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4. STOCK BASED COMPENSATION
 3 Months Ended
Mar. 31, 2019
Notes  
4. STOCK BASED COMPENSATION

4.     STOCK BASED COMPENSATION

 

The following table summarizes the Company’s employee stock option activity for the three months ended March 31, 2019:

 

Schedule of Employee Stock Option Activity

 

Options

 

Weighted average

exercise price

 

Weighted average

remaining

contractual life (yrs)

 

Aggregate

Intrinsic value

Options outstanding, December 31, 2018

2,370,834

 

$0.010

 

7.45

 

 

 

 

 

 

 

 

 

 

Options exercisable, December 31, 2018

1,126,167

 

$0.005

 

6.39

 

$ 34,623

 

 

 

 

 

 

 

 

Options issued during the period

480,000

 

$0.003

 

 

 

 

 

 

 

 

 

 

 

 

Options expired during the period

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

Options exercised during the period

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

Options outstanding March 31, 2019

2,850,834

 

$0.009

 

6.11

 

 

 

 

 

 

 

 

 

 

Options exercisable March 31, 2019

2,103,498

 

$0.006

 

5.37

 

$ 191,227

 

During the three months ended March 31, 2019, 480,000 nonqualified employee stock options were granted with an exercise price of $0.003 per option.  The options were valued using Black-Scholes option pricing model on the respective date of issuance and the fair value of the shares was determined to be $15,875 of which $15,875 was recognized as stock-based compensation expense for the three months ended March 31, 2019.  These stock options vested immediately upon grant (February 19, 2019) and will expire one year from the date of the grant.  

 

Total stock-based compensation expense for the three months ended March 31, 2019 was $17,931 of which $15,875 was related to options issued during the three months ended March 31, 2019 and $2,056 was related to options issued in prior years.  Stock-based compensation is measured at the grant date, based on the calculated fair value of the option, and is recognized as an expense on a straight-line basis over the requisite employee service period (generally the vesting period of the grant).  

 

The Black-Scholes option pricing model was used with the following weighted-average assumptions for options granted during the three   months ended March 31, 2019:

 

 

 

2019

Risk free interest rate

 

2.51 %

Expected lives (in years)

 

1   

Expected volatility

 

36 %

Dividend yield

 

0 %