12. Stock Options
 6 Months Ended
Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
12. Stock Options

The following table summarizes the continuity schedule of the Company’s stock options:

 

   

Number of

options

    

Weighted

average

exercise price

$

    

Aggregate

intrinsic

value

$

  
Balance, December 31, 2016     4,000,000       0.16       750  
Granted     1,550,000       0.13       -  
Balance, June 30, 2017     5,550,000       0.15       11,850  

 

      Outstanding     Exercisable  

Range of

exercise prices

$

    

Number of

shares

    

Weighted

average

remaining contractual

life (years)

    

Weighted

average

exercise

price

$

    

Number of

shares

    

Weighted

average

exercise

price

$

  
                                 
  0.07       75,000       0.8       0.07       75,000       0.07  
  0.09       960,000       0.8       0.09       960,000       0.09  
  0.10       250,000       4.3       0.10       150,000       0.10  
  0.13       1,550,000       4.9       0.13       1,150,000       0.13  
  0.16       225,000       3.6       0.16       75,000       0.16  
  0.19       2,370,000       3.2       0.19       2,345,000       0.19  
  Cdn$0.25       120,000       3.2     Cdn$0.25       70,000     Cdn$0.25  
          5,550,000       3.1       0.15       4,825,000       0.15  

  

On May 11, 2017, the Company granted 1,550,000 stock options to officers, directors, employees, and consultants of the Company, which are exercisable at $0.13 per share and expire on May 11, 2022. Of this amount, 1,150,000 vests on the date of grant, 50,000 vests on October 21, 2017, 50,000 vests on November 11, 2017, and the remaining 300,000 vests on May 11, 2018.

 

The fair values of stock options granted are amortized over the vesting period where applicable. During the six months ended June 30, 2017, the Company recorded $149,113 (2016 - $20,090) in stock-based compensation in connection with the vesting of options granted. The Company uses the Black-Scholes option pricing model to establish the fair value of options granted assuming no expected dividends or forfeitures and the following weighted average assumptions:

 

    2017     2016  
Expected volatility     132 %     200 %
Risk free interest rate     1.82 %     1.52 %
Expected life (in years)     4.8       5.0