10. STOCK OPTIONS (Tables)

9 Months Ended

Sep. 30, 2013

Stock Options Tables

Stock option activity

  The following table summarizes the Company’s stock option activity for the two years ended December 31, 2012 and the nine month period ended September 30, 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		233,000		$	1.21- 1.50	$	1.27
Cancelled or expired		(68,000	)	$	3.60	$	3.60
Balance, September 30, 2013		1,164,000		$	1.21 – 2.45	$	1.73
Exercisable, Setpember 30, 2013		738,000		$	1.50 – 2.45	$	1.91

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		0.38 - 0.63	%		0.36 – 0.38	%
Volatility		51 – 63	%		51-58	%
Dividend yield		—	%		—	%
Weighted average fair value of options granted	$	0.36 - 0.38		$	0.38