Note 9 - Stockholders' Equity

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

9.

     Stockholders’ equity:

The holders of common stock are entitled to

one

vote for each share held. There are no restrictions that limit the Company’s ability to pay dividends on its common stock. The Company has not declared any dividends since incorporation. The Company’s common stock has no par value per common stock.

(a)     Common stock issuances:

During the year ended

December

31,

2016,

the Company had a private placement with

two

closings for a total of

3,337,934

common shares at

CAD$0.60

per share, which raised proceeds of

$1,562,479

(CAD$2,002,760).

The Company incurred issuance costs of

$33,876.

On

October

11,

2016,

the Company closed its rights issued raising

$80,949

(CAD$107,168)

from the issuance of

172,681

common shares at an average price of

CAD$0.626

per share. The Company incurred issuance costs of

$36,148.

During the year ended

December

31,

2015,

the holders of

515,000

stock options exercised their options for

515,000

shares for

$77,250

at an exercise price of

$0.15

per share.

(b)     Stock option plans:

(i)

2015

stock option plan

In the year ended

December

31,

2015,

the shareholders approved the

2015

stock option plan and the

1999,

2001

and the

2005

plans were discontinued. The

2015

stock option plan is intended to provide incentive to employees, directors, advisors and consultants of the Company to encourage proprietary interest in the Company, to encourage such employees to remain in the employ of the Company or such directors, advisors and consultants to remain in the service of the Company, and to attract new employees, directors, advisors and consultants with outstanding qualifications. The maximum number of shares issuable under the Plan shall not exceed

10%

of the number of Shares of the Company issued and outstanding as of each Award Date unless shareholder approval is obtained in advance in accordance unless shareholder approval is obtained in advance in accordance. The Board of Directors determines the terms of the options granted, including the number of options granted, the exercise price and their vesting schedule. The maximum term possible is

10

years. Under the

2015

plan we have reserved

10%

of the number of Shares of the Company

issued and outstanding as of each Award Date.

During the year ended

December

31,

2016,

the Company granted

1,010,000

options with an exercise price of

CAD$0.54

(approximately

$0.42)

per share, expiring

December

20,

2021.

As at

December

31,

2016,

there were a total of

1,010,000

stock options

(2015

-

nil

) outstanding. During the year ended

December

31,

2016,

there were

nil

options exercised

(2015

-

nil

) and

nil

options expired unexercised

(2015

–

nil

).

(ii)

2005

stock option plan:

During the year ended

December

31,

2005,

the Company's Board of Directors adopted the

2005

stock option plan, which was approved by the shareholders at the Annual General meeting. The Company has reserved a total of

2,000,000

common shares for issuance under the

2005

stock option plan. The Plan was intended to provide incentive to employees, directors, advisors and consultants of the Company to encourage proprietary interest in the Company, to encourage such employees to remain in the employ of the Company or such directors, advisors and consultants to remain in the service of the Company, and to attract new employees, directors, advisors and consultants with outstanding qualifications. The Board of Directors determines the terms of the options granted, including the number of options granted, the exercise price and their vesting schedule. The plan was discontinued in the year ended

December

31,

2015.

As at

December

31,

2016,

there were a total of

nil

(2015

-

nil

) stock options outstanding under the

2005

Stock Option Plan. During the year ended

December

31,

2016,

nil

stock options were exercised. During the year ended

December

31,

2015,

515,000

stock options were exercised at exercise prices of

$0.15

per share raising

$77,250.

During the year ended

December

31,

2016,

nil

(2015

-

5,000)

stock options expired unexercised.

A summary of stock option activity for the stock option plans for the years ended

December

31,

2016

and

2015

are as follows:

	Number of options			Weighted average exercise price
Outstanding and exercisable, December 31, 2014		520,000		$	0.15
Exercised		(515,000	)		0.15
Expired		(5,000	)		0.15
Outstanding, December 31, 2015		-			-
Granted		1,010,000			0.42
Exercised		-			-
Outstanding and exercisable, December 31, 2016		1,010,000		$	0.42

The aggregate intrinsic value for options as of

December

31,

2016

was $

nil

(2015

- $

nil

). The Company recorded stock -based compensation of

$257,293

on the

1,010,000

options granted

(2015

–

nil

) with a weighted average fair value per option of

$0.42

(2015

- $

nil

).

(c)     Escrow shares

In conjunction with the Listing Application for the TSX-V listing, the Company’s major shareholders were required to place

33,909,104

common shares of the Company in escrow under the terms of a TSX-V Tier

1

issuer. The escrow shares will be released in

thirty

three

percent

(33%)

tranches on the dates that are

six,

twelve

and

eighteen

months after the listing date. The Escrow Shares will be released as follows:

	Number of shares
Balance December 31, 2014		33,909,104
Released in 2015		(11,303,035	)
Balance December 31, 2015		22,606,069
Release in 2016		(22,606,069	)
Balance December 31, 2016		-