Shareholders' Equity

9 Months Ended

Sep. 30, 2016

Equity [Abstract]

Shareholders' Equity

NOTE 8 – SHAREHOLDERS’ EQUITY

At December 31, 2015, there were 29,576,998 shares of common stock issued and outstanding and no preferred shares outstanding. During the nine months ended September 30, 2016, the Company issued a total of 20,000 shares of its common stock to two of its employees. The shares vested upon grant. The fair value of the shares on the date of grant was $11,000, which was recorded as stock compensation expense on the date of grant.

In November 2015, the Company entered into a four year employment agreement with one of its employees in which the employee was granted 500,000 shares of the Company’s common stock. The fair value of the shares on the date of grant was $400,000, which is being amortized ratably over the four year service period. The amount amortized as stock based compensation during the nine months ended September 30, 2016 was $75,000. The shares vest equally in six month periods over the four years, with the first tranche of 62,500 shares vesting in May 2016. A total of 62,500 shares were issued under the agreement during the nine months ended September 30, 2016.