CAPITAL STOCK AND ADDITIONAL PAID IN CAPITAL [Text Block] | 6. CAPITAL STOCK AND ADDITIONAL PAID IN CAPITAL On September 1, 2015, the Company issued 1,982,850 common shares at a value of C$0.10 per common share for total proceeds of C$198,285 ($150,000). On August 31, 2015, the Company issued 2,237,480 common shares at a value of C$0.10 per common share in settlement of interest payable on a promissory note with a fair value of C$223,748 ($169,262). On August 24, 2015, the Company issued 21,672,080 common shares at a value of C$0.10 per common share for total proceeds of C$2,167,208 ($1,662,047). The Company paid $60,000 in share issuance costs with regard to this common share issue. Stock Options The Company established a stock option plan (the “Plan”) under which it is authorized to grant options to executive officers and directors, employees and consultants and the number of options granted under the Plan shall not exceed 15% of the shares outstanding. Under the Plan, the exercise period of the options may not exceed ten years from the date of grant and vesting is determined by the Board of Directors. Stock option transactions are summarized as follows: Stock Options Weighted average exercise price in Number Canadian $ Outstanding, December 31, 2014 15,378,750 $ 0.11 Granted 5,350,000 0.14 Cancelled (2,568,750 ) 0.16 Exercised (550,000 ) 0.05 Outstanding, December 31, 2015 17,610,000 0.12 Granted 5,260,000 0.14 Expired (1,050,000 ) 0.24 Outstanding, December 31, 2016 21,820,000 $ 0.11 Number currently exercisable 21,166,500 $ 0.11 As at December 31, 2016, incentive stock options were outstanding as follows: Number of Number of Exercise Options Options Price in (exercisable) (outstanding) Canadian $ Expiry Date Options 4,300,000 4,300,000 0.100 November 5, 2020* 2,285,000 2,285,000 0.080 April 24, 2017 150,000 150,000 0.120 July 25, 2017 1,400,000 1,400,000 0.070 August 8, 2017 1,000,000 1,000,000 0.100 May 9, 2018 3,375,000 3,375,000 0.120 July 25, 2019 200,000 200,000 0.100 December 30, 2019 3,260,000 3,450,000 0.140 April 17, 2020 400,000 400,000 0.115 August 28, 2020 4,636,500 4,860,000 0.130 February 8, 2021 160,000 400,000 0.200 June 14, 2021 21,166,500 21,820,000 * These options were extended by the Company shareholders at the Company’s annual meeting in October 2015. The Company recognized an additional expense of $281,962 related to this extension. Black-Scholes option pricing model assumptions used were a risk-free interest rate of 1.49%, expected life of 5 years, with a 0.00% forfeiture and dividend rate as well as a volatility rate of 145.92% . As at December 31, 2016 the Company’s outstanding and exercisable stock options have an aggregate intrinsic value of $922,412 (2015 - $489,509). Stock-based compensation During the year ended December 31, 2016, the Company recognized stock-based compensation of $469,434 (December 31, 2015 - $673,224) in the statement of operations and comprehensive loss as a result of incentive stock options granted, vested and extended in the current period. There was a corresponding entry to additional paid in capital. There were 5,260,000 stock options granted during the year ended December 31, 2016 (December 31, 2015 – 5,350,000). The weighted average fair value of the options granted in the year was C$0.12 (2015 - C$0.14) . The fair value of all compensatory options granted is estimated on grant date using the Black-Scholes option pricing model. The weighted average assumptions used in calculating the fair values of options granted are as follows: 2016 2015 Risk-free interest rate 1.13% 1.02% Expected life 5 years 5 years Volatility 141.12% 145.72% Forfeiture rate 0.00% 0.00% Dividend rate 0.00% 0.00% |