Note 8 - Stockholders' Equity

3 Months Ended

Jun. 30, 2016

Notes

Note 8 - Stockholders' Equity

NOTE 8 - STOCKHOLDERS’ EQUITY

Stock Issued for compensation and service

On April 19, 2016, in accordance with the Company's agreement with the independent director, the Company issued 43,478 shares of common stock to one independent director, which were valued at $10,609 based on the quoted price at issuance.

Stock Option Plan 

On July 23, 2015, the Company adopted a stock option plan that was approved by its Board of Directors on June 15, 2015.  This plan was intended to retain and provide incentives for talented employees, officers and directors, and to align stockholder and employee interests.  Under this stock option plan, the participants of the plan include the Company's directors, officers and some employees who were previously determined by the Board of Directors.  On July 23, 2015, the Company signed stock option agreements with each participant and granted options to purchase a total of 2.6 million shares of Common Stock to the participants.  The vesting period of the stock options was ten months from July 23, 2015, the grant date of the stock options.  Immediately following the date when the stock options were vested, the participants would have five consecutive business days to exercise the stock options at an exercise price of $0.40 per share.  Stock options not exercised within the five consecutive business days would expire.  The Company assessed the fair value of the total granted stock options on the grant date using a Black-Scholes Stock Option Pricing Model. Significant assumptions used in calculating fair value of options are as follows:

• Expected volatility 92.03%;
• Risk-free interest rate 0.33%;
• Expected term (year) 0.85;
• Exercise price $0.4.

The estimated fair value of the total granted stock options on the grant date was $529,100 which was being amortized over ten months period.  For the quarter ended June 30, 2016, the amortization of stock-based compensation expense was $101,026. As of June 30, 2016, the total estimated fair value of the stock options in amount of $529,100 had been fully amortized. All stock options expired on May 30, 2016 and none of the vested stock options were exercised by the end of the option exercise date. 

A summary of the changes in stock options outstanding under the Company’s stock option plan during the quarter ended June 30, 2016 is presented below:  

	Shares		Weighted Average Grant Date Fair Value
Options outstanding at April 1, 2016	2,600,000	$	529,100
Granted	-		-
Exercised	-		-
Canceled	-		-
Expired	2,600,000	$	529,100
Options outstanding at June 30, 2016	-	$	-