Stock Options Awards and Grants

3 Months Ended

Mar. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Options Awards and Grants

11. STOCK OPTIONS AWARDS AND GRANTS

A summary of the stock option activity and related information for the 2016 Plan from August 17, 2015 (date of inception) to March 31, 2017 is as follows:

	Shares		Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at August 17, 2015 (date of inception)	-
Grants	-
Exercised	-
Canceled	-
Outstanding at December 31, 2015	-
Grants		1,000,000	$	0.01		5.00	$	385,833
Exercised		-
Canceled		-
Outstanding at December 31, 2016		1,000,000	$	0.01		4.19	$	385,833
Grants		-
Exercised		-
Canceled		-
Outstanding at March 31, 2017		1,000,000	$	0.01		3.95		385,833
Vested and expected to vest at March 31, 2017		-
Exercisable at March 31, 2017		1,000,000	$	0.01		3.95	$	385,833

The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on options with an exercise price less than the Company’s estimated market stock price of $0.3958 as of March 31, 2016, 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 model with a volatility figure derived from an index of historical stock prices of comparable entities until sufficient data exists to estimate the volatility using the Company’s own historical stock prices. Management determined this assumption to be a more accurate indicator of value.

The Company accounts for the expected life of options based on the contractual life of options for non-employees and for non-statutory options granted to employees. For incentive options granted to employees, the Company accounts for the expected life in accordance with the “simplified” method, which is used for “plain-vanilla” options, as defined in the accounting standards codification. The risk-free interest rate was determined from the implied yields of U.S. Treasury zero-coupon bonds with a remaining life consistent with the expected term of the options. The fair value of stock-based payment awards was estimated using the Black-Scholes pricing model.

The following table presents information related to stock options at March 31, 2017:

Options Outstanding				Options Exercisable
				Weighted
				Average	Exercisable
Exercise		Number of		Remaining Life	Number of
Price		Options		In Years	Options
$	0.01		1,000,000	3.95		-

As of March 31, 2017, there was no unrecognized compensation expense.