Stock Options

9 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Options

11. Stock Options.

The Company has a stock option plan (“Plan”), the purpose of which is to provide additional incentives to key employees, officers, directors and consultants of the Company and its subsidiaries in order to help attract and retain the best available personnel for positions of responsibility and otherwise promote the success of its business. It is intended that options issued under this Plan constitute non-qualified stock options. The general terms of awards under the option plan are that 100% of the options granted will vest the year following the grant. The maximum term of options granted is 5 years.

16

The following table summarizes the Company’s stock option activity for the year ended December 31, 2017 and the nine month period ended September 30, 2018:

	Number of shares			Exercise price per share		Weighted average exercise price
Balance, December 31, 2016		813,000		$	0.75 - $2.22	$	1.19
Granted		154,000		$	1.70	$	1.70
Cancelled or expired		(114,000	)	$	1.00 – 2.22	$	1.75
Exercised		(140,000	)	$	0.75 – 1.21	$	1.11
Balance, December 31, 2017		713,000		$	0.75 – 1.70	$	1.21
Granted		5,000		$	1.48	$	1.48
Cancelled or expired		(3,000	)	$	1.70	$	1.70
Exercised		(33,000	)	$	1.00 - 1.42	$	1.10
Balance, September 30, 2018		682,000		$	0.75 – 1.70	$	1.22
Exercisable, September 30, 2018		526,000		$	0.75 – 1.42	$	1.08

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

	2018			2017
Expected life – years		3.0			3.0
Interest rate		2.69	%		2.23	%
Volatility		54.00	%		73.09	%
Dividend yield		—	%		—	%
Weighted average fair value of options granted	$	0.6656		$	0.8344

The Company granted 5,000 stock options to employees during the nine months ended September 30, 2018 (2017 – nil). This resulted in $2,219 in expenses. Vesting of options granted in previous years resulted in expenses in the amount of $55,070 for employees (2017 - $51,775) during the nine months ended September 30, 2018 and $20,026 for consultants (2017 - $16,975). There were 23,000 employee and 10,000 consultant stock options exercised during the during the nine months ended September 30, 2018 (2017 – 28,000 employee stock options).

As of September 30, 2018, there was approximately $26,308 of compensation expense related to non-vested awards. This expense is expected to be recognized over a weighted average period of 0.25 years.

The aggregate intrinsic value of vested options outstanding at September 30, 2018 is $205,610.