XML 20 R18.htm IDEA: XBRL DOCUMENT

Note 12 - Share-Based Payments

6 Months Ended

Jun. 30, 2013

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

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

12. SHARE-BASED PAYMENTS

(a) Stock options

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model, consistent with the guidance on stock compensation. Because option-pricing models require the use of subjective assumptions, changes in these assumptions can materially affect the fair value of the options. The assumptions presented in the table below represent the weighted average of the applicable assumption used to value stock options at their grant date. The Company calculates expected volatility based on historical volatility of the Company's common shares. The expected term, which represents the period of time that options granted are expected to be outstanding, is estimated based on historical exercise experience. The Company evaluated historical exercise behavior when determining the expected term assumptions. The risk-free rate assumed in valuing the options is based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the option. The Company determines the expected dividend yield percentage by dividing the expected annual dividend by the market price of our common shares at the date of grant.

During the three months ended June 30, 2013, stock options to purchase 331,500 common shares were granted. During the three months ended June 30, 2012, stock options to purchase 504,000 common shares were granted.

During the six months ended June 30, 2013, stock options to purchase 481,500 common shares were granted. During the six months ended June 30, 2012, stock options to purchase 549,000 common shares were granted.

The stock options granted during the three and six months ended June 30, 2013 expire in 2020.

Details of stock option transactions for the three months ended June 30, 2013 and June 30, 2012 are as follows:

	Three months ended					Three months ended
	June 30, 2013					June 30, 2012
				Weighted					Weighted
				Average					Average
	Number of			exercise price		Number of			exercise price
	Shares			per share		Shares			per share
Outstanding, beginning of period		8,672,016		$	0.65		8,458,699		$	0.57
Granted		331,500			2.14		504,000			1.38
Exercised		(519,716	)		0.54		(378,936	)		0.58
Forfeited		(15,315	)		1.32		(59,250	)		0.74
Expired		—			—		(14	)		0.49
Outstanding, end of period		8,468,485		$	0.71		8,524,499		$	0.62
Options exercisable, end of period		6,965,445		$	0.60		6,864,749		$	0.55

Details of stock option transactions for the six months ended June 30, 2013 and June 30, 2012 are as follows:

	Six months ended					Six months ended
	June 30, 2013					June 30, 2012
				Weighted					Weighted
				Average					Average
	Number of			exercise price		Number of			exercise price
	Shares			per share		Shares			per share
Outstanding, beginning of period		8,592,686		$	0.64		8,746,041		$	0.57
Granted		481,500			1.92		549,000			1.35
Exercised		(576,573	)		0.55		(673,153	)		0.52
Forfeited		(29,128	)		1.19		(97,375	)		0.78
Expired		—			—		(14	)		0.49
Outstanding, end of period		8,468,485		$	0.71		8,524,499		$	0.62
Options exercisable, end of period		6,965,445		$	0.60		6,864,749		$	0.55

As of June 30, 2013, the exercise prices, weighted average remaining contractual life and intrinsic values of outstanding options were as follows:

					Options outstanding								Options exercisable
Exercise price					Outstanding Number		Weighted average exercise price per share		Weighted Average remaining contractual life (years)		Aggregate intrinsic value		Number exercisable		Weighted average exercise price per share		Aggregate intrinsic value
$	0.31	-	$	0.48		2,880,375	$	0.38		0.1	$	4,274,592		2,880,375	$	0.38	$	4,274,592
$	0.56	-	$	0.94		4,357,860	$	0.69		2.5		5,079,745		3,723,820	$	0.69		4,353,687
$	1.05	-	$	1.44		902,750	$	1.37		5.6		441,770		361,250	$	1.36		179,713
$	2.14	-	$	2.14		327,500	$	2.14		6.9		—		—	$	—		—
						8,468,485	$	0.71		2.2	$	9,796,107		6,965,445	$	0.60	$	8,807,992

Total unrecognized compensation cost relating to unvested stock options at June 30, 2013, prior to the consideration of expected forfeitures, was approximately $970,000 and is expected to be recognized over a weighted average period of 2.6 years.

The Company recorded stock-based compensation of $91,255 and $62,923 for the three months ended June 30, 2013 and 2012, respectively.

The Company recorded stock-based compensation of $165,932 and $125,207 for the six months ended June 30, 2013 and 2012, respectively.

The Company has not capitalized any stock-based compensation expense as part of the cost of an asset.

- 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+ Details