XML 26 R15.htm IDEA: XBRL DOCUMENT v3.4.0.3
11. Stock Options
 3 Months Ended
Mar. 31, 2016
Notes  
11. Stock Options

11.   Stock Options

 

On December 30, 2015, 1,500,000 options were granted to management, 750,000 options vested immediately and the remaining 750,000 will vest on December 30, 2016. The options expire 5 years after their corresponding vesting date. Each option allows the holder to purchase one share of the Company’s stock at $0.10 prior to expiration. Utilizing the Black Scholes option pricing model, an expected life of five years, a risk free rate of 1.80%, and expected volatility of 158.50%, a compensation cost of $110,208 is associated with the options. Of this, $55,104 was recorded as a general and administrative expense in 2015 and $13,776 was recognized in the first quarter of 2016. The remaining unrecognized compensation cost of $41,328 is expected to be recognized in the three remaining quarters of 2016.

 

On April 30, 2014, 2,250,000 options were issued to management, 750,000 options vested immediately and the remaining 1,500,000 vested at a rate of 750,000 each year on the anniversary for 2 additional years, and they expire 3 years after resting date. Each option allows the holder to purchase one share of the Company’s stock at $0.10 prior to expiration. Utilizing the Black Scholes option pricing model, an expected life of three years, a risk free rate of 0.87%, and expected volatility of 161.30%. Compensation costs recorded as a general and administrative expense of $10,865 was recognized in the first quarter of 2016. The remaining unrecognized compensation cost of $3,622 is expected to be recognized in the second quarter of 2016.

 

 

 

 

Number of Options

 

Exercise Prices

 

Weighted Average Remaining Term (years)

Balance December 31, 2014

 

4,500,000

 

0.10-0.15

 

0.12

Cancelled

 

(250,000)

 

0.15

 

0.15

Issued

 

1,500,000

 

0.10

 

0.10

Balance December 31, 2015 and March 31, 2016

 

5,750,000

 

0.10-0.15

 

0.11

Exercisable at March 31, 2016

 

5,000,000

 

0.10-0.15

 

0.12

 

 

Outstanding options had no intrinsic value at March 31, 2016.