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Note 4 - Summary of Significant Accounting Policies: (j) Stock-based Compensation (Policies)
3 Months Ended
Mar. 31, 2017
Policies  
(j) Stock-based Compensation

(j) Stock-Based Compensation

               

Stock-based compensation is accounted for at fair value in accordance with Accounting Standards Codification (“ASC”) Topic 718, “Compensation – Stock Compensation” (“ASC718”) and ASC 505-50, Equity – Based Payments to Non-Employees.

 

In addition to requiring supplemental disclosures, ASC 718 addresses the accounting for share-based payment transactions in which a company receives goods or services in exchange for (a) equity instruments of the company or (b) liabilities that are based on the fair value of the company’s equity instruments or that may be settled by the issuance of such equity instruments.  ASC 718 focuses primarily on accounting for transactions in which a company obtains employee services in share-based payment transactions.

 

In accordance with ASC 505-50, the Company determines the fair value of the stock based payment as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. If the fair value of the equity instruments issued is used, it is measured using the stock price and other measurement assumptions as of the earlier of either (1) the date at which a commitment for performance by the counterparty to earn the equity instrument is reached, or (2) the date at which the counterparty’s performance is complete.

 

 Options and warrants

 

The fair value of stock options and warrants is estimated on the measurement date using the Black-Scholes model with the following assumptions, which are determined at the beginning of each year and utilized in all calculations for that year:

 

                Risk-Free Interest Rate.

 

                We utilized the U.S. Treasury yield curve in effect at the time of grant with a term consistent with the expected term of       our awards. 

 

                Expected Volatility.

 

                We calculate the expected volatility based on a volatility index of peer companies as we did not have sufficient    historical market information to estimate the volatility of our own stock.

 

                Dividend Yield.

 

                We have not declared a dividend on its common stock since its inception and have no intentions of declaring a dividend     in the foreseeable future and therefore used a dividend yield of zero.

 

                Expected Term.

               

                The expected term of options granted represents the period of time that options are expected to be outstanding.  We            estimated the expected term of stock options by using the simplified method.  For warrants, the expected term        represents the actual term of the warrant.

 

                Forfeitures.

 

                Estimates of option forfeitures are based on our experience. We will adjust our estimate of forfeitures over the requisite     service period based on the extent to which actual forfeitures differ, or are expected to differ, from such estimates.    Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change          and will also impact the amount of compensation expense to be recognized in future periods.