Note 7 - Stock Based Compensation | Note 7 – Stock Based Compensation Options In 2006, the Company adopted the 2006 Long-Term Incentive Plan (the "2006 Plan"). Awards granted under the 2006 Plan have a ten-year term and may be incentive stock options, non-qualified stock options or warrants. The awards are granted at an exercise price equal to the fair market value on the date of grant and generally vest over a three or four year period. The Plan expired on December 31, 2009, therefore as of March 31, 2019, there was no unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the 2006 plan. The 2006 Plan provided for the granting of options to purchase up to 10,000,000 shares of common stock. 8,146,900 options have been issued under the plan to date of which 7,157,038 have been exercised and 692,962 have expired to date. There were 296,900 options outstanding under the 2006 Plan on its expiration date of December 31, 2009. All options issued subsequent to this date were not issued pursuant to any plan. Stock option activity during the three months ended March 31, 2019 and 2018 follows: Options Outstanding Weighted Average Exercise Price Weighted Average Grant-Date Fair Value Weighted Average Remaining Contractual Life (Years) Options outstanding at December 31, 2017 8,463,000 $ 0.07 $ 0.07 7.41 No option activity — — — Options outstanding at March 31, 2018 8,463,000 $ 0.07 0.07 7.16 Options outstanding at December 31, 2018 20,500,000 0.03 0.03 7.52 No option activity — — — Options outstanding at March 31, 2019 20,500,000 $ 0.03 $ 0.03 7.27 Options outstanding at March 31, 2019 consist of: Date Issued Number Outstanding Number Exercisable Exercise Price Expiration Date June 6, 2014 250,000 250,000 $ 0.05 June 6, 2019 March 24, 2015 200,000 200,000 $ 0.01 March 24, 2020 April 6, 2017 600,000 600,000 $ 0.03 April 6, 2027 June 6, 2017 700,000 700,000 $ 0.07 June 6, 2022 June 6, 2017 6,500,000 6,500,000 $ 0.07 June 6, 2027 November 1, 2018 12,250,000 12,250,000 $ 0.01 November 1, 2028 Total 20,500,000 20,500,000 Warrants In addition to our 2006 Long Term Incentive Plan, we have issued and outstanding compensatory warrants to two consultants entitling the holders to purchase a total of 275,000 shares of our common stock at an average exercise price of $0.94 per share. Warrants to purchase 25,000 shares of common stock vest upon 6 months after the Company engages in an IPO, have an exercise price of $3.00 per share, and expire 2 years after the Company engages in an IPO. Warrants to purchase 250,000 shares of common stock vest 100,000 shares on issuance (June 1, 2009), and 50,000 shares on each of the following three anniversaries of the date of issuance, have exercise prices ranging from $0.50 per share to $1.15 per share, and expire on June 1, 2019. The issuance of the compensatory warrants was not submitted to our shareholders for their approval. Warrant activity during the three months ended March 31, 2019 and 2018 follows: Warrants Outstanding Weighted Average Exercise Price Weighted Average Grant-Date Fair Value Weighted Average Remaining Contractual Life (Years) Warrants outstanding at December 31, 2017 400,000 $ 0.62 $ 0.10 3.27 Warrant granted 750,000 0.05 — Warrants outstanding at March 31, 2018 1,150,000 $ 0.21 $ 0.10 3.64 Warrants outstanding at December 31, 2018 1,875,000 $ 0.12 $ 0.12 3.24 No warrant activity — — — Warrants outstanding at March 31, 2019 1,875,000 $ 0.12 $ 0.12 3.00 Warrants outstanding at March 31, 2019 consist of: Dater Issued Number Outstanding Number Exercisable Exercise Price Expiration Date June 1, 2009 100,000 100,000 $ 0.50 June 1, 2019 June 1, 2009 50,000 50,000 $ 0.65 June 1, 2019 June 1, 2009 50,000 50,000 $ 0.85 June 1, 2019 June 1, 2009 50,000 50,000 $ 1.15 June 1, 2019 January 1, 2017 50,000 50,000 $ 0.25 October 10, 2021 January 1, 2017 50,000 50,000 $ 0.50 November 7, 2021 January 5, 2017 25,000 25,000 $ 0.50 January 5, 2022 February 5, 2018 750,000 750,000 $ 0.05 February 5, 2023 April 27, 2018 750,000 750,000 $ 0.05 April 27, 2023 Total 1,875,000 1,875,000 |