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13. Options
 9 Months Ended
Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Options

Options Granted

On September 30, 2015, the Company granted 1,000,000 options to purchase its common stock to its employees and certain of its directors. The options vest annually over five years beginning on the first anniversary of the grant and are exercisable until the tenth anniversary of the date of grant at an exercise price of $0.172 per share. The total estimated fair value using the Black-Scholes Pricing Model, based on a volatility rate of 106% and a call option value of $0.1434 was $143,379 and is being amortized over the vesting period.

 

The Company recognized a total of $465,876, and $433,294 of compensation expense during the nine months ended September 30, 2015 and 2014, respectively, on common stock options issued to Employees and Directors that are being amortized over the implied service term, or vesting period, of the options. The remaining unamortized balance of these options is $1,650,044 as of September 30, 2015.

 

Options Exercised

No options were exercised during the nine months ended September 30, 2015 and 2014.

 

Options Expired/Forfeited

On September 30, 2015, 1,000,000 fully vested options with a strike price of $1.00 per share were voluntarily cancelled by a director of the Company. The fair market value of the options had been fully amortized prior to forfeiture. No options expired or were forfeited during the nine months ended September 30, 2014.