12. STOCK OPTIONS (Tables)

12 Months Ended

Dec. 31, 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		227,000		$	1.00 - 1.21	$	1.01
Cancelled or expired		(265,000	)	$	1.00 – 2.25	$	1.91
Balance, December 31, 2014		1,126,000		$	1.00 – 2.45	$	1.54
Exercisable, December 31, 2014		1,073,000		$	1.00 – 2.45	$	1.55

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                                                                  3.0                                                     3.0

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