Stock Options

3 Months Ended

Mar. 31, 2019

Share-based Payment Arrangement [Abstract]

Stock Options

14. Stock Options

The Company adopted a stock option plan (“Plan”). The purpose of this Plan 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 the Company’s 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.

The Company may issue stock options and stock bonuses for shares of its common stock to provide incentives to directors, key employees and other persons who contribute to the success of the Company. The exercise price of all incentive options are issued for not less than fair market value at the date of grant.

The following table summarizes the Company’s stock option activity for the year ended December 31, 2017 and the three-month period ended March 31, 2019:

	Number of shares			Exercise price per share		Weighted average exercise price
Balance, December 31, 2017		713,000		$	0.75 – 1.70	$	1.21
Granted		110,000		$	1.48 – 1.75	$	1.74
Cancelled or expired		(61,334	)	$	1.00 – 1.70	$	1.09
Exercised		(101,666	)	$	0.75 – 1.42	$	1.01
Balance, December 31, 2018		660,000		$	0.75 – 1.75	$	1.35
Cancelled or expired		(32,000	)	$	0.75 – 1.70	$	1.38
Exercised		(12,000	)	$	0.75 – 1.05	$	1.10
Balance, March 31, 2019		616,000		$	0.75 – 1.75	$	1.35
Exercisable, March 31, 2019		516,000		$	0.75 – 1.70	$	1.27

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

	2018
Expected life – years		3.0
Interest rate		2.8 – 2.96	%
Volatility		47.77 – 51.85	%
Dividend yield		—	%
Weighted average fair value of options granted	$	0.4759 – 0.6313

The Company did not grant any options during the three months ended March 31, 2019 or 2018. Options granted in previous quarters resulted in expenses in the amount of $5,747 for consultants (2018 - $6,675) and nil for employees (2018 - $19,025) during the quarter ended March 31, 2019. There were 12,000 employee stock options exercised during the during the three months ended March 31, 2019 (2018 – 23,000 employee stock options and 10,000 consultant stock options).

As of March 31, 2019, there was approximately $51,635 of compensation expense related to non-vested awards. This expense is expected to be recognized over a weighted average period of 4.5 years.