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Related Party Transactions

9 Months Ended

Sep. 30, 2018

Note 7. Related Party Transactions

During the three and nine months ended September 30, 2018 and 2017, respectively, the Company issued the following options to purchase shares of the Company’s common stock to the Company’s CEO, COO, members of the Board of Directors and senior staff. All options expire within seven years of grant date.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Number of stock options granted		-		13,750		-		41,250

Weighted average purchase price	$	-	$	3.76	$	-	$	4.42

During the three and nine months ended September 30, 2018 and 2017, respectively, the Company redeemed stock options from the CEO, COO and an Executive Vice President that had previously been awarded. As a result, the Company recorded additional compensation expense as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2018		2017			2018		2017
Number of stock options redeemed		-		30,000			22,500		55,000

Redemption value	$	-	$	97,300		$	76,900	$	182,550
Amount previously expensed (2011)		-		(32,000	)		(32,000)		(67,000	)

Additional compensation expense	$	-	$	65,300		$	44,900	$	115,550

During the three and nine months ended September 30, 2018 and 2017, respectively, the CEO exercised stock options that had previously been awarded. As a result, the Company recorded additional equity as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Number of stock options exercised		-		-		7,500		-
Exercise price per share		-		-	$	1.40		-

Exercise value	$	-	$	-	$	10,500	$	-