The DiaMedica Therapeutics Inc. Amended and Restated Deferred Share Unit Plan (“DSU Plan”) promotes greater alignment of long-term interests between non-executive directors and executive officers of the Company and its shareholders through the issuance of deferred share units (“DSUs”). Since the value of DSUs increases or decreases with the market price of the common shares, DSUs reflect a philosophy of aligning the interests of directors and executive officers by tying compensation to share price performance. For the months ended and there were DSUs or common shares underlying DSUs issued. The Company has reserved for issuance up to common shares under the DSU Plan and DSUs were outstanding at

 

 

The DiaMedica Therapeutics Inc. Stock Option Plan Amended and Restated the “Option Plan”) allows the Board of Directors from time to time, in its sole discretion, and in accordance with the requirements of the Nasdaq Stock Market, to grant the Company’s directors, officers, employees and certain consultants (as such terms are used in the Option Plan) non-transferable options to purchase common shares. The number of common shares reserved for issuance under the Option Plan at any time is and the aggregate number of common shares reserved for issuance under any other compensation or incentive mechanism or plan (including deferred share unit plans or employee stock option plans, if any), shall exceed shares. In addition, the maximum number of common shares that be issued under the Option Plan upon the exercise of incentive stock options, within the meaning of Section of the United States Internal Revenue Code of as amended (the “Code”), is shares (subject to adjustment).

 

As of options to purchase common shares were outstanding. Options granted vest at various rates and have terms of up to years. As the TSX Venture Exchange was the principal trading market for the Company’s common shares, all options granted prior to under the Option Plan have been priced in Canadian dollars. Options granted after under the Option Plan have been priced in United States dollars.

 

The aggregate number of common shares reserved for issuance under the Option Plan and the DSU Plan as of was

 

Share-based compensation expense for each of the periods presented is as follows (in thousands):

 

		Three Months Ended March 31,
		2019				2018
Research and development		$	58			$	22
General and administrative			72				131
Total share-based compensation		$	130			$	153

 

We recognize share-based compensation based on the fair value of each award as estimated using the Black-Scholes option valuation model. Ultimately, the actual expense recognized over the vesting period will only be for those shares that actually vest.

 

A summary of option activity is as follows (in thousands except share and per share amounts):

 

		Shares Underlying Options Outstanding				Weighted Average Exercise Price Per Share				Aggregate Intrinsic Value
Balances at December 31, 2018			639,359			$	5.90			$	—
Granted			42,500				4.00
Exercised			—				—
Expired/cancelled			(4,375	)			5.65
Forfeited			(3,439	)			6.65
Balances at March 31, 2019			674,045			$	5.77			$	517

 

Information about stock options outstanding, vested and expected to vest as of is as follows:

 

				Outstanding, Vested and Expected to Vest												Options Vested and Exercisable
Per Share Exercise Price				Shares				Weighted Average Remaining Contractual Life (Years)				Weighted Average Exercise Price				Options Exercisable				Weighted Average Remaining Contractual Life (Years)
$1.00	-	$1.99			50,000				6.6			$	1.50				50,000				6.6
$2.00	-	$2.99			132,900				6.7				2.28				131,233				6.7
$3.70	-	$3.99			124,571				7.7				3.88				100,822				7.7
$4.00	-	$4.99			134,104				8.8				4.54				53,583				8.2
$7.00	-	$26.00			232,470				7.9				10.42				94,453				6.2
					674,045				7.7			$	5.77				430,091				5.3