10 OPTIONS

6 Months Ended

Jun. 30, 2016

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

OPTIONS

NOTE 10.OPTIONS:

As of June 30, 2016 and June 30, 2015, the Company had issued and outstanding options to purchase 855,500 and 0 shares of our common stock, respectively.

On May 10, 2016, the Company issued an option to purchase 630,500 shares of common stock. This option grant vests over 3 years at an exercise price of $7.00 and expire on May 10, 2021. The option is valued using the Black-Scholes pricing model. Significant assumptions used in the valuation include expected term of 4 years, expected volatility of 50%, date of issue risk free interest rate of 0.52%, and expected dividend yield of 0%. The value on the grant date of the options was $1,718,367 and the option expense for June 31, 2016 and 2015 was determined to be $80,031 and $0, respectively. As of June 30, 2016, no options have been exercised.

On June 28, 2016, the Company issued an option to purchase 25,000 shares of common stock. This option grant vests over 3 years at an exercise price of $6.51 and expires on June 28, 2021. The option is valued using the Black-Scholes pricing model. Significant assumptions used inthe valuation include expected term of 3.25 years, expected volatility of 50%, date of issue risk free interest rate of 0.45%, and expected dividend yield of 0%. The value on the grant date of the options was $55,251 and the option expense for June 31, 2016 and 2015 was determined to be $151 and $0, respectively. As of March 31, 2016, no options have been exercised.

	Number of Shares		Weighted Avg. Exercise Price
Options outstanding at December 31, 2015		150,000		2.67
Granted		760,500	$	6.86
Exercised		—		—
Cancelled / Expired		55,000		4.19
Outstanding at June 30, 2016		855,500	$	6.30

As of June 30, 2016 and June 30, 2015 the outstanding options had a weighted average remaining term and intrinsic value of 4.19 and 0 years and $451,000 and $0, respectively.

Outstanding and Exercisable Options

Average Exercise Price			Number of Shares		Remaining Average Contractual Life (in years)		Exercise Price times number of Shares			Weighted Average Exercise Price			Intrinsic Value
	$	6.30		855,500		4.53		$	5,389,650		$	6.30		$	451,000

The options are valued using the Black-Scholes pricing model. The expensed amount for options for June 30, 2016 and 2015 was determined to be $133,667 and $0, respectively.