Stockholders' Equity

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Stockholders' Equity

Note 10. Stockholders’ Equity

Authorized Capital

Common Stock.

Authorized Shares. The Company is authorized to issue 60,000,000 shares of Common Stock, par value $0.0001 per share (the “Common Stock”), of which (a) 50,000,000 shares shall be Common Stock, par value $0.0001, (b) 2,500,000 shares shall be Class A Common Stock, par value $0.0001 per share (the “Class A Common Stock”), and (c) 7,500,000 shares shall be Class B Common Stock, par value $0.0001 per share (the “Class B Common Stock”). No Class A or Class B Common Stock has been issued.

Rights and Preferences. Voting Rights. Except as otherwise required by the Nevada Revised Statues or as provided by or pursuant to the provisions of these Articles of Incorporation:

(i) Each holder of Common Stock shall be entitled to one (1) vote for each share of Common Stock held of record by such holder. The holders of shares of Common Stock shall not have cumulative voting rights.

(ii) Each holder of Class A Common Stock shall be entitled to ten (10) votes for each share of Class A Common Stock held of record by such holder. The holders of shares of Class A Common Stock shall not have cumulative voting rights.

(iii) The holders of Common Stock and Class A Common Stock shall vote together as a single class on all matters on which stockholders are generally entitled to vote.

(iv) The holders of Class B Common Stock shall not be entitled to vote on any matter, except that the holders of Class B Common Stock shall be entitled to vote separately as a class with respect to amendments to the Articles of Incorporation that increase or decrease the aggregate number of authorized shares of such class, increase or decrease the par value of the shares of such class, or alter or change the powers, preferences, or special rights of the shares of such class so as to affect them adversely.

Preferred Stock

Authorized Shares. The Company is authorized to issue 2,500,000 shares of preferred stock, par value $0.0001 per share (the “Preferred Stock”).

Rights and Preferences. The Board of Directors is authorized at any time, and from time to time, to provide for the issuance of shares of Preferred Stock in one or more series, and to determine the designations, preferences, limitations and relative or other rights of the Preferred Stock or any series thereof.

On June 23, 2016 the Company filed a Certificate of Amendment with the Secretary of State of Texas designating 25,000 shares of Series A Preferred Stock, par value $0.005 per share (the “Series A Preferred”). Holders of the Series A Preferred are entitled to 300 votes on all matters submitted to a vote of the stockholders of the Corporation. In the event that such votes do not total at least 66.67% of all votes, then regardless of the provisions of this paragraph, in any such case, the votes cast by the holders of the Series A Preferred shall be equal to 66.67% of all votes cast at any meeting of stockholders, or any issue put to the stockholders for voting and the Corporation may state that any such action was had by majority vote of all stockholders.

Stock Repurchase

On October 25, 2016 the Company’s Board of Directors authorized the repurchase of up to $1,000,000 of its common stock under the US Securities and Exchange Commission (“SEC”) rule 10B-18. Purchases made pursuant to this authorization will be made in the open market, in privately negotiated transactions, or pursuant to any trading plan that may be adopted in accordance with the SEC Rule. The timing, manner, price and amount of any repurchases will be determined by the Company in its discretion and will be subject to economic and market conditions, stock price, applicable legal requirements and other factors.

Treasury Stock

The Company repurchased and cancelled the following treasury shares:

	Year Ended December 31,
	2018				2017
Period:	Total Number of Shares Repurchased		Average Price Paid per Share		Total Number of Shares Repurchased		Average Price Paid per Share
Repurchased Shares - January-March		-	$	-		-	$	-
Repurchased Shares - April-June		-	$	-		3,450	$	4.00
Repurchased Shares - July-September		-	$	-		17,489	$	4.74
Repurchased Shares - October		-	$	-		2,528	$	6.12
Repurchased Shares - November		17,942	$	3.90		-	$	-
Repurchased Shares - December		80,121	$	3.89		-	$	-
Total		98,063	$	3.89		23,467	$	4.78
Repurchased Shares Status		2018				2017
Repurchased Shares Cancelled		87,356				23,467
Repurchased Shares Held in Treasury		10,707				-
Total		98,063				23,467
Approximate Funds Remaining in Repurchase Plan as of December 31, 2018	$	506,000

Stock Options

The Company periodically issues non-qualified incentive stock options to key employees, officers and directors under a stock option compensation plan approved by the Board of Directors in 2009. Terms of option grants are at the discretion of the Board of Directors and are generally seven years. Stock option awards to the Board were suspended effective October 1, 2017. Upon the exercise of these options, the Company expects to issue new authorized shares of its common stock. The following table summarizes all compensation plan stock options as of:

	December 31, 2018					December 31, 2017
	Number of			Weighted		Number of			Weighted
	Stock Options			Exercise Price		Stock Options			Exercise Price
Options outstanding, beginning of year		531,667		$	1.85		557,917		$	1.60
Granted		-			-		41,250			4.42
Redeemed		(220,523	)		1.30		(67,500	)		1.25
Exercised		(10,700	)		1.40		-			-
Expired / terminated		(21,277	)		1.40		-			-
Options outstanding, end of year		279,167		$	2.34		531,667		$	1.85
Options exercisable, end of year		279,167		$	2.34		521,667		$	1.85

The Company did not have any non-vested stock options outstanding as of December 31, 2018. The weighted average contractual term for options outstanding and exercisable at December 31, 2018 was 7 years. During the year ended December 31, 2018, the Company recorded stock compensation in the amount of $7,124 related to stock options outstanding at December 31, 2017 that vested during 2018.

The following table summarizes information about stock options outstanding and exercisable as of December 31, 2018:

Range of Exercise Price		Number of Options Outstanding		Weighted Average Exercise Price		Number of Options Exercisable		Weighted Average Exercise Price
	$.40 - $.99		78,750	$	0.88		78,750	$	0.88
	$1.00 - $1.99		81,250	$	1.40		81,250	$	1.40
	$2.00 - $2.99		42,500	$	2.48		42,500	$	2.48
	$3.00 - $3.99		25,000	$	3.50		25,000	$	3.50
	$4.00 - $4.99		25,000	$	4.25		25,000	$	4.25
	$5.00 - $5.99		26,667	$	5.50		26,667	$	5.50
	$.40 - $2.99		279,167	$	2.25		279,167	$	2.25

The aggregate intrinsic value of options outstanding and options exercisable were $331,590 and $1,707,621 as of December 31, 2018 and 2017, respectively. The total intrinsic value of options exercised during the year ended December 31, 2018 was $42,973. Further, the Company received a payment in the amount of $10,500 related to the exercise of options. No stock options were exercised during the year ended December 31, 2017. The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the fair value of the Company’s common stock for those stock options that have an exercise price lower than the fair value of the Company’s common stock. Options with an exercise price above the fair value of the Company’s common stock are considered to have no intrinsic value. The total fair value of shares vested during the years ended December 31, 2018 and 2017 is $30,700 and $126,200, respectively.

2017 Equity Incentive Plan

On August 23, 2017, our board approved, subject to stockholder approval at the annual meeting of stockholders on October 6, 2017, the 2017 Equity Incentive Plan (the “Equity Plan”). The Equity Plan is intended to make available incentives that will assist us to attract, retain and motivate employees, including officers, consultants and directors. We may provide these incentives through the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares and units and other cash-based or stock-based awards.

A total of 1,187,500 shares of our common stock was initially authorized and reserved for issuance under the Equity Plan. This reserve automatically increases on January 1, 2018, and each subsequent anniversary through 2027, by an amount equal to the smaller of (a) 3% of the number of shares of common stock issued and outstanding on the immediately preceding December 31, or (b) an amount determined by the board.

Awards may be granted under the Equity Plan to our employees, including officers, directors or consultants or those of any present or future parent or subsidiary corporation or other affiliated entity. All awards will be evidenced by a written agreement between us and the holder of the award and may include any of the following: stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares and performance units and cash-based awards and other stock-based awards.

As of December 31, 2018, and 2017, there were no options issued under this plan.