Stock Options

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Stock Options

17. 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 years ended December 31, 2019 and 2018:

	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
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
Exercisable, December 31, 2019		372,000			$0.75 – 4.13	$	2.39

The weighted-average remaining contractual life of outstanding options is 3.67 years.

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

	2019			2018
Expected life – years		3.0			3.0
Interest rate		1.69 – 1.93	%		2.8 – 2.96	%
Volatility		43.89 – 57.24	%		47.77 – 51.85	%
Weighted average fair value of options granted	$	0.7892 – 1.6399		$	0.4759 – 0.6313

During the year ended December 31, 2019, the Company granted 95,000 (2018 – 100,000) stock options to consultants and has applied ASC 718 using the Black-Scholes option-pricing model, which resulted in additional expenses of $67,338 (2018 - $5,747). Options granted in other years resulted in additional expenses of $21,411 (2018 – $26,701). During the year ended December 31, 2019, employees were granted 252 ,000 (2018 – 10,000) stock options, which resulted in additional expenses of $157,695 (2018 – $5,150). Options granted in other years resulted in additional expenses in the amount of $nil for employees during the year ended December 31, 2019 (2018 - $73,594). There were 220,000 employee and 95,888 consultant stock options exercised during the year ended December 31, 2019 (2018 – 60,000 employee; 41,666 consultant).

As of December 31, 2019, there was approximately $145,196 of compensation expense related to non-vested awards. This expense is expected to be recognized over a weighted average period of 1.5 years.

The aggregate intrinsic value of vested options outstanding at December 31, 2019 is $67,720 (2018 – $43,190).