Stock Options, Warrants and 401(k) Savings Plan

12 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Options, Warrants and 401(k) Savings Plan

12.

Stock Options, Warrants and 401(k) Savings Plan

The Company follows FASB ASC 718, Share Based Payment, which requires that the cost resulting from all share-based payment transactions be recognized in the Company’s financial statements. FASB ASC 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized in the statement of operations based on their fair values.

At December 31, 2016, the Company did not have an active stock option plan. The Company uses the Black-Scholes option pricing model to calculate the grant-date fair value of an award. There was no compensation expense recognized during the years ended December 31, 2016 and December 31, 2015 and there was no unrecognized portion of expense at December 31, 2016.

At December 31, 2016, the Company had 721,365 warrants to purchase common stock of the Company outstanding at exercise prices ranging from $0.01 to $0.07 and expiring at various dates through July 2021. The warrants are held by ten investors who acquired convertible debentures from the Company in 2013 and 2014 and by an individual who provided loans to the Company.

A summary of outstanding warrants follows:

				Weighted
		Exercise		Average
	Number of	Price Range		Exercise
	Shares	Per Share		Price
Outstanding at December 31, 2014	802,365	$0.01 to $0.07		$0.025
Warrants granted	46,000	0.06 and 0.07		0.068
Outstanding at December 31, 2015	756,365	0.01 to 0.07		0.022
Warrants expired	35,000	0.045 and 0.06		0.051
Outstanding at December 31, 2016	721,365	$0.01 to $0.07		$0.021
Weighted average remaining contractual life (years)	3.70
					Weighted
			Exercise		Average
			Price Range		Exercise
	Shares		Per Share		Price
Exercisable warrants at year end:
2016	721,365	$0.01 to $0.07		$0.021
Weighted average remaining contractual life (years)	3.70

At December 31, 2016, the Company has reserved 6,343,989 shares of common stock for possible future issuance upon exercise of 721,365 warrants and for the conversion of approximately $128,300 of convertible debentures and accrued interest into 5,622,624 shares of common stock.

The Company sponsors a 401(k) savings plan, covering substantially all employees, providing for employee and employer contributions. Employer contributions are made at the discretion of the Company. There were no contributions charged to expense during 2016 or 2015.