Stock Award Programs (Tables)

6 Months Ended

Jun. 30, 2019

Share-based Payment Arrangement [Abstract]

Schedule of nonvested restricted stock shares activity

	2019			2018
NON-VESTED AWARDS	(Unaudited)
Non-vested awards outstanding, January 1,		300,000			-
Granted (+)		662,740	(1)		980,851	(1)
Cancelled (-)		50,000	(2)		-
Vested (-)		238,572	(3)		-
Non-vested awards outstanding, June 30,		674,168			980,851
Weighted-average remaining contractual life (in years)		6.77			1.1
Unamortized RSA compensation expense	$	274,412		$	356,082
Aggregate intrinsic value of RSAs non-vested, June 30	$	283,151		$	539,468
Aggregate intrinsic value of RSAs vested, June 30	$	-		$	-

(1) During the six month period ended June 30, 2019, the Company granted 662,740 RSAs, of which i) 238,572 of RSAs were awarded to members of the Company’s board of directors as part of their annual board retainer fee that had a grant date fair value of $100,200 and vested during the period, and ii) 424,168 of RSAs were awarded to key employees tied to the attainment of certain financial goals as outlined by the Company’s Compensation Committee of the Board of Directors that had a grant date fair value of $254,501. During the six month period ended June 30, 2018, the Company granted 980,851 RSAs, of which i) 300,000 of RSAs were awarded as part of additional compensation plan to align key employees with the Company’s long term financial goals, and ii) 680,851 were awarded to members of the Company’s board of directors as part of their annual board retainer fee and vested during the period.

(2) There were 50,000 RSAs that were cancelled during the six month period ended June 30, 2019. There were no RSAs cancelled or expired during the six month period ended June 30, 2018, respectively.

(3) During the six month period ended June 30, 2019, 238,572 RSAs vested during the period.

Schedule of nonvested share activity

	2019					2018
				Weighted					Weighted
				Average					Average
				Grant Date					Grant Date
NON-VESTED AWARDS	Shares			Fair Value		Shares			Fair Value
	(Unaudited)
Non-vested balances, January 1,		2,067,503		$	0.36		2,685,004		$	0.35
Granted (+)		25,000	(1)	$	0.15		-	(1)	$	0.00
Cancelled (-)		80,001	(2)	$	0.34		-	(2)	$	0.00
Vested/Exercised (-)		500,000		$	0.40		50,000	(3)	$	0.40
Non-vested balances, June 30,		1,512,502		$	0.34		2,635,004		$	0.35

Schedule of outstanding and exercercisable share activity

	2019					2018
				Weighted					Weighted
				Average					Average
OUTSTANDING AND EXERCISABLE AWARDS	Shares			Exercise Price		Shares			Exercise Price
	(Unaudited)
Awards outstanding, January 1,		4,013,334		$	0.58		4,173,334		$	0.60
Granted (+)		25,000	(1)	$	0.41		-	(1)	$	0.00
Cancelled (-)		80,001	(2)	$	0.55		60,000	(2)	$	1.48
Exercised (-)		-			-		50,000	(3)	$	0.44
Awards outstanding, June 30,		3,958,333		$	0.58		4,063,334		$	0.00
Awards vested and expected to vest,
June 30,		3,483,356		$	0.59		3,481,526		$	0.58
Awards outstanding and exercisable,
June 30,		2,445,831		$	0.59		1,438,330		$	0.58

(1) During the six month period ended June 30, 2019, there were non-qualified stock option (NQSO) grants of 25,000 granted to a non-employee as compensation for investor relations services. This stock award grant was valued using a Black-Scholes model that assumed a 1-year vesting period, 2-year option term, a risk free rate of 2.5%, volatility of 64.6%, no assumed dividend yield, and a forfeiture rate estimate of 1.2%. During the six month period ended June 30, 2018, there were no grants of non-qualified stock options.

(2) During the six month period ended June 30, 2019, there were 80,001 NQSOs that were unvested and cancelled related to voluntary employee terminations.

(3) The total intrinsic value of stock options exercised during the six month ended June 30, 2018 was approximately $5,500.

Schedule of share-based compensation

	THREE MONTHS ENDED				SIX MONTHS ENDED
	JUNE 30				JUNE 30
	2019		2018		2019		2018
	(Unaudited)
Restricted stock compensation expense	$	180,863	$	118,034	$	197,600	$	167,918
Non-qualified option stock compensation expense		103,248		77,900		175,777		152,420
Total share-based compensation before taxes	$	284,111	$	195,934	$	373,377	$	320,338