2007 annual report aveiro investment corp. - First West Properties

NOTES TO THE FINANCIAL STATEMENTS June 30, 2007 and 2006
11. STOCK OPTIONS (continued)
Options outstanding at June 30, 2007 consist of the following:
42 | Aveiro Investment Corp. | 2007 Annual Report
Weighted average
Exercise Number remaining Number
price Outstanding contractual life exercisable
$ 1.00 1,345,000 9.96 years 446,668
The fair value per option granted was $0.43. The compensation expense related to stock options granted under the Stock
Option Plan for the year ended June 30, 2007 amounted to $249,207. The compensation expense was determined based
on the fair value of the stock options at the date of grant using the Black-Scholes option pricing model with the following
assumptions:
Expected option life 10 years
Risk-free interest rate 4.62 %
Dividend yield Nil
Expected volatility 20 %
12. WARRANTS
In conjunction with the company’s private placement of 11,430,000 Common Shares, 239,067 warrants to acquire 239,067
Common Shares were issued to agents of the Company as part of their commission compensation package. These warrants
vested immediately and expire December 31, 2007.
The following table summarizes the warrants outstanding at June 30, 2007:
2007 2006
Weighted Weighted
Number of average Number of average
Warrants exercise price Warrants exercise price
Outstanding, beginning of year – $ – – $ –
Granted 239,067 $ 1.00 – $ –
Outstanding, end of year 239,067 $ 1.00 – $ –