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STOCKHOLDERS' EQUITY
 12 Months Ended
Aug. 31, 2025
Stockholders' Equity Note [Abstract]  
STOCKHOLDERS' EQUITY [Text Block]

5. STOCKHOLDERS' EQUITY

[a] Common stock issued and authorized

The Company is authorized to issue up to 20,000,000 shares of common stock, par value $0.001 per share.

During the year ended August 31, 2025, the Company did not issue any common stock (2024 - nil). During the year ended August 31, 2025, the Company did not repurchase or cancel any common shares (2024 - 459,200 common shares for $470,271).

[b] Stock option plans

Pursuant to the Company's 2015 Stock Option Plan (the "2015 Plan"), 530,000 shares of common stock have been reserved for issuance. A total of 481,870 common shares remain eligible for issuance under the 2015 Plan. On February 18, 2022 the Company received shareholder approval for the 2022 Stock Option Plan (the "2022 Plan") (together with the 2015 Plan, the "Plans"), whereby 1,000,000 common shares are reserved for issuance.  As of August 31, 2025, 371,500 common shares remain eligible for issuance under the 2022 Plan.

The options generally vest over a range of periods from the date of grant, some are immediate, and others vest over 24 months. Any options that do not vest as the result of a grantee leaving the Company are forfeited and the underlying common shares are returned to the reserve. The options generally have a contractual term of five years.

Stock-Based Payment Award Activity

During the year ended August 31, 2025, the Company did not grant any share purchase options to directors, officers, employees, and consultants of the Company (2024 - 20,000 share purchase options). The weighted-average assumptions used to estimate the fair value of stock options granted in 2024 using the Black-Scholes option valuation model were as follows:

    2024  
Risk-free interest rate   5.00%  
Volatility   85.31%  
Exercise price   $1.15  
Dividend yield   0%  
Forfeiture rate   0%  
Expected life (years)   2.13  

The summary of option activity for the years ended August 31, 2025 and 2024 were as follows:

    Number of Options     Weighted Average
Exercise Price		     Weighted Average
Contractual Term
(Years)		  
Outstanding at August 31, 2023   749,000   $ 1.30     3.37  
Granted   20,000   $ 1.15     4.61  
Forfeited   (46,122 ) $ 1.14     3.14  
Expired   (7,168 ) $ 1.01     3.47  
Outstanding at August 31, 2024   715,710   $ 1.31     2.37  
Forfeited   (15,207 ) $ 0.85     2.90  
Granted   -     -     -  
Expired   (154,503 ) $ 1.33     0.70  
Outstanding at August 31, 2025   546,000   $ 1.32     1.71  
Exercisable at August 31, 2025   539,750   $ 1.32     1.68  

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company's common stock for the options that were in-the-money. As of August 31, 2025, no options were in-the-money and the aggregate intrinsic value was $nil (2024 - $nil). There were no stock options repurchased during the years ended August 31, 2025 and 2024.

The following table summarizes information regarding the non-vested options outstanding as of August 31, 2025 and changes during the period:

    Number of Options     Weighted Average
Exercise Price		  
Non-vested options at August 31, 2023   268,983   $ 1.01  
Granted   20,000   $ 1.15  
Forfeited   (24,454 ) $ 0.86  
Vested   (170,416 ) $ 1.11  
Non-vested options at August 31, 2024   94,113   $ 0.90  
Granted   -     -  
Forfeited   (15,207 ) $ 0.85  
Vested   (72,656 ) $ 0.89  
Non-vested options at August 31, 2025   6,250   $ 1.15  

As of August 31, 2025, there was $3,527 (2024 - $42,661) of total unrecognized compensation cost related to non-vested stock-based compensation awards. The unrecognized compensation cost is expected to be recognized over a weighted average period of 0.6 years (2024 - 0.8 years).

During the years ended August 31, 2025 and 2024, the total stock-based compensation expense was reported in the consolidated statement of comprehensive income (loss) as follows:

Stock-based compensation   2025     2024  
General and administrative $ 16,068   $ 36,918  
Sales and marketing   4,127     622  
Product development   11,533     9,386  
Total stock-based compensation $ 31,728   $ 46,926  

[c] Employee Stock Purchase Plan

The Company's 2011 Employee Stock Purchase Plan (the "ESPP") became effective on February 22, 2011. Under the ESPP, employees of the Company can contribute up to 5% of their annual salary into a pool which is matched equally by the Company in order to purchase the Company's common shares under certain terms. Directors can contribute a maximum of $12,500 each for a combined maximum annual purchase of $25,000. The maximum annual combined contributions will be $400,000. All purchases are made through the TSXV by a third-party plan agent. The third-party plan agent is also responsible for the administration of the ESPP on behalf of the Company and the participants.

During the year ended August 31, 2025, the Company recognized compensation expense of $68,203 (2024 - $67,989) in salaries and wages on the consolidated statement of comprehensive income (loss) in respect of the ESPP, representing the Company's employee matching of cash contributions to the ESPP. The shares were purchased on the open market at an average price of $0.63 (2024 - $1.00). The shares are held in trust by the Company for a period of one year from the date of purchase. As of August 31, 2025, 108,964 (2024 - 79,963) shares were held in trust by the Company.

[d] Earnings Per Share

The following table shows the computation of basic and diluted earnings per share for the years ended August 31, 2025, and 2024:

    2025     2024  
  Numerator:            
Net income (loss) $ (637,877 ) $ 111,758  
  Denominator:            
Weighted-average basic shares outstanding   9,637,410     9,794,273  
Effect of dilutive stock-based awards   -     236,296  
Weighted-average diluted shares   9,637,410     10,030,569  
  Basic and diluted earnings (loss) per share $ (0.07 ) $ 0.01  

 

539,750 stock options were excluded from the computation of diluted earnings per share for 2025, because their effect would have been antidilutive.