Note 7 - Options and Warrants to Purchase Common Stock

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Options And Warrants To Purchase Common Stock [Text Block]

NOTE

7

- OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK

Outstanding Stock Warrants

A summary of the status of the warrants outstanding and exercisable at

September 30, 2017

is presented below:

		Warrants Outstanding and Exercisable
Exercise Price		Number Outstanding		Weighted Average Remaining Contractual Life (years)		Weighted Average Exercise Price
	$0.04		6,256,250		4.92	$	0.04
	$0.25		3,283,283		3.75	$	0.25
	$1.15		461,340		3.58	$	1.15
			10,000,873		4.48	$	0.36

Between

January 1, 2017

and

September 30, 2017,

6,256,250

warrants were issued as part of the sale of

22,750,000

Units. Each Unit included

one

(

1

) share of common stock and a warrant to purchase ¼

of a share of common stock. The intrinsic value of the outstanding warrants was

$0

at

September 30, 2017.

Outstanding Stock Options

A summary of the status and changes of the options granted under stock option plans and other agreements for the

nine

months ended

September 30, 2017

is as follows:

			Weighted		Weighted
			Average		Average Remaining
	Shares		Exercise Price		Contractual Life *
Outstanding at beginning of period		21,277,479	$	0.87		4.00
Issued		650,000		0.25		4.75
Exercised		- 0 -		- 0 -		- 0 -
Forfeited		(30,000)		1.55		- 0 -
Outstanding at end of period		21,897,479	$	0.85		3.72
Exercisable at end of period		21,277,479	$	0.87		4.19

* Measured in years

During the

nine

months ended

September 30, 2017,

the Company granted

650,000

options to purchase the Company’s common stock with a weighted average exercise price of

$0.25.

The options vested immediately. The weighted-average grant-date fair value of the options granted was

$0.02.

Compensation expense of

$23,077

and

$145,832

has been recognized for the vested options for the

three

months ended

September 30, 2017

and

2016,

respectively, and

$145,887

and

$510,877

for the

nine

months ended

September 30, 2017

and

2016,

respectively. Th

e aggregate intrinsic value of the outstanding and exercisable options at

September 30, 2017

was

$0

and

$0,

respectively. At

September 30, 2017,

approximately

$35,099

of unamortized compensation expense associated with unvested options will be recognized over the next

0.33

years on a weighted average basis.