Stock Options

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Stock Options

14. Stock Options

The Company has 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 and the exercise price for all options are issued for not less than fair market value at the date of the grant.

The following table summarizes the Company’s stock option activities for the year ended December 31, 2019 and the three-month period ended March 31, 2020:

	Number of shares			Exercise price per share		Weighted average exercise price
Balance, December 31, 2018		660,000		$	0.75 – 1.75	$	1.35
Granted		347,000		$	2.44 – 4.13	$	2.99
Cancelled or expired		(56,112	)	$	0.75 – 3.46	$	1.41
Exercised		(315,888	)	$	0.75 – 1.70	$	1.15
Balance, December 31, 2019		635,000		$	0.75 – 4.13	$	2.31
Cancelled or expired		(10,000	)	$	2.44 – 3.46	$	2.85
Exercised		(25,000	)	$	0.75 – 1.05	$	0.99
Balance, March 31, 2020		600,000		$	0.75 – 4.13	$	2.36
Exercisable, March 31, 2020		337,000		$	0.75 – 4.13	$	2.52

The weighted average remaining contractual life of options outstanding is 3.8 years.

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

	2019
Expected life – years		3.0
Interest rate		1.69 – 1.93	%
Volatility		43.89 – 57.24	%
Weighted average fair value of options granted	$	0.7892 – 1.6399

The Company did not grant any options during the three months ended March 31, 2020 or 2019. Options granted in previous quarters resulted in expenses in the amount of $11,272 for consultants (2019 - $5,747) and $18,310 for employees (2019 - $nil) during the quarter ended March 31, 2020. There were 15,000 employee and 10,000 consultant stock options exercised during the three months ended March 31, 2020 (2019 – 12,000 employee and nil consultant stock options).

As of March 31, 2020, there was approximately $113,721 of compensation expense related to non-vested awards. This expense is expected to be recognized over a weighted average period of 1.3 years.