10. STOCK OPTIONS (Tables)

9 Months Ended

Sep. 30, 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 nine month period ended September 30, 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		227,000		$	1.00 – 1.21	$	1.01
Cancelled or expired		(113,000	)	$	2.25	$	2.25
Balance, September 30, 2014		1,278,000		$	1.00 – 2.45	$	1.56
Exercisable, September 30, 2014		936,000		$	1.21 – 2.45	$	1.68

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