10. STOCK OPTIONS (Tables)

3 Months Ended

Mar. 31, 2013

Stock Options Tables

Stock option activity

The following table summarizes the Company’s stock option activity for the year ended December 31, 2012 and the three month period ended March 31, 2013:

	Number of shares			Exercise price per share		Weighted average exercise price
Balance, December 31, 2011		1,193,700		$	1.50 - 3.60	$	2.04
Granted		94,000		$	2.00 – 2.22	$	2.14
Cancelled or expired		(288,700	)	$	1.50 – 3.60	$	2.35
Balance, December 31, 2012		999,000		$	1.21 – 2.45	$	1.96
Granted		183,000		$	1.21	$	1.21
Cancelled or expired		(68,000	)	$	3.60	$	3.60
Balance, March 31, 2013		1,114,000		$	1.21 – 2.45	$	1.74
Exercisable, March 31, 2013		714,000		$	1.50 – 2.45	$	1.92

Fair value of each option grant

The fair value of each option grant is calculated using the following weighted average assumptions:

	2013			2012
Expected life – years		5.0			5.0
Interest rate		0.36	%		0.36 – 0.38	%
Volatility		51.0	%		51 – 58	%
Dividend yield		--	%		--	%
Weighted average fair value of options granted	$	0.38		$	0.38