The Company had issued stock options to acquire common shares as follows:
Number of Options Weighted Average
Outstanding Exercise Price
beginning of year
8,995,000 $ 0.11
Granted 4,350,000 $ 0.15
Exercised (2,261,000) $ (0.10)
Expired (745,000) $ (0.11)
Outstanding and exercisable
at the end of the period
10,339,000 $ 0.12
i) On January 19, 2010, the Company granted 2,225,000 stock options to employees and
consultants with an exercise price of
.15, expiring January 19, 2012. A fair value of $164,650
was estimated using the Black-Scholes option pricing model utilizing the following assumptions:
dividend yield of 0%, risk-free interest rate of 1.26%, expected life of two years; and an estimated
volatility of 93%.
ii) On February 8, 2010, the Company granted 2,000,000 stock options to directors with an exercise
price of
.14, expiring February 8, 2012. A fair value of $138,000 was estimated using the
Black-Scholes option pricing model utilizing the following assumptions: dividend yield of 0%, riskfree
interest rate of 1.25%, expected life of two years; and an estimated volatility of 92%.
iii) On February 25, 2010, the Company granted 125,000 stock options to a consultant with an
exercise price of
.18 expiring On February 25, 2012. A fair value of $11,250 was estimated
using the Black-Scholes option pricing model utilizing the following assumptions: dividend yield of
0%, risk-free interest rate of 1.28%, expected life of two years; and an estimated volatility of 94%.