10. STOCK OPTIONS (Tables)

3 Months Ended

Mar. 31, 2014

Stock Options Tables

Stock option activity

The following table summarizes the Company’s stock option activity for the year ended December 31, 2013 and the three month period ended March 31, 2014:

	Number of shares	Exercise price per share	Weighted average exercise price
Balance, December 31, 2012	999,000	$1.50 – 2.45	$1.96
Granted	233,000	$1.21 – 1.50	$1.27
Cancelled or expired	(68,000)	$3.60	$3.60
Balance, December 31, 2013	1,164,000	$1.21 – 2.45	$1.73
Granted	212,000	$1.00	$1.00
Cancelled or expired	(113,000)	$2.25	$2.25
Balance, March 31, 2014	1,263,000	$1.21 – 2.45	$1.56
Exercisable, March 31, 2014	921,000	$1.21 – 2.45	$1.69

Fair value of each option grant

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

	2014			2013
Expected life – years		5.0			5.0
Interest rate		0.78	%		0.36 – 0.63	%
Volatility		58.0	%		51 – 63	%
Dividend yield		--	%		--	%
Weighted average fair value of options granted	$	0.36		$	0.36 – $0.38