STOCK OPTIONS AND WARRANTS
|9 Months Ended|
Sep. 30, 2017
|Notes to Financial Statements|
|Note 13 - STOCK OPTIONS AND WARRANTS||
Option valuation models require the input of highly subjective assumptions. The fair value of stock-based payment awards was estimated using the Black-Scholes option model with a volatility figure derived from using the Company's historical stock prices. The Company accounts for the expected life of options based on the contractual life of options for non-employees. For employees, the Company accounts for the expected life of options in accordance with the "simplified" method, which is used for "plain-vanilla" options, as defined in the accounting standards codification.
The risk-free interest rate was determined from the implied yields of U.S. Treasury zero-coupon bonds with a remaining life consistent with the expected term of the options.
The following assumptions were used in determining the fair value of employee and vesting options during the nine months ended September 30, 2017:
On May 25, 2017, the Company awarded options to purchase 35,000 shares of common stock to key consultant of the Company. These options vest immediately and have a term of 5 years. The options have an exercise price of $0.016 per share. The options had an aggregate grant date fair value of $5,318.
The following table summarizes the stock option activity for the nine months ended September 30, 2017:
The aggregate intrinsic value in the preceding tables represents the total pretax intrinsic value, based on options with an exercise price less than the Company's stock price of $0.0868 as of September 30, 2017, which would have been received by the option holders had those option holders exercised their options as of that date.
The following table presents information related to stock options at September 30, 2017:
The stock-based compensation expense related to option grants was $83,853 and $240,924 during the three and nine months ended September 30, 2017, respectively; and $78,535 and $104,713 for the three and nine months ended September 30, 2016.
As of September 30, 2017, stock-based compensation related to options of $209,428 remains unamortized and is expected to be amortized over the weighted average remaining period of 9 months.
The following table summarizes the changes in warrants outstanding and the related prices for the shares of the Company's common stock:
The following table summarizes the warrant activity for the nine months ended September 30, 2017: