Quarterly report pursuant to Section 13 or 15(d)

Stock Options

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Stock Options
9 Months Ended
Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Options

NOTE 15 – STOCK OPTIONS

 

Stock based compensation

 

Stock option activity is presented in the table below:

 

      Number of
Shares
    Weighted
average
Exercise Price
    Weight average
Contractual
Term
(years)
    Aggregate
Intrinsic Value
 
                           
Outstanding at December 31, 2013       10,110,640     $ 0.08       2.75       -  
Granted       16,100,000       0.15       10.00       -  
Exercised       (448,993 )     (0.05 )     (3.00 )        
                                   
Outstanding at December 31, 2014       25,761,647       0.09       6.20       -  
Granted       250,000       .15       3.0       -  
Exercised       -       -       -       -  
                                   
Outstanding at September 30, 2015       26,011,647     $ 0.09       6.19       -  

 

The Company recognized stock compensation expense as follows:

 

Nine months ended
September 30, 2015
    Nine months ended
September 30, 2014
 
$ 246,399     $ 122,126  
             

 

The total remainder of stock compensation expense to be recognized through the vesting period of the above options, at September 30, 2015, was approximately $169,000.

 

The total number of options vested as of September 30, 2015 was 26,011,647 and the total options expected to vest, as of September 30, 2015, was 26,011,647.

 

Stock Incentive Plan

 

On November 11, 2014, the Company adopted the 2014 Stock Incentive Plan. The plan provides for Options, Stock Appreciation Rights, Dividend Equivalent Rights Restricted Stock, Restricted Stock Units or other rights or benefits under the Plan. The maximum aggregate number of shares which may be issued pursuant to all awards (including Incentive Stock Options) is five million (5,000,000) shares. The shares may be authorized, but unissued, or reacquired common stock. In addition, Dividend Equivalent Rights shall be payable solely in cash and therefore the issuance of Dividend Equivalent Rights shall not be deemed to reduce the maximum aggregate number of shares which may be issued under the plan. The plan has a term of ten years.

 

Under the terms of this plan, shares vest as follows: 25% of the shares subject to the option shall vest twelve (12) months after the Vesting Commencement Date, and 1/48 of the shares subject to the option shall vest on each monthly anniversary of the Vesting Commencement Date, thereafter.

  

Stock option activity under the Incentive Stock Option Plan is presented in the table below:

 

      Number of Shares     Weighted average
Exercise Price
    Weight average
Contractual
Term (years)
 
                     
Outstanding at December 31, 2013       -     $ -       -  
Granted       700,000       0.15       3.00  
Outstanding at December 31, 2014       700,000     $ 0.15       3.00  
Forfeited       (106,250 )     -       -  
Outstanding at September 30, 2015       593,750     $ 0.15       2.14  

 

During the nine months ended September 30, 2015 options for approximately 106,250 common shares were forfeited by participants who left the Company.