9 OPTIONS

9 Months Ended

Sep. 30, 2016

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

OPTIONS

NOTE 9. OPTIONS:

As of September 30, 2016, and September 30, 2015, the Company had issued and outstanding options to purchase 1,070,700 and 0 shares of our common stock, respectively.

On September 8, 2016, the Company issued options to employees related to acquisitions to purchase 215,200 shares of our common stock. These option grants vest over 3 years at an exercise price of $6.51 and expires on September 8, 2021. The options are 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 0.57%, and expected dividend yield of 0%. The value on the grant date of the options was $546,318 and the option expense for September 30, 2016 and 2015 was determined to be $3,704 and $0, respectively. As of September 30, 2016, no options have been exercised.

	Number of Shares			Weighted Avg. Exercise Price
Options outstanding at December 31, 2015		150,000			2.67
Granted		975,700		$	6.79
Exercised		-			-
Cancelled / Expired		(55,000	)		4.19
Outstanding at September 30, 2016		1,070,700		$	6.34

As of September 30, 2016, and September 30, 2015 the outstanding options had a weighted average remaining term and intrinsic value of 4.56 and 0 years and $500,000 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
	$	2.00		100,000		3.65		$	200,000		$	2.00		$	500,000