Stock Options

3 Months Ended

Jun. 30, 2018

Equity [Abstract]

Stock Options

NOTE 9 - STOCK OPTIONS

During the three months ended June 30, 2018, the Company issued 100,000 stock options to directors as compensation for their service.

The Company follows the provisions of the FASB ASC 718-20, “Compensation – Stock Compensation Awards Classified as Equity”. ASC 718-20 requires all share-based payments to employees including grants of employee stock options, be measured at fair value and expensed in the consolidated statement of income over the service period (generally the vesting period). The Company uses the Black-Scholes option valuation model to value stock options. Employee stock option compensation expense for the three months ended June 30, 2018 includes the estimated fair value of options granted, amortized on a straight-line basis over the requisite service period for the entire portion of the award. For the three months ended June 30, 2018 and 2017, the stock option expense was approximately $11,000 and $55,000, respectively.

The fair value of each option grant was estimated on the date of the grant using the Black-Scholes option-pricing model with the assumptions outlined below. The expected volatility is based upon historical volatility of our stock and other contributing factors. The expected term is based upon observation of actual time elapsed between date of grant and exercise of options for all employees.

● For three months ended June 30, 2018: expected dividend yield of 0%, risk-free interest rate of 2.08%, volatility of 216.3% and an expected term of three years.

A summary of stock option activity for the three months ended June 30, 2018 is summarized below:

	June 30, 2018
	Number of Options		Weighted Average Exercise Price
Stock Options:
Balance at beginning of period		2,330,000	$	0.22
Granted		100,000	$	0.55
Exercised		-		-
Forfeited		-		-
Balance at end of period		2,430,000	$	0.23
Options exercisable at end of period		2,330,000	$	0.22

The following table summarizes information about employee stock options outstanding at June 30, 2018

Range of Exercise Price		Number Outstanding at June 30, 2018		Weighted Average Remaining Contractural Life		Weighted Average Exercise Price		Number Exercisable at    June 30, 2018		Weighted Average Exercise Price
	$.03 - $.33		1,850,000		4.4	$	0.15		1,850,000	$	`0.15
	$.45 - $.93		580,000		8.9	$	0.48		480,000	$	0.49
	*		2,430,000						2,330,000