NOTE 9 – OPTIONS

Options

The following is a summary of stock option activity:

				Weighted
				Average
	Options			Exercise
	Outstanding			Price
Outstanding, December 31, 2015	-
Granted		6,500,000		$	0.15
Forfeited		-
Exercised		(6,500,000	)		0.15
Outstanding, December 31, 2016		-
Granted		-
Forfeited		-
Exercised		-
Outstanding, December 31, 2017		-
Exercisable, December 31, 2016		-

For options granted during 2016 where the exercise price was less than the stock price at the date of the grant, the weighted-average fair value of such options was $2.45 and the weighted-average exercise price of such options was $0.15. No options were granted during 2016 where the exercise price was greater than the stock price or equal to the stock price at the date of grant.

The fair value of the stock options was expensed immediately as the options vested immediately. The Company recorded stock option expense of $15,925,010 during the year ended December 31, 2016.

The assumptions used in calculating the fair value of options granted using the Black-Scholes option- pricing model for options granted are as follows:

Risk-free interest rate		1.01%
Expected life of the options		.01 year
Expected volatility		703%
Expected dividend yield		0%