Stockholders' Equity

6 Months Ended

Jun. 30, 2019

Equity [Abstract]

Stockholders' Equity

NOTE 12 – STOCKHOLDERS’ EQUITY

Common Stock

On March 8, 2018, the Company issued 4,750,000 shares of our common stock in a private placement to “accredited investors” at $0.20 per share for an aggregate amount of $950,000.

On April 13, 2018, the Company issued 1,000,000 shares in a private placement to “accredited investors” at $0.20 per share for an aggregate amount of $200,000, $100,000 of which was in cash and $100,000 of which was in settlement of an advance in that amount from this subscriber.

The Company also issued 750,000 shares private placement to “accredited investors” at $0.20 per share for an aggregate amount of $150,000.

Stock Compensation

The Company offers stock option outstanding equity awards to directors and key employees. Options vested in tranches and expire in five (5) years. During the six-months ended June 30, 2019 and 2018, the Company recorded vested options expense of $274,417 and $292,451, respectively. During the three-months ended June 30, 2019, and 2018, the Company recorded vested options expense of $133,061 and $157,473, respectively. The option expense not taken as of June 30, 2019, is $876,580, with a weighted average term of 3.4 years.

The stock options valuation as of June 30, 2019, was computed using the Black-Scholes-Merton pricing model using a stock price of $.15, a strike price of $.33, an expected term of five years, volatility of 278.00% and a risk-free discount rate of 2.75%. The stock options valuation as of December 31, 2018 was computed using the Black-Scholes-Merton pricing model using a stock price of $.30, a strike price of $.22, an expected term of five years, volatility of 331.63% and a risk-free discount rate of 2.70%.

The following table represents stock option activity as of and for the six-month period ended June 30, 2019:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Life		Aggregate Intrinsic Value
Options Outstanding – December 31, 2018		4,325,000		$	0.22		3.4	$	—
Granted		500,000		$	0.20		2.6
Exercised
Forfeited		(75,000	)
Options Outstanding – June 30, 2019		4,750,000		$	0.21		3.4	$	—
Exercisable and Vested, June 30, 2019		3,200,000		$	0.21		4.5	$	—