Stock Award Programs (Tables)

9 Months Ended

Sep. 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 (-)		405,240	(3	)		680,851	(1	)
Non-vested awards outstanding, September 30,		507,500				300,000
Weighted-average remaining contractual life (in years)		8.24				0.8
Unamortized RSA compensation expense	$	182,586			$	153,418
Aggregate intrinsic value of RSAs non-vested, September 30	$	157,325			$	138,000
Aggregate intrinsic value of RSAs vested, September 30	$	171,867			$	320,000

(1) During the nine month period ended September 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 nine month period ended September 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 nine month period ended September 30, 2019. There were no RSAs cancelled or expired during the nine month period ended September 30, 2018.

(3) During the nine month period ended September 30, 2019, 405,240 RSAs vested.

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		125,000	(1	)	$	0.25
Cancelled (-)		80,001	(2	)	$	0.34		50,000	(2	)	$	0.32
Vested/Excercised (-)		837,497			$	0.34		312,500	(3	)	$	0.26
Non-vested balances, September 30,		1,175,005			$	0.37		2,447,504			$	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		125,000	(1	)	$	0.50
Cancelled (-)		530,000	(2	)	$	0.55		110,000	(2	)	$	1.11
Exercised (-)		-				-		50,000	(3	)	$	0.44
Awards outstanding, September 30,		3,508,334			$	0.59		4,138,334			$	0.58
Awards vested and expected to vest,
September 30,		3,165,153			$	0.59		3,547,472			$	0.58
Awards outstanding and exercisable,
September 30,		2,333,329			$	0.58		1,690,830			$	0.56

(1) During the nine month period ended September 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 nine month period ended September 30, 2018, there were non-qualified stock option (NQSO) grants of 125,000, as further described below:

● Employees. During the nine month period ended September 30, 2018, the Company granted 75,000 non-qualified stock options as part of an additional compensation to align a key employee with the Company’s long term financial goals. This stock award grant was valued using a Black-Scholes model that assumed a 3-year vesting period, 5-year option term, a risk free rate of 2.7%, volatility of 66.7%, no assumed dividend yield, and a forfeiture rate estimate of 4.8%.

● Non-Employees. During the nine month period ended September 30, 2018, the Company granted 50,000 non-qualified stock options as payment for a portion of the annual retainer paid to its public investor relations firm. 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 2.6%, volatility of 69.5%, no assumed dividend yield, and a forfeiture rate estimate of 10.3%.

(2) During the nine month period ended September 30, 2019, there were 530,000 NQSOs that were cancelled, of which 80,001 were unvested, related to voluntary employee terminations.

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

Schedule of share-based compensation

	THREE MONTHS ENDED				NINE MONTHS ENDED
	SEPTEMBER 30				SEPTEMBER 30
	2019		2018		2019		2018
	(Unaudited)
Restricted stock compensation expense	$	91,826	$	202,664	$	289,426	$	370,582
Non-qualified option stock compensation expense		71,625		70,073		247,402		222,493
Total share-based compensation before taxes	$	163,451	$	272,737	$	536,828	$	593,075