Quarterly report pursuant to Section 13 or 15(d)

STOCK BASED COMPENSATION

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STOCK BASED COMPENSATION
6 Months Ended
May 31, 2017
STOCK BASED COMPENSATION [Text Block]

NOTE 7 – STOCK BASED COMPENSATION

a.         Options Granted to Employees and Directors

            On December 9, 2016, the Company granted to the employees and directors 7,300,000 options, which are summarized on the table below:

  No. of options Exercise price Fair value at grant Expiration
  granted   (in thousands) period
Directors 2,000,000 $0.4 $558 10 years
Employees 5,300,000 $0.4 $1,480 10 years

            The fair value of each stock option grant is estimated at the date of grant using a Black Scholes option pricing model. The volatility is based on historical volatility of the Company, by statistical analysis of the weekly share price for the last two years. The expected term is the mid-point between the vesting date and the maximum contractual term for each grant equal to the contractual life. The fair value of each option grant is based on the following assumptions:

Value of one common share $0.39
Dividend yield 0%
Expected stock price volatility 94%
Risk free interest rate 1.89%
Expected term (years) 5

b.         Options and Warrants Granted to Consultants

On December 9, 2016, the Company entered into a consulting agreements for the provision of professional services for a period of one year. Under the terms of the agreement, the Company granted to a consultants 200,000 options exercisable at $0.40 per share. The options are to vest quarterly over a period of one year. The fair value of those options as of the date of grant was $68 thousand using the Black-Scholes valuation model.