66 / 111
65
The value of the warrants issued to the placement agent (non-employee) for its services in connection with
the September 27, 2013 offering 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 common shares 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 $143.
The following table summarizes activity for options and warrants for the years ended December 31, 2015
and 2014:
For the year ended
December 31,
2015
For the year ended
December 31,
2014
Number of
Options
and
Warrants
Weighted
-Average
Exercise
Price
(USD$)
Number
of
Options
and
Warrants
Weighted-
Average
Exercise
Price
(USD$)
Outstanding, beginning of period
1,472,557
$ 4.15
1,472,557
$ 4.15
Granted
2,876,924
0.85
-
-
Exercised
-
-
-
-
Expired
-
-
-
-
Outstanding, end of period
4,349,481
$ 1.97
1,472,557
$ 4.15
7. RELATED PARTY TRANSACTIONS
There were no related party transactions during the years ended December 31, 2015 and 2014.
8. INCOME TAX
We recognize future tax assets and liabilities for each tax jurisdiction based on the difference between the
financial reporting and tax bases of assets and liabilities using the enacted tax rates expected to be in effect when the
taxes are paid or recovered. A valuation allowance is provided against net future tax assets for which we do not
consider the realization of such assets to meet the required “more likely than not” standard.
Our future tax assets and liabilities at December 31, 2015 and 2014 include the following components:
As of December 31,
As of December 31,
2015
2014
Deferred tax assets:
Current:
Accrued vacation
$ 26
$ 39
Reclamation provision
52
57
78
96
Non-current:
Noncapital loss carryforwards, Canada
2,640
2,546
Capital loss carryforwards, Canada
7
7
Net operating loss carryforwards, U.S.
14,784
11,053
Mineral properties
13,017
14,244
Reclamation provision
70
69
Equipment
131
115
Share based compensation
3,362
4,020
Research and development
2,358
1,882
36,369
33,936
Deferred tax assets
36,447
34,032
Valuation allowance
(36,447)
(34,032)
Net
$ -
$ -
Deferred tax liabilities:
Non-Current:
Other
-
-
Deferred tax liabilities
-
-
Net deferred tax asset/(liability)
-
-