| 8. Capital Stock | (a) Common Shares During the three and six month periods ended June 30, 2015, the Company
completed a private placement in which 13,043,695 common shares were issued at a price of $0.92 per common share for gross proceeds
of $12,000,199. In connection with the private placement, the Company paid cash commissions
to a syndicate of underwriters of $840,014 and issued an aggregate of 456,529 non-transferable broker warrants. See
Note 8(c). Each broker warrant entitles the holder to purchase one common share of the Company at an exercise price of $0.92 at
any time on or before May 21, 2017. The Company also recorded $72,800 in debt issuance costs associated with syndicate
fees. Total other issuance costs associated with the private placement were $180,033. On May 21, 2015, the Company issued 3,723,000 common shares in conjunction
with the acquisition of MFI (See Note 2) with a fair value of $5,000,000 based on the current stock price. Additionally, 11,293,587 common shares of the Company were issued
upon the exercise of 11,293,587 common share purchase warrants, 1,909,419 common shares of the Company were issued upon the exercise
of 1,909,419 broker compensation options, 587,997 common shares were issued upon the exercise of 587,997 underlying broker warrants
issued during the period and 16,634 common shares were issued upon the exercise of various share options, at an average exercise
price of $0.51 for gross proceeds of $10,239,215.
Common Shares Number of Shares Amount
Balance, December 31, 2014 94,476,238 $ 41,182,630
Warrants exercised 11,293,587 8,377,924
Warrants exercised - valuation - 3,373,467
Common shares issued in acquisition (Note 2) 3,723,008 5,000,000
Common shares issued in private placement 13,043,695 12,000,199
Share issuance costs - (1,298,285 )
Share options exercised 16,634 15,043
Broker compensation options exercised 1,909,419 1,219,817
Broker warrants exercised underlying warrants 587,997 529,197
Fair value of broker warrants exercised - 698,847
Balance, June 30, 2015 125,050,578 $ 71,098,839 (b) Stock
Based Compensation The Companys stock-based compensation program (the "Plan")
includes share options in which some options vest based on continuous service, while others vest based on performance conditions
such as profitability and sales goals. For those equity awards that vest based on continuous service, compensation expense
is recorded over the service period from the date of grant. For performance-based awards, compensation expense is recorded
over the remaining service period when the Company determines that achievement is probable. During the three and six month periods ended June 30, 2015, there
were 616,617 and 3,775,520 options, respectively, granted to officers, employees and consultants of the Company (2014 29,740
and 1,327,985, respectively). The exercise price of 2,925,520 of these options is $0.62, vesting quarterly one-eighth over two
years on each of March 31, June 30, September 30 and December 31, in 2016 and 2017. Of these options 864,000 are time-based, while
the remaining 2,311,520 are based upon achieving certain financial objectives. Since stock-based compensation is recognized only
for those awards that are ultimately expected to vest, the Company has applied an estimated forfeiture rate (based on historical
experience and projected employee turnover) to unvested awards for the purpose of calculating compensation expense. The grant date
fair value of these options was estimated as $0.51 using the Black-Scholes option pricing model, based on the following assumptions:
expected dividend yield of 0%; expected volatility of 121%; expected risk free interest rate of 0.61%; and expected term of 5 years. During the six month period ended June 30, 2015, 200,000 options
were granted with an exercise price of $0.62 and will fully vest on January 4, 2016 (Note 13). The grant date fair value of these
options was estimated as $0.43 using the Black-Scholes option pricing model, based on the following assumptions: expected dividend
yield of 0%; expected volatility of 121%; expected risk free interest rate of 0.87%; and expected term of 5 years. In addition, 600,000 options were granted based on achieving certain
financial objectives, with an exercise price of $0.99 and will vest quarterly over three years on each of March 31, June 30, September
30 and December 31, in 2016, 2017 and 2018. The grant date fair value of these options was estimated as $0.75 using the Black-Scholes
option pricing model, based on the following assumptions: expected dividend yield of 0%; expected volatility of 122%; expected
risk free interest rate of 1.07%; and expected term of 5 years. The remaining 50,000 options were granted with an exercise price
of $0.62, with one quarter vesting over one year on each of April 29, July 29, October 29 in 2015 and January 29, 2016. The
grant date fair value of these options was estimated as $0.52 using the Black-Scholes option pricing model, based on the following
assumptions: expected dividend yield of 0%; expected volatility of 122%; expected risk free interest rate of 0.87%; and expected
term of 5 years. For the three and six month periods ended June 30, 2015, the Company
recorded $683,338 and $1,030,689, respectively (2014 $99,944 and $217,076, respectively) as additional paid in capital
for options issued to directors, officers, employees and consultants based on continuous service. Included in this amount
is $458,162 and $630,839 for options issued to consultants for services (Note 13). This expense was recorded as selling, general
and administrative expense on the condensed interim consolidated statements of operations, comprehensive loss and deficit. Due
to termination of employment and non-achievement of performance-based awards, 172,085 options were removed from the number of options
issued during the six month period ended June 30, 2015 (year ended December 31, 2014 817,830). The activities in additional paid in-capital options are as follows:
Amount
Balance, December 31, 2014 $ 2,713,605
Expense recognized for options issued to employees 176,560
Expense recognized for options issued to consultants 171,759
Balance, March 31, 2015 3,061,924
Options exercised (6,840 )
Expense recognized for options issued to employees 224,207
Expense recognized for options issued to consultants 458,162
Balance, June 30, 2015 $ 3,737,453 The total number of options outstanding as at June 30, 2015 was 8,436,791
(December 31, 2014 4,834,991).
(c) Warrants As at June 30, 2015, the following warrants were
outstanding: Warrant Liability
Expiration Date
Number of Warrants
Weighted Average Exercise Price
Fair Value at June 30, 2015
Fair Value at December 31, 2014
May 11, 2017 750,000 US0.43($0.54) $ 1,032,847 $ 227,090
February 27, 2015 - US0.50($0.62) $ - $ 184,999
February 27, 2018 2,968,750 US0.60($0.75) $ 3,947,630 $ 1,310,414
March 5, 2015 - US0.50($0.62) $ - $ 56,691
March 5, 2018 843,750 US0.60($0.75) $ 1,120,046 $ 372,123
March 11, 2015 - US0.50($0.62) $ - $ 17,547
March 11, 2018 343,750 US0.60($0.75) $ 460,096 $ 102,089
August 8, 2018 755,794 US0.5954($0.7427) $ 1,228,439 $ 334,060
September 20, 2018 108,696 US0.55($0.69) $ 152,129 $ 36,442
February 4, 2021 347,222 US0.4320($0.5389) $ 578,222 $ 160,319
October 1, 2021 740,000 US0.70($0.87) $ 1,055,999 $ 306,106
6,857,962 US0.58($0.73) $ 9,575,408 $ 3,107,880 ASC 815 "Derivatives and Hedging" indicates that warrants
with exercise prices denominated in a currency other than an entitys functional currency should not be classified as equity. As
a result, these warrants have been treated as derivatives and recorded as liabilities carried at their fair value, with period-to-period
changes in the fair value recorded as a gain or loss in the condensed interim consolidated statements of operations, comprehensive
income (loss) and deficit. The Company treated the compensation warrants as a liability upon their issuance. The warrant
liability is classified as Level 3 within the fair value hierarchy (see Note 17(b)). As at June 30, 2015, the fair value of the aggregate warrant liability
of $9,575,408 (December 31, 2014 - $3,107,880) was estimated using the Black-Scholes option pricing model based on the following
weighted average assumptions: expected dividend yield of 0% (December 31, 2014 0%) expected volatility of 98% (December
31, 2014 88%) risk-free interest rate of 1.02% (December 31, 2014 1.22%) and expected term of 3.18 years (December
31, 2014 2.18 years). Warrants Equity
Expiration Date
Number of Warrants
Weighted Average Exercise Price
Grant Date Fair Value at June 30, 2015
July 15, 2016 17,455,350 $ 0.90 $ 4,201,876
July 15, 2016 1,307,706 $ 0.70 $ 478,620
July 15, 2016 366,713 $ 0.90 $ 116,777
May 21, 2017 456,529 $ 0.92 $ 205,438
19,586,298 $ 0.89 $ 5,002,711 During the six month period ended June 30, 2015 the Company issued
954,710 underlying warrants with an exercise price of $0.90, upon the exercise of 1,909,419 broker compensation options. The weighted
average fair value of these warrants was estimated using the Black-Scholes option pricing model based on the following weighted
average assumptions: expected dividend yield of 0%, expected volatility of 84%, risk-free interest rate of 0.45%, and expected
term of 1.15 years. In connection with the private placement completed during the six
month period ended June 30, 2015, the Company issued 456,529 non-transferable broker warrants, each exercisable into a common share
of the Company, at an exercise price of $0.92 exercisable at any time on or prior to May 21, 2017. The fair value of the broker
warrants at the date of grant was $205,438 and was estimated using the Black-Scholes option pricing model, based on the following
assumptions: expected dividend yield of 0%; expected volatility of 92%; risk free interest rate of 0.67%; and expected term of
2 years. |
| 8. Capital Stock | a) Common Shares During the year ended December 31, 2014, the Company completed a
public offering in which 42,895,000 units ("Units") were issued at a price of $0.70 per Unit for gross proceeds of $30,026,500.
Each Unit consisted of one common share of the Companys stock and one-half of one common share purchase warrant. Each whole
warrant entitles the holder to acquire one common share of the Company at a price per share of $0.90 at any time on or before July
15, 2016. As part of the public offering, the Company issued 21,447,500 common share purchase warrants to the purchasers. In connection with the public offering, the Company paid cash commissions
to the syndicate of underwriters of $2,251,988 and issued an aggregate of 3,217,125 non-transferable broker warrants valued at
$1,177,468. See Note 10 (c). Each broker warrant entitles the holder to purchase one Unit at an exercise price of $0.70
at any time on or before July 15, 2016. Total other issuance costs associated with the public offering were $403,636. During the year ended December 31, 2014, the Company issued 500,000
common shares to a consultant for services and recorded $211,812 as paid-in common shares based on the fair market value of the
common shares at the date of issuance. During the six month period ended June 30, 2015, the Company completed
a private placement in which 13,043,695 common shares were issued at a price of $0.92 per common share for gross proceeds of $12,000,199. In connection with the private placement, the Company paid cash commissions
to a syndicate of underwriters of $840,014 and issued an aggregate of 456,529 non-transferable broker warrants. See
Note 10(c). Each broker warrant entitles the holder to purchase one common share of the Company at an exercise price of $0.92 at
any time on or before May 21, 2017. The Company also recorded $72,800 in debt issuance costs associated with syndicate
fees. Total other issuance costs associated with the private placement were $180,033. On May 21, 2015, the Company issued 3,723,008 common shares in conjunction
with the acquisition of MFI (See Note 2) with a fair value of $5,000,000 based on the current stock price. Additionally, 11,293,587 common shares of the Company were issued
upon the exercise of 11,293,587 common share purchase warrants, 1,909,419 common shares of the Company were issued upon the exercise
of 1,909,419 broker compensation options, 587,997 common shares were issued upon the exercise of 587,997 underlying broker warrants
issued during the period and 16,634 common shares were issued upon the exercise of various share options, at an average exercise
price of $0.51 for gross proceeds of $10,239,215.
b) Stock Based Compensation The Companys stock-based compensation program ("Plan")
includes stock options in which some options vest based on continuous service, while others vest based on performance conditions
such as profitability and sales goals. For those equity awards that vest based on continuous service, compensation expense is recorded
over the service period from the date of grant. For performance-based awards, compensation expense is recorded over the remaining
service period when the Company determines that achievement is probable. During the six month period ended June 30, 2015, there were 3,775,520
options granted to officers, employees and consultants of the Company (2014 1,327,985). The exercise price of 2,925,520
of these options is $0.62, vesting quarterly one-eighth over two years on each of March 31, June 30, September 30 and December
31, in 2016 and 2017. Of these options 540,000 are time-based, while the remaining 2,385,520 are based upon achieving certain financial
objectives. Since stock-based compensation is recognized only for those awards that are ultimately expected to vest, the Company
has applied an estimated forfeiture rate (based on historical experience and projected employee turnover) to unvested awards for
the purpose of calculating compensation expense. The grant date fair value of these options was estimated as $0.51 using the Black-Scholes
option pricing model, based on the following assumptions: expected dividend yield of 0%; expected volatility of 121%; expected
risk free interest rate of 0.61%; and expected term of 5 years. During the six month period ended June 30, 2015, 200,000 options
were granted (2014 200,000) with an exercise price of $0.62 and will fully vest on January 4, 2016 (Note 15). The grant
date fair value of these options was estimated as $0.43 using the Black-Scholes option pricing model, based on the following assumptions:
expected dividend yield of 0%; expected volatility of 121%; expected risk free interest rate of 0.87%; and expected term of 5 years. (Note
15) In addition, 600,000 options were granted based on achieving certain
financial objectives, with an exercise price of $0.99 and will vest quarterly over three years on each of March 31, June 30, September
30 and December 31, in 2016, 2017 and 2018. The grant date fair value of these options was estimated as $0.75 using the Black-Scholes
option pricing model, based on the following assumptions: expected dividend yield of 0%; expected volatility of 122%; expected
risk free interest rate of 1.07%; and expected term of 5 years. The remaining 50,000 options were granted with an exercise price
of $0.62, with one quarter vesting over one year on each of April 29, July 29, October 29 in 2015 and January 29, 2016. The
grant date fair value of these options was estimated as $0.52 using the Black-Scholes option pricing model, based on the following
assumptions: expected dividend yield of 0%; expected volatility of 122%; expected risk free interest rate of 0.87%; and expected
term of 5 years. For the six month period ended June 30, 2015, the Company recorded
$1,030,689 (2014 $217,076) as additional paid in capital for options issued to directors, officers, employees and consultants
based on continuous service. Included in this amount is $630,839 for options issued to consultants for services. This
expense was recorded as selling, general and administrative expense on the consolidated statements of operations, and comprehensive
loss. Due to termination of employment and non-achievement of performance-based awards, 172,085 options were removed
from the number of options issued during the six month period ended June 30, 2015 (year ended December 31, 2014 817,830). The activities in additional paid in-capital options are as follows:
Amount
Balance, December 31, 2014 $ 2,713,605
Options exercised (6,840 )
Expense recognized for options issued to employees 427,352
Expense recognized for options issued to consultants 603,337
Balance, June 30, 2015 $ 3,737,454 The total number of options outstanding as at June 30, 2015 was 8,436,791
(December 31, 2014 4,834,991). The weighted average grant date fair value of the options granted during the
six month period ended June 30, 2015, was $0.55 (2014 - $0.34). The maximum number of options that may be issued under the Plan
is floating at an amount equivalent to 10% of the issued and outstanding common shares, or 12,505,057 as at June 30, 2015 (December
31, 2014 9,447,624). The total remaining options available for granting under the plan at June 30, 2015 was 4,068,266 (December
31, 2014 4,612,634). The Company uses the Black-Scholes option-pricing model to estimate
the grant date fair value of stock options with the following weighted average assumptions:
2015 2014
Risk-free interest rate 0.76 % 1.60 %
Expected life 5 years 5 years
Expected volatility 121 % 123 %
Expected dividend yield 0 % 0 % The Companys computation of expected volatility for the periods
ended June 30, 2015 and 2014 is based on the Companys market close price over the period equal to the expected life of the
options. The Companys computation of expected life reflects actual historical exercise activity and assumptions regarding
future exercise activity of unexercised, outstanding options. The Companys expected dividend yield is 0%, since there is
no history of paying dividends and there are no plans to pay dividends. The Companys risk-free interest rate is the Canadian
Treasury Bond rate for the period equal to the expected term. The total number of options outstanding as at June 30, 2015 was 8,436,791
(December 31, 2014 4,834,991). The activities in options outstanding are as noted below:
Number of Options Weighted Average Exercise Price
Balance, December 31, 2013 3,824,835 $ 0.60
Granted 1,827,986 0.45
Forfeited (817,830 ) 0.55
Balance, December 31, 2014 4,834,991 $ 0.60
Granted 3,775,520 0.58
Options exercised (16,635 ) 0.45
Forfeited (157,085 ) 0.49
Balance, June 30, 2015 8,436,791 $ 0.61
When employees or non-employees exercise their stock options, the
capital stock is credited by the sum of the consideration paid together with the related portion previously credited to additional
paid-in capital when stock-based compensation costs were recorded. As at June 30, 2015, the Company had 3,703,111 (2014 2,508,149)
vested options. As at June 30, 2015, the number of unvested options expected to vest (including the impact of expected forfeitures)
had been estimated at 4,733,680 (2014 2,601,181) with a weighted average contractual life of 3.9 years (2014 4.0
years) and exercise price of $0.64 (2014 - $0.45). As at June 30, 2015, the total fair value of future expense to be recorded in
subsequent periods (assuming no forfeiture occurs) is $2,126,440 (2014 - $339,314). The weighted average time remaining for these
options to vest is 2.79 years (2014 1.71 years). As at June 30, 2015, the aggregate intrinsic value of outstanding
options was $11,604,910 (December 31, 2014 - $209,700) and the aggregate intrinsic value of exercisable options was $4,552,996
(December 31, 2014 - $80,848) based on the Companys closing common share price on the OTCQX under the trading symbol TBUFF
of US$1.45 ($1.81) (December 31, 2014 - US$0.46 ($0.53)). The Company recognizes compensation expense for the fair values of
stock options using the graded vesting method over the requisite service period for the entire award. The following table presents information relating to stock options
outstanding and exercisable at June 30, 2015.
Options Outstanding Options Exercisable
Range of Exercise Price
Number of Shares
Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price
Number of Shares
Weighted Average Exercise Price
Weighted Average Remaining Contractual Life (Years)
$ 0.30 to $0.49 1,657,021 2.66 $ 0.41 1,126,892 $ 0.42 2.80
$ 0.50 to $0.69 5,669,770 3.23 0.60 2,066,219 0.58 1.94
$ 0.90 to $1.09 1,110,000 2.68 0.97 510,000 0.95 0.05
8,436,791 3.04 $ 0.61 3,703,111 $ 0.58 1.94 c) Warrants As at June 30, 2015, the following warrants were
outstanding: Warrant Liability
Expiration Date
Number of Warrants
Weighted Average Exercise Price
Fair Value at June 30, 2015
Fair Value at December 31, 2014
May 11, 2017 750,000 US$0.43 ($0.54) $ 1,032,847 $ 227,090
February 27, 2015 - US$0.50 ($0.62) $ - $ 184,999
February 27, 2018 2,968,750 US$0.60 ($0.75) $ 3,947,630 $ 1,310,414
March 5, 2015 - US$0.50 ($0.62) $ - $ 56,691
March 5, 2018 843,750 US$0.60 ($0.75) $ 1,120,046 $ 372,123
March 11, 2015 - US$0.50 ($0.62) $ - $ 17,547
March 11, 2018 343,750 US$0.60 ($0.75) $ 460,096 $ 102,089
August 8, 2018 755,794 US$0.5954 ($0.7427) $ 1,228,439 $ 334,060
September 20, 2018 108,696 US$0.55 ($0.69) $ 152,129 $ 36,442
February 4, 2021 347,222 US$0.4320 ($0.5389) $ 578,222 $ 160,319
October 1, 2021 740,000 US$0.70 ($0.87) $ 1,055,999 $ 306,106
6,857,962 US$0.58 ($0.73) $ 9,575,408 $ 3,107,880 On May 11, 2012, the Company granted 750,000 warrants in connection
with a loan agreement with MidCap Financial LLC, at an exercise price of US$0.56 ($0.70). Subsequently, the pro rata exercise price
of the 750,000 warrants described above was adjusted due to the exercise rate of the 755,794 common share purchase warrants being
issued to SWK during 2013. The effect of this pro rata change was a new warrant exercise price of US$0.43 ($0.54). The
fair value of these warrants fluctuates based on the current stock price, volatility, the risk free interest rate, time remaining
until expiry and changes in the exchange rate between the U.S. and Canadian dollar. The fair value of the warrant liability at
the date of grant of the 750,000 warrants was $312,000 and was estimated using the Black-Scholes option pricing model, based on
the following assumptions: expected dividend yield of 0%; expected volatility of 124%; risk free interest rate of 1.48%; and expected
term of 5 years. In connection with the SWK Credit Agreement the Company issued to
SWK 755,794 common share purchase warrants with each warrant entitling SWK to acquire one common share in the capital of the Company
at an exercise price of US$0.5954 ($0.7427), at any time prior to August 8, 2020. The fair value of the warrant liability
at the date of grant was $445,012 and was estimated using the Black-Scholes option pricing model, based on the following assumptions:
expected dividend yield of 0%; expected volatility of 128%; risk free interest rate of 2.14%; and expected term of 7 years. In connection with the private placement offerings completed during
the year ended December 31, 2013, the Company granted an aggregate of 12,161,571 share purchase warrants to the participants each
exercisable into one common share as follows: 6,026,438 at US$0.50 ($0.62) exercisable on or before March 11, 2015 and
6,026,437 at US$0.60 ($0.75) exercisable on or before March 11, 2018. The exercise price of the 12,052,875 warrants is denominated
in U.S. dollars while the Companys functional and reporting currency is the Canadian dollar. As a result, the fair value
of the warrants fluctuates based on the current stock price, volatility, the risk free interest rate, time remaining until expiry
and changes in the exchange rate between the U.S. and Canadian dollar. The fair value of the warrant liability at the date of grant
for these warrants was $1,896,679 and was estimated using the Black-Scholes option pricing model, based on the following weighted
average assumptions: expected dividend yield of 0%; expected volatility of 117.4%; risk free interest rate of 1.16%; and expected
term of 3.5 years. The remaining 108,696 share purchase warrants are exercisable on or before September 20, 2018 at US$0.55 ($0.68).
The fair value of the warrant liability at the date of grant for these warrants was $22,810 and was estimated using the Black-Scholes
option pricing model, based on the following weighted average assumptions: expected dividend yield of 0%; expected volatility of
130.0%; risk free interest rate of 1.89%; and expected term of 5 years. In connection with the additional US$2,000,000 ($2,211,000) loan
from SWK described in Note 9, the Company issued SWK 347,222 common share purchase warrants with each warrant entitling SWK to
acquire one common share in the capital of the Company at an exercise price of US$0.432 ($0.5388), at any time on or prior to February
4, 2021. The fair value of the warrant liability at the date of grant was $120,914 and was estimated using the Black-Scholes option
pricing model, based on the following assumptions: expected dividend yield of 0%; expected volatility of 117%; risk free interest
rate of 1.85%; and expected term of 7 years. In connection with the additional US$6,000,000 ($6,724,800) loan
described in Note 9, the Company issued SWK 740,000 common share purchase warrants with each warrant entitling SWK to acquire one
common share in the capital of the Company at an exercise price of US$0.70 ($0.87), at any time on or prior to October 1, 2019.
The fair value of the warrant liability at the date of grant was $303,557 and was estimated using the Black-Scholes option pricing
model, based on the following assumptions: expected dividend yield of 0%; expected volatility of 122%; risk free interest rate
of 1.56%; and expected term of 5 years. ASC 815 "Derivatives and Hedging" indicates that warrants
with exercise prices denominated in a currency other than an entitys functional currency should not be classified as equity. As
a result, these warrants have been treated as derivatives and recorded as liabilities carried at their fair value, with period-to-period
changes in the fair value recorded as a gain or loss in the consolidated statements of operations, comprehensive income (loss)
and deficit. The Company treated the compensation warrants as a liability upon their issuance. The warrant liability
is classified as Level 3 within the fair value hierarchy (see Note 19(b)). As at June 30, 2015, the fair value of the aggregate warrant liability
of $9,575,408 (December 31, 2014 - $3,107,880) was estimated using the Black-Scholes option pricing model based on the following
weighted average assumptions: expected dividend yield of 0% (December 31, 2014 0%) expected volatility of 98% (December
31, 2014 88%) risk-free interest rate of 1.02% (December 31, 2014 1.22%) and expected term of 3.18 years (December
31, 2014 2.18 years). This model requires management to make estimates of the expected
volatility of its common shares, the expected term of the warrants and interest rates. The risk free interest rate is based on
the Canadian Treasury Bond rate. The Company has not paid dividends and does not expect to pay dividends in the foreseeable future.
The expected term of the warrants is the contractual term of the warrants upon initial recognition. For the period ended June 30, 2015, the Company recorded a loss of
$8,877,489 (2014 $4,617,749) as change in warrant liability on the consolidated statement of operations and comprehensive
loss. Warrants Equity
Expiration Date
Number of Warrants
Weighted Average Exercise Price
Grant Date Fair Value at June 30, 2015
July 15, 2016 17,455,350 $ 0.90 $ 4,201,876
July 15, 2016 1,307,706 $ 0.70 $ 478,620
July 15, 2016 366,713 $ 0.90 $ 116,777
May 21, 2017 456,529 $ 0.92 $ 205,438
19,586,298 $ 0.89 $ 5,002,711 Warrants Equity
Expiration Date
Number of Warrants
Weighted Average Exercise Price
Grant Date Fair Value at December 31, 2014
July 15, 2016 21,447,500 $ 0.90 $ 5,169,881
July 15, 2016 3,217,125 $ 0.70 $ 1,177,468
24,664,625 $ 0.87 $ 6,347,349 In connection with the public offering completed during the year
ended December 31, 2014, the Company issued 21,447,500 share purchase warrants to the purchasers, each exercisable into one common
share of the Company at $0.90, exercisable at any time on or prior to July 15, 2016. In addition, the Company granted 3,217,125
non-transferable broker warrants, each exercisable into a Unit of the Company, at an exercise price of $0.70 exercisable at any
time on or prior to July 15, 2016. Each Unit consists of one common share of the Company and one-half of one common share purchase
warrant with each whole warrant entitling the holder to acquire one common share of the Company at a price of $0.90. The fair
value of the warrants and broker warrants at the date of grant was $6,347,349 and was estimated using the Black-Scholes option
pricing model, based on the following assumptions: expected dividend yield of 0%; expected volatility of 99%; risk free interest
rate of 1.12%; and expected term of 2 years. During the six month period ended June 30, 2015 the Company issued
954,710 underlying warrants with an exercise price of $0.90, upon the exercise of 1,909,419 broker compensation options. The weighted
average fair value of these warrants was estimated using the Black-Scholes option pricing model based on the following weighted
average assumptions: expected dividend yield of 0%, expected volatility of 84%, risk-free interest rate of 0.45%, and expected
term of 1.15 years. In connection with the private placement completed during the six
month period ended June 30, 2015, the Company issued 456,529 non-transferable broker warrants, each exercisable into a common share
of the Company, at an exercise price of $0.92 exercisable at any time on or prior to May 21, 2017. The fair value of the broker
warrants at the date of grant was $205,438 and was estimated using the Black-Scholes option pricing model, based on the following
assumptions: expected dividend yield of 0%; expected volatility of 92%; risk free interest rate of 0.67%; and expected term of
2 years. |
