6. Stock Option Plans and Agreements

3 Months Ended

Mar. 31, 2019

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 7,265,000 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. 50,000 options were granted for the three months ended March 31, 2019. No options were granted for the three months ended March 31, 2018. The following assumptions were used for the three months ended March 31, 2019.

Risk-free interest rate	1.50	%
Expected dividend yield	0	%
Expected stock price volatility	100	%
Expected life of options	2.50 years

The Company recorded expense for options issued to employees and independent service providers of $260 and $0 for the three months ended March 31, 2019 and 2018, respectively.

At March 31, 2019, there was no unrecognized compensation cost related to non-vested options. No options vested during the three months ended March 31, 2019.

A summary of all stock option activity for the three months ended March 31, 2019 follows:

	Number of Options Outstanding			Weighted Average Exercise Price		Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at December 31, 2018		7,920,000		$	.09
Granted		50,000			.05
Forfeited		(938,000	)		.23
Expired		(65,000	)		.18
Outstanding at March 31, 2019		6,967,000		$	.07	3.5 years	$	2,000
At March 31, 2019 - vested or
expected to vest and exercisable		6,942,000		$	.06	3.5 years	$	2,000