Shareholders' Equity and Share-based Payments [Text Block] | NOTE 9 – OPTIONS AND WARRANTS Options On October 19, 2012, the Company’s Board of Directors approved the 2012 Equity Incentive Plan (“the “Plan) and terminated the Long-Term Incentive Plan (the “2011 Plan”). The Plan provides for the issuance of options to purchase up to 15,186,123 (as amended) shares of the Company’s common stock to officers, directors, employees and consultants of the Company (as amended). Under the terms of the Plan the Company may issue Incentive Stock Options as defined by the Internal Revenue Code to employees of the Company only and nonstatutory options. The Board of Directors of the Company or a committee thereof administers the Plan and determines the exercise price, vesting and expiration period of the grants under the Plan. However, the exercise price of an Incentive Stock Option should not be less than 110% of fair value of the common stock at the date of the grant for a 10% or more stockholder and 100% of fair value for a grantee who is not 10% stockholder. The fair value of the common stock is determined based on the quoted market price or in absence of such quoted market price, by the administrator in good faith. Additionally, the vesting period of the grants under the Plan will be determined by the administrator, in its sole discretion, with an expiration period of not more than ten years. The following table presents information related to stock options at March 31, 2018: Options Outstanding Options Exercisable Weighted Average Exercisable Exercise Number of Remaining Life Number of Price Options In Years Options $ 1.01-2.00 3,545,540 7.2 2,483,540 2.01-3.00 4,384,779 3.4 4,384,779 3.01-4.00 300,000 7.0 300,000 8,230,319 5.2 7,168,319 A summary of the stock option activity and related information for the 2012 Plan for the three months ended March 31, 2018 is as follows: Weighted-Average Weighted-Average Remaining Aggregate Shares Exercise Price Contractual Term Intrinsic Value Outstanding at December 31, 2017 8,510,319 $ 2.11 5.2 $ 27,045 Grants 50,000 $ 1.42 10.0 $ - Exercised - Canceled (330,000 ) 1.66 Outstanding at March 31, 2018 8,230,319 $ 2.12 5.2 $ 158,930 Exercisable at March 31, 2018 7,168,319 $ 2.20 4.7 $ 104,305 The aggregate intrinsic value in the preceding tables represents the total pretax intrinsic value, based on options with an exercise price less than the Company’s stock price of $1.57 as of March 31, 2018, which would have been received by the option holders had those option holders exercised their options as of that date. Option valuation models require the input of highly subjective assumptions. The fair value of stock-based payment awards was estimated using the Black-Scholes option model with a volatility figure derived from an index of historical stock prices of comparable entities until sufficient data exists to estimate the volatility using the Company’s own historical stock prices. Management determined this assumption to be a more accurate indicator of value. The Company accounts for the expected life of options based on the contractual life of options for non-employees. For employees, the Company accounts for the expected life of options in accordance with the “simplified” method, which is used for “plain-vanilla” options, as defined in the accounting standards codification. The risk-free interest rate was determined from the implied yields of U.S. Treasury zero-coupon bonds with a remaining life consistent with the expected term of the options. The fair value of stock-based payment awards during the three months ended March 31, 2018 and 2017 was estimated using the Black-Scholes pricing model. On February 15, 2018, the Company granted 50,000 options to purchase the Company stock in connection with the services rendered at the exercise price of $1.42 per share for a term of ten years with vesting immediately. The following assumptions were used in determining the fair value of employee options for the three months ended March 31, 2018: Risk-free interest rate 2.65 % Dividend yield 0 % Stock price volatility 94.10 % Expected life 5 years Weighted average grant date fair value $ 1.01 The fair value of all options vesting during the three months ended March 31, 2018 and 2017 of $246,710 and $42,984, respectively, was charged to current period operations. Unrecognized compensation expense of $783,894 and $979,812 at March 31, 2018 and December 31, 2017, respectively, will be expensed in future periods. Warrants The following table summarizes information with respect to outstanding warrants to purchase common stock of the Company at March 31, 2018: Exercise Number Expiration Price Outstanding Date $ 0.001 383,320 January 2020 $ 1.50 7,615,982 February 2018 to May 2021 $ 1.75 500,000 August 2021 $ 1.84 35,076 January 2020 $ 1.95 1,689,026 October 2018 to September 2019 $ 2.00 100,000 August 2018 $ 2.02 30,755 January 2020 $ 2.50 100,000 August 2018 $ 2.75 228,720 August 2019 to September 2019 $ 3.67 214,193 December 2018 to January 2019 $ 3.75 1,340,556 April 2019 to March 2020 12,237,628 On January 5, 2018, the Company issued 100,000 warrants to purchase the Company’s common stock at $1.50 per share, expiring on January 5, 2021, in connection with the sale of the Company’s common stock. On February 14, 2018, the Company entered into a consent agreement with the holders of the Company’s Series D Convertible Preferred Stock. Pursuant to the consent, the Series D Holders consented to the Series E Preferred Stock transaction and are entitled at any time on or before April 17, 2018, to elect to receive the more favorable terms of the transaction. In consideration for their entry into the consent, the Company issued to the Series D Holders warrants to purchase up to an aggregate of 100,000 shares of common stock. The consent warrants are exercisable immediately and expire on February 14, 2021, and have an exercise price of $1.50 per share. The warrants contain certain anti-dilutive provisions (see Note 8). On February 16, 2018, the Company issued an aggregate of 500,000 warrants to purchase the Company’s common stock at $1.75 per share, expiring on August 16, 2021, in connection with the sale of the Company’s Series E preferred stock. The warrants contain certain anti-dilutive provisions (see Note 8). A summary of the warrant activity for the three months ended March 31, 2018 is as follows: Weighted-Average Weighted-Average Remaining Aggregate Shares Exercise Price Contractual Term Intrinsic Value Outstanding at December 31, 2017 12,789,086 $ 1.82 1.7 $ 551,636 Grants 700,000 $ 1.68 3.0 - Exercised - Expired (1,251,458 ) $ 1.50 - - Outstanding at March 31, 2018 12,237,628 $ 1.85 1.7 $ 1,134,548 Vested and expected to vest at March 31, 2018 12,237,628 $ 1.85 1.7 $ 1,134,548 Exercisable at March 31, 2018 12,237,628 $ 1.85 1.7 $ 1,134,548 |