SHARE BASED COMPENSATION

6 Months Ended

Jun. 30, 2016

SHARE BASED COMPENSATION [Abstract]

SHARE-BASED COMPENSATION

2. SHARE-BASED COMPENSATION

Share-Based Compensation – Directors and Contractors

For the six months ended June 30, 2016 and 2015, share-based compensation expense totaled approximately $63,000 and $-0-, respectively.

There was no related income tax benefit recognized because our deferred tax assets are fully offset by a valuation allowance.

We determine the fair value of option grant share-based awards at their grant date, using a Black-Scholes-Merton Option-Pricing Model.

During the six months ended June 30, 2016, Mr. George P. Farley, the company’s CEO, was granted 5,000,000 shares of common stock under the 2007 Plan, and two contractors were granted a total of 3,000,000 shares of common stock under the 2007 Plan. For the six months ended June 30, 2016, 16,000 options to purchase stock expired, additionally, no options to purchase stock were granted, exercised or forfeited; no restricted stock units were granted, vested or forfeited; and no restricted stock awards were granted, vested or forfeited. At June 30, 2016, options to purchase 16,000 shares of common stock with an average exercise price of $0.37 per share were outstanding.