7. Stock Option Plans and Agreements

9 Months Ended

Sep. 30, 2018

Share-based Payment Arrangement [Abstract]

Stock Option Plans and Agreements

The Company has approved stock options plans and agreements covering up to an aggregate of 8,273,000 shares of common stock. Such options may be designated at the time of grant as either incentive stock options or nonqualified stock options. Stock based compensation consists of charges for stock option awards to employees, directors and consultants.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. No options were granted for the nine months ended September 30, 2018. The following assumptions were used for the nine months ended September 30, 2017.

Risk-free interest rate	1.50% - 1.58%
Expected dividend yield	0%
Expected stock price volatility	100%
Expected life of options	2.75 to 3.0 years

The Company recorded expense for options issued to employees and independent service providers of $0 and $25,198 for the nine months ended September 30, 2018 and 2017, respectively.

At September 30, 2018, there was approximately $7,300 of total unrecognized compensation cost related to non-vested options. That cost is expected to be recognized over a weighted average period of approximately one year. No options vested during the nine months ended September 30, 2018.

A summary of all stock option activity for the nine months ended September 30, 2018 follows:

	Number of Options Outstanding			Weighted Average Exercise Price		Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at December 31, 2017		8,031,000		$	.10
Expired		(406,000	)	$	.26
Outstanding at September 30, 2018		7,625,000		$	.09	3.5 years	$	0
At September 30, 2018 - vested or
expected to vest and exercisable		6,687,000		$	.07	3.9 years	$	0