SHAREHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2017

Stockholders' Equity Note [Abstract]

SHAREHOLDERS' EQUITY

NOTE I – SHAREHOLDERS’ EQUITY

Common Stock

As additional consideration for the February 2017 Note, the Company issued the noteholder 50,000 shares of the Company’s common stock with a fair value of $1,000. See Note G above.

As additional consideration for the May 2017 Notes, the Company issued each noteholder 10,000 shares of the Company’s common stock with a total fair value of $1,000. See Note G above.

Options

In September 2014, the Company extended the exercisable life and reduced the exercise price of options issued to employees and consultants to purchase an aggregate of 13,465,000 shares of common stock issued since 2002. The options now expire in November 2023 and the exercise price is $0.05 per share. The Company calculated the fair value of the extended options by using the Black-Scholes option-pricing model with the following weighted average assumptions: no dividend yield for all the years; expected volatility of 187%; risk-free interest rates of 0.08% - 2.04% and expected lives of 240 days to six years. The Company recorded a charge of $125,354 related to the option repricing during the year ended December 31, 2014.

In December 2015, the Company reduced the exercise price of options issued to employees and consultants to purchase an aggregate of 13,465,000 shares of common stock issued since 2002 to an exercise price of $0.01 per share. The Company calculated the fair value of the extended options by using the Black-Scholes option-pricing model with the following weighted average assumptions: no dividend yield for all the years; expected volatility of 347%; risk-free interest rates of 2.09% and expected lives of eight years. The Company recorded a charge of $0 related to the option repricing during the year ended December 31, 2015.

Information with respect to options outstanding and exercisable at December 31, 2017 and 2016 is as follows:

	Number	Range of Exercise		Number
	Outstanding		Price	Exercisable
Balance, December 31, 2016	13,465,000	$0.01		13,465,000
Issued	-		-	-
Expired	-		-	-
Balance, December 31, 2017	13,465,000		$0.01	13,465,000

Number Outstanding December 31, 2017	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price	Number Exercisable at December 31, 2017	Weighted Average Exercise Price
13,465,000	5.88	0.01	13,465,000	$0.01
13,465,000	-	-	13,465,000

The following table summarizes information about the stock options outstanding at December 31, 2016:
Exercise Price	Number  Outstanding at  December 31, 2016	Weighted Average  Remaining  Contractual Life	Weighted Average Exercise Price	Number Exercisable at December 31, 2016	Weighted Average  Exercise Price
$0.01	13,465,000	6.88	0.01	13,465,000	$0.01
	13,465,000	-	-	13,465,000

The aggregate intrinsic value represents the excess amount over the exercise price optionees would have received if all the options have been exercised on the last business day of the period indicated based on the Company’s closing stock price of for such day. The aggregate intrinsic value as of December 31, 2017 is $538,600.