Stockholders' Equity Note Disclosure [Text Block] | 8. SHARE CAPITAL Authorized 500,000,000 common shares without par value. At December 31, 2017 and 2018, there were 162,392,996 and 186,990,683 shares issued and outstanding, respectively. Share issuances On March 13, 2018, the Company completed a non-brokered private placement pursuant to which it issued 24,000,000 common shares at $0.50 per share for gross proceeds of $12,000,000. Share issuance costs included $111,379 related to the private placement. Following the resignation of director Mark Hamilton on November 6, 2017, the Company recognized an obligation to issue 129,687 common shares, with a value of $63,593. On March 27, 2018, the Company issued the 129,687 common shares in full satisfaction of the obligation. The Company also issued 468,000 common shares pursuant to the exercise of stock options for total proceeds of $181,026 and transferred related contributed surplus of $102,790 to share capital during the year ended December 31, 2018. Stock options The Company adopted an incentive stock option plan in 2006, as amended September 19, 2012 and re-approved by the Company’s shareholders on May 28, 2015 and May 30, 2018 (the “2006 Plan”). The essential elements of the 2006 Plan provide that the aggregate number of common shares of the Company’s capital stock that may be issued pursuant to options granted under the 2006 Plan may not exceed 10% of the number of issued shares of the Company at the time of the granting of the options. Options granted under the 2006 Plan will have a maximum term of ten years. The exercise price of options granted under the 2006 Plan shall be fixed in compliance with the applicable provisions of the TSX Company Manual in force at the time of grant and, in any event, shall not be less than the closing price of the Company’s common shares on the TSX on the trading day immediately preceding the day on which the option is granted, or such other price as may be agreed to by the Company and accepted by the TSX. Options granted under the 2006 Plan vest immediately, unless otherwise determined by the directors at the date of grant. During the year ended December 31, 2018, the Company granted incentive stock options to certain officers, employees and consultants of the Company to purchase a total of 420,085 common shares of the Company. The options vested 100% on the grant date with an expiry date of March 21, 2024. The exercise price of these options is C$0.61 per common share. During the year ended December 31, 2017, the Company granted incentive stock options to Mr. Karl Hanneman in connection with his appointment as the new CEO of the Company. Mr. Hanneman is entitled to purchase a total of 250,000 common shares in the capital stock of the Company at an issue price of C$1.35 per share. The options vested as to one-third on the grant date, one-third on February 1, 2018, and one-third on February 1, 2019. Expiry date is February 1, 2025. A summary of the status of the stock option plan as of December 31, 2018 and 2017 and changes during the fiscal years is presented below: Year Ended Year Ended December 31, 2018 December 31, 2017 Number of Options Weighted Aggregate Number of Options Weighted Aggregate Balance, beginning of the year 4,477,000 $ 1.03 6,026,200 $ 1.61 Granted 420,085 $ 0.61 250,000 $ 1.35 Exercised (468,000 ) $ 0.50 - - Expired (269,000 ) $ 2.18 (1,650,000 ) $ 3.17 Cancelled (504,094 ) $ 0.95 (149,200 ) $ 1.24 Balance, end of the year 3,655,991 $ 0.98 $ 67,899 4,477,000 $ 1.03 $ 38,220 The weighted average remaining life of options outstanding at December 31, 2018 was 4.0 years. Stock options outstanding are as follows: December 31, 2018 December 31, 2017 Expiry Date Exercise Number of Exercisable Exercise Number of Exercisable March 14, 2018 - - - $ 2.18 300,000 300,000 February 25, 2022 $ 1.11 970,000 970,000 $ 1.11 1,030,000 1,030,000 February 25, 2022* $ 0.73 360,000 360,000 $ 0.73 540,000 540,000 March 10, 2022 $ 1.11 370,000 370,000 $ 1.11 430,000 430,000 March 16, 2023 $ 1.00 1,140,000 1,140,000 $ 1.00 1,260,000 1,260,000 March 16, 2023 $ 0.50 130,000 130,000 $ 0.50 637,000 637,000 June 9, 2023 $ 1.00 30,000 30,000 $ 1.00 30,000 30,000 March 21, 2024** $ 0.61 405,991 405,991 - - - February 1, 2025 $ 1.35 250,000 166,667 $ 1.35 250,000 83,333 3,655,991 3,572,658 4,477,000 4,310,333 * 90,000 options exercised subsequently ** 31,174 options exercised subsequently A summary of the non-vested options as of December 31, 2018 and 2017 and changes during the fiscal years ended December 31, 2018 and 2017 is as follows: Non-vested options: Number of options Weighted average Outstanding at December 31, 2016 672,735 $ 0.25 Granted 250,000 $ 0.40 Vested (756,068 ) $ 0.27 Outstanding at December 31, 2017 166,667 $ 0.40 Granted 420,085 $ 0.48 Vested (503,419 ) $ 0.47 Outstanding at December 31, 2018 83,333 $ 0.40 At December 31, 2018, there was unrecognized compensation expense of C$2,242 related to non-vested options outstanding. The cost is expected to be recognized over a weighted-average remaining period of approximately 0.08 years. Deferred Share Unit Incentive Plan On April 4, 2017, the Company adopted a Deferred Share Unit Plan (the “DSU Plan”). On May 24, 2017, at the Company’s Annual General Meeting of Shareholders, the DSU Plan was approved. As at December 31, 2018, the maximum aggregate number of common shares that could be issued under the DSU Plan and the 2006 Plan was 18,699,068, representing 10% of the number of issued and outstanding common shares on that date (on a non-diluted basis). As at December 31, 2018, the Company had stock options to potentially acquire 3,655,991 common shares outstanding under the 2006 Plan (representing approximately 1.96% of the outstanding common shares), leaving up to 15,043,077 common shares available for future grants under the DSU Plan and under the 2006 Plan (combined) based on the number of outstanding common shares as at that date on a non-diluted basis (representing an aggregate of approximately 8.04% of the outstanding common shares). During the year ended December 31, 2018, in accordance with the Company’s DSU Plan, on October 17, 2018 the Company granted each of the members of the Board of Directors (other than those directors nominated for election by Paulson & Co., Inc.) 101,220 DSUs with a grant date fair value (defined as the weighted average of the prices at which the common shares traded on the exchange with the most volume for the five trading days immediately preceding the grant) of C$0.82 per grant, or an aggregate of C$581,003. During the year ended December 31, 2017, in accordance with the Company’s DSU Plan, on October 23, 2017 the Company granted each of the members of the Board of Directors (other than those directors nominated for election by Paulson & Co., Inc.) 129,687 DSUs with a grant date fair value (defined as the weighted average of the prices at which the common shares traded on the exchange with the most volume for the five trading days immediately preceding the grant) of C$0.62 per grant, or an aggregate of C$482,436. The DSUs entitle the holders to receive common shares of the Company’s stock without the payment of any consideration. The DSUs vested immediately upon being granted but the common shares of stock underlying the DSUs are not deliverable to the grantee until the grantee is no longer serving on the Company’s Board of Directors. DSUs outstanding are as follows: Year Ended Year Ended December 31, 2018 December 31, 2017 Number of Weighted Number of Weighted Balance, beginning of the year 648,435 $ 0.62 - $ - Issued 708,540 $ 0.82 778,122 $ 0.62 Delivered - - (129,687 ) $ 0.62 Balance, end of the year 1,356,975 $ 0.72 648,435 $ 0.62 Obligation to issue shares Following the resignation of director Mark Hamilton on November 6, 2017, the Company recorded an obligation to issue 129,687 DSUs valued at $63,593 (C$80,406). On March 27, 2018, the Company issued the 129,687 common shares in full satisfaction of the obligation. Share-based payments During the year ended December 31, 2018, the Company granted 420,085 stock options and 708,540 DSUs for common shares of the Company. Share-based compensation for the year ended December 31, 2018 totaled $603,818 ($189,396 related to options and $414,422 related to DSUs). Of the total expense for the year ended December 31, 2018, $414,422 is included in consulting fees, $183,429 in wages and benefits and $5,967 in investor relations in the statement of operations and comprehensive loss. During the year ended December 31, 2017, the Company granted 250,000 stock options and 778,122 DSUs for common shares of the Company. Share-based compensation for the year ended December 31, 2017 totaled $443,556 ($61,998 related to options and $381,558 related to DSUs). Of the total expense for the year ended December 31, 2017, $384,516 is included in consulting fees, $58,192 in wages and benefits and $848 in investor relations in the statement of operations and comprehensive loss. The following weighted average assumptions were used for the Black-Scholes option pricing model calculations: Year ended Year ended Expected life of options 6 years 6 years Risk-free interest rate 2.12 % 1.75 % Expected volatility 93.67 % 93.02 % Dividend rate 0.00 % 0.00 % Exercise price (C$) $ 0.61 $ 1.35 The expected volatility used in the Black-Scholes option pricing model is based on the historical volatility of the Company’s shares. |