| Issuances of Common Shares and Warrants |
12. Stockholders' Equity During the nine months ended May 31, 2026, the Company completed the following issuances of common shares and warrants: 1. | On September 26, 2025, the Company, pursuant to a Securities Purchase Agreement, issued 2,666,667 shares of common stock at a purchase price of $1.50 per share for gross proceeds of $4.0 million. Share issuance costs of $0.5 million were charged to additional paid in capital. The shares were registered pursuant to a take down of the Company’s Form S-3 registration statement. Concurrently, the Company issued 2,666,667 share purchase warrants, entitling the holders thereof to purchase up to 2,666,667 shares of common stock at a price of $1.37 per share for a period of five years from the effective date of the S-1 Registration Statement registering the shares of common stock issuable upon exercise of the warrants. We also issued H.C. Wainwright, the exclusive placement agent for the offering, warrants to purchase up to 93,333 shares at an exercise price of $1.875 per share. HCW was paid 7% of the gross proceeds and was reimbursed $70,000 for its expenses and $15,950 in closing fees. | | | 2. | On December 14, 2025, the Company, pursuant to a Securities Purchase Agreement, issued 2,661,600 shares of common stock at a purchase price of $1.315 per share for gross proceeds of $3.5 million. Share issuance costs of $0.5 million were charged to additional paid in capital. The shares were registered pursuant to a take down of the Company’s Form S-3 registration statement. Concurrently, the Company issued 2,661,600 share purchase warrants, entitling the holder thereof to purchase up to 2,661,600 shares of common stock at a price of $1.19 per share for a period of five years from the effective date of the S-1 Registration Statement registering the shares of common stock issuable upon exercise of the warrants. We also issued H.C. Wainwright, the exclusive placement agent for the offering, warrants to purchase up to 93,156 shares at an exercise price of $1.6438 per share. HCW was paid 7% of the gross proceeds and was reimbursed $70,000 for its expenses and $15,950 in closing fees. |
A continuity schedule for warrants for the nine months ended May 31, 2026, is presented below: | | Number of Warrants | | | Weighted Average Exercise Price | | Balance, August 31, 2025 | | | 7,298,171 | | | $ | 3.75 | | Issued | | | 5,514,756 | | | | 1.30 | | Expired | | | 1,719,828 | | | | 6.58 | | Balance, May 31, 2026 | | | 11,093,099 | | | $ | 2.09 | |
A summary of warrants outstanding as of May 31, 2026, is presented below: Number of Warrants | | | Weighted Average Exercise Price | | | Weighted Average Remaining Contractual Life ~in years~ | | | 483,750 | | | $ | 0.95 | | | | 1.95 | | | 314,287 | | | | 2.31 | | | | 2.72 | | | 102,097 | | | | 5.94 | | | | 2.72 | | | 4,551,019 | | | | 3.06 | | | | 3.63 | | | 57,190 | | | | 3.83 | | | | 3.63 | | | 70,000 | | | | 1.25 | | | | 3.90 | | | 2,760,000 | | | | 1.39 | | | | 4.52 | | | 2,754,756 | | | | 1.21 | | | | 4.62 | | | 11,093,099 | | | $ | 2.09 | | | | 3.99 | |
Stock Options The Company established an Equity Incentive Plan whereby our Board, pursuant to shareholder approved amendments, may grant up to 2,488,744 stock options, restricted stock awards or restricted stock units to directors, officers, employees, and consultants with such number being increased to up to 10% of the issued share capital at the end of each calendar year, at the discretion of the board, pursuant to an evergreen formula. Stock options currently granted must be exercised within five years from the date of grant or such lesser period as determined by the Company’s board of directors. The vesting terms of each grant are also set by the board of directors. The exercise price of an option is equal to or greater than the closing market price of the Company’s common shares on the date of grant. A continuity schedule for stock options is presented below: | | Options | | | Weighted Average Exercise Price | | | Weighted Average Remaining Contractual Term (years) | | | Aggregate Intrinsic Value | | Balance August 31, 2024 | | | 944,936 | | | $ | 3.11 | | | | 3.64 | | | $ | 971,959 | | Cancelled/expired | | | (47,001 | ) | | | 7.78 | | | | 0.75 | | | | - | | Granted | | | 586,500 | | | | 1.41 | | | | 4.84 | | | | - | | Balance August 31, 2025 | | | 1,484,435 | | | $ | 2.29 | | | | 3.49 | | | $ | 206 | | Cancelled/expired | | | (129,900 | ) | | $ | 2.98 | | | | - | | | | - | | Granted | | | 45,000 | | | | 0.65 | | | | 4.94 | | | | - | | Balance May 31, 2026 (outstanding) | | | 1,399,535 | | | $ | 2.17 | | | | 2.96 | | | $ | - | | Balance May 31, 2026 (exercisable) | | | 1,317,805 | | | $ | 2.09 | | | | 2.94 | | | $ | - | |
The Company granted 45,000 stock options with an exercise price of $0.65 and a term of five years to certain consultants and scientific advisory board members during the nine months ended May 31, 2026. The fair value of the options amounted to $18,975 and was determined using the Black-Scholes option pricing model with the following assumptions: May 31, 2026 | | | | Expected volatility | | | 106 | % | Risk-free interest rate | | | 3.93 | % | Expected life | | 2.50 years | | Dividend yield | | | 0.00 | % | Estimated fair value per option | | $ | 0.42 | |
Stock-based compensation expense for the nine-month periods ended May 31, 2026, and May 31, 2025, totaled $242,734 and $736,770, respectively. As of May 31, 2026, the total unrecognized non-cash compensation costs are $177,363 related to 81,730 non-vested stock options with a $3.41 weighted average exercise price. These costs are expected to be recognized over a weighted average period of 0.5 years. Return of Shares On March 17, 2026, the 100,000 shares previously issued to the Company’s Strategic Executive Consultant under a Restricted Stock Award were gifted back to the Company and cancelled.
|