NOTE 4 - STOCK OPTIONS

9 Months Ended

Sep. 30, 2018

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

NOTE 4 - STOCK OPTIONS

NOTE 4 - STOCK OPTIONS AND WARRANTS

Five million stock options were issued to the CEO as part of his employment agreement on August 28, 2018, see Note 5. An additional 300,000 options were issued to two new Directors on August 28, 2018. The options expire in five years.  The Company recorded an option expense of $1,316,380 equal to the estimated fair value of the options at the date of issuance. The fair market value was calculated using the Binomial option price calculation method assuming approximately 2.52% risk-free interest, 0% dividend yield, 460% volatility, exercise price of $0.25 per share with a current market price of $0.25 and an expected life of 5 years. No stock options were exercised during the nine months ended September 30, 2018.

During the nine months ended September 30, 2018, the Company issued 3,500,000 warrants as part of a subscription agreement. Each warrant entitles the holder to purchase one share of common stock at a price of $0.325. The warrants expire in five years.  The Company recorded a warrant expense of $1,339,420 equal to the estimated fair value of the warrants at the date of issuance. The fair market value was calculated using the Binomial option price calculation method assuming approximately 2.52% risk-free interest, 0% dividend yield, 443% volatility, exercise price of $0.325 per share with a current market price of $0.385 and an expected life of 5 years.

No stock options were issued or exercised during the nine months ended September 30, 2017. 

Stock Warrants and Options
Stock warrants/options outstanding and exercisable on a post reverse split basis on September 30, 2018 are as follows:
Exercise Price per Share		Shares Under Option/warrant		Remaining Life in Years
Outstanding
$	0.325		3,500,000		4.33
$	0.15		5,220,000		4.00
$	0.15		580,000		2.20
$	0.05		200,000		4.20
$	0.30		200,000		4.20
$	0.775		40,000		0.25
$	0.70		50,000		0.25
$	0.55		60,000		1.75
$	0.65		60,000		1.75
$	0.25		5,300,000		4.92
Exercisable
$	0.325		3,500,000		4.33
$	0.15		5,220,000		4.00
$	0.15		580,000		2.20
$	0.05		200,000		4.20
$	0.30		200,000		4.20
$	0.775		40,000		0.25
$	0.70		50,000		0.25
$	0.55		60,000		1.75
$	0.65		60,000		1.75
$	0.25		2,000,000		4.92