Warrants and Options

9 Months Ended

Sep. 30, 2016

Other Liabilities Disclosure [Abstract]

Warrants and Options

NOTE 9 - WARRANTS AND OPTIONS

During the year ended December 31, 2015, the Company granted 3,050,000 warrants to purchase shares of Common Stock of which all have a 1-year exercise term, of which 385,000 remain outstanding at September 30, 2016. During the nine months ended September 30, 2016, 35,000 warrants were issued. The Company valued all warrants utilizing a Black-Scholes option-pricing model and the fair value was recorded as additional paid-in capital.

The following is a summary of the Company’s warrant activity as of September 30, 2016:

	Warrants		Weighted Average Exercise Price
Outstanding - December 31, 2014	4,200,000	$	1.50
Granted	3,050,000		1.50
Exercised	-		-
Forfeited	(4,200,000)		1.50
Outstanding – December 31, 2015	3,050,000	$	1.50
Exercisable – December 31, 2015	3,050,000	$	1.50
Granted	35,000	$	1.50
Exercised	-		-
Forfeited	(2,700,000)	$	1.50
Outstanding – September 30, 2016	385,000	$	1.50
Exercisable – September 30, 2016	385,000	$	1.50

Warrants outstanding and exercisable at September 30, 2016 are as follows:

Warrants Outstanding				Warrants Exercisable
	Exercise Price	Number Outstanding	Weighted Average Remaining Contractual Life (in Years)	Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$	1.50	150,000	0.07 years	$	1.50		150,000		$	1.50
$	1.50	100,000	0.14 years	$	1.50		100,000		$	1.50
$	1.50	100,000	0.20 years	$	1.50		100,000		$	1.50
$	1.50	15,000	0.57 years	$	1.50		15,000		$	1.50
$	1.50	20,000	0.65 years	$	1.50		20,000		$	1.50

Warrant activity is as follows:

Warrants issued during the second quarter of 2016, totaled 35,000.

Warrants issued during 2015, totaling 650,000, expired during the first quarter of 2016.

Warrants issued during 2015, totaling 1,300,000, expired during the second quarter of 2016.

Warrants issued during 2015, totaling 750,000, expired during the third quarter of 2016.

Warrants issued during 2014, totaling 4,200,000, expired during 2015.

Effective July 17, 2015, 200,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year.

Effective August 12, 2015, 25,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year.

Effective August 27, 2015, 300,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year.

Effective September 28, 2015, 250,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year.

Effective October 26, 2015, 150,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year.

Effective November 20, 2015, 100,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year.

Effective December 12, 2015, 100,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year.

Effective April 25, 2016, 15,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year.

Effective May 23, 2016, 20,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year.

The following is a summary of the Company’s stock options activity:

	Options		Weighted Average Exercise Price
Granted – 2015	265,000	$	1.00
Exercised – 2015	(50,000)		0.001
Forfeited – 2015	(150,000)		1.00
Outstanding – December 31, 2015	370,000	$	1.00
Exercisable – December 31, 2015	230,000	$	1.00
Granted	-	$	-
Exercised	-		-
Forfeited	-		-
Outstanding – September 30, 2016	370,000	$	1.00
Exercisable – September 30, 2016	265,000	$	1.00

Options outstanding and exercisable at September 30, 2016 are as follows:

Options Outstanding							Options Exercisable
	Range of Exercise Price		Number Outstanding		Weighted Average Remaining Contractual Life (in Years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$		1.00		35,000		1.34 years	$	1.00		35,000		$	1.00
$		1.00		10,000		1.41 years	$	1.00		10,000		$	1.00
$		1.00		10,000		2.24 years	$	1.00		10,000		$	1.00
$		1.00		50,000		7.17 years	$	1.00		50,000		$	1.00
$		1.00		10,000		8.31 years	$	1.00		10,000		$	1.00
$		1.00		100,000		8.58 years	$	1.00		100,000		$	1.00
$		1.00		40,000		8.70 years	$	1.00		10,000		$	1.00
$		1.00		15,000		8.91 years	$	1.00		15,000		$	1.00
$		1.00		100,000		8.98 years	$	1.00		25,000		$	1.00

The Company’s stock option activity is as follows:

Effective November 2, 2010, the Board of Directors of the Company granted 50,000 non-statutory stock options to a current consultant at an exercise price of $.001 per share with the vesting date of November 2, 2013 and an expiration date of November 2, 2016. These options were exercised on August 7, 2015.

Effective February 1, 2013, the Board of Directors of the Company granted 20,000 non-statutory stock options to a current consultant at an exercise price of $1.00 per share with the vesting date of February 1, 2013 and an expiration date of February 1, 2018.

Effective February 1, 2013, the Board of Directors of the Company granted 5,000 non-statutory stock options to a current consultant at an exercise price of $1.00 per share with the vesting date of February 1, 2013 and an expiration date of February 1, 2018.

Effective February 1, 2013, the Board of Directors of the Company granted 10,000 non-statutory stock options to a current consultant at an exercise price of $1.00 per share with the vesting date of February 1, 2013 and an expiration date of February 1, 2018.

Effective March 1, 2013, the Board of Directors of the Company granted 10,000 non-statutory stock options to a current consultant at an exercise price of $1.00 per share with the vesting date of March 1, 2013 and an expiration date of March 1, 2018.

Effective December 27, 2013, the Board of Directors of the Company granted 10,000 non-statutory stock options to a current consultant at an exercise price of $1.00 per share with the vesting date of December 27, 2013, and an expiration date of December 27, 2018.

Effective January 1, 2015, the Board of Directors of the Company granted 200,000 non-statutory stock options to a then current employee at an exercise price of $1.00 per share with 50,000 of the shares vested on January 1, 2016 and the additional 75% of the shares exercisable on each of the next succeeding three anniversaries of January 1. The 50,000 vested stock options remain outstanding, while the 150,000 non-vested options were forfeited through a voluntary resignation on September 4, 2015.

Effective January 23, 2015, the Board of Directors of the Company granted 10,000 non-statutory stock options to a current consultant at an exercise price of $1.00 per share with the vesting date of January 23, 2015, and an expiration date of January 23, 2025.

Effective April 30, 2015, the Board of Directors of the Company granted 100,000 non-statutory stock options to a current consultant at an exercise price of $1.00 per share with the vesting date of April 30, 2015, and an expiration date of April 30, 2025.

Effective June 15, 2015, the Board of Directors of the Company granted 40,000 non-statutory stock options to a current employee at an exercise price of $1.00 per share with 25% of the shares exercisable on June 15, 2016 and an additional 25% exercisable on each of the next succeeding three anniversaries of June 15, on a cumulative basis, so that the option, or any unexercised portion, shall be fully exercisable on and after June 15, 2019. The stock options have an expiration date of June 15, 2025.

Effective August 28, 2015, the Board of Directors of the Company granted 15,000 non-statutory stock options to a current consultant at an exercise price of $1.00 per share with the vesting date of August 28, 2015, and an expiration date of August 28, 2025.

Effective September 22, 2015, the Board of Directors granted 100,000 stock options deemed an Incentive Stock Option (ISO) to a current employee, at an exercise price of $1.00 per share with 25% exercisable on September 22, 2016; and an additional 25% exercisable on each of the next succeeding three anniversaries of September 22nd, on a cumulative basis, so that the Option, or any unexercised portion, shall be fully exercisable on and after September 22, 2019. The stock options have an expiration date of September 22, 2025.

The Company valued these options utilizing a Black-Scholes option-pricing model and the fair value was recorded as additional paid-in capital. Total expense related to stock options was $44,000 for the nine months ended September 30, 2016.