DSU’s Jan 31, 21 Deferred share unit plan
The Company has a deferred share unit plan whereby directors can receive compensation in the form of a deferred share unit. Under the plan, directors will earn compensation quarterly ($7,500 initial value per quarter per director) at which time the number of deferred share units will be determined based on the weighted average of the Company’s trading price for the last five trading days at the end of the quarter. Upon leaving the Board, directors, at their discretion, will receive shares for the deferred compensation. Under the deferred share plan, directors are entitled to receive the cash value equal to the fair value of the deferred shares outstanding. Accordingly, the value of the deferred liability is equal to the fair value of the shares. As of January 31, 2021, $764,587 of deferred compensation (April 30, 2020 – $344,794) has been accrued in accounts payable which equates to 7,645,872 shares (April 30, 2020 – 6,895,872 shares). Total directors fees of $419,794 (2020 – $345,000) reflect the compensation to directors, including fair value changes associated with the deferred share units.