Note 8 - Stock-based Compensation

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

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

8.

Stock-Based Compensation

On

March 6, 2018,

Edward R. Monfort ceased serving as the Company’s Chief Technology Officer. Upon Mr. Monfort’s separation from service, the Company’s board of directors suspended Mr. Monfort’s outstanding options. Although such options remain outstanding, these were unexercisable as of

March 31, 2018

and through the date of this Quarterly Report. As of

March 31, 2018,

outstanding options to purchase an aggregate of

15,150,000

shares of common stock are attributable to Mr. Monfort.

In

March 2018,

the Company determined that certain non-employees, to whom it previously granted options, were

no

longer providing services for the Company. As a result, the Company canceled unvested options to purchase

297,694

shares of common stock, effective

February 28, 2018.

Because of this cancellation, and in accordance with GAAP, the Company reversed

$423,308

of previously recorded expense with respect to these unvested options.

Stock option activity for the

three

months ended

March 31, 2018

is as follows:

				Weighted		Weighted
				Average		Average
	Number of			Exercise		Remaining
	Shares			Price		Contractual Life (years)
Outstanding at December 31, 2017		30,375,000		$	1.33		4.0
Granted		-
Exercised
Canceled/Forfeited		(297,694	)
Outstanding at March 31, 2018		30,077,306		$	1.34		3.7
Exercisable at March 31, 2018		10,897,776		$	1.26		4.0

Stock-based compensation expense was approximately

$3.0

million and

$606,216

for the

three

months ended

March 31, 2018

and

2017,

respectively, and is included in general and administrative expense in the accompanying unaudited consolidated statements of operations. As of

March 31, 2018,

the Company expects to recognize

$25.1

million of stock-based compensation for the non-vested outstanding options over a weighted-average period of

1.9

years.

As of

March 31, 2018,

the outstanding options have an intrinsic value of approximately

$28.6

million.