10. STOCK OPTIONS (Tables)

6 Months Ended

Jun. 30, 2014

Stock Options Tables

Stock option activity

	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, June 30, 2014		1,263,000	$	1.21 – 2.45	$	1.56
Exercisable, June  30, 2014		921,000	$	1.21 – 2.45	$	1.69

Fair value of each option grant

	2014			2013
Expected life – years		5.0			5.0
Interest rate		0.78	%		0.36 – 0.63	%
Volatility		58	%		51 – 63	%
Dividend yield		—	%		—	%
Weighted average fair value of options granted	$	0.36		$	0.36 – 0.38