Share Capital | 3 Months Ended |
Mar. 31, 2014 |
Share Capital [Abstract] | ' |
Share Capital | ' |
8. Share Capital |
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(a) The Company is authorized to issue an unlimited number of common shares and preferred shares. |
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(b) Share issuances |
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| (i) | | During 1996, the Company issued 420,000 common shares at $0.25 per share by way of a non-brokered private placement for proceeds of $98,722 net of issue costs. In addition the Company issued 280,000 flow-through common shares at $0.25 per share by way of a non-brokered private placement for proceeds of $70,000. | | | | | | | | | | | | |
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| (ii) | | During 1997, the Company completed an initial public offering of 2,000,000 common shares at $0.35 per share for proceeds of $590,570, net of issue costs. In connection with this offering, the Company’s agent received a selling commission of 10% or $0.035 per share and was issued 25,000 shares as a corporate finance fee. | | | | | | | | | | | | |
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| (iii) | | During 1997, the Company issued 1,000,000 units at $2.50 per unit by way of a private placement for proceeds of $2,253,793 net of issue costs. Each unit consisted of one common share and one non-transferable share purchase to purchase one additional common share at $3.00 per share until February 14, 1998. The proceeds of the financing of $2,500,000 were allocated $2,178,761 as to the common shares and $321,239 as to the warrants. During 1998 100,000 of the warrants were exercised and 900,000 expired. In connection with this private placement, the Company’s agent received a selling commission of 7.5% of the proceeds of the units sold or $0.1875 per unit and a corporate finance fee of $15,000. | | | | | | | | | | | | |
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| (iv) | | During 1997, the Company issued 750,000 common shares as performance shares for proceeds of $7,500 that were held in escrow in accordance with the rules of the regulatory authorities of British Columbia. The shares were released 25% in each of 1998, 1999, 2000 and 2001. | | | | | | | | | | | | |
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| (v) | | During 1997, pursuant to an equity participation agreement to acquire an interest in Gemstone Mining Inc. (“Gemstone”), a Utah Corporation that by agreement the creditors of Gemstone were issued 1,000,000 units of the Company on conversion of a debt of $2,065,500 (U.S.$1,500,000). Each unit consisted of one common share and one non-transferable share purchase to purchase one additional common share at U.S.$2.00 per share that was immediately exercised for proceeds of $2,803,205 (U.S.$2,000,000). The first one-third tranche of a conditional finders’ fee was satisfied by the issue of 150,000 common shares in connection with the acquisition of Gemstone. | | | | | | | | | | | | |
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| (vi) | | During 1998, the Company issued 100,000 common shares pursuant to the exercise of share purchase warrants for proceeds of $300,000. | | | | | | | | | | | | |
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| (vii) | | During 1998, the Company issued 200,000 common shares in connection with the acquisition of Gemstone as well as the second tranche of finder’s fee in connection with that acquisition. The Company’s option to acquire Gemstone expired on January 31, 1998 and the remaining one-third tranche were not issued. | | | | | | | | | | | | |
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| (viii) | | During 1999, the Company consolidated its issued share capital on a two old for one new basis and changed its name from Neary Resources Corporation to Red Emerald Resource Corp. | | | | | | | | | | | | |
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| (ix) | | During 2002, the Company issued 3,500,000 units at $0.25 per unit for proceeds of $875,000 by way of a short form offering document under the policies of the TSX Venture Exchange. Each unit consists of one common share and one common share purchase warrant that entitled the holder to purchase one additional common share at $0.25 per share until October 19, 2002. The Company also issued 150,000 common shares as a finance fee in connection with this offering, and issued the agent 875,000 share purchase warrants exercisable at $0.25 per share until April 19, 2004. During 2002 the Company issued 1,134,500 special warrants at $1.25 per special warrant for proceeds of $1,418,125. Each Special Warrant automatically converted to a unit comprising one common share and one share purchase warrant that entitled the holder to purchase one additional common share at $1.55 per share until November 6, 2003. The proceeds of the financing of $1,418,125 were allocated on a relative fair value basis as $1,171,286 to common shares and $246,839 as to the warrants. During 2003 all of the warrants expired unexercised. In connection with the offering the Company paid the agent a 10% commission totaling $113,450, issued the agent 40,000 common shares as a finance fee in connection with this offering, and issued the agent 170,175 share purchase warrant exercisable at $1.55 per share until July 5, 2003. | | | | | | | | | | | | |
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| (x) | | During 2002, the Company issued 4,028,000 common shares pursuant to the exercise of share purchase warrants for proceeds of $1,007,000. | | | | | | | | | | | | |
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| (xi) | | During 2002, the Company issued 32,000 common shares pursuant to the exercise of stock options for proceeds of $12,800. | | | | | | | | | | | | |
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| (xii) | | During 2002, the Company issued 31,250 common shares as additional consideration to a director who loaned the Company $780,000 bearing interest at 12% per annum. The loan and interest was repaid prior to December 31, 2002. | | | | | | | | | | | | |
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| (xiii) | | During 2002, the Company acquired Rex Exploration Corp. (“Rex”) in exchange for 4,500,000 common shares of the Company. | | | | | | | | | | | | |
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| (xiv) | | During 2003, the Company issued 700,000 units at $1.20 per unit for proceeds of $840,000 by way of a non-brokered private placement. Each unit consists of one common share and one share purchase warrant that entitled the holder to purchase one additional common share at $1.50 until May 25, 2004. The proceeds of the financing of $840,000 were allocated $638,838 as to common shares and $201,162 as to the warrants. During 2004 161,000 of the warrants were exercised and 539,000 expired. Share issue expenses were $19,932. | | | | | | | | | | | | |
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| (xv) | | During 2003, the Company issued 294,500 common shares pursuant to the exercise of share purchase warrants for proceeds of $73,625. | | | | | | | | | | | | |
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| (xvi) | | In January 2004, the Company issued 400,000 units at $2.00 per unit for proceeds of $800,000 by way of a private placement. Each unit consisted of one common share and one non-transferable share purchase warrant that entitled the holder to purchase one additional common share at $2.35 per share for a six month period. The proceeds of the financing of $800,000 were allocated on a relative fair value basis as $624,593 to common shares and $175,407 as to the warrants. All of the warrants expired unexercised in 2004. The Company issued 40,000 common shares as a finder’s fee for this private placement. | | | | | | | | | | | | |
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| (xvii) | | In August 2004, the Company issued 1,020,000 units at $0.75 per unit for proceeds of $765,000 by way of a private placement. Each unit consisted of one common share and one non-transferable share purchase warrant that entitled the holder to purchase one additional common share at $0.80 per share until August 25, 2005. All of the warrants were subsequently exercised. The Company issued 55,650 common shares as a finder’s fee for this private placement. | | | | | | | | | | | | |
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| (xviii) | | In December 2004, the Company issued 700,000 units at $0.85 per unit for proceeds of $595,000 by way of a private placement. Each unit consisted of one common share and one non-transferable share purchase warrant that entitled the holder to purchase one additional common share at $1.00 per share until December 20, 2005. All of the warrants were subsequently exercised. The Company issued 18,750 common shares as a finder’s fee for this private placement. | | | | | | | | | | | | |
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| (xix) | | In February 2005, the Company issued 2,500,000 units at $0.85 per unit for proceeds of $2,125,000 by way of a private placement. Each unit consisted of one common share and one non-transferable share purchase warrant that entitled the holder to purchase one additional common share at $1.00 per share until February 16, 2006. The proceeds of the financing of $2,125,000 were allocated on a relative fair value basis as $1,598,457 to common shares and $526,543 as to warrants. There were 23,000 warrants exercised in fiscal year 2005 and the balance exercised in fiscal year 2006. The Company issued 75,800 common shares for $64,430 and paid $69,700 in cash as a finder’s fee and incurred $26,709 in additional issue costs for this private placement. | | | | | | | | | | | | |
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| (xx) | | In July 2005, the Company issued 1,000,000 units at $1.15 per unit for proceeds of $1,150,000 by way of a private placement. Each unit consisted of one common share and one-half non-transferable share purchase warrant that entitled the holder to purchase one additional common share at $1.15 per share until July 27, 2006. The proceeds of the financing of $1,150,000 were allocated on a relative fair value basis as $995,193 to common shares and $154,807 as to warrants. All of the warrants were exercised in fiscal year 2006. The Company incurred $15,560 in issue costs. | | | | | | | | | | | | |
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| (xxi) | | In August 2005, the Company issued 500,000 units at $1.40 per unit for proceeds of $700,000 by way of a private placement. Each unit consisted of one common share and one-half nontransferable share purchase warrant that entitled the holder to purchase one additional common share at $1.45 per share until August 22, 2006. The proceeds of the financing of $700,000 were allocated on a relative fair value basis as $608,015 to common shares and $91,985 as to warrants. All of the warrants were exercised in fiscal year 2006. The Company incurred $8,261 in issue costs. | | | | | | | | | | | | |
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| (xxii) | | In January 2006, the Company issued 40,000 common shares at a value of $88,000 pursuant to a purchase and sale agreement to purchase mining claims for the Spring Valley project. | | | | | | | | | | | | |
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| (xxiii) | | In May 2006, the Company issued 3,725,000 units at $1.80 per unit for proceeds of $6,705,000 by way of a private placement. Each unit consisted of one common share and one-half nontransferable share purchase warrant. Each whole warrant entitled the holder to purchase one additional common share at $2.70 per share until May 16, 2007. The proceeds of the financing of $6,705,000 were allocated on a relative fair value basis as $5,998,846 to common shares and $706,154 as to warrants. The Company incurred $65,216 in issue costs. By May 16, 2007 1,725,000 of the warrants were exercised and 137,500 expired unexercised. | | | | | | | | | | | | |
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| (xxiv) | | In November 2006, the Company issued 2,000,000 units at $2.50 per unit for proceeds of $5,000,000 by way of a private placement. Each unit consisted of one common share and one-half nontransferable share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share at $3.00 per share until November 10, 2007. The proceeds of the financing of $2,000,000 were allocated on a relative fair value basis as $1,761,509 to common shares and $238,491 as to warrants. The Company paid $88,750 in finders’ fees and incurred $94,546 in issue costs for this private placement. By November 10, 2007 908,782 of the warrants were exercised and 91,218 expired unexercised. | | | | | | | | | | | | |
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| (xxv) | | On April 16, 2007, the Company issued 7,764,109 common shares at a value of $25,000,431 along with 308,000 stock options at a value of $608,020 and 870,323 share purchase warrants at a value of $1,420,054 in connection with the acquisition of Pan-Nevada Gold Corporation. By December 31, 2007, 154,000 of the stock options had been exercised and 761,823 share purchase warrants had been exercised. By December 31, 2008 the remaining 108,500 share purchase warrants were exercised and 84,000 stock options had been exercised. On October 11, 2008 the final 70,000 stock options expired not exercised. | | | | | | | | | | | | |
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| (xxvi) | | On August 24, 2007, the Company issued 2,000,000 common shares at $2.70 per common share for proceeds of $5,400,000 by way of a private placement. The Company incurred $28,000 in share issue costs. | | | | | | | | | | | | |
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| (xxvii) | | On March 31, 2008, the Company issued 30,000 common shares at a value of $88,500 pursuant to a lease assignment of mining claims for the Gold Rock project. The Company incurred $1,489 in share issue costs. | | | | | | | | | | | | |
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| (xxviii) | | On June 12, 2008, the Company issued 1,421,500 common shares at $2.00 per common share for proceeds of $2,843,000 by way of a private placement. The Company incurred $75,371 in share issue costs. | | | | | | | | | | | | |
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| (xxix) | | On August 1, 2008 the Company issued 600,000 common shares at U.S.$2.50 per common share for proceeds of $1,537,950 (U.S.$1,500,000) by way of a private placement with Kinross. The Company incurred $39,450 in share issue costs. | | | | | | | | | | | | |
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| (xxx) | | On November 12, 2008 the Company issued 12,500,000 units at $0.22 per unit for proceeds of $2,750,000 by way of a private placement. Each unit consisted of one common share and one share purchase warrant. Each warrant entitles the holder to purchase one additional common share at $0.28 per share until May 12, 2009. The proceeds of the financing of $2,750,000 were allocated on a relative fair value basis as $1,793,491 to common shares and $956,509 as to warrants. The Company incurred $23,395 in issue costs for this private placement. In the year ended December 31, 2009 all of the 12,500,000 warrants were exercised for proceeds of $3,500,000. | | | | | | | | | | | | |
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| (xxxi) | | In addition to the 84,000 stock options reported exercised in paragraph (xxv), during 2008, the Company issued a further 395,000 common shares pursuant to the exercise of stock options for proceeds of $613,250. | | | | | | | | | | | | |
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| (xxxii) | | During 2009, the Company issued 33,333 common shares pursuant to the exercise of stock options for proceeds of $21,651. | | | | | | | | | | | | |
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| (xxxiii) | | On April 9, 2010, the Company issued 1,333,000 units at $0.60 per unit for proceeds of $800,000 by way of a private placement. Each unit consisted of one common share and one share purchase warrant. Each warrant entitles the holder to purchase one additional common share until October 9, 2011 at an exercise price as follows: $0.70 if exercised on or before October 9, 2010; $0.80 if exercised after October 9, 2010 but on or before April 9, 2011; and $0.90 if exercised after April 9, 2011 but on or before October 9, 2011. The proceeds of the financing of $800,000 were allocated on a relative fair value basis as $514,365 to common shares and $285,635 as to warrants. The Company incurred $95,529 in issue costs for this private placement. | | | | | | | | | | | | |
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| (xxxiv) | | On June 16, 2010, the Company issued 11,078,666 units at $0.60 per unit for proceeds of $6,647,199 by way of a brokered offering in Canada and a non-brokered offering in the United States. Each unit consisted of one common share and one-half share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share until June 16, 2012 at an exercise price of $0.80. The proceeds of the financing of $6,647,199 were allocated on a relative fair value basis as $5,142,202 to common shares and $1,504,997 as to warrants. The Company issued 658,840 agent’s warrants which entitle the holder to purchase one common share until June 16, 2010 at an exercise price of $0.80. These warrants have been recorded at the estimated fair value at the issue date of $212,109. The fair value of warrants was determined using a risk free interest rate of 1.82%, an expected volatility of 131%, an expected life of 2 years, and zero dividends for a fair value per warrant of $0.32. In addition, the Company paid finders’ fees in the amount of $395,304 and incurred other cash share issue costs of $307,553. | | | | | | | | | | | | |
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| (xxxv) | | In September 2010, the Company issued 12,500 common shares pursuant to the exercise of share purchase warrants for proceeds of $10,000. | | | | | | | | | | | | |
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| (xxxvi) | | In November 2010, the Company closed a public offering and the Company issued 6,660,000 units at U.S.$0.60 per unit, each unit comprising one common share and one half of one non-transferable common share purchase warrant. Each whole warrant entitles the holder to purchase one common share of the Company at a price of U.S.$0.90 per share until November 12, 2012, subject to acceleration provisions. The proceeds of the financing of $4,070,725 were allocated first to the fair value of the warrants at $918,870 with the residual amount of $3,151,855 to common shares. | | | | | | | | | | | | |
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The Company incurred $176,288 in issue costs and paid $244,244 to the agent as commission for this public offering. On February 9, 2011, the Company gave notice to the Warrant holders that it accelerated the expiry date of the warrants to March 14, 2011 and by that date 2,650,000 warrants were exercised and 680,000 warrants expired unexercised. |
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| (xxxvii) | | On June 6, 2011, the Company issued 7,500,000 common shares upon the close of a “bought deal” public offering for U.S.$1.60 per share. Gross proceeds on the purchase were $11,742,000 (U.S.$12,000,000). The Company incurred $151,839 in issue costs and paid the agent $587,100 (U.S.$600,000) as a commission for this public offering. | | | | | | | | | | | | |
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| (xxxviii) | | On September 23, 2011, the Company announced that it had established an "At-the-Market" ("ATM") issuance program under which it may sell up to a maximum of 6,000,000 of its common shares. The ATM issuance program is available to the Company on an as needed basis. Subject to market conditions and funding requirements, the Company may, at its discretion, from time to time sell all, some, or none of the reserved shares during the term of the ATM program. Any common shares issued under the ATM program will be sold through ATM issuances in the United States. No ATM issuances will be made through the facilities of any Canadian securities exchange. Any ATM issuances will be made at market prices prevailing at the time of the sale and, as a result, prices may vary. During the three months ended September 30, 2013, the Company did not issue any shares pursuant to the ATM program. As of September 30, 2013, the Company has issued a total of 637,736 shares and received net proceeds of $1,554,957 pursuant to the ATM program. The ATM issuance program was terminated at the Company’s discretion on July 29, 2013. | | | | | | | | | | | | |
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| (xxxix) | | In July 2012, the Company closed a public offering and issued 12,261,562 units at U.S.$1.28 per unit, each unit comprising one common share and one half of one non-transferable common share purchase warrant. Each whole warrant entitles the holder to purchase one common share of the Company at a price of U.S.$1.85 per share for a period of 18 months following the closing of the public offering, subject to acceleration provisions. The gross proceeds of the financing of U.S.$15,694,799 were allocated first to the fair value of the warrants at U.S.$2,616,006 with the residual amount of U.S.$13,725,687 to common shares. The Company incurred $1,437,675 in issue costs and paid $244,244 to the agent as commission for this public offering which was recorded during Q3 of 2012. | | | | | | | | | | | | |
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| (xl) | | During 2012 the Company issued 1,533,650 common shares pursuant to the exercise of share purchase warrants. Proceeds received on the 1,533,650 common shares totalled $1,226,920. | | | | | | | | | | | | |
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Additionally, during 2012, the Company issued 737,501 common shares pursuant to the exercise of employee stock options. Proceeds received on the options exercised totalled $425,685. |
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| (xli) | | On July 2, 2013, the Company issued 1,166,930 common shares in the amount of $1,253,352 for the payment of the quarterly dividends on the Series A Preferred Shares (Note 9). | | | | | | | | | | | | |
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| (xlii) | | On October 1, 2013, the Company issued 1,260,144 common shares in the amount of $1,242,549 for the payment of the quarterly dividends on the Series A Preferred Shares (Note 9). | | | | | | | | | | | | |
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| (xliii) | | During 2013 the Company issued 37,500 common shares pursuant to the exercise of employee stock options. Proceeds received on the options exercised totalled $21,000. | | | | | | | | | | | | |
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| (xliv) | | On January 2, 2014, the Company issued 1,485,728 common shares in the amount of $1,284,431 for the payment of the quarterly dividends on the Series A Preferred Shares (Note 9). | | | | | | | | | | | | |
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| (xlv) | | During the three months ended March 31, 2014, the Company issued 580,000 common shares pursuant to the exercise of employee stock options. Proceeds received on the options exercised totalled $342,501. | | | | | | | | | | | | |
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(c) Stock options |
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The Company adopted the 2013 Stock and Incentive Plan (the “2013 Plan”) after approval of the 2013 Plan by the Company’s Shareholders at the Annual General and Special Meeting on June 20, 2013. The 2013 Plan is designed to replace the 2008 Stock Option Plan (the “Plan”); however, all outstanding option grants as of June 20, 2013 will remain under the 2008 Stock Option Plan. Upon adoption of the 2013 Plan on June 20, 2013, the 2008 Stock Option Plan ceased to be available for the granting of new stock options. |
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The 2013 Plan permits a fixed aggregate number of common shares to be issuable under all awards under the 2013 Plan of 16,628,914 (“Award Cap”), which was equivalent to 10% of the Company’s common shares plus Series A Preferred Shares as of April 18, 2013. The total number of common shares issuable to insiders at any time and issued to insiders of the Company within any one-year period pursuant to stock options granted under the 2013 Plan, together with any other security based compensation arrangements of the Company, may not exceed 10% of the issued and outstanding common shares and preferred shares. The number of common shares issuable for Awards made under the 2008 Stock Option Plan is deducted from the Award Cap. The Award Cap represents the maximum number of shares issuable under both plans. |
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The exercise price of a stock option granted under the 2013 Plan will be determined by the Compensation Committee at the time the option is granted, but the exercise price may not be less than 100% of the fair market value of the Company’s common shares on the date of grant of such option. The fair market value is the closing price of one common share on the trading day immediately preceding the date of grant on the NYSE MKT. Stock options granted under the 2013 Plan are subject to the following restrictions: (i) a promissory note is not permitted as payment for a stock option; (ii) the maximum term for stock options is 10 years from the date of grant; and (iii) unless otherwise fixed, stock options expire three months after the person to which they have been granted is terminated (12 months if due to death) or when options expire during a trading restriction, expiry is extended to the third trading day after a period during which trading in the common shares was prohibited or restricted pursuant to the policies of the Company. |
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The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model. The option pricing model requires the input of subjective assumptions which are based on several different criteria. Expected volatility is based on the historical price volatility of the Company’s common stock. Expected dividend yield is assumed to be nil, as the Company has not paid dividends since inception on common shares. Expected forfeitures are calculated based upon historical experience of options. The expected life is estimated based on historical experience for options granted. Risk free interest rates are based on U.S. government obligations with a term approximating the expected life of the option. |
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The stock-based compensation for options vesting during the three months ended March 31, 2014 is included in the consolidated statement of operations as follows: |
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| | Three Months Ended | | | | | | | | | |
| | March 31, | | | | | | | | | |
| | 2014 | | 2013 | | | | | | | | | |
Salaries and Benefits | | $ | 288,991 | | $ | 394,970 | | | | | | | | | |
Mineral Exploration Expenditures | | | 21,614 | | | 120,854 | | | | | | | | | |
Mine Development | | | 11,587 | | | - | | | | | | | | | |
Consulting | | | 43,309 | | | 53,385 | | | | | | | | | |
Total | | $ | 365,501 | | $ | 569,209 | | | | | | | | | |
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2008 Stock Option Plan – TSX Stock Exchange |
The estimated unrecognized compensation cost from unvested options as of March 31, 2014 was approximately $184,297, which is expected to be recognized over the remaining vesting period of 0.95 years, and has a weighted average remaining contractual term of 2.17 years. |
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The weighted-average grant date fair value of options is summarized below for the three months ended March 31, 2014 and 2013. |
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| | 31-Mar-14 | | 31-Mar-13 | | | | | | | | | |
Unvested Beginning of Year | | $ | 0.55 | | $ | 2.12 | | | | | | | | | |
Granted | | | - | | | 0.55 | | | | | | | | | |
Vested | | | 0.55 | | | 0.56 | | | | | | | | | |
Expired | | | -1.37 | | | -1.65 | | | | | | | | | |
Unvested End of Period | | $ | 0.55 | | $ | 0.84 | | | | | | | | | |
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The following table summarizes activity for compensatory stock options during the three months ended March 31, 2014: |
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| | Number of Shares | | Weighted Average Exercise Price | | Aggregate Intrinsic Value | | Number of Shares Exercisable | | | | | |
Outstanding, January 1, 2014 | | 9,645,834 | | $ | 1.27 | | $ | 632,800 | | 8,122,490 | | | | | |
Granted | | - | | | - | | | - | | - | | | | | |
Exercised | | -580,000 | | | 0.59 | | | - | | - | | | | | |
Expired | | -101,668 | | | 1.97 | | | - | | - | | | | | |
Outstanding, March 31, 2014 | | 8,964,166 | | $ | 1.31 | | $ | 1,397,233 | | 8,215,826 | | | | | |
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The following table summarizes information about outstanding compensatory stock options as of March 31, 2014: |
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| | Options Outstanding | | Options Exercisable |
Exercise Prices | | Number of Shares | | Remaining Contractual Life (years) | | Weighted Average Exercise Price | | Number Exercisable | | Weighted Average Exercise Price | | Aggregate Intrinsic Value |
$0.56 - $1.00 | | 3,546,667 | | 1.1 | | $ | 0.76 | | 3,546,667 | | $ | 0.76 | | $ | 1,397,233 |
$1.01 - $1.60 | | 2,424,999 | | 3.8 | | | 1.18 | | 1,676,659 | | | 1.19 | | | - |
$1.61 - $2.20 | | 2,992,500 | | 2.3 | | | 2.07 | | 2,992,500 | | | 2.07 | | | - |
| | 8,964,166 | | 2.2 | | $ | 1.31 | | 8,215,826 | | $ | 1.32 | | $ | 1,397,233 |
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2013 Stock Option Plan – NYSE MKT Stock Exchange |
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The estimated unrecognized compensation cost from unvested options as of March 31, 2014 was approximately U.S.$115,276, which is expected to be recognized over the remaining vesting period of 2.56 years, and has a weighted average remaining contractual term of 4.69 years. |
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The weighted-average U.S.$ grant date fair value of options is summarized below for the three months ended March 31, 2014 and 2013. |
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| | 31-Mar-14 | | 31-Mar-13 | | | | | | | | | |
Unvested Beginning of Year | | $ | 0.41 | | $ | - | | | | | | | | | |
Granted | | | 0.54 | | | - | | | | | | | | | |
Vested | | | 0.57 | | | - | | | | | | | | | |
Expired | | | - | | | - | | | | | | | | | |
Unvested End of Period | | $ | 0.39 | | $ | - | | | | | | | | | |
The following table summarizes activity for compensatory stock options during the three months ended March 31, 2014, values in U.S.$, except share amounts: |
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| | Number of Shares | | Weighted Average Exercise Price | | Aggregate Intrinsic Value | | Number of Shares Exercisable | | | | | |
Outstanding, January 1, 2014 | | 399,000 | | $ | 0.87 | | $ | - | | - | | | | | |
Granted | | 293,250 | | | 1.08 | | | - | | 250,000 | | | | | |
Exercised | | - | | | - | | | - | | - | | | | | |
Expired | | - | | | - | | | - | | - | | | | | |
Outstanding, March 31, 2014 | | 692,250 | | $ | 0.96 | | $ | - | | 250,000 | | | | | |
The following table summarizes information about outstanding compensatory stock options as of March 31, 2014, values in U.S.$, except share amounts: |
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| | Options Outstanding | | Options Exercisable |
Exercise Prices | | Number of Shares | | Remaining Contractual Life (years) | | Weighted Average Exercise Price | | Number Exercisable | | Weighted Average Exercise Price | | Aggregate Intrinsic Value |
$0.56 - $1.00 | | 425,575 | | 4.56 | | $ | 0.87 | | - | | $ | - | | $ | - |
$1.01 - $1.60 | | 266,675 | | 4.98 | | | 1.11 | | 250,000 | | | 1.11 | | | - |
| | 692,250 | | 4.72 | | $ | 0.96 | | 250,000 | | $ | 1.11 | | $ | - |
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d) Share purchase warrants: |
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There were no outstanding warrants as of March 31, 2014. |
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As of December 31, 2013, there were 6,130,781 warrants outstanding with an exercise price of U.S.$1.85 per share and each warrant entitled the holder to purchase one additional common share until January 6, 2014. All warrants expired on January 6, 2014 unexercised. U.S. GAAP requires the value of share purchase warrants issued with an exercise price denominated in a currency other than the Company’s Canadian dollar functional currency to be considered as a liability and this liability is stated at fair value each reporting period. As of December 31, 2013, the fair value of the warrant liability was adjusted to zero based upon the stock price of $0.81 compared to the exercise price of $1.85 and only six days remaining on the warrants term. The Company adjusted the fair value of the warrant liability as of December 31, 2012 to $1,166,381, calculated using the Black-Scholes option pricing model. As of March 31, 2013, the fair value of the warrant liability was adjusted to $589,637. The gain of $576,744 related to the change in the fair value of the warrants has been reported in “Gain on change in fair value of derivative liabilities” within Other Income in the Consolidated Statement of Operations for the three months ended March 31, 2013. There was no gain or loss recorded during the three months ended March 31, 2014 relating to the change in the fair value of warrant liabilities. |
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During the three months ended March 31, 2014, the Company did not issue any warrants. |
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A summary of the Company’s stock purchase warrants as of March 31, 2014 is presented below: |
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| | Number of Warrants | | Weighted Average Exercise Price (U.S. $) | | Remaining Contractual Life (years) | | | | | | | | |
Balance, December 31, 2013 | | 6,130,781 | | $ | 1.85 | | 0.02 | | | | | | | | |
Issued | | - | | | - | | - | | | | | | | | |
Exercised | | - | | | - | | - | | | | | | | | |
Expired | | -6,130,781 | | | - | | - | | | | | | | | |
Balance, March 31, 2014 | | - | | $ | - | | - | | | | | | | | |
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