Quarterly report pursuant to Section 13 or 15(d)

Options and Warrants Disclosure

v3.10.0.1
Options and Warrants Disclosure
9 Months Ended
Sep. 30, 2018
Notes  
Options and Warrants Disclosure

NOTE 13 - OPTIONS AND WARRANTS

 

On October 29, 2012, our stockholders approved the 2012 Stock Incentive Plan (the “Plan”) that governs equity awards to our management, employees, directors and consultants. On November 7, 2013, our stockholders approved an amendment to the Plan which increased the total authorized amount of common stock issuable under the Plan from 3,000,000 to 6,000,000 shares.  On October 12, 2018, the Company filed a Certificate of Change to the Company’s Articles of Incorporation with the Nevada Secretary of State increasing the Company’s number of authorized shares from 300,000,000 shares of common stock, par value $0.001 to 600,000,000 shares of common stock, par value $0.001 effective the date of filing.

 

Options:

 

During the three months ended September 30, 2018, the Company granted 400,000 employee options to purchase shares of common stock at an exercise price of $0.033 per share, with grant date fair values of $0.033. These options vest in equal annual increments over three years and expire ten years from the grant date. Also, during the three months ended September 30, 2018, the Company granted an officer 500,000 options to purchase shares of common stock at an exercise price of $0.04, with a grant date fair value of $0.04. These options vested in full on August 2, 2018 and expire ten years from the grant date.

 

The following is a summary of the status of the Company’s stock options as of September 30, 2018:

 

Number of Options

Weighted-Average

Exercise Price

Weighted Average

Remaining

Contractual Life

(in years)

Outstanding at December 31, 2017

2,067,500

$0.309

7.40

Granted

900,000

$0.037

9.84

Exercised

--

--

--

Forfeited/Cancelled

(1,675,000)

$0.337

--

Outstanding at September 30, 2018

1,292,500

$0.094

9.18

Exercisable at September 30, 2018

762,500

$0.103

8.98

 

Stock-based compensation expense of $23,636 and $25,366 was recognized during the three and nine months ended September 30, 2018, respectively, as amortization of various options over the life of the related vesting periods.  The increased amount is due to the immediate vesting of 500,000 options issued to an officer of the Company in August of 2018.  Stock-based compensation expense of $5,876 and $37,244 was recognized during the three and nine months ended September 30, 2017, respectively, as amortization of various options over the life of the related vesting periods, and an additional $14,583 was recorded as salary paid in stock in 2017.

 

Warrants:

 

The following is a summary of the status of the Company’s stock warrants as of September 30, 2018:

 

Number of Warrants

Weighted-Average

Exercise Price

Weighted Average

Remaining

Contractual Life

(in years)

Exercisable at December 31, 2017

1,621,939

$0.217

2.35

Outstanding at December 31, 2017

1,671,939

$0.225

2.06

Granted

--

--

--

Exercised

--

--

--

Forfeited/Cancelled

(150,000)

$0.500

--

Outstanding at September 30, 2018

1,521,939

$0.198

1.48

Exercisable at September 30, 2018

1,521,939

$0.198

1.48