5. STOCK OPTIONS

3 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK OPTIONS

The shareholders approved, by a majority vote, the adoption of the 1998 Stock Incentive Plan (the “Plan”). As amended on August 11, 2003, the Plan reserves 20,000,000 shares of common stock for issuance upon the exercise of options which may be granted from time-to-time to officers, directors and certain employees and consultants of the Company or its subsidiaries by the Board of Directors. The Plan permits the award of both qualified and non-qualified incentive stock options. During the three months ended March 31, 2015, the Company issued 100,000 options to an investor who simultaneously purchased shares in the Company.

The summary of option activity for the three months ended March 31, 2015 is presented below:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Life (years)
Balance as of December 31, 2014		–		–		–
Granted		100,000		0.075		0.63
Exercised		–		–		–
Canceled		–		–		–
Expired		–		–		–
Balance as of March 31, 2015		100,000		0.075		0.50

Outstanding and exercisable options presented by price range as of March 31, 2015 are as follows:

		Options Outstanding						Options Exerciseable
				Weighted
				Average		Weighted				Weighted
		Number of		Remaining		Average		Number of		Average
Exercise		Options		Life		Exercise		Options		Exercise
Price		Outstanding		(Years)		Price		Exercisable		Price
$	0.075		100,000		0.50	$	0.075		100,000	$	0.075

The intrinsic values of outstanding and vested stock options were as follows:

	March 31,		December 31,
	2015		2014
Intrinsic value - options outstanding	$	500		–
Intrinsic value - options exercisable	$	500		–
Intrinsic value - options exercised		–		–