NOTE 14. STOCK OPTIONS

On May 10, 2018, the Board ratified and confirmed the 2014 Equity Incentive Plan (the “2014 Plan”). The 2014 Plan is a broad-based plan under which 5,550,750 shares of our common stock are authorized for issuance for awards, including stock options, stock appreciation rights, restricted stock, and cash incentive awards to members of our Board, executive officers, employees and independent contractors. As of March 31, 2019, 478,301 shares remained available for issuance as new awards under the 2014 Plan.

Stock options. During the three months ended March 31, 2019 and 2018, we issued 150,000 and 145,000 options to purchase our common stock, respectively, to members of our Board, executive officers, employees and independent contractors.  The fair value of all stock options granted for the three months ended March 31, 2019 and 2018 was determined to be $171,985 and $98,333, respectively, using the Black-Scholes option pricing model with the following assumptions:

On February 21, 2019, we entered into Amendment #1 to the employment agreement dated July 27, 2017 (the “Employment Agreement”) with Todd Cravens (“Amendment #1”), our President and Chief Executive Officer.  In connection with the Employment Agreement, we agreed to grant to Mr. Cravens an option to purchase an 150,000 shares of our common stock (the “2020 Option”) with a strike price equal to the price per share of our common stock as reported on OTC Markets on August 1, 2020 (or the nearest trading date thereafter), which option will vest on August 1, 2020 (or the nearest trading date thereafter), provided that Mr. Cravens is a full-time employee on August 1, 2020,  Among other things, Amendment #1 provided that the 2020 Option vest in full in the event of termination following a change of control and that the exercise price of the 2020 Option be set at $1.90 per share, the closing price of our common stock on February 21, 2019.

A summary of stock option activity is as follows:

A summary of unvested stock option activity is as follows:

As of March 31, 2019, our unrecognized stock-based compensation expense associated with the stock options issued was $561,020, which will be amortized over a weighted-average of 2.02 years.