Stock Options and Warrants

9 Months Ended

Sep. 30, 2019

Stockholders' Equity Note [Abstract]

Stock Options and Warrants

The Company currently has two non-statutory stock option plans, the Fiscal 2001 Non-statutory Stock Option Plan (the “2001 Plan”) and the 2013 Equity Compensation Plan (the “2013 Plan”). Both plans have been adopted by our Board of Directors and approved by our shareholders. Both the 2001 Plan and the 2013 Plan have options available for future issuance. Any common shares issued as a result of the exercise of stock options would be new common shares issued from our authorized issued shares.

During the three months ended September 30, 2019 and September 30, 2018, the Company issued 0 options to purchase shares of stock.

Stock option activity for the nine months ended September 30, 2019 and September 30, 2018 is summarized as follows (the figures contained within the tables below have been rounded to the nearest thousand):

	Nine months ended September 30, 2019							Nine months ended September 30, 2018
	Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value as of September 30, 2019		Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value as of September 30, 2018
Options outstanding at beginning of period		2,222,000		$	0.13				2,147,000		$	0.13
Granted		80,000		$	0.07				80,000		$	0.10
Exercised		0		NA					0		NA
Cancelled/expired		(50,000	)	$	0.20				(5,000	)	$	0.26
Options outstanding at end of period		2,252,000		$	0.13	$	1,000		2,222,000		$	0.13	$	3,000
Options exercisable at end of period		2,172,000		$	0.13				2,142,000		$	0.13

The Company recognized $4,000 in share based payment expense in the nine months ended September 30, 2019 and $8,000 in share based payment expense in the nine months ended September 30, 2018. The Company recognized $1,000 in share based payment expense in the three months ended September 30, 2019, and $2,000 in share based payment expense in the three months ended September 30, 2018. At September 30, 2019 there was approximately $3,000 of total unrecognized share based payment expense related to stock options. This cost is expected to be recognized over 8 months.

The following table summarizes weighted-average assumptions using the Black-Scholes option-pricing model used on the date of the grants issued during the nine months ended September 30, 2019 and September 30, 2018:

	Nine months ended
	2019		2018
Volatility		85%		79%
Expected term (years)	10 years		10 years
Risk-free interest rate		2.01%		2.90%
Dividend yield		0%		0%

Warrants

Warrant activity for the nine months ended September 30, 2019 and September 30, 2018 is summarized as follows:

	Nine months ended September 30, 2019						Nine months ended September 30, 2018
	Shares		Weighted Average Exercise Price		Aggregate Intrinsic Value as of September 30, 2019		Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value as of September 30, 2018
Warrants outstanding at beginning of period		2,000,000	$	0.18				2,060,000		$	0.18
Granted		0	NA					0		NA
Exercised		0	NA					0		NA
Cancelled/expired		0	NA					(60,000	)	$	0.18
Warrants outstanding at end of period		2,000,000	$	0.18		None		2,000,000		$	0.18		None
Warrants exercisable at end of period		2,000,000	$	0.18				2,000,000		$	0.18

In the nine months ended September 30, 2019 and September 30, 2018, the Company recognized $0 in debt issuance and deferred finance costs related to the issuance of the above warrants outstanding. In the three months ended September 30, 2019 and September 30, 2018, the Company recognized $0 in debt issuance and deferred finance costs related to the issuance of the above warrants. As of September 30, 2019, there was $0 of total unrecognized expense.