8. STOCK OPTIONS

3 Months Ended

Mar. 31, 2016

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

STOCK OPTIONS

The Company’s 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, 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, 2016, the Company did not issue any stock options. During the three months ended March 31, 2015, the Company issued 100,000 options with an exercise price of $0.075 per share to an investor who simultaneously purchased common shares of the Company.

A summary of the Company’s stock option awards as of March 31, 2016, and changes during the three months then ended is as follows:

	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contract Term (Years)	Aggregate Intrinsic Value
Outstanding at December 31, 2015	2,800,000	$	0.050	2.09
Granted	-	$	–
Exercised	-	$	–
Forfeited or expired	-	$	–
Outstanding and exercisable at March 31, 2016	2,800,000	$	0.050	1.84	$   2,800

The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on our closing stock price of $0.051 as of March 31, 2016, which would have been received by the holders of in-the-money options had the option holders exercised their options as of that date.