Quarterly report pursuant to Section 13 or 15(d)

STOCK WARRANTS OPTIONS AND GRANTS

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STOCK WARRANTS OPTIONS AND GRANTS
 6 Months Ended
Jun. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
STOCK WARRANTS OPTIONS AND GRANTS

NOTE 15. STOCK WARRANTS, OPTIONS AND GRANTS

 

Stock options. For the six months ended June 30, 2016 and 2015, we issued 277,500 and 300,000 stock options, respectively. Stock options issued to members of our Board of Directors were 150,000 and 125,000 for the six months ended June 30, 2016 and 2015, respectively. Stock options issued to independent contractors were 75,000 for each of the six month periods ended June 30, 2016 and 2015, respectively.  

 

During the six months ended June 30, 2016, we issued 90,000 stock options to two employees, with a vesting period of three years.  The strike price was equal to the stock price at the date of the grant. During the six months ended June 30, 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 six months ended June 30, 2016 and 2015 were calculated to have fair values of $46,218 and $48,027, respectively, using the Black-Scholes option pricing model with the following assumptions:

 

 

 

 

Options Issued

Six Months Ended

June 30, 2016

 

Dividend yield

 

 

0%

 

Expected volatility

 

89% - 90%

 

Risk free interest rate

 

1.01% - 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

 

 

315,000

 

 

 

0.29

 

Exercised

 

 

—

 

 

 

—

 

Expired

 

 

—

 

 

 

—

 

Outstanding – June 30, 2016

 

 

1,371,250

 

 

$

0.28

 

Exercisable –June 30, 2016

 

 

990,000

 

 

$

0.24

 

 

Share based compensation. The cost of all stock options issued has been classified as share based compensation for the six months ended June 30, 2016 and 2015, respectively. Total share based compensation was $49,931 and $54,942 for the six months ended June 30, 2016 and 2015, respectively.