     (589,998 )   $ 3.01  
Expired     -          
Options outstanding at May 31, 2019     1,951,650     $ 2.59