Shareholders' Deficit

9 Months Ended

Sep. 30, 2019

Stockholders' Equity Note [Abstract]

SHAREHOLDERS' DEFICIT

NOTE 5 – SHAREHOLDERS’ DEFICIT

Option Grants

The Company uses the Black-Scholes pricing model as a method for determining the estimated fair value for stock awards. Compensation expense for stock awards is recognized on a straight-line basis over the vesting period of service awards and for performance-based awards, the Company recognizes the expense when the performance condition is probable of being met.

The Company reviews its current assumptions on a periodic basis and adjusts them as necessary to ensure an accurate valuation. The risk-free interest rate is based on the Federal Reserve Board’s constant maturities of the U.S. Treasury bond obligations with terms comparable to the expected life of the options at their issuance date. The Company uses historical data to estimate expected forfeitures, expected dividend yield, expected volatility of the Company’s stock and the expected life of the options. In June 2018, 250,000 options granted in 2015 and originally exercisable at $0.75 per share were exercised at a price of $0.10 per share in exchange for $25,000 in cash.

The Company recorded no compensation expense for the nine months ended September 30, 2019 and the year ended December 31, 2018. As of June 30, 2019, there was $0 in unrecognized compensation expense.

The Company did not grant any options during the nine months ended September 30, 2019, no options were exercised, and no options expired, or were cancelled. There are no unvested options as of September 30, 2019.  

The following tables summarize information about stock options outstanding and exercisable:

	Options Outstanding and Exercisable at September 30, 2019
Range of Exercise Prices	Number Outstanding		Weighted Remaining Contractual Life		Weighted Average Exercise Price		Aggregate Intrinsic Value(1)
$0.40 to $0.60		5,276,223		1.0 years	$	0.46	$	—
$0.61 to $1.00		9,550,000		0.8 years	$	0.67	$	—
$1.01 to $1.50		14,500,000		0.9 years	$	1.25	$	—
$1.51 to $2.25		3,000,000		1.4 years	$	1.63	$	—
$0.40 to $2.25		32,576,223		1.0 years	$	0.98	$	—

(1) The aggregate intrinsic value in the table represents the difference between the closing stock price on September 30, 2019 and December 31, 2018, and the exercise price, multiplied by the number of in-the-money options that would have been received by the option holders had all option holders exercised their options on September 30, 2019 and December 31, 2018.

Common Stock Purchase Warrants

For warrants granted to non-employees in exchange for services, the Company recorded the fair value of the equity instrument using the Black-Scholes pricing model unless the value of the services is more reliably measurable.

The Company did not grant any warrants during the nine months ended September 30, 2019, and no warrants were exercised, expired, or were cancelled. At September     30, 2019 there were 4,865,640 warrants outstanding, with exercise prices ranging from $0.20 to $1.23, a weighted exercise price of $0.84 and a weighted remaining contractual life of one year.

The aggregate intrinsic value of the 4,865,640 outstanding and exercisable warrants at September 30, 2019 and December 31, 2018 was $0. The intrinsic value is the difference between the closing stock price on September 30, 2019 and December 31, 2018 and the exercise price, multiplied by the number of in-the-money warrants had all warrant holders exercised their warrants on September 30, 2019 or December 31, 2018.