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STOCK OPTIONS
 12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Note 10 - STOCK OPTIONS

On January 5, 2013, the Company granted 960,000 options to a former director, 720,000 of which were forfeited in a subsequent period. The options have an exercise period of four years with an exercise price of $0.10. In the event that the former director ceases to serve on the Board of Directors for any reason, the Director is entitled to a pro-rata portion of the annual options. The options were valued at $43,151 using the Black Scholes Option Pricing Model with the following inputs: stock price on measurement date: $0.18; Exercise price: $0.10; Option term: 4 years; Computed volatility: 448%. On November 4, 2016, the Board of Directors authorized the exercise of stock options held by the former director to purchase 240,000 shares of common stock.

 

On October 1, 2016 the Company granted 120,000 options to an employee of the Company as compensation for being appointed the US Finance Manager of the Company. The options have an exercise period of four years with an exercise price of $0.20. In the event that he ceases to work for the Company for any reason, he will be entitled to a pro rata portion of the annual options. The options vest monthly with 30,000 options fully vested as of December 31, 2016. The options were valued at $65,290 using the Black Sholes Option Pricing Model with the following inputs: stock price on measurement date: $0.58; Exercise price: $0.20; Option term: 4 years; Computed volatility: 159%. The Company expensed $16,636 as of December 31, 2016.

 

A summary of the Company’s option activity during the year ended December 31, 2016 is presented below:

 

                Weighted        
          Weighted     Average        
          Average     Remaining     Aggregate  
    Number of     Exercise     Contractual     Intrinsic  
Options   Shares     Price     Term     Value  
Balance Outstanding, December 31, 2015     240,000     $ 0.10       1.02     $ -  
Granted     120,000       0.20       4.00       -  
Forfeited     -       -       -       -  
Exercised     (240,000 )     0.10       -       -  
Expired     -       -       -       -  
Balance Outstanding, December 31, 2016     120,000     $ 0.20       3.75       -  
                                 
Exercisable, December 31, 2016     30,000     $ 0.20       3.75     $ -