Options and Warrants

12 Months Ended

Dec. 31, 2018

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

Options and Warrants

NOTE 11 – Options and Warrants

The following are details related to options issued by the Company:

				Weighted		Weighted Avg. Remaining
	Options for			Average		Contractual		Aggregate
	Shares			Exercise Price		Life (yrs)		Intrinsic Value
Outstanding as of January 1, 2018		27,101		$	91.25		5
Granted		-			-		-
Exercised		-			-		-
Forfeited		-			-		-
Expired		(1,160	)		31.98		-
Outstanding as of December 31, 2018		25,941		$	94.44		4	$	-
Options exercisable as of December 31, 2018		25,941		$	94.44		4	$	-

We account for all stock-based payment awards made to employees and directors based on estimated fair values. We estimate the fair value of share-based payment awards on the date of grant using an option-pricing model and the value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service period. 

We use the BSM option-pricing model as our method of valuation. The fair value is amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. The fair value of share-based payment awards on the date of grant as determined by the BSM model is affected by our stock price as well as other assumptions. These assumptions include, but are not limited to:

• Expected term is generally determined using weighted average of the contractual term and vesting period of the award;

• Expected volatility of award grants made under the Company’s plans is measured using the historical daily changes in the market price of similar industry indices selected by us as representative, which are publicly traded, over the expected term of the award, due to our limited trading history for awards granted through June 30, 2014. Thereafter, we began using our own trading history as we deemed there to be sufficient history at that point in time;

• Risk-free interest rate is equivalent to the implied yield on zero-coupon U.S. Treasury bonds with a remaining maturity equal to the expected term of the awards; and,

• Forfeitures are based on the history of cancellations of awards granted by the Company and management’s analysis of potential forfeitures.

There were no options granted during the years ended December 31, 2018 and 2017.

The Company recorded expense of $0 and $7,500 for vesting of outstanding options during the years ended December 31, 2018 and 2017, respectively.

At December 31, 2018, there is no amount of unearned stock-based compensation currently estimated to be expensed over future years related to unvested common stock options. Future stock-based compensation expense and unearned stock-based compensation will increase to the extent that the Company grants additional common stock options or other stock-based awards.

During the year ended December 31, 2018, the Company issued warrants to purchase an aggregate of 84,000 shares of common stock in connection with the issuance of notes payable (see Note 8).

The following are details related to warrants issued by the Company:

				Weighted
	Warrants for			Average
	Shares			Exercise Price
Outstanding as of January 1, 2018		42,485		$	100.00
Granted		84,000		$	6.25
Exercised		-		$	-
Forfeited		-		$	-
Cancelled		-		$	-
Expired		(21,528	)	$	146.64
Outstanding and exercisable as of December 31, 2018		104,957		$	15.62

As of December 31, 2018, the Company had 6,483 shares of common stock reserved for future issuance under the Company’s stock plans.