Quarterly report pursuant to Section 13 or 15(d)

I. STOCK OPTIONS AND WARRANTS

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I. STOCK OPTIONS AND WARRANTS
9 Months Ended
Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
STOCK OPTIONS AND WARRANTS

NOTE I – STOCK OPTIONS AND WARRANTS

 

Employee Stock Options

 

The Company maintains an equity incentive plan, (the “Plan”). The Plan was established in 2010 as an incentive plan for officers, employees, non-employee directors, prospective employees and other key persons. It is anticipated that providing such persons with a direct stake in the Company’s welfare will assure a better alignment of their interests with those of the Company and its stockholders.

 

The following table summarizes the changes in options outstanding and the related prices for the shares of the Company’s common stock issued to employees of the Company under the Plan as of September 30, 2018.

 

Options Outstanding   Options Exercisable  
Exercise Prices   Number
Outstanding
    Weighted Average
Remaining
Contractual Life
(Years)
    Weighted Average
Exercise Price
    Number
Exercisable
    Weighted Average
Exercise Price
 
$0.01 - $0.15       2,000,000       8.26       0.14       2,000,000       0.14  
$0.16 - $0.99       1,282,399       4.83       0.18       1,117,564       0.18  
        3,282,399       6.92       0.16       3,117,564       0.16  

 

Transactions involving stock options issued to employees are summarized as follows:

 

    Number of
Shares
    Weighted Average
Price Per Share
 
Outstanding at January 1, 2017     2,832,725     $ 0.18  
Granted     3,000,000       0.14  
Exercised            
Cancelled or expired     (1,456,251 )     0.17  
Outstanding at December 31, 2017     4,376,474     $ 0.16  
Granted            
Exercised            
Cancelled or expired     (1,094,075 )     0.14  
Outstanding at September 30, 2018     3,282,399     $ 0.16  

  

There were zero and 3,000,000 options granted, 1,094,075 and 280,925 options cancelled or expired and zero options exercised during the nine months ended September 30, 2018 and 2017, respectively. Total stock-based compensation expense in connection with options granted to employees recognized in the condensed consolidated statements of operations for the three and nine months ended September 30, 2018 and 2017 was $1,530 and $2,343, respectively, and $4,590 and $320,545, respectively.

 

Warrants

 

The following table summarizes the changes in warrants outstanding and the related prices for the shares of the Company’s common stock issued to non-employees of the Company.

 

        Warrants Outstanding             Warrants Exercisable  
  Exercise Prices     Number
Outstanding
    Weighted Average
Remaining
Contractual Life
(Years)
      Weighted Average
Exercise Price
    Number
Exercisable
    Weighted Average
Exercise Price
 
$ 0.20     250,000     3.02       0.20     250,000     0.20  

 

Transactions involving warrants are summarized as follows:

 

    Number of
Shares
    Weighted Average
Price Per Share
 
Outstanding at January 1, 2017     300,000     $ 0.20  
Issued            
Exercised            
Cancelled or expired     (50,000 )     0.18  
Outstanding at December 31, 2017     250,000       0.20  
Issued            
Exercised            
Cancelled or expired            
Outstanding at September 30, 2018     250,000     $ 0.20  

 

There were no warrants granted, exercised, cancelled or forfeited during the nine months ended September 30, 2018 and 2017.