Stock options (Tables)

12 Months Ended

Dec. 31, 2012

Stock Options Tables

Summary of stock options

The following is a summary of stock options which are outstanding as at December 31, 2012: 

		# of		# of		average
exercise		stock options		stock options		remaining contractual
price		outstanding		exercisable		life (years)
$	0.45		105,600		105,600	2.8
$	0.53		150,000		100,000	1.0
$	0.63		450,000		450,000	1.6
$	0.75		395,000		-	4.5
$	0.76		90,000		-	5.0
$	0.86		815,000		-	4.6
$	0.89		150,000		-	4.1
$	1.16		435,000		255,000	3.6
$	1.20		300,000		60,000	4.6
			2,890,600		970,600	3.7

Number of stock options outstanding

A continuity of the number of stock options outstanding at the end of each of the last three years ended December 31 is as follows:

	2012					2011
				weighted					weighted
	# of			average		# of			average
	stock options			exercise price		stock options			exercise price
Outstanding at beginning of the year		2,473,100		$	1.02		2,134,804		$	0.62
Granted		1,900,000		$	0.89		1,054,800		$	1.58
Forfeited		(390,268	)	$	1.72		(398,300	)	$	0.65
Expired unexercised		(877,232	)	$	1.05		(288,204	)	$	0.63
Cancelled		(140,000	)	$	0.63		-			-
Exercised		(75,000	)	$	0.63		(30,000	)	$	0.63
Options outstanding as at end of the year		2,890,600		$	0.86		2,473,100		$	1.02
Options exercisable as at end of the year		970,600		$	0.86		1,538,100		$	0.68

	2010
				weighted
	# of			average
	stock options			exercise price
Outstanding at beginning of the year		2,757,204		$	1.76
Granted		248,900		$	0.62
Forfeited		(431,300	)	$	1.48
Expired unexercised		(340,000	)	$	0.66
Cancelled		(2,113,204	)	$	1.94
Granted on re-pricing in 2010		2,113,204		$	0.63
Exercised		(100,000	)	$	0.55
Options outstanding as at end of the year		2,134,804		$	0.62
Options exercisable as at end of the year		1,737,637		$	0.61

Stock based compensation expense

Stock based compensation expense is calculated based on the fair value attributed to grants of stock options using the Black-Scholes valuation model and utilizing the following weighted average assumptions:

	2012			2011			2010
Stock based compensation expense for the period	$	265,000		$	344,800		$	577,815
Expected dividends paid per common share	Nil			Nil			Nil
Expected life in years		4.0			2.8			1.8
Expected volatility in the price of common shares		79	%		111	%		92	%
Risk free interest rate		1.0	%		1.5	%		1.5	%
Weighted average fair market value per share at grant date	$	0.52		$	0.57		$	0.27
Intrinsic (or "in-the-money") value per share of options exercised	$	0.13		$	0.22		$	0.53