Galaxy Gaming, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

STOCK WARRANTS OPTIONS AND GRANTS

STOCK WARRANTS OPTIONS AND GRANTS

3 Months Ended

Mar. 31, 2016

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

NOTE 15. STOCK WARRANTS, OPTIONS AND GRANTS

Stock options. For the three months ended March 31, 2016 and 2015, we issued 112,500 and 187,500 stock options, respectively. Stock options issued to members of our Board of Directors were 75,000 and 50,000 for the three months ended March 31, 2016 and 2015, respectively. Stock options issued to independent contractors were 37,500 and 37,500 for the three months ended March 31, 2016 and 2015, respectively.

During the three months ended March 31, 2015, we issued 100,000 stock options to an employee, with a vesting period of three years. The strike price was equal to the stock price at the date of the grant.

All stock options granted for the three months ended March 31, 2016 and 2015 were calculated to have fair values of $16,348 and $17,418, respectively, using the Black-Scholes option pricing model with the following assumptions:

	Options Issued Three Months Ended March 31, 2016
Dividend yield		0	%
Expected volatility		89	%
Risk free interest rate		1.21	%
Expected life (years)		5.00

A summary of stock option activity is as follows:

	Common Stock Options		Weighted Average Exercise Price
Outstanding – January 1, 2015		381,250	$	0.36
Issued		675,000		0.23
Exercised		—		—
Expired		—		—
Outstanding – December 31, 2015		1,056,250	$	0.28
Issued		112,500		0.22
Exercised		—		—
Expired		—		—
Outstanding – March 31, 2016		1,168,750	$	0.27
Exercisable –March 31, 2016		337,500	$	0.19

Share based compensation. The cost of all stock options issued have been classified as share based compensation for the three months ended March 31, 2016 and 2015, respectively. Total share based compensation was $20,471 and $18,870 for the three months ended March 31, 2016 and 2015, respectively.