7. Stockholders' Equity | 6 Months Ended |
Jun. 30, 2014 |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
7. Stockholders' Equity |
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a) During the year ended December 31, 2013, the company issued the following shares under the Securities Act of 1933 exemption Rule 144: |
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On March 25, 2013, the company issued a total of 444,444 restricted common shares for which the company received a total of $40,000 in subscriptions for shares at a price of $0.09 per share as part of the exercising of stock options. |
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On March 12, 2013, the company issued a total of 1,744,747 restricted common shares for the acquisition of 2,078,080 common shares of Gogiro (Note 3) |
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On June 4, 2013, the company issued a total of 650,000 restricted common shares (with fair value of $58,500 or $0.09/share) to various consultants for their services provided. |
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On October 11 and November 4, 2013, two directors exercised 550,000 options of the Company into common shares at $0.09/share for $49,500. |
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On December 5 and 16, 2013, the Company issued 400,000 common shares at $0.10/share for $40,000 in a non-brokerage private placement. |
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b) During the six months ended June 30, 2014, the company issued the following shares under the Securities Act of 1933 exemption Rule 144: |
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On January 28, 2014 the Company issued 843,750 units (“Unit A”) at $0.08/share for $67,500 pursuant to a non-brokerage private placement. Each Unit A consisted of one common share and one share purchase warrant, each warrant entitling the holder to purchase one share at an exercise price of $0.20 per share for one year. |
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During the three months ended June 30, 2014, pursuant to non-brokerage private placements, the Company issued: |
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- 625,000 common shares at $0.08/share for $50,000, |
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- 333,333 common shares at $0.15/share for $50,000, |
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- 384,616 units (“Unit B”) at $0.13/unit for $50,000. Each Unit B consisted of one common share and one share purchase warrant, each warrant entitling the holder to purchase one share at an exercise price of $0.26 per share for one year. |
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The Company also issued 379,722 common shares to various consultants for their services rendered. The fair value of these common shares is $66,570 which is determined by the market closing prices of these shares when they were issued. |
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The Company issued 2,500,000 common shares as consideration for the Acquisition (Note 2). The fair value of these common shares is $475,000 which is determined by the market closing prices of these shares at the Acquisition Date. |
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c) Common share purchase warrants: |
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During 2014 Six Months, 1,228,336 share purchase warrants were issued at two private placements (Note 7 (b)). |
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The number of outstanding warrants as at December 31, 2013 and June 30, 2014 was Nil and 1,228,336 respectively. As at June 30, 2014, the weighted average exercise price and weight average remaining life of the warrants was $0.22/share and 0.97 years respectively. |
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d) Stock Options |
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On March 25, 2013 via Board of Directors Consent Resolution the Company ratified and adopted a Stock Option Plan, created an option pool of 4,000,000 options. The Company granted 1,475,000 options to three directors of the Company and granted a further 185,000 options to employees and consultants of the Company (totaling 1,660,000 options) during the year ended December 31, 2013. Each stock option entitles the option holder to purchase one common share of the Company on or before March 31, 2018 at an exercise price of $0.09. Among these 1,660,000 options, 1,085,000 were vested immediately on March 25, 2013. The remaining 325,000 options and 250,000 options were vested on September 1 and November 1, 2013 respectively. |
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On April 17, 2013, the Company granted 75,000 stock options to two consultants at an exercise price of $0.07/share. These 75,000 options were vested immediately on April 17, 2013 and will expire on March 31, 2018. |
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On July 31, 2013, the Company granted 350,000 stock options to three consultants at an exercise price of $0.09/share. These 350,000 options were vested immediately on July 31, 2013 and will expire on March 31, 2018. |
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On April 28, 2014, the Company granted 50,000 stock options to a consultant at an exercise price of $0.17/share. These 50,000 options will be vested 50% on October 1, 2014 and the remaining 50% on April 1, 2015 respectively, and will expire on April 1, 2019. |
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On June 5, 2014, the Company granted three consultants a total of 450,000 stock options at an exercise price of $0.18/share. These 450,000 options will be vested 50% on May 1, 2015 and the remaining 50% on May 1, 2016 respectively, and will expire on June 5, 2019. |
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The fair values of stock options granted are amortized over the vesting period where applicable. During 2014 Six Months, the Company recorded $7,095 (Six months ended June 30, 2013 - $126,475) stock-based compensation in connection with the vesting of options granted. The Company uses the Black-Scholes option pricing model to establish the fair value of options granted with the following assumptions: |
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| | Six months ended 2014/6/30 | | | Six months ended 2013/6/30 | |
Expected dividend yield | | | 0 | % | | | 0 | % |
Volatility | | | 230 | % | | | 191%-197 | % |
Risk free interest rate | | | 1.52 | % | | | 0.76%-0.85 | % |
Expected option life | | 5 years | | | 5 years | |
Forfeiture rate | | | 0 | % | | | 0 | % |
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On March 26, 2013, Neil Chan (CEO and Director) exercised 444,444 option into 444,444 common shares of the company at the strike price of $0.09 per share for $40,000. |
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In October and November 2013, Neil Chan and Richard Freeman (Director) exercised 325,000 and 225,000 options into common share respectively on one-to-one basis at the strike price of $0.09 per share for $49,500. |
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The following table summarizes information about stock options outstanding and exercisable at June 30, 2014: |
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| | Number of Options | | | Weighted average exercise price | |
$ |
| | | | | | |
Options outstanding – December 31, 2012 | | | - | | | | - | |
Granted (March 25, 2013) | | | 1,660,000 | | | | 0.09 | |
Exercised (March 26, 2013) | | | (444,444 | ) | | | 0.09 | |
Exercised (October and November, 2013) | | | (550,000 | ) | | | 0.09 | |
Granted (April 17, 2013) | | | 75,000 | | | | 0.07 | |
Granted (July 31, 2013) | | | 350,000 | | | | 0.09 | |
Options outstanding – December 31, 2013 | | | 1,090,556 | | | | 0.09 | |
Option granted (April 28, 2014) | | | 50,000 | | | | 0.17 | |
Options granted (June 5, 2014) | | | 450,000 | | | | 0.18 | |
| | | 1,590.556 | * | | | 0.12 | |
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*Number of options exercisable as at December 31, 2013 and June 30, 2014 was 1,090,556 . |
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