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Stock Options | 3 Months Ended
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Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock Options | Note 13 – Stock Options On July 30, 2014, the Company’s board of directors approved the Company’s 2014 Equity Incentive Plan (the “Plan”) and the reservation of 15,525,000 shares of common stock for issuance under the Plan. The Plan was approved by the Company’s shareholders and became effective on August 5, 2015. On April 2, 2014, the Company granted 1,000,000 options with an exercise price of $0.25 per share to a company owned by Mr. Jack Ross, Chief Executive Officer of the Company. On December 14, 2015, the Company granted 1,000,000 options each with an exercise price of $0.25 per share to two Board members of the Company. On December 14, 2015, the Company granted 1,000,000 options each with an exercise price of $0.65 per share to two employees of the Company. On February 18, 2016, the Company granted 300,000 options with an exercise price of $0.70 per share to an employee of the Company. On April 18, 2016, the Company granted 500,000 options with an exercise price of $0.70 per share to an employee of the Company. On July 4, 2016, the Company granted 500,000 options with an exercise price of $0.70 per share to an employee of the Company. The following table summarizes the options outstanding, option exercisability and the related prices for the shares of the Company’s common stock issued to employees and consultants under the Plan at March 31, 2017:
|  |  | Options Outstanding |  |  | Options Exercisable |
Exercise Prices ($) |  |  | Number Outstanding |  |  | Weighted Average Remaining Contractual Life (Years) |  |  | Weighted Average Exercise Price ($) |  |  | Number Exercisable |  |  | Weighted Average Exercise Price ($) |
$ | 0.25 - $0.70 |  |  |  | 6,300,000 |  |  |  | 6.7 |  |  | $ | 0.47 |  |  |  | 3,933,332 |  |  | $ | 0.42 |
The stock option activity for the three months ended March 31, 2017 is as follows:
|  | Options Outstanding |  |  | Weighted Average Exercise Price |
Outstanding at December 31, 2016 |  |  | 6,300,000 |  |  | $ | 0.47 |
Granted |  |  | - |  |  |  | - |
Exercised |  |  | - |  |  |  | - |
Expired or canceled |  |  | - |  |  |  | - |
Outstanding at March 31, 2017 |  |  | 6,300,000 |  |  | $ | 0.47 |
Stock-based compensation expense related to vested options was $339,136 during the three months ended March 31, 2017 which is a component of general and administrative expense in the statement of income. The Company determined the value of share-based compensation for options vesting during the period using the Black-Scholes fair value option-pricing model with the following weighted average assumptions: estimated fair value of Company’s common stock of $0.40-0.74, risk-free interest rate of 0.90-2.23%, volatility of 135-160%, expected lives of 3-10 years, and dividend yield of 0%. Stock options outstanding as of March 31, 2017, as disclosed in the above table, have an intrinsic value of $928,500. As of March 31, 2017, unrecognized compensation costs related to non–vested stock–based compensation arrangements were $1,216,279, and is expected to be recognized over a weighted average period of 1.25 years.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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