11. STOCK OPTIONS AND WARRANTS

6 Months Ended

Jun. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK OPTIONS AND WARRANTS

Stock Options

There were no stock options issued during the six months ended June 30, 2017.

During the six months ended June 30, 2017, the Company recorded stock option based compensation of $78,891 related to prior grants. As of June 30, 2017, there is $113,090 of unrecognized stock option based compensation expense that will be recognized over the next three years.

Warrants

There was no warrant activity during the six months ended June 30, 2017. However, pursuant to a private placement, the Company is obligated to issue 15,000 warrants as an offering cost to a third party, each with a 5 year term and a strike price of $0.15 per share, at the close of the private placement offering.  There will be no accounting effect for the issuance of these warrants as their fair value will be charged to additional paid-in-capital as an offering cost and offset by a credit to additional paid-in-capital for their fair value when issuing these warrants (See Note 10).