Stock-based compensation

12 Months Ended

Dec. 31, 2015

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

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

6. Stock-based compensation

On May 16, 2014, the Company granted 100,000 non-qualified stock options, 25,000 to each of its four directors, and 100,000 non-qualified stock options to its Chief Financial Officer. These options became fully vested and exercisable on the date of the grant. These options expire on May 15, 2019 and have an exercise price of $0.17 per share. As of December 31, 2015, 175,000 options remain outstanding under this grant. As of December 31, 2014, 200,000 options remained outstanding under this grant.

FASB ASC 718 “Compensation-Stock Compensation” requires entities to estimate the number of forfeitures expected to occur and record expense based upon the number of awards expected to vest. The outstanding stock options granted during the year ended December 31, 2014 are fully vested and the related expense amounting to approximately $15,000, was fully amortized during this period.

For the years ended December 31, 2015 and 2014 option activity was as follows:

			Weighted-Average		Remaining Contractual Term
	Shares		Exercise Price		(in years)
Outstanding at January 1, 2014		-	$	-
Granted		200,000		0.17		4.38
Expired and forfeited		-
Exercised		-
Outstanding at December 31, 2014		200,000	$	0.17		4.38

Granted		-
Expired and forfeited		(25,000)	$	0.17		3.38
Exercised		-
Outstanding at December 31, 2015		175,000	$	0.17		3.38

Exercisable at December 31, 2015		175,000	$	0.17		3.38

The Company has previously issued 30,000 warrants in lieu of consulting fees, which expired in July 2014 and had an exercise price of $0.63 per share.

The Company agreed to compensate two of its four directors by issuing common stock and two directors in cash for services rendered in 2015 and 2014. Two of these directors are affiliated with the advisory services firm that is currently providing investment banking services to the Company. The number of shares issued to each director was determined based upon the equivalent cash compensation accrued divided by the closing price of the Company’s common stock on the date that the compensation is fully earned each quarter, which is the last day of such quarter. The Company recorded stock-based compensation of $12,500 for the quarter ended December 31, 2015 for two directors, which is recorded as common stock to be issued.

On January 8, 2015, the Company issued 41,667 shares of common stock to each of two directors as compensation for the three months ended December 31, 2014. These shares, totaling 83,334, were valued at a per share price of $0.15, or a total of $12,500.

On April 13, 2015, the Company issued 41,667 shares of common stock to each of two directors as compensation for the three months ended March 31, 2015. These shares, totaling 83,334, were valued at a per share price of $0.15, or a total of $12,500.

On July 10, 2015, the Company issued 41,667 shares of common stock to each of two directors as compensation for the three months ended June 30, 2015. These shares, totaling 83,334, were valued at a per share price of $0.15, or a total of $12,500.

On October 12, 2015, the Company issued 41,667 shares of common stock to each of two directors as compensation for the three months ended September 30, 2015. These shares, totaling 83,334, were valued at a per share price of $0.15, or a total of $12,500.

On January 11, 2016, the Company issued 41,667 shares of common stock to each of two directors as compensation for the three months ended December 31, 2015. These shares, totaling 83,334, were valued at a per share price of $0.15, or a total of $12,500.