XML 22 R11.htm IDEA: XBRL DOCUMENT v3.10.0.1
Stock-Based Compensation
 9 Months Ended
Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation

Note 6. Stock-Based Compensation

 

The Company has granted options/warrants to consultants. GAAP requires that all stock-based compensation be recognized as an expense in the financial statements and that such costs be measured at the fair value of the award at the date of grant. These awards generally vest ratably over 12 to 60 months from the date of grant and the Company charges to operations quarterly the current market value of the options using the Black-Scholes method. During the three and nine months ended September 30, 2018 and 2017 there were no charges related to options granted to consultants.

 

During the nine months ended September 30, 2018, the Company granted 150,182 fully vested options to employees and recorded share-based compensation of $69,309. The Company did not grant any stock options to employees and directors during the three months ended September 30, 2018. The Company valued these grants using the Black-Scholes option pricing model with the following assumptions:

 

    September 30, 2018  
       
Fair value on grant date   $ 0.462  
Expected Dividend yield     -  
Expected volatility     51 %
Risk free interest rate     2.77 %
Expected term of the option     5 years  

 

The Company did not grant any stock options to employees and directors during the three and nine months ended September 30, 2017.

 

There was no compensation expense recorded relating to restricted stock grants to employees and directors during the three and nine months ended September 30, 2018 and 2017.