Stock Options

6 Months Ended

Jun. 30, 2017

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

Stock Options

On May 26, 2017, the Company issued 700,000 options to a consultant to purchase 700,000 shares of common stock of the Company at $0.001 per share. See Note 10(f). The options shall vest as follows: 450,000 options vest immediately upon issuance on May 26, 2017 and expire on July 7, 2017, 100,000 options shall vest on July 8, 2017 and expire on August 4, 2017, 100,000 options shall vest on August 5, 2017 and expire on September 1, 2017, 50,000 options shall vest on September 2, 2017 and expire on September 29, 2017, and 25,000 options shall vest on September 30, 2017 and expire on October 27, 2017.

The following table summarizes information about the options for the three months ended June 30, 2017:

	Number of options	Weighted average exercise price
		$
Options outstanding – March 31, 2017	–	–
Granted	700,000	0.001
Exercised	(225,000)	0.001
Options outstanding – June 30, 2017	475,000	0.001
Options exercisable – June 30, 2017	200,000	0.001

The following table summarizes information about stock options outstanding and exercisable at June 30, 2017:

Exercise Price	Options	Options	Weighted average remaining contracted life
$	outstanding	Exercisable	(years)
0.001	200,000*	200,000	0.02
0.001	100,000*	–	0.10
0.001	100,000	–	0.17
0.001	50,000	–	0.25
0.001	25,000	–	0.33

* Exercised subsequently (Note 11).

Share-based compensation expense is determined using the Black-Scholes Option Pricing Model. During the six months ended June 30, 2017, the Company recognized share-based compensation expense of $361,829 in additional paid-in capital. The weighted average fair value of the options granted during the six months ended June 30, 2017, was $0.68. Weighted average assumptions used in calculating the fair value of stock-based compensation expense are as follows:

	For the Six Months Ended June 30, 2017
Risk-free rate	0.75% - 1.03%
Dividend yield	0%
Volatility factor of the expected market price of the Company's common shares	187% - 431%
Weighted average expected life of the options (years)	0.10           – 0.42