Stock Options

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Stock Options

16. 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, 2020 and 2019:

	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 – 1.75	$	1.35
Granted		172,000		$	2.44	$	2.44
Cancelled or expired		(13,000	)		$2.44 – 3.46	$	2.75
Exercised		(45,000	)		$0.75 – 1.05	$	0.88
Balance, December 31, 2020		749,000			$0.75 – 4.13	$	2.42
Exercisable, December 31, 2020		502,000			$0.75 – 4.13	$	2.51

The weighted-average remaining contractual life of outstanding options is 3.40 years.

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

	2020			2019
Expected life – years		3.0			3.0
Interest rate		0.37	%		1.69 – 1.93	%
Volatility		70.14	%		43.89 – 57.24	%
Weighted average fair value of options granted	$	1.12		$	0.7892 – 1.6399

During the year ended December 31, 2020, the Company granted 45,000 (2019 – 95,000) stock options to consultants and has applied ASC 718 using the Black-Scholes option-pricing model, which resulted in expenses of $10,080 (2019 - $67,338). Options granted in other years resulted in additional expenses of $43,905 (2019 – $21,411). During the year ended December 31, 2020, employees were granted 127,000 (2019 – 252,000) stock options, which resulted in expenses of $28,316 (2019 – $157,695). Options granted in other years resulted in additional expenses in the amount of $73,711 for employees during the year ended December 31, 2020 (2019 - $nil). There were 35,000 employee and 10,000 consultant stock options exercised during the year ended December 31, 2020 (2019 – 220,000 employee; 95,888 consultant).

As of December 31, 2020, there was approximately $174,061 of compensation expense related to non-vested awards. This expense is expected to be recognized over a weighted average period of 1.25 years.

The aggregate intrinsic value of vested options outstanding at December 31, 2020 is $nil (2019 – $67,720).