4. Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Black-Scholes option pricing model assumptions

	Three Months Ended	Three Months Ended	Nine Months Ended	Nine Months Ended
	September 30, 2018	September 30, 2017	September 30, 2018	September 30, 2017
Risk-free interest rate	2.75%	1.87%	2.65% - 2.92%	1.87%
Dividend yield	0%	0%	0%	0%
Expected term	5 years	5 years	5 years	5 years
Expected volatility	53.4%	44.6%	49.0%-53.4%	44.6%

Options outstanding

	Options outstanding
				Weighted average		Weighted average
				exercise price		remaining
Incentive Options	Shares			per share		contractual term
Outstanding at January 1, 2018		1,288,000		$	0.21
Options granted		163,000			0.45
Options exercised		-			-
Options expired		(62,500	)		0.31
Options forfeited		-			-
Outstanding at September 30, 2018		1,388,500		$	0.23	5 years
Exercisable at September 30, 2018		1,220,500		$	0.21	4 years, 6 months

Nonvested stock awards

	Nonvested
				Weighted average
				grant date
	Shares			fair value
Nonvested at January 1, 2018		232,000		$	0.10
Granted		163,000			0.20
Vested		(227,000	)		0.10
Forfeited		-			-
Nonvested at September 30, 2018		168,000		$	0.20