Galaxy Gaming, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS (Tables)

STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS (Tables)

12 Months Ended

Dec. 31, 2016

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

	2016	2015
Dividend yield	0%	0%
Expected volatility	87% - 91%	84% - 85%
Risk free interest rate	1.01% - 1.93%	1.18% - 1.81%
Expected life (years)	5	5

Summary of Stock Option Activity

A summary of stock option activity is as follows:

	Common stock options			Weighted average exercise price		Aggregate intrinsic value		Weighted-average remaining contractual term (years)
Outstanding – December 31, 2015		1,056,250		$	0.28	$	316,875		4.08
Issued		540,000			0.38		—		—
Exercised		—			—		—		—
Expired		(100,000	)		0.20		—		—
Outstanding – December 31, 2016		1,496,250		$	0.32	$	385,017		3.57
Exercisable – December 31, 2016		1,367,361		$	0.32	$	354,083		3.53

Summary of Unvested Stock Option Activity

A summary of unvested stock option activity is as follows:

	Common stock options			Weighted average exercise price		Aggregate intrinsic value		Weighted-average remaining contractual term (years)
Unvested – December 31, 2015		250,000		$	0.26	$	81,000		4.58
Granted		540,000			0.38		—		—
Vested		(561,111	)		0.37		—		—
Forfeited or expired		(100,000	)		0.20		—		—
Unvested – December 31, 2016		128,889		$	0.34	$	30,933		3.99

Summary of Warrant Activity

A summary of warrant activity is as follows:

	Common stock warrants		Weighted average exercise price
Outstanding – December 31, 2015		—	$	—
Issued		1,965,780		0.30
Exercised		—		—
Expired		—		—
Outstanding – December 31, 2016		1,965,780	$	0.30
Exercisable – December 31, 2016		—	$	—

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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