Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions

v3.8.0.1
Related Party Transactions
9 Months Ended
Mar. 31, 2018
Related Party Transactions [Abstract]  
Related party transactions
4 Related party transactions

 

Pursuant to employment and consulting agreements with the Company’s officers the Company recognized a total of $304,888 (2017 - $162,500) in expenses for the three months ended March 31, 2018 and $674,055 (2017 - $557,500) for the nine months ended March 31, 2018. In addition, for the nine months ended March 31, 2018, the Company recognized a total of $311,683 relating to the settlement agreement with the Company’s former President and Chief Operating Officer. Amounts owed to related parties, including to the Company’s former President and Chief Operating Officer, are non-interest bearing and payable on demand.

 

The Company recognized $45,000 (2017 – $44,500) in directors’ fees during the three months ended March 31, 2018 and $141,250 (2017 - $126,500) during the nine months ended March 31, 2018.

 

As part of the Series B preferred stock dividend (note 6), the Company issued 1,511 (2017 – 1,511) shares of common stock to officers and directors of the Company and recognized an amount of $1,420 (2017 - $6,346) for the three months ended March 31, 2018. For the nine months ended March 31, 2018, the Company issued 4,533 (2017 – 4,533) shares of common stock and recognized $4,336 (2017 - $20,306). All of the dividends have been recognized as a direct increase to deficit.

 

The Company recorded $2,089 (2017 - $2,089) in dividends related to the Series A preferred stock issued to Valent (note 3) for the three months ended March 31, 2018 and $6,267 (2017 - $6,267) for the nine months ended March 31, 2018. The dividends have been recorded as a direct increase in accumulated deficit.

 

During the nine months ended March 31, 2018, the Company granted a total of 180,000 stock options to the Company’s independent directors. The stock options are exercisable at a price of $2.11 and have a term of 10 years. One-third of the options vest on June 30, 2018 and 15,000 options vest on a quarterly basis thereafter commencing September 30, 2018.  In addition, during the nine months ended March 31, 2018, the Company granted 120,000 stock options at an exercise price of $0.87 to its Interim President and Chief Executive Officer. The stock options have a term of 10 years and vest pro rata monthly during the year following grant. The Company also modified certain stock options held by its former President and Chief Operating Officer (note 6).

 

During the nine months ended March 31, 2017, the Company issued 224,600 stock options to officers of the Company at an exercise price of $4.95. The stock options vest pro rata on a monthly basis over 36 months and expire on February 17, 2027.