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Stockholders' Equity
 6 Months Ended
Jun. 30, 2016
Stockholders' Equity [Abstract]  
Stockholders' Equity
5.
Stockholders' Equity
 
Authorized capital stock
The Company’s authorized capital stock consists of an unlimited number of shares of no par common stock.
 
Equity financing
During the three months ended June 30, 2016, the Company completed the closing of a non-brokered private placement of 2,632 units for gross proceeds of $5,000 to Essetifin SpA (formerly Sigma Tau Finanziaria SpA). Each unit was issued at a price of USD$1.90 per unit.
 
Warrants to Purchase Common Stock
The Company has warrants outstanding to purchase common stock priced in U.S. dollars with a weighted average price of $1.98 and a weighted average remaining life of 1.99 years:
 
Warrant
 
Common Shares Issuable Upon Exercise of
 
Exercise Price
 
 
 
Description
 
Outstanding Warrants at June 30, 2016
 
$USD
 
Expiration Date
 
Investor warrants
 
1,333
 
$
1.50 USD
 
November 22, 2018
 
Investor warrants
 
 
366
 
$
3.60 USD
 
December 3, 2016
 
Investor warrants
 
 
1
 
$
3.00 USD
 
February 2, 2019
 
Total
 
 
1,700
 
 
 
 
 
 
 
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. Currently, the maximum number of option shares issuable is twenty-five percent (25%) of the total number of issued and outstanding shares of common stock. Based upon the current shares outstanding, a maximum of 3,410 options are authorized for issuance under the plan. For all options issued under the plan, the exercise price is 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 allows the issuance of Canadian and U.S. dollar grants.  The table below outlines recognized contractor and employee expense for the three month periods ended June 30, 2016 and 2015.
 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
Gain/(Loss) on Derivative Instruments
 
2016
 
2015
 
2016
 
2015
 
Contractor options expense recognized
 
 
-
 
 
-
 
 
-
 
 
-
 
Employee options expense recognized
 
 
111
 
 
10
 
 
111
 
 
19
 
Total option expense recognized
 
 
111
 
 
10
 
 
111
 
 
19
 
 
Stock option activity
The following is a summary of option activity for the three and six months ended June 30, 2016 for stock options denominated in US dollars:
 
 
 
Number of
 
Weighted-Average
 
US Denominated Options
 
Options (thousands)
 
Exercise Price $USD
 
Outstanding December 31, 2015
 
 
1,094
 
 
 
1.77
 
Granted
 
 
-
 
 
 
-
 
Exercised
 
 
-
 
 
 
-
 
Forfeited
 
 
-
 
 
 
-
 
Outstanding at March 31, 2016
 
 
1,094
 
 
 
1.77
 
Granted
 
 
49
 
 
 
1.81
 
Exercised
 
 
(4)
 
 
 
1.50
 
Forfeited
 
 
(1)
 
 
 
1.89
 
Outstanding at June 30, 2016
 
 
1,138
 
 
 
1.77
 
 
During the three months ended June 30, 2016, US denominated option exercises provided gross proceeds of $6 and resulted in the issuance of 4 Common shares.
 
The following is a summary of option activity for the three and six months ended June 30, 2016 for stock options denominated in Canadian dollars:
 
 
 
Number of
 
Weighted-Average
 
Canadian Denominated Options
 
Options (thousands)
 
Exercise Price $CAD
 
Outstanding December 31, 2015
 
 
1,323
 
 
 
2.39
 
Exercised
 
 
-
 
 
 
-
 
Expired
 
 
-
 
 
 
-
 
Outstanding at March 31, 2016
 
 
1,323
 
 
 
2.39
 
Forfeited
 
 
(324)
 
 
 
2.43
 
Outstanding at June 30, 2016
 
 
999
 
 
 
2.38
 
 
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 option pricing model with the gain or loss reported as unrealized gain/(loss).
 
Upon exercise, expiration or forfeiture of those options denominated in Canadian dollars and treated as derivative liabilities the Company re-measures the derivative liability prior to exercise, expiration or forfeiture and records a gain or loss accordingly. In the case a derivative option is exercised, upon the exercise date, the Company extinguishes the derivative liability, records the cash received and the shares issued into common stock and additional paid in capital accordingly. For the three and six months ended June 30, 2016 there was no activity related to Canadian dollar denominated options issued to contractors. During the same quarter ended in 2015 a total of 10 Canadian dollar denominated options were exercised which resulted in $17 gross proceeds received.
 
Valuation assumptions
The value of options granted were estimated using the Black-Scholes option pricing model using the following assumptions in the table below: The expected volatility was determined using historical volatility of our stock based on the contractual life of the award. There were no issuances of options during quarter ended March 31, 2016.
 
 
 
Three Months Ended June 30,
 
Black-Scholes Model Assumptions
 
2016
 
 
2015
 
Expected dividend
 
 
0.00
%
 
 
0.00
%
Risk free rate
 
 
1.51
%
 
 
2.00
%
Expected volatility
 
 
137
%
 
 
139
%
Expected life
 
 
7 years
 
 
 
7 years