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Derivative Instruments
 6 Months Ended
Jun. 30, 2016
Derivative Instruments [Abstract]  
Derivative Liabilities
4.
Derivative Instruments
 
The Company's outstanding warrants denominated in Canadian dollars are not considered to be indexed to its own stock because the exercise price is denominated in Canadian dollars and the Company's functional currency is United States dollars. Therefore, these warrants have been treated as derivative financial instruments and recorded at their fair value as a liability. All other outstanding convertible instruments are considered to be indexed to the Company's stock, because their exercise price is denominated in the same currency as the Company's functional currency, and are included in stockholders' equity.
 
The Company's derivative instruments include options to purchase 40 common shares, the exercise prices for which are denominated in a currency other than the Company's functional currency, as follows:
⋅
Contractor options to purchase 21 common shares exercisable at CAD$1.89 per whole common share that expire on November 19, 2017;
⋅
Contractor options to purchase 17 common shares exercisable at CAD$1.62 per whole common share that expire on April 4, 2018;
⋅
Contractor options to purchase 2 common shares exercisable at CAD$2.43 per whole common share that expire on May 18, 2018.
 
These options have been recorded at their fair value as a liability at issuance and will continue to be re-measured at fair value as a liability at each subsequent balance sheet date. Any change in value between reporting periods will be recorded as unrealized gain/(loss). These options will continue to be reported as a liability until such time as they are exercised, forfeited or expire. The fair value of these warrants and options is estimated using the Black-Scholes option-pricing model.
 
Comparative data related to gain/(loss) recorded on re-measurement of the derivative liability for the three and six-month period ended June 30, 2016 and 2015 are summarized in the table below. There is no cash flow impact for these derivatives until the warrants and/or options are exercised. If these warrants or options are exercised, the Company will receive the proceeds from the exercise at the current exchange rate at the time of exercise.
 
 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
Gain/(Loss) on Derivative Instruments
 
 
2016
 
2015
 
2016
 
2015
 
Warrants expiring April 30, 2015
 
 
 
-
 
 
10
 
 
-
 
 
411
 
Warrants expiring March 29, 2016
 
 
 
-
 
 
370
 
 
41
 
 
565
 
Options to contractors
 
 
 
(17)
 
 
5
 
 
(15)
 
 
34
 
Gain/(loss) on Derivative Instruments
 
 
 
(17)
 
 
385
 
 
26
 
 
1,010
 
 
During the fiscal years ended December 31, 2011 and 2010, the Company issued 36 and 29 (respectively) options to contractors with a Canadian dollar denominated strike price. Consequently, the Company now has derivatives relating to these options since the strike price is denominated in a currency other than the US dollar functional currency of the Company. While there is an exception to this rule for employees in ASU 2010-13 "Compensation-Stock Compensation (Topic 718): Effect of denominating the exercise price of a share based payment award in the currency of the market in which the underlying equity security trades", no such exception exists for contractors. These options will be marked to market until the earlier of their expiry, exercise or forfeiture.
 
The table below summarizes Canadian dollar denominated contractor option activity, since their issuance:
 
Contractor Options in $CAD
 
Activity Since
 
Three and Six-Month Period
 
Weighted-Average
 
Options in Thousands
 
Issuance
 
Ending June 30, 2016
 
Exercise Price
 
Opening balance
 
 
65
 
 
-
 
$
1.82
 
Exercised
 
 
(14)
 
 
-
 
$
1.94
 
Forfeited
 
 
(11)
 
 
-
 
$
1.74
 
Expired
 
 
-
 
 
-
 
$
-
 
Ending balance
 
 
40
 
 
-
 
$
1.81