Quarterly report pursuant to Section 13 or 15(d)

I. STOCK OPTIONS AND WARRANTS

v3.10.0.1
I. STOCK OPTIONS AND WARRANTS
 6 Months Ended
Jun. 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 June 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       8.51     $ 0.14       2,000,000     $ 0.14  
$ 0.16 - $0.99       1,307,399       4.98       0.20       1,127,399       0.20  
          3,307,399       7.12     $ 0.16       3,127,399     $ 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     (1,069,075 )     0.14  
Outstanding at June 30, 2018     3,307,399     $ 0.16  

 

There were zero and 3,000,000 options granted, 1,069,075 and zero options cancelled or expired and zero options exercised during the six months ended June 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 six months ended June 30, 2018 and 2017 was $1,531 and $3,516, respectively, and $3,061, and $318,202, 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       3.27     $ 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 June 30, 2018     250,000     $ 0.20  

 

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