• Filing Date: 2018-11-14
  • Form Type: 10-Q
  • Description: Quarterly report
v3.10.0.1
Share Capital Disclosure
9 Months Ended
Sep. 30, 2018
Notes  
Share Capital Disclosure

NOTE 5 - SHARE CAPITAL

 

During the nine months ended September 30, 2018, the Company did not have any transactions that resulted in issuance of its common stock.

 

Warrants

 

A continuity schedule of warrants is as follows:

 

September 30, 2018

December 31, 2017

Warrants, beginning

29,886,198

39,886,198

Warrants, expired

(500,000)

(10,000,000)

Warrants, outstanding

29,386,198

29,886,198

 

Details of warrants outstanding as at September 30, 2018 are as follows:

 

Exercise price

Expiry date

Number of warrants

outstanding

$0.10

January 15, 2021

26,854,546

$0.10

September 1, 2021

2,531,652

 

 

29,386,198

 

At September 30, 2018, the weighted-average exercise price and remaining contractual life of the outstanding share purchase warrants were $0.10 and 2.35 years, respectively.

 

Options

 

Effective September 8, 2014, the Company adopted the 2014 Stock Option Plan (the "2014 Plan"). The 2014 Plan allows the Company to grant awards to its officers, directors and employees.  In addition, the Company may grant awards to individuals who act as consultants to the Company, so long as those consultants do not provide services connected to the offer or sale of the Company’s securities in capital raising transactions and do not directly or indirectly promote or maintain a market for the Company’s securities.

 

The Company reserved a total of 13,200,000 shares of its common stock for issuance under the 2014 Plan. However, under the terms of the 2014 Plan, at any time after January 1, 2015, the Company can increase the number of authorized shares available under the 2014 Plan up to 15% of the total number of shares of common stock then outstanding.

 

A summary of options is as follows:

 

September 30, 2018

December 31, 2017

Options, beginning

2,500,000

6,300,000

Options, forfeited

--

(3,800,000)

Options, outstanding

2,500,000

2,500,000

Options, exercisable

2,500,000

2,000,000

 

Details of options outstanding as at September 30, 2018 are as follows:

 

Exercise price

Grant date

Number of options

Granted and exercisable

$0.10

September 8, 2014

2,500,000

 

 

2,500,000

 

At September 30, 2018, the remaining contractual life of the outstanding options to purchase the shares of the Company’s common stock was 2.94 years.

 

On September 8, 2014, the Company granted options to acquire up to 2,500,000 shares of the Company’s common stock to a Director (the “Options”). These Options were issued under the 2014 Plan.  The Options vested at a rate of 500,000 shares per year, beginning September 1, 2014, and had initial exercise price of $0.50 per share. The Options expire five years after the vesting date thereof. On December 17, 2015, the Options were repriced to $0.10 in accordance with the provisions under the Stock Option Agreement with the Director.

 

The grant date fair value of these options was $953,885. During the nine-month period ended September 30, 2018, the Company recognized $32,684 as stock-based compensation (2017 - $79,118).

 

The fair value was determined using the Black-Scholes Option pricing model at the grant date using the following assumptions:

 

 

At September 8, 2014

Expected Option Life

5 years

Average Risk-Free Interest Rate

1.98%

Expected Dividend Yield

Nil

Average Expected Stock Price Volatility

118%