10. STOCK OPTIONS (Tables)

9 Months Ended

Sep. 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 nine month period ended September 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		94,000		$	2.00 - 2.22	$	2.21
Cancelled or expired		(257,700	)	$	1.50 – $3.60	$	2.36
Balance, September 30, 2012		1,030,000		$	1.50 – 3.60	$	1.97
Exercisable, September 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		0.38 - 0.91	%		1.8	%
Volatility		59 - 60	%		62	%
Dividend yield		—	%		—	%
Weighted average fair value of options granted	$	0.38 - 0.90		$	0.39-0.50