XML 65 R24.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Stock Options | 12 Months Ended
--- | ---
Dec. 31, 2013
Stock Options |
Stock Options | 16. Stock Options (a) Stock Option Plan The board of directors approved a stock option plan (the “2003 Plan”) effective November 1, 2003, pursuant to which directors, officers, employees and consultants of the Company are eligible to receive grants of options for the Company’s common stock. The 2003 Plan expires on November 1, 2023. Up to 10% of the Company’s then outstanding common stocks were reserved for issuance under the 2003 Plan. As of December 31, 2012, 42,800 shares of common stock under the 2003 Plan remain available for issuance. Each stock option entitles its holder to purchase one share of common stock of the Company. Options may be granted for a term not exceeding 10 years from the date of grant. The 2003 Plan is administered by the board of directors. In December 2011, the Company granted 767,000 options to employees with an exercise price of $2.37, being the quoted market price of the Company’s shares at the time of grant. 10% of the options vest every three months from December 26, 2012 to March 26, 2015 and expire on December 25, 2017. On May 1, 2012, the Company granted 50,000 options to an officer with an exercise price of $2.05, being the quoted market price of the Company’s shares at the time of grant. The options were granted on May 1, 2012 and expire on April 30, 2017. 10% of the options will vest on May 1, 2013 (the “Initial Vesting Date”) and the remaining options will vest at 10% in equal quarterly proportions over a period of 27 months from the Initial Vesting Date. The officer has left the Company at the end of May, 2013 and forfeited the unvested options in June2013. On August 22, 2012, the board of directors approved a new stock option plan (the “2012 Plan”), which allowed the Company to issue up to 4,000,000 options for common shares of the Company to directors, officers, employees and consultants of the Company. Each stock option entitles its holder to purchase one share of common stock of the Company. Options may be granted for a term not exceeding 10 years from the date of grant. The 2012 Plan is administered by the board of directors. No stock options were granted under the 2012 Plan as of December 31, 2013. The 2012 Plan will expire on August 22, 2022. Any awards that are outstanding on August 22, 2022 will remain in force according to the terms of the 2012 Plan and the applicable award agreement. (b) Valuation Assumptions The following assumptions were used in determining stock based compensation costs under the Black-Scholes option-pricing model:
|  | 2011 |  | 2012 |  | 2013 |
Expected volatility |  | 86.91 | % | 82.89 | % | — |
Risk-free interest rate |  | 0.36 | % | 0.39 | % | — |
Expected life (years) |  | 3.24 |  | 2.95 |  | — |
Dividend yield |  | Nil |  | Nil |  | — |
Estimated forfeiture rate |  | 10 | % | 10 | % | — |
The weighted average fair value of options granted for the years ended December 31, 2011, 2012 and 2013 were $1.35 $1.08 and $nil per option, respectively. Expected volatility is estimated based on the Company’s historical stock prices. Computation of expected life was estimated after considering the contractual terms of the stock-based award, vesting schedules and expectations of future employee behaviour. The risk-free interest rate for period within the contractual life of the award is based on the U.S. Treasury yield in effect at the time of grant. (c) Stock-based Payment Award Activity A summary of the Company’s stock options activity for the 2003 Plan is presented below:
|  |  |  | Weighted Average |  | Aggregate Intrinsic |
|  | Number |  | Exercise Price |  | Value |
|  | of Options |  | ($/option) |  | ($) |
Outstanding as at December 31, 2012 |  | 1,448,200 |  | $ | 2.02 |  | 1,617,138 |
Granted |  | — |  | — |  | — |
Exercised |  | (478,800 | ) | 1.79 |  | — |
Forfeited |  | (65,000 | ) | 2.15 |  | — |
Outstanding as at December 31, 2013 |  | 904,400 |  | $ | 2.14 |  | $ | 3,603,712 |
Vested and expected to vest as at December 31, 2013 |  | 841,520 |  | $ | 2.12 |  | $ | 3,367,912 |
Exercisable as at December 31, 2013 |  | 520,900 |  | $ | 1.96 |  | $ | 2,165,587 |
As at December 31, 2013
|  |  |  |  |  | Average |  |  |  |  |  | Average |
Exercise |  | Number of |  | Remaining |  | Exercise |  | Number |  | Remaining |  | Exercise |
Prices |  | Options |  | Contractual |  | Price |  | of Options |  | Contractual |  | Price |
($/option) |  | Outstanding |  | Life (years) |  | ($/option) |  | Exercisable |  | Life (years) |  | ($/option) |
$ | 1.60 |  | 275,600 |  | 0.05 |  | $ | 1.60 |  | 275,600 |  | 0.05 |  | $ | 1.60 |
$ | 2.37 |  | 628,800 |  | 2.99 |  | $ | 2.37 |  | 245,300 |  | 2.99 |  | $ | 2.37 |
|  | 904,400 |  | 2.09 |  | $ | 2.14 |  | 520,900 |  | 1.44 |  | $ | 1.96 |
Stock-based compensation expense, included in selling, general and administrative expenses, is charged to operations over the vesting period of the options using the straight-line amortization method. The amount is $206, $347 and $281 respectively in 2011, 2012 and 2013 which are recorded in selling, general and administrative expenses. As of December 31, 2013, there was $462 of unrecognized compensation cost related to non—vested stock options and granted under the 2003 Plan and this cost will be recognized over a period of 15months. The aggregate intrinsic value of the Company’s stock options is calculated as the difference between the exercise price of the options and the quoted price of the common shares that were in the money. The aggregate intrinsic value of the Company’s stock options exercised under the 2003 Plan was $995, $127 and $1,344 for years ended December 31, 2011, 2012 and 2013 respectively, determined as of the date of option exercise. The estimated fair value of stock options vested during the years ended December 31, 2011, 2012 and 2013 was $416, $631 and $420 respectively.

X
- Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 2: 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 3: 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=6406099&loc=d3e25284-112666 Reference 4: 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 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
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration