Stock Options

9 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

STOCK OPTIONS

NOTE 13 – STOCK OPTIONS

Our stockholders approved our 2014 Equity Incentive Plan in June 2014 (the "2014 Plan"), our 2015 Equity Incentive Plan in December 2015 (the "2015 Plan"), our 2016 Equity Incentive Plan ("2016 Plan") in October 2016, our 2017 Equity Incentive Plan in December 2016 ("2017 Plan" and together with the 2014 Plan, 2015 Plan, 2016 Plan, the "Prior Plans") and our 2018 Equity Incentive Plan in June 2018 (the "2018 Plan", and together with the Prior Plans, the "Plans"). The Prior Plans are identical, except for number of shares reserved for issuance under each. As of December 31, 2018, the Company had granted an aggregate of 60,600,000 securities under the Plans, with 3,900,000 shares available for future issuances. 

The Plans provide for the grant of incentive stock options to our employees and our parent and subsidiary corporations' employees, and for the grant of non-statutory stock options, stock bonus awards, restricted stock awards, performance stock awards and other forms of stock compensation to our employees, including officers, consultants and directors. The Prior Plans also provide that the grant of performance stock awards may be paid out in cash as determined by the committee administering the Prior Plans.

During the nine months ended September 30, 2019, the Company granted ten-year options outside of our Plans to purchase up to 250,000 shares of the Company's common stock for advisory services. The fair value of $14,000, was determined using the Black-Scholes option pricing model, assuming approximately 2.43% risk-free interest, 0% dividend yield, 114% volatility, and expected life of ten years and will be charged to operations over the vesting terms of the options.

The summary terms of the issuances are as follows:

Exercise Price		Number of Options		Vesting Terms
$	0.075		250,000	Immediately

Stock options outstanding and exercisable on September 30, 2019 are as follows:

Exercise Price	Number of Options		Remaining Life In Years		Number of Options Exercisable
$0.01 – 0.25		13,306,786		8.75		13,306,786
0.26 - 0.50		1,939,631		7.76		1,939,631
0.51 – 0.75		1,820,112		7.18		1,820,112
0.76 - 1.00		9,926,072		7.21		9,926,072
1.01 - 2.00		629,164		7.21		629,164
		27,621,765				27,621,765

A summary of the stock option activity for the nine months ended September 30, 2019 is as follows:

	Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 31, 2018		27,371,765	$	0.50		8.42	$	-
Grants		250,000		0.075		9.73		-
Exercised		-		-		-		-
Forfeiture/Cancelled		-		-		-		-
Outstanding at September 30, 2019		27,621,765		0.50		8.17	$	-
Exercisable at September 30, 2019		27,621,765	$	0.50		8.17	$	-

The aggregate intrinsic value of outstanding stock options was $0, based on options with an exercise price less than the Company's stock price of $0.004 as of September 30, 2019, which would have been received by the option holders had those option holders exercised their options as of that date.

Option valuation models require the input of highly subjective assumptions. The fair value of stock-based payment awards was estimated using the Black-Scholes option pricing model with a volatility figure derived from historical data. The Company accounts for the expected life of options based on the contractual life of options for non-employees.

The fair value of all options that were vested for the nine months ended September 30, 2019 and 2018 was $14,000 and $459,834, respectively. There was no unrecognized compensation expense at September 30, 2019 that will be expensed in future periods.