RARE ELEMENT RESOURCES LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in thousands of U.S. Dollars, except share and per share amounts, unless otherwise noted)
77
The stock-based compensation cost recognized in our consolidated statements of operations and comprehensive loss
for the years ended December 31, 2014 and 2013 was $517 and $1,378, respectively. The stock-based compensation
cost recognized in our consolidated statements of operations and comprehensive loss for the six-month period ended
December 31, 2012 was $1,637. The stock-based compensation cost recognized in our consolidated statements of
loss and comprehensive loss for the fiscal year ended June 30, 2012 was $10,757. As at December 31, 2014, there
was $85 of unrecognized compensation cost related to 395,000 unvested stock options. This cost is expected to be
recognized over a weighted-average remaining period of approximately 0.55 years. The total intrinsic value of
options exercised in each of the periods ended December 31, 2014, 2013 and 2012 and June 30, 2012 was $167, nil,
$1,938, and $679, respectively. At December 31, 2014, there was no aggregate intrinsic value of outstanding and
exercisable stock options.
Agents’ Options and Warrants
The Company issued to investors 1,338,688 warrants, each exercisable for one common share, in connection with
the September 27, 2013 registered direct offering. The exercise price and exercise period of each warrant is $4.15
and three years, respectively.
In addition, the Company issued to an agent in connection with the September 27, 2013 financing 133,869 warrants,
under the same terms as those issued to investors. The value of these warrants issued to non-employees for services
was offset against the proceeds of the financing. The Company used a Black-Scholes model with inputs including a
market price of the Company’s stock of $2.61, an exercise price of $4.15, a three-year term, volatility of 80.9%, a
risk-free rate of 0.62% and assumed no dividends. The value of the warrants issued for services was estimated at
$143.
The following table summarizes activity for agents’ options and warrants for the years ended December 31, 2014
and 2013, the six-month period ended December 31, 2012 and for the fiscal year ended June 30, 2012:
For the year ended
December 31,
For the six-month period ended
December 31,
For the fiscal year ended
June 30,
2014
For the year ended
December 31,
2013
2012
2012
Number of
Agents'
Options
and
Warrants
Weighted-
Average
Exercise
Price
(USD$)
Number
of Agents'
Options
and
Warrants
Weighted-
Average
Exercise
Price
(USD$)
Number of
Agents'
Options
and
Warrants
Weighted-
Average
Exercise
Price
(CDN$)
Number
of Agents'
Options
and
Warrants
Weighted-
Average
Exercise
Price
(CDN$)
Outstanding, beginning
of period
1,472,557
$ 4.15
-
$ -
211,002
$ 9.00
211,002
$ 9.00
Granted
-
-
1,472,557
4.15
-
-
-
-
Exercised
-
-
-
-
-
-
-
-
Expired
-
-
-
-
(211,002)
9.00
-
-
Outstanding, end of
period
1,472,557
$ 4.15
1,472,557
$ 4.15
-
$ -
211,002
$ 9.00
