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SHARE-BASED PAYMENTS | 9 Months Ended
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Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Share-Based Payments | SHARE-BASED PAYMENTS The Company, under the 2015 Omnibus Equity Incentive Compensation Plan (the “Compensation Plan”), maintains a stock incentive plan for directors, executives, eligible employees and consultants. Stock incentive awards include employee stock options and restricted stock units (“RSUs”). The Company issues new shares of common stock to satisfy exercises and vesting under all of its stock incentive awards. At September 30, 2016, a total of 6,620,515 Common Shares were authorized for stock incentive plan awards. Employee Stock Options The Company, under the Compensation Plan may grant options to directors, executives, employees and consultants to purchase Common Shares of the Company. The exercise price of the options is set as the higher of the Company’s closing share price on the day before the grant date or the five-day volume weighted average price. Stock options granted under the Compensation Plan generally vest over a period of two years or more and are generally exercisable over a period of five years from the grant date not to exceed 10 years. The value of each option award is estimated at the grant date using the Black-Scholes Option Valuation Model. There were 0.45 million options granted in the nine months ended September 30, 2016 (nine months ended September 30, 2015 – 2.17 million). At September 30, 2016, there were 2.18 million options outstanding with 1.94 million options exercisable, at a weighted average exercise price of $5.81 and $6.21, with a weighted average remaining contractual life of 3.72 years. The aggregate intrinsic value of the fully vested shares was $nil. The fair value of the options granted under the Compensation Plan for the nine months ended September 30, 2016 was estimated at the date of grant, using the Black-Scholes Option Valuation Model, with the following weighted-average assumptions:
Risk-free interest rate | 1.03% - 1.43%
Expected life | 5.0 years
Expected volatility | 64.7% -74.8%*
Expected dividend yield | —%
Weighted-average expected life of option | 5.00
Weighted-average grant date fair value | $1.22 - $1.23
* | Expected volatility is measured based on the Company’s historical share price volatility over a period equivalent to the expected life of the options.
The summary of the Company’s stock options at September 30, 2016 and December 31, 2015, and the changes for the fiscal periods ending on those dates is presented below:
| Nine Months ended |  | Year ended
| September 30, 2016 |  | December 31, 2015
| Range of Exercise Prices $ |  | Weighted Average Exercise Price $ |  | Number of Options |  | Range of Exercise Prices $ |  | Weighted Average Exercise Price $ |  | Number of Options
Balance, beginning of period | 2.55 - 32.10 |  |  | 6.54 |  |  | 2,122,897 |  |  | 6.55 - 38.12 |  | 10.05 |  |  | 905,413 |
Transactions during the period: |  |  |  |  |  |  |  |  |  |  |
Granted | 2.12 - 2.22 |  |  | 2.13 |  |  | 449,540 |  |  | 2.55 - 18.55 |  | 6.02 |  |  | 2,176,330 |
Exercised | 2.12 |  |  | 2.12 |  |  | (8,369 | ) |  | 2.55 - 4.48 |  | 3.78 |  |  | (48,802 | )
Forfeited | 2.12 - 19.44 |  |  | 5.95 |  |  | (272,528 | ) |  | 4.44 - 29.71 |  | 7.29 |  |  | (574,486 | )
Expired | 2.95 - 32.78 |  |  | 8.02 |  |  | (106,562 | ) |  | 7.47 - 32.10 |  | 7.42 |  |  | (335,558 | )
Balance, end of period | 2.12 - 15.61 |  |  | 5.81 |  |  | 2,184,978 |  |  | 2.55 - 32.10 |  | 6.54 |  |  | 2,122,897 |
Restricted Stock Units The Company grants RSUs to executives and eligible employees. Awards are determined as a target percentage of base salary and vest over periods of three years. Prior to vesting, holders of restricted stock units do not have the right to vote the underlying shares. The restricted stock units are subject to forfeiture risk and other restrictions. Upon vesting, the employee is entitled to receive one share of the Company’s common stock for each restricted stock unit for no additional payment. During the nine months ended September 30, 2016, the Company’s Board of Directors approved the issuance of 1.21 million RSUs under the Compensation Plan (2015 – 0.27 million). A summary of the status and activity of non-vested stock options and RSUs at September 30, 2016 is as follows:
| Stock-option |  | RSU
| Number of shares |  | Weighted Average Grant- Date Fair Value |  | Number of shares |  | Weighted Average Grant- Date Fair Value
Non-vested December 31, 2015 | 177,698 |  |  | $ | 3.44 |  |  | 272,866 |  |  | $ | 4.03 |
Granted | 449,540 |  |  | 1.29 |  |  | 1,205,336 |  |  | 2.14 |
Vested | (357,634 | ) |  | 2.15 |  |  | (138,608 | ) |  | 4.65 |
Forfeited | (28,045 | ) |  | 2.08 |  |  | (9,125 | ) |  | 5.39 |
Non-vested September 30, 2016 | 241,559 |  |  | $ | 1.50 |  |  | 1,330,469 |  |  | $ | 2.37 |
The total intrinsic value and fair value of RSUs that vested and were settled for equity in the three months and nine months ended September 30, 2016 was $nil (2015 – $nil) and $0.30 million (2015 – $nil), respectively. At September 30, 2016, there was $0.14 million and $1.36 million of unrecognized compensation costs related to the unvested stock options and RSU awards, respectively. This cost is expected to be recognized over a period of approximately two years. In the nine months ended September 30, 2016 the Company issued 8,369 shares upon exercise of stock options at an average exercise price of $2.12 for proceeds of less than $0.02 million. These options had an intrinsic value of less than $0.01 million. The share-based compensation recorded during the three and nine months ended September 30, 2016 and 2015 is as follows:
| Three months ended |  | Nine months ended
| September 30, |  | September 30,
| 2016 |  | 2015 |  | 2016 |  | 2015
Share-based compensation | $ | 576 |  |  | $ | 22 |  |  | $ | 1,688 |  |  | $ | 810 |
Replacement of options from business combinations and asset acquisitions | — |  |  | — |  |  | — |  |  | 3,683 |
Value of stock options granted | $ | 576 |  |  | $ | 22 |  |  | $ | 1,688 |  |  | $ | 4,493 |

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51659978&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
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