2007 annual report aveiro investment corp. - First West Properties

NOTES TO THE FINANCIAL STATEMENTS June 30, 2007 and 2006
10. CONTRIBUTED SURPLUS
2007 2006
Balance, beginning of year $ 16,634 $ –
Forgiven amounts due to a former shareholder – 16,634
Stock based compensation 249,207 –
Stock based share issuance costs 17,618 –
Balance, end of year $ 283,459 $ 16,634
Contributed surplus arises as a result of recording the fair value of options and warrants granted during the year (see Notes
11 and 12). The fair value of the options and warrants is recorded to contributed surplus as the options and warrants vest.
Upon exercise, the proceeds received, as well as any balance previously recorded to contributed surplus, is credited to
share capital.
The amount due to a shareholder was forgiven on June 30, 2006 and has been credited to contributed surplus.
11. STOCK OPTIONS
The Company’s Stock Option Plan provides certain directors, offi cers, employees and consultants of the Company an
opportunity to purchase Class “A” voting common shares (“Common Shares”) and to benefi t from the appreciation thereof.
The number of options authorized by the board at June 30, 2007 is 1,348,000 to acquire 1,348,000 Common Shares.
Options vest and expire as set forth in the Option Agreements as determined at the time of granting the Option by the Board.
The exercise price at the date of granting approximates fair market value. The following table summarizes the stock options
outstanding at June 30, 2007:
2007 2006
Weighted Weighted
Number of average Number of average
Options exercise price Options exercise price
Outstanding, beginning of year – $ – – $ –
Granted 1,345,000 1.00 – –
Outstanding, end of year 1,345,000 $ 1.00 – $ –
Aveiro Investment Corp. | 2007 Annual Report | 41