3. Stock Based Compensation (Tables)

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Black-Scholes option pricing model assumptions

	Three Months ended June 30,		Six Months ended June 30,
	2017	2016	2017	2016
Risk free interest rate	n/a	0.70% - 1.73%	n/a	0.70% - 1.73%
Dividend yield	n/a	0%	n/a	0%
Expected term	n/a	2-10 years	n/a	2-10 years
Expected volatility	n/a	35.9% - 50.4%	n/a	34.9% - 50.4%

Options outstanding

Incentive Options	Shares			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at January 1, 2017		1,313,000		$	0.22
Granted		-			-
Exercised		-			-
Expired		(220,500	)		0.40
Forfeited		(20,000	)		0.13
Outstanding at June 30, 2017		1,072,500		$	0.18		5.6	$	128,198
Exercisable at June 30, 2017		1,062,500		$	0.18		5.6	$	126,598

Nonvested Stock awards

	Shares			Weighted average grant date fair value
Nonvested at January 1, 2017		45,000		$	0.07
Granted		-
Vested		(15,000	)		0.06
Forfeited		(20,000	)		0.04
Nonvested at June 30, 2017		10,000		$	0.05