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The fair value of stock option awards granted to directors, officers or employees of the Company are
estimated on the grant date using the Black-Scholes option pricing model and the closing price of our common
shares on the grant date as quoted on the stock exchange where the majority of the trading volume and value of the
shares occurs, which was the NYSE MKT during 2015. The significant assumptions used to estimate the fair value
of stock option awards using the Black-Scholes model are as follows:
For the years ended
December 31,
2015
2014
Risk-free interest rate
1.0 – 1.1%
0.93 – 0.99%
Expected volatility
73 – 80%
74 – 79%
Expected dividend yield
Nil
Nil
Expected term in years
3.4 – 3.5
3.3
Estimated forfeiture rate
3.4 – 3.6%
3.7%
The fair value of stock option awards granted to consultants of the Company is estimated on the vesting
date using the Black-Scholes option pricing model and the closing price of our common shares as quoted on the
vesting date on the stock exchange where the majority of the trading volume and value of the shares occurs, which
was the NYSE MKT during 2015. The significant assumptions used to estimate the fair value of stock option
awards using the Black-Scholes models are as follows:
For the years ended December 31,
2015
2014
Risk-free interest rate
n/a
0.99%
Expected volatility
n/a
74-79%
Expected dividend yield
n/a
Nil
Expected term in years
n/a
3.3
Estimated forfeiture rate
n/a
3.7%
The following table summarizes stock option activity for each of the years ended December 31, 2015 and
2014:
For the years ended December 31,
2015
2014
Number
of Stock
Options
Weighted
Average
Exercise
Price
Number
of Stock
Options
Weighted
Average
Exercise
Price
Outstanding, beginning of
period
4,345,500
$5.16
4,700,500
$5.51
Granted
999,000
0.45
275,000
1.28
Exercised
(12,600)
0.32
(150,000)
0.50
Cancelled/Expired
(753,200)
3.17
(480,000)
4.52
Outstanding, end of period
4,578,700
$3.99
4,345,500
$5.16
Exercisable, end of period
3,896,500
$4.61
3,950,500
$5.54
Weighted-average fair
value per share of options
granted during period
$0.24
$0.65