6.	Stockholders' Equity

Authorized capital stock

The Company’s authorized capital stock consists of an unlimited number of shares of no par common stock.

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 $1.55 and a weighted average remaining life of 1.15 years. During the quarter ended September 30, 2017, there were 21 warrants exercised resulting in gross proceeds to the Company of $31.

Warrant	Common Shares Issuable Upon Exercise of		Exercise Price
Description	Outstanding Warrants at September 30, 2017		$USD		Expiration Date
Investor warrants		1,312		$1.50 USD	November 22, 2018
Investor warrants		50		$3.00 USD	February 2, 2019
Total		1,362

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 3,964 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 and nine month periods ended September 30, 2017 and 2016.

	Three Months Ended				Nine months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Contractor options expense recognized	$	210	$	9	$	552	$	9
Employee options expense recognized		907		41		1,409		152
Total option expense recognized	$	1,117	$	50	$	1,961	$	161

Stock option activity

The following is a summary of option activity for each of the quarterly periods in fiscal year 2017 for stock options denominated in US dollars:

	Number of		Weighted-Average
US Denominated Options	Options (thousands)		Exercise Price $USD
Outstanding December 31, 2016		1,428		1.93
Granted		-		-
Exercised		-		-
Forfeited		-		-
Outstanding at March 31, 2017		1,428		1.93
Granted		300		4.84
Exercised		(50)		0.64
Forfeited		-		-
Outstanding at June 30, 2017		1,678		2.48
Granted		21		6.72
Exercised		(72)		1.69
Forfeited		(3)		2.79
Outstanding at September 30, 2017		1,624		2.57

During the three and nine month periods ended September 30, 2017, US denominated option exercises provided gross proceeds of $121 and $153, respectively. US denominated option exercises during the three and nine month periods ended September 30, 2017, resulted in the issuance of 72 and 122 common shares, respectively. Of the 1,624 options granted and outstanding at September 30, 2017, 1,348 are fully vested and exercisable.

The following is a summary of option activity for the three and nine months ended September 30, 2017 for stock options denominated in Canadian dollars:

	Number of		Weighted-Average
Canadian Denominated Options	Options (thousands)		Exercise Price $CAD
Outstanding December 31, 2016		999		2.38
Exercised		-		-
Forfeited		-		-
Outstanding at March 31, 2017		999		2.38
Exercised		(36)		2.42
Forfeited		-		-
Outstanding at June 30, 2017		963		2.37
Exercised		(135)		2.43
Forfeited		(91)		2.40
Outstanding at September 30, 2017		737		2.36

For the nine months ended September 30, 2017, there was no issuance activity related to Canadian dollar denominated options. During the three months ended September 30, 2017, there were exercises of 135 Canadian denominated options which resulted in gross proceeds of CAD$329 ($261 as presented in US dollars). During the nine months ended September 30, 2017, there were exercises of 171 Canadian denominated options (1 treated as a derivative, 170 as non-derivative). These exercises resulted in gross proceeds of CAD$416 ($326 as presented in US dollars). During the same three and nine month periods ended 2016, Canadian denominated option activity consisted of 324 forfeitures. As of September 30, 2017, all outstanding options denominated in Canadian dollars were fully vested.

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 21 options issued during the three months ended September 30, 2017, (285 for the same period in 2016). Assumptions for the valuation of the option grants are described in the table below:

	Three Months Ended
	September 30,
Black-Scholes Model Assumptions	2017			2016
Expected dividend		0.00	%		0.00	%
Risk free rate		2.04	%		1.27	%
Expected volatility		162	%		136	%
Expected life		7 years			7 years

Shareholder rights plan

On June 27, 2017, the Company’s shareholders approved a Shareholder Rights Plan Agreement (the "Rights Plan") for the Company. The Rights Plan is to ensure, to the extent possible, that all shareholders of the Corporation are treated fairly and equally in connection with any take-over bid or other acquisition of control of the Corporation. The Rights Plan is designed to require any potential transaction that will result in a person owning, in the aggregate, 20% or more of the outstanding Common Shares to be structured as a formal take-over bid that satisfies certain minimum requirements relating primarily to the manner in which the bid must be made, the minimum number of days the bid must remain open, and the minimum number of shares that must be acquired under the bid.