STOCKHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

NOTE 8 - STOCKHOLDERS' EQUITY

The Company's 2008 Stock Awards Plan was approved April 9, 2008 by the Board of Directors and ratified at the Company's annual meeting of stockholders held on June 3, 2008. The 2008 Plan became effective April 9, 2008 and will terminate on April 8, 2018. Subject to certain adjustments, the number of shares of Common Stock that may be issued pursuant to awards under the 2008 Plan is 2,000,000 shares. A maximum of 80,000 shares may be granted in any one year in any form to any one participant, of which a maximum of (i) 50,000 shares may be granted to a participant in the form of stock options and (ii) 30,000 shares may be granted to a participant in the form of Common Stock or restricted stock. The 2008 Plan will be administered by a committee of the Board of Directors. Employees, including any employee who is also a director or an officer, consultants, and outside directors of the Company are eligible to participate in the 2008 Plan.

On June 24, 2013, the Company’s Board approved the granting of incentive stock options to the 4 officers and 2 outside directors under the Company’s 2008 Stock Awards Plan for the purchase of 200,000 and 100,000 shares with grant date on June 25, 2013, respectively of the Company’s common stock at an exercise price of $0.03 per share on June 25, 2013.

Stock Option

The fair value of each option was estimated on June 25, 2013 (date of grant) using the following Black-Scholes assumptions:

	On June 25, 2013
Expected term (in years)		5
Expected stock price volatility		185.25	%
Risk-free interest rate		1.48	%
Expected dividend yield		-

The Company vested 50% of the optioned shares on date of granting the stock options and 50% of the optioned shares vested on June 25, 2014.

The following table summarizes all stock option activity under the plans:

	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Outstanding at December 31, 2014		300,000	$	0.03		3.48
Granted		-
Exercised		-
Forfeited/expired		-
Outstanding at December 31, 2015		300,000		0.03		2.48
Granted		-
Exercised		-
Forfeited/expired		-
Outstanding at September 30, 2016		300,000	$	0.03		1.73
Exercisable at September 30, 2016		300,000	$	0.03		1.73

The Company recognized approximately $0 and $0 of stock based compensation costs related to stock options awards for the nine months ended September 30, 2016 and 2015, respectively.

The weighted-average grant date fair value of options outstanding at September 30, 2016 was $0.03.

As of September 30, 2016, the unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plan was $0.