NOTE 8.

EQUITY COMPENSATION PLANS:

The following table sets forth information regarding our equity compensation plans as of December 31, 2018:

	Options					RSUs			Shares of Stock
	No. of Options			Weighted Average Price		No of RSUs			No of Shares		Weighted Average Price		Total
Equity compensation plan total shares										-		-		2,000,000
Granted		150,000			2.67		83,189			-		-		233,189
Cancelled/expired		-			-		-			-		-		-
Balance outstanding as at December 31, 2015		150,000			2.67		83,189			-		-		-
Balance available under the plan as at December 31, 2015		-			-		-			-		-		1,766,811
Granted		975,700			6.79		507,680			-		-		1,483,380
Cancelled/expired		(160,000	)		5.41		-			-		-		160,000
Balance outstanding as at December 31, 2016		965,700			6.38		590,869			-		-
Balance available under the plan as at December 31, 2016		-			-		-			-		-		443,431
Granted		285,000			5.62		76,121			198,600		2.58		559,721
Cancelled/Expired		(90,400	)		6.54		(190,827	)		-		-		281,227
Balance outstanding as at December 31, 2017		1,160,300			6.10		476,163			198,600		2.58
Balance available under the plan as at December 31, 2017		-			-		-			-		-		164,937
New pool added														2,000,000
Granted		1,862,000			1.47		141,872							2,003,872
Cancelled/expired		(851,800	)		6		(39,987	)						891,787
Balance available under the plan as at December 31, 2018														1,052,852

The company issued and valued options using the Black-Scholes model for all 2018 issuances with the following significant assumptions –

Expected term of 3 years.

Expected volatility of 111.8%.

Risk-free interest rate of 2.37%.

Expected dividend yield of 0%.

The company issued and valued options using the Black-Scholes model for all 2017 issuances with the following significant assumptions –

Expected term of 3.25 years.

Expected volatility of 111.8%.

Risk-free interest rate of 0.57%.

Expected dividend yield of 0%.