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5. Capital Stock
 3 Months Ended
Sep. 30, 2013
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]
5.    Capital Stock

a)    Authorized share capital

500,000,000 shares of common stock with a par value of $0.001 per share and 500,000,000 shares of preferred stock with a par value of $0.001 per share.

b)    Issued share capital

On January 2, 2013, a consultant of the Company exercised their option to acquire 1,000,000 shares of common stock of the Company at an exercise price of $0.03 per share. As consideration, the Company recorded a reduction of $30,000 in accrued interest due and payable to a Director and Officer of the Company.

c)    Stock options

On January 1, 2013, the Company granted options to acquire 1,000,000 shares of its common stock at an exercise price of $0.03 per share for a term of five years. The option was exercised on January 2, 2013. The compensation expense recognized related to the grant of the options was $29,983.

On January 28, 2013, the Company granted consultants the option to acquire 2,300,000 shares of its common stock at an exercise price of $0.05 per share for a term of five years. The compensation expense related to the stock options, which vested was $50,465. The compensation expense related to the unvested stock options to be recognized upon vesting is $41,471.

On March 26, 2013, the Company granted a consultant the options to acquire 500,000 shares of its common stock at an exercise price of $0.03 per share for a term of five years. The option does not vest until the consultant enters into a full-time employment or equivalent role with the Company. Therefore, no compensation expense related to these options has been recognized.

On April 9, 2013, the Company granted two consultants each the respective and individual option to acquire 500,000 share of its common stock at an exercise price of $0.03 per share for a term of five years. The option does not vest for either consultant until the individuals enter into a full-time employment or equivalent role with the Company. Therefore, no compensation expense related to these options has been recognized.

On May 1, 2013, the Company granted one consultant the option to acquire 2,000,000 shares of common stock of the Company at an exercise price of $0.03 per share for a period of five years. The compensation expense recognized related to this option grant was $99,937.

A summary of stock option activity is as follows:

 
Nine Months Ended
Year Ended
 
September 30, 2013 (unaudited)
December 31, 2012
 
Number of
 
Weighted Average
Number of
 
Weighted Average
 
Options
 
Exercise Price
Options
 
Exercise Price
Outstanding, beginning of period
125,000,000
$
0.03
62,800,000
$
0.04
Granted
6,800,000
 
0.03
84,700,000
 
0.03
Exercised
(1,000,000)
 
0.03
(22,500,000)
 
(0.05)
Expired
-
 
-
-
 
-
             
Outstanding, end of period
130,800,000
$
0.04
125,000,000
$
0.03
             
Exercisable, end of period
128,400,000
$
0.04
125,000,000
$
0.03

The options outstanding at September 30, 2013 and December 31, 2012 were as follows:

 
September 30, 2013
 
December 31, 2012
Expiry Date
Options
 
Exercise Price
 
Intrinsic Value
 
Options
 
Exercise Price
 
Intrinsic Value
                       
March 7, 2015
20,000,000
$
0.05
$
-
 
20,000,000
$
0.05
$
-
March 31, 2015
1,200,000
$
0.25
$
-
 
1,200,000
$
0.25
$
-
March 6, 2016
35,750,000
$
0.05
$
-
 
35,750,000
$
0.05
$
-
May 4, 2016
1,000,000
$
0.05
$
-
 
1,000,000
$
0.05
$
-
May 23, 2016
100,000
$
0.05
$
-
 
100,000
$
0.05
$
-
May 27, 2017
700,000
$
0.05
$
-
 
700,000
$
0.05
$
-
May 31, 2017
500,000
$
0.05
$
-
 
500,000
$
0.05
$
-
August 16, 2017
500,000
$
0.05
$
-
 
500,000
$
0.05
$
-
December 28, 2017
14,250,000
$
0.05
$
-
 
14,250,000
$
0.05
$
-
December 28, 2017
51,000,000
$
0.03
$
-
 
51,000,000
$
0.03
$
0.01
January 28, 2018
2,300,000
$
0.05
$
-
 
-
$
-
$
-
March 26, 2018
500,000
$
0.03
$
-
 
-
$
-
$
-
April 9, 2018
1,000,000
$
0.03
$
-
 
-
$
-
$
-
May 1, 2018
2,000,000
$
0.03
$
-
 
-
$
-
$
-
Total
130,800,000
$
0.04
 
-
 
125,000,000
$
0.04
   

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value for in-the-money options, based on the $0.03 (December 31, 2012: $0.03) closing stock price of the Company’s common stock on the NASDAQ over-the-counter market (OTC) on September 30, 2013. As of September 30, 2013, Nil (December 31, 2012: Nil) of the stock options outstanding were in-the-money.

The Company uses the fair value method for determining stock-based compensation for all options granted during the fiscal periods. The fair value was determined using the Black-Scholes Option Pricing Model based on the following weighted average assumptions:

 
September 30,
2013
(unaudited)
 
December 31,
2012
 
Risk-free interest rate
2.52%
 
2.52%
Expected life
5 years
 
5 years
Expected dividends
0%
 
0%
Expected volatility
298%
 
306%
Forfeiture rate
0%
 
0%

The weighted average fair value for the options granted during the nine months ended September 30, 2013 was $0.04 (December 31, 2012: $0.03).

The compensation cost of the stock options granted was allocated as follows:

   
Three months
ended
September 30,
2013
 
Three months
ended
September 30,
2012
 
Nine months
ended
September 30,
2013
 
Nine months
ended
September 30,
2012
Interest expense:
               
 
Related parties
$
-
$
-
$
-
$
2,616,602
Product development
               
Unrelated parties
$
1,499
$
-
$
4,497
$
1,749
Professional:
               
 
Unrelated parties
$
-
$
-
$
111,928
$
20,989
General and administrative:
               
 
Related parties
 
-
 
29,975
 
-
 
29,975
 
Unrelated parties
$
5,996
$
-
$
63,959
$
16,616