Annual report pursuant to Section 13 and 15(d)

Share Based Payments and Stock Options

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Share Based Payments and Stock Options
12 Months Ended
Dec. 31, 2017
Share Based Payments and Stock Options [Abstract]  
SHARE BASED PAYMENTS AND STOCK OPTIONS
7. SHARE BASED PAYMENTS AND STOCK OPTIONS

 

On March 6, 2014, the Company’s Board of Directors (the “Board”) approved the 2014 Equity Incentive Plan (“2014 Plan) pursuant to which the Company may grant incentive, non-statutory options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units and other stock or cash awards to employees, nonemployee members of our Board, consultants and other independent advisors who provide services to the Company. The maximum shares of common stock which may be issued over the term of the plan shall not exceed 2,500,000 shares. Awards under this plan are made by the Board or a committee designated by the Board. Options under the plan are to be issued at the market price of the stock on the day of the grant except to those issued to holders of 10% or more of the Company’s common stock which is required to be issued at a price not less than 110% of the fair market value on the day of the grant. Each option is exercisable at such time or times, during such period and for such numbers of shares shall be determined by the plan administrator. However, no option shall have a term in excess of 5 years from the date of grant.

 

      2017  
  Total Shares available for issuance pursuant to the 2014 Plan     2,500,000  
  Options outstanding, December 31 2017     (2,083,500 )
  Total options exercised under 2014 Plan     (50,000 )
  Total shares issued pursuant to the 2014 Plan     (331,500 )
  Awards available for issuance under the 2014 Plan, December 31, 2017     35,000  

 

      2017     2016  
  Expected volatility     73.28% -96.92 %     141.26 %
  Expected dividends     None       None   
  Expected term     2.5 years        3 years   
  Risk-free rate     1.64%-1.70 %     2.0 %

  

  Options   Shares     Weighted-Average Exercise Price     Weighted- Average Remaining Contractual Term   Weighted-Average Grant Date Fair Value  
                         
  Outstanding at January 1, 2016     1,862,000     $ .60     3 years   $ .07  
  Granted     -       -              
  Exercised     -       -              
  Forfeited or expired     -       -              
  Outstanding at December 31, 2016     1,862,000       .60     2.26 years   $ .07  
  Vested and exercisable at December 31 2016     1,862,000     $ .60     2.26 years   $ .07  
                               
  Outstanding at January 1, 2017     1,862,000     $ .62              
  Granted     306,500     $ 1.85         $ .91  
  Exercised     (50,000 )   $ .60         $ .07  
  Forfeited or expired     (35,000 )   $ .60         $ .07  
  Outstanding at December 31, 2017     2,083,500     $ .78     1.74 years   $ .20  
  Vested and exercisable at December 31, 2017     1,926,832     $ .70     1.59 years        

 

Share-based payment expense to officers, directors and employees and the years ended December 31, 2017 and 2016 was $730,464 and $184,333, respectively.

 

Expense related to issuance of shares, options and warrants to consultants for the years ended December 31, 2017 and 2016 was $347,468 and $35,000, respectively.