Stock Options and Warrants

3 Months Ended

Mar. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Options and Warrants

12. Stock Options and Warrants

For the three months ended March 31, 2016 and March 31, 2015, respectively, the Company recorded non-cash stock-based compensation expense of $48,848 and $48,403, relating to employee stock options and warrants issued for consulting services.

Stock options and warrants issued to consultants and other non-employees as compensation for services provided to the Company are accounted for based on the fair value of the services provided or the estimated fair market value of the option or warrant, whichever is more reliably measurable in accordance with FASB ASC 505, Equity, and FASB ASC 718, Compensation – Stock Compensation. The related expense is recognized over the period the services are provided. Unrecognized expense remaining at March 31, 2016 and 2015 for the options is $111,701 and $55,374, respectively, and will be recognized through March 30, 2019.

A summary of the Company’s stock option plans as of March 31, 2016, and changes during the three month period then ended is presented below:  

	Three Months Ended March 31, 2016
	Number of Options		Weighted Average Exercise Price
Options outstanding at December 31, 2015		3,858,000	$	0.22
Options granted		—		—
Options exercised		—		—
Options cancelled		—		—
Options expired		—		—
Options at end of period		3,858,000		.22
Options exercisable at March 31, 2016		2,851,333	$	.23

Changes in the Company’s nonvested options for the three months ended March 31, 2016 are summarized as follows:

	Three Months Ended March 31, 2016
	Number of Options		Weighted Average Exercise Price
Nonvested options at December 31, 2015		1,006,667	$	0.17
Granted		—		—
Vested		—		—
Forfeited		—		—
Nonvested options at March 31, 2016		1,006,667	$	.017

	Options Outstanding						Options Exercisable
Range of Exercise Price	Number Outstanding		Remaining Average Contractual Life (In Years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
0.17 – 0.34		3,858,000		4.98		0.22		2,880,223		0.23
Totals		3,858,000		4.98		0.22		2,880,223		0.23

A summary of the Company’s warrant activity as of March 31, 2016 and changes during the three month period then ended is presented below:

On March 7, 2016, warrants to purchase 350,000 shares of its common stock, priced at $0.05 per share. The warrants vest immediately and expire March 7, 2021. The quoted market price of the common stock at the time of issuance of the options was $0.09 per share. The fair value of the options totaled $30,277 using the Black-Scholes option pricing model with the following assumptions: i) risk free interest rate of 0.90%, ii) expected life of 5 years, iii) dividend yield of 0%, iv) expected volatility of 173%

	Three months ended March 31, 2016
	Weighted Average Exercise
	Warrants		Price
Warrants outstanding at December 31, 2015		1,099,915	$	0.32
Granted		350,000		0.05
Exercised
Expired		39,219		0.50
Warrants outstanding at March 31, 2016		1,410,696	$	0.25

	Warrants Outstanding
Range of Exercise Price	Number Outstanding		Remaining Average Contractual Life (In Years)		Weighted Average Exercise Price
$0.25 - $0.50		1,410,696		2.6	$	0.25
Totals		1,410,696		2.6	$	0.25