STOCK OPTIONS (Tables)

6 Months Ended

Jun. 30, 2012

Stock Options Tables

Stock option activity

The following table summarizes the Company’s stock option activity for the year ended December 31, 2011 and the six month period ended June 30, 2012:

	Number of shares			Exercise price per share		Weighted average exercise price
Balance, December 31, 2010		1,836,700		$	1.50 – 3.60	$	3.03
Granted		663,000		$	1.50 – 2.45	$	1.63
Cancelled or expired		(1,306,000	)	$	1.90 – 3.60	$	3.23
Balance, December 31, 2011		1,193,700		$	1.50 – 3.60	$	2.04
Granted		89,000		$	2.22	$	2.22
Cancelled or expired		(257,700	)	$	1.50 – $3.60	$	2.36
Balance, June 30, 2012		1,025,000		$	1.50 – 3.60	$	1.97
Exercisable, June 30, 2012		632,000		$	1.50 – 3.60	$	2.11

Fair value of each option grant

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

	2012			2011
Expected life – years		5.0			5.0
Interest rate		0.91	%		1.8	%
Volatility		60	%		62	%
Dividend yield		—	%		—	%
Weighted average fair value of options granted	$	0.90		$	0.39-0.50