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Stock Options
 12 Months Ended
Dec. 31, 2016
Stock Options  
Stock Options

Note 7 – Stock Options

 

On October 1, 2015, the Board of Directors agreed to extend all outstanding management stock options and warrants (covering 3,500,000 shares) to a common expiration date of October 26, 2022, and adjust the exercise prices to $0.15. The net effect of the change in the value of the repriced options and warrants was an increase in stock based compensation expense of $208,000 during the year ended December 31, 2015.

 

On October 1, 2015 the Company also issued new, immediately vesting, stock options with an exercise price of $0.15 and an expiration date of October 26, 2022, to Richard Davis for 800,000 shares; Hank Leibowitz for 500,000 shares; John Hofmann for 500,000 shares; and Mark Prinz for 200,000 shares. The fair market value of these options was determined to be $0.09 per option, or $180,000, which reflects an increase in stock based compensation expense of $180,000.

 

Stock option activity for the year ended December 31, 2015, is summarized as follows:

 

    Shares   Weighted Average Exercise Price   Weighted Average Remaining Contractual Life (Years)   Aggregate Intrinsic Value
Options outstanding at December 31, 2014       2,750,000     $ 0.78       9.00     $ —  
Granted       2,000,000       0.09       —       —  
Expired/forfeited       —       —       —       —  
Options outstanding at December 31, 2015       4,750,000     $ 0.49       9.00     $ —  

 

Total stock-based compensation for the years ended December 31, 2015 and 2014 was $390,000 and $0 respectively. 

There is no unrecognized stock compensation expense at December 31, 2015.

 

Stock option activity for the year ended December 31, 2016, is summarized as follows:

 

    Shares   Weighted Average Exercise Price   Weighted Average Remaining Contractual Life (Years)   Aggregate Intrinsic   Value
Options outstanding at December 31, 2015       4,750,000     $ 0.49       9.00     $ —  
Granted       1,000,500       0.19       —       —  
Expired/forfeited       —       —       —       —  
Options outstanding at December 31, 2016       5,750,500     $ 0.31       5.12     $ —  

 

Total stock-based compensation for the years ended December 31, 2016 and 2015 was $207,815 and $390,000 respectively. There is no unrecognized stock compensation expense at December 31, 2016.

 

In July 2016, the Company issued 1,000,500 options to various stockholders, at an exercise price of $0.19 per share, in consideration for their services to the Company. The fair market value of the warrant was determined to be $0.13 per share, or $130,065, which is included in the research and development expenses as stock options for services expense.