Stock-based Compensation

3 Months Ended

Mar. 31, 2017

Equity [Abstract]

Stock-based Compensation

7. Stock-based Compensation

Stock Option Plan

The Company’s board of directors approved a stock option plan. Under the plan directors, employees and consultants may be granted options to purchase common stock of the Company at a price of not less than 100% of the fair market value of the stock. The total number of options granted must not exceed 15% of the outstanding common stock of the Company. The plan expires on July 1, 2017.

No options were granted and no compensation expense was recorded during the periods ended March 31, 2017 and 2016.

The fair value of each option grant was estimated on the date of the grant using the Black-Scholes option valuation model. The Black-Scholes option valuation model requires the input of highly subjective assumptions including the expected price volatility. Changes in the subjective input assumptions can materially affect the fair value estimate and therefore the Black-Scholes model does not necessarily provide a reliable single measure of the fair value of the Company’s share purchase options.

As at March 31, 2017, the Company had share purchase options outstanding as follows:

Expiry Date	Exercise Price	Remaining Contractual Life	Number of Options
October 15, 2017	$0.10	0.54 years	1,200,000
January 16, 2018	$0.12	0.80 years	2,940,000
Total options outstanding		0.72 years	4,140,000

At March 31, 2017, all the outstanding share purchase options were exercisable.