SHAREHOLDERS' EQUITY

3 Months Ended

Mar. 31, 2018

Stockholders' Equity Note [Abstract]

SHAREHOLDERS' EQUITY

NOTE 5 – SHAREHOLDERS’ EQUITY

Common Stock - Convertible promissory notes conversion

On January 29, 2018, five of the outstanding convertible promissory notes payable entered into in the year ending December 31, 2017 and two of the January 2018 convertible promissory notes payable, totaling principal of $144,796 and accrued interest of $3,385, were converted into 2,693,978 shares of restricted common stock, at conversion prices ranging from $0.025 to $0.075. (Note 4)

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.

The Company recorded no compensation expense for the three months ended March 31, 2018 and 2017. As of March 31, 2018, there was $0 in unrecognized compensation expense.

The Company did not grant any options during the three months ended March 31, 2018, and no options were exercised, expired, or were cancelled. There are no unvested options as of March 31, 2018.

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

	Options Outstanding and Exercisable at March 31, 2018
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	2.6 years	$	0.46	$	—
$0.61 to $1.00		9,800,000	2.5 years	$	0.67	$	—
$1.01 to $1.50		14,500,000	2.6 years	$	1.25	$	—
$1.51 to $2.25		3,000,000	3.1 years	$	1.63	$	—
$0.40 to $2.25		32,576,223	2.6 years	$	0.98	$	—

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 three months ended March 31, 2018, and no warrants were exercised, expired, or were cancelled. As of March 31, 2018 there were 6,125,640 warrants outstanding, with exercise prices ranging from $0.20 to $1.23, a weighted exercise price of $0.77 and a weighted remaining contractual life of 2 years.

The aggregate intrinsic value of the 6,125,640 outstanding and exercisable warrants at March 31, 2018 and December 31, 2017 was $0. The intrinsic value is the difference between the closing stock price on March 31, 2018 and December 31, 2017 and the exercise price, multiplied by the number of in-the-money warrants had all warrant holders exercised their warrants on March 31, 2018 or December 31, 2017.