Note 4 - Stock Options

3 Months Ended

Mar. 31, 2019

Notes

Note 4 - Stock Options

NOTE 4 - STOCK OPTIONS

As of March 31, 2020, the Company had outstanding stock options which have been granted periodically to individual employees and directors with no less than three years of continuous tenure with the Company.  On March 13, 2020, the Board of Directors canceled all 120,000 outstanding stock options that were granted on August 7, 2017 and due to expire on August 6, 2020.    In addition, the Board of Directors granted 180,000 options to employees. The new options have an exercise price of $0.40, a term of 5 years, and vest immediately.    The fair value of the options was determined using the Black-Scholes model using the following variables:   stock price of $0.40, volatility of 79.27%, expected term of 5 years with a forfeiture rate of 95%, and a discount factor of 0.72%. Share based compensation of $2,282 was recognized during the three month period ended March 31, 2020.

A summary of option activity during the three ended March 31, 2020 is as follows:

	Number Outstanding	Weighted-Average Exercise Price Per Share	Weighted-Average Remaining Life (Years)	Approximate Aggregate Intrinsic Value
Outstanding and Exercisable at December 31, 2019	120,000	$0.40	0.6	$1,200
Granted	180,000	$0.40	5.0
Cancelled	(120,000)	$0.40	-
Outstanding and Exercisable at March 31, 2020	180,000	$0.40	5.0	Nil

There were no stock option transactions in 2019.