7. Stock Option Plans and Agreements

6 Months Ended

Jun. 30, 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 9,755,000 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. Options for 2,550,000 shares were granted for the six months ended June 30, 2019. No options were granted for the six months ended June 30, 2018.The following assumptions were used for the six months ended June 30, 2019.

Risk-free interest rate	2.17%-2.55%
Expected dividend yield	0%
Expected stock price volatility	100%
Expected life of options	3.0 - 3.9 years

The Company recorded expense for options issued to employees of $260 and related-party loan financing consideration of $14,250 for the six months ended June 30, 2019 and $0 for the six months ended June 30,2018.

At June 30, 2019, there was $0 of total unrecognized compensation cost related to non-vested options. No options vested during the six months ended June 30, 2019.

A summary of all stock option activity for the six months ended June 30, 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		2,550,000			.02
Forfeited		(938,000	)		.23
Expired		(75,000	)		.17
Outstanding at June 30, 2019		9,457,000		$	.05	4.3 years	$	3,100
At June 30, 2019 - vested or
expected to vest		9,457,000		$	.05	4.3 years	$	3,100
Exercisable		9,432,000		$	.05	4.3 years	$	3,100