11.	Stock option plans:

The Company’s 2014 Equity Incentive Plan (the “2014 Plan”) permits the grant of share-based compensation awards to directors, officers, employees and consultants of the Company. The Company’s pre-existing stock option plan (the “Amended and Restated Stock Option Plan”) was limited to the granting of stock options as equity incentive awards whereas the 2014 Plan also allows for the issuance of restricted shares, restricted share units, share appreciation rights and performance shares. No further options will be granted under the Company’s Amended and Restated Stock Option Plan.

Under the 2014 Plan, options granted generally vest on a graduated basis over a four-year period or less. The exercise price of the options is determined by the Board but must at least be equal to the fair market value of the common shares on the date of grant. Options may be exercised over a maximum term of ten years. As of December 31, 2014, a total of 411,522 common shares had been reserved for issuance under the 2014 Plan. The number of common shares available for issuance under the 2014 Plan includes an annual increase beginning in 2015 by an amount which will be determined at the discretion of the Board.

The Amended and Restated Stock Option Plan provided for the grant of options for the purchase of common shares to directors, officers, employees and service providers prior to the Company’s IPO. The options granted under the Amended and Restated Stock Option Plan vested on a graduated basis over a four-year period or less and each option’s maximum term was ten years. The Amended and Restated Stock Option Plan will continue to govern the options granted thereunder.

Summary of stock option activity is as follows:

	Number of Options			Weighted Average Exercise Price				Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
				CAD $		U.S. $		In Years		U.S. $
Outstanding, January 1, 2012		1,059,510			4.27		4.22		6.07
Granted		150,102			3.64		3.64
Forfeited and expired		(81,175	)		5.24		5.24
Outstanding, December 31, 2012		1,128,437			4.13		4.17		5.81
Granted		292,418			3.74		3.64
Exercised		(8,329	)		6.07		5.88				37
Forfeited and expired		(79,427	)		4.90		4.76
Outstanding, December 31, 2013		1,333,099			3.98		3.88		5.80		8,300
Granted		205,170			10.84		9.35
Exercised		(2,417	)		6.07		5.23				23
Forfeited and expired		(51,634	)		5.96		5.14
Outstanding, December 31, 2014		1,484,218			4.88		4.20		5.70		15,551
Exercisable as of December 31, 2014		1,116,564			3.99		3.44		4.73		12,554

The following table summarizes the stock options outstanding and exercisable at December 31, 2014:

	Options Outstanding								Options exercisable
Exercise Prices	Number of Options		Weighted Average Remaining Option Life		Weighted Average Exercise Price				Number of Options		Weighted Average Exercise Price
			(years)		CAD $		U.S. $				CAD $		U.S. $
CAD $2.67		252,353		8.04		2.67		2.30		133,053		2.67		2.30
CAD $3.74		878,149		4.74		3.74		3.22		851,569		3.74		3.22
CAD$ 6.07		107,013		0.19		6.07		5.23		107,013		6.07		5.23
CAD$ 9.76		42,592		8.59		9.76		8.41		15,085		9.76		8.41
CAD$ 10.78		156,172		9.04		10.78		9.29		7,525		10.78		9.29
CAD$ 11.22		6,273		9.59		11.22		9.67		—		—		—
USD$ 9.00		36,008		9.85		10.44		9.00		—		—		—
USD$ 12.65		5,658		9.90		14.68		12.65		2,319		14.68		12.65
		1,484,218		5.70		4.88		4.20		1,116,564		3.99		3.44

A summary of the Company’s non-vested stock option activity and related information for the year ended December 31, 2014 is as follows:

	Number of Options			Weighted Average Grant Date Fair Value
				CAD $		U.S. $
Non-vested, January 1, 2014		388,230			3.79		3.54
Granted		205,170			7.08		6.10
Vested		(223,589	)		3.76		3.24
Forfeited and cancelled		(2,157	)		3.88		3.35
Non-vested, December 31, 2014		367,654			5.64		4.86

The fair value of each option issued to employees and non-employees is estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions:

	Years ended December 31
	2014			2013			2012
Average risk-free interest rate		1.94	%		1.03	%		1.14	%
Average expected term (in years)		6.13			6.20			6.20
Expected volatility		73	%		70	%		70	%
Expected dividend yield		0.00	%		0.00	%		0.00	%
Expected forfeiture rate		0.00	%		0.00	%		0.00	%

The weighted-average fair value of options granted during the year ended December 31, 2014 was, $6.10 (2013 - $4.13, 2012 - $2.28) per option.

As of December 31, 2014, the unrecognized stock-based compensation cost related to the non-vested stock options was $1,580 (2013 - $1,155, 2012 - $633), which is expected to be recognized over a weighted-average period of 2.5 years (2013 - 2.5 years, 2012 - 2.2 years).

The aggregate fair value of options vested during the year ended December 31, 2014 was $722 (2013 - $374, 2012 - $565).

The Company uses the “simplified method” to determine the expected term of options. Under this method, the expected term represents the average of the vesting period and the contractual term.

The expected volatility of share options was estimated based on a historical volatility analysis of peers that were similar to the Company with respect to industry, stage of life cycle, size, and financial leverage. The risk-free interest rate of the options is based on the U.S. Treasury yield curve in effect at the date of grant for a term similar to the expected term of the option.

Stock-based compensation expense is classified in the statements of operations as follows:

	Years ended December 31,
	2014		2013		2012
Research and development	$	194	$	147	$	112
General and administrative		566		428		294
	$	760	$	575	$	406