XML 47 R10.htm IDEA: XBRL DOCUMENT v2.4.0.8
Stockholders' Equity
 3 Months Ended
Mar. 31, 2014
Stockholders' Equity [Abstract]  
Stockholders' Equity
4.
Stockholders' Equity
 
Authorized capital stock
 
The Company’s authorized capital stock consists of an unlimited number of shares of no par common stock.
 
On August 10, 2011, the Board of Directors approved a 1-for-18 reverse stock split, or “share consolidation”, which became effective on August 25, 2011. The 1-for-18 reverse stock split affected all of the Company’s common shares, stock options and warrants outstanding at the effective date. Consequently, the Company has retroactively adjusted its financial statements for all periods presented to show the share shares, stock options and warrants as if they had always been presented on this basis. The number of units and unit prices (including with respect to the units issued in our 2011 Private Placement and the Rights Offering) have not been adjusted to reflect the share consolidation, and the number of warrants outstanding have not been adjusted to reflect the share consolidation (in accordance with the terms of the warrants, the number of shares of common stock issuable thereunder were adjusted as a result of the share consolidation but not the number of warrants outstanding).
 
Equity Financing
On November 22, 2013, the Company completed the closing of non-brokered private placement (the “Offering”) of 4,000 units for gross proceeds of US$1,600.  Each unit (a “Unit”) was issued at a price of $0.40 per Unit and consisted of one common share of the Company (the “Common Shares”) and one common share purchase warrant (the “Warrants”). Each Warrant entitles the holder thereof to acquire one Common Share at a price of US$0.50 per share for a period of five years from the date of issuance.
 
Warrants to purchase common stock
 
At March 31, 2014, the Company had the following warrants outstanding to purchase common stock priced in Canadian dollars with a weighted average exercise price of CAD$1.44 and a weighted average remaining life of 1.3 years:
 
Warrant Description
 
Common Shares Issuable Upon Exercise of
Outstanding Warrants at March 31, 2014
 
Exercise Price
CAD/ UDS
 
Expiration Date
 
Investor warrants (1)
 
 
13,337
 
$
1.44 CAD
 
April 30, 2015
 
Investor warrants (2)
 
 
4,698
 
$
1.44 CAD
 
March 29, 2016
 
Investor warrants (3)
 
 
4,000
 
$
0.50 USD
 
November 22, 2018
 
 
 
 
22,035
 
 
 
 
 
 
 
(1) On April 30, 2010, the Company announced that it had completed a first closing of a non-brokered private placement (“Private Placement”) of 240,066 units, at a price of CAD$0.03 per unit for net proceeds of CAD$7,200. Each unit consisted of one common share and one common share purchase warrant (a “Warrant”). As a result of the share consolidation, each eighteen (18) Warrants now entitle the holder thereof to purchase one common share of the Company at a purchase price of CAD$1.44 per whole share for a period of five years from the issue date.
 
(2) On March 29, 2011, the Company announced that it had completed a non-brokered rights offering of 84,559 units, at a price of CAD$0.03 per unit for total net proceeds of $2,547. Each unit consisted of one common share and one common share purchase warrant (a “Warrant”). As a result of the share consolidation, each eighteen (18) Warrants now entitle the holder thereof to purchase one common share of the Company at a purchase price of CAD$1.44 per whole share for a period of five years from the issue date.
 
(3) On November 22, 2013, the Company announced it had completed the closing of a non-brokered private placement (the “Offering”) of 4,000 units, at a price of $0.40 USD per unit for net proceeds of $1,600 USD. Each unit consisted of one common share of the Company (the “Common Shares”) and one common share purchase warrant (the” Warrants”). Each Warrant entitles the holder thereof to acquire on Common Share at a price of US$0.50 per share for a period of five years from the date of issuance.
 
Stock option plan
 
The Compensation Committee of the Board of Directors administers the Company’s stock option plan.  The Compensation Committee designates eligible participants to be included under the plan and approves the number of options to be granted from time to time under the plan. On June 24, 2010, at the Company’s annual meeting, shareholders approved an amendment to the Company’s Stock Option Plan (the “Plan Maximum Amendment”). The Plan Maximum Amendment relates to changing the maximum number of shares of common stock issuable under the stock option plan from a fixed number of 20,000 to the number of shares that represent twenty five percent (25%) of the total number of all issued and outstanding shares of common stock from time to time. Based upon the current shares outstanding, a maximum of 7,327 options are authorized for issuance under the plan. The option exercise price for all options issued under the plan is based on the fair value of the underlying shares on the date of grant. All options vest within three years or less and are exercisable for a period of seven years from the date of grant. The stock option plan, as amended, allows the issuance of Canadian and U.S. dollar grants. During the three month periods ended March 31, 2014 and 2013, the Company recognized total stock-based compensation expense of $262 and $0, respectively.
 
Valuation assumptions
 
For the three months ended March 31, 2014, the value of options granted were estimated using the Black-Scholes option pricing model using the following assumptions: expected dividend 0%; risk-free interest rate of 2.20%; expected volatility of 137%; and a 7 year expected life. The expected volatility was determined using historical volatility of our stock based on the contractual life of the award. Since no options were issued for the three months ending March 31, 2013, there are no data presented.
 
Stock option activity
 
The following is a summary of option activity for the three months ended March 31, 2014 for stock options denominated in Canadian dollars:
 
 
 
Number of
Options(thousands)
 
Weighted-average
Exercise Price
 
Outstanding at December 31, 2013
 
4,093
 
CAD$
0.79
 
Granted
 
-
 
 
-
 
Exercised
 
-
 
 
-
 
Expired
 
-
 
 
-
 
 
 
 
 
 
 
 
Outstanding at March 31, 2014
 
4,093
 
CAD$
0.79
 
 
Canadian dollar denominated options issued to contractors vest immediately and are treated as derivative liabilities. They are recorded at fair value estimated using the Black-Scholes model with the gain or loss reported as unrealized gain (loss).
 
The following is a summary of option activity for the three months ended March 31, 2014 for stock options denominated in U.S. dollars (all exercisable and fully vested at grant date):
 
 
 
Number of
Options(thousands)
 
Weighted-average
Exercise Price
 
Outstanding at December 31, 2013
 
 
1,631
 
$
0.60
 
Granted
 
 
529
 
 
0.53
 
Exercised
 
 
(150)
 
 
(0.35)
 
Expired
 
 
-
 
 
-
 
 
 
 
 
 
 
 
 
Outstanding at March 31, 2014
 
 
2,010
 
$
0.55