Annual report pursuant to Section 13 and 15(d)

Stock Options

v3.7.0.1
Stock Options
 12 Months Ended
Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Options

9. Stock Options

 

Effective October 16, 2014, the Company adopted the 2014 Stock Option Plan (the “Plan”) under the administration of the Board of Directors to retain the services of valued key employees and consultants of the Company.

 

On November 21, 2014, the Company entered into an executive employment agreement with Rory Cutaia, the Company’s Chief Executive Officer, and issued the following stock options in connection with the agreement: (i) 800,000 stock options, each exercisable into one share of our common stock at a price of $0.50 per share, 400,000 of which vested immediately and 400,000 which will vest one year from the execution date, on November 21, 2015 and (ii) 250,000 stock options on each anniversary of the execution date.

 

A summary of option activity for the years ended December 31, 2016 and 2015 are presented below.

 

                Weighted-        
          Weighted-     Average        
          Average     Remaining     Aggregate  
          Exercise     Contractual     Intrinsic  
    Options     Price     Life (Years)     Value  
                         
Outstanding at December 31, 2014     6,470,000     $ 0.50       -     $ -  
Granted     3,350,000       1.12       -       -  
Forfeited     (2,163,750 )     0.91       -       -  
Exercised     -       -       -       -  
Outstanding at December 31, 2015     7,656,250     $ 0.66       4.87     $ -  
Granted     5,860,000       0.09       -       -  
Forfeited     (2,985,297 )     0.93       -       -  
Exercised     -       -       -       -  
Outstanding at December 31, 2016     10,530,953     $ 0.33       4.03     $ -  
                                 
Vested December 31, 2016     6,801,577     $ 0.49             $ -  
                                 
Exercisable at December 31, 2016     5,748,933     $ 0.47             $ -  

 

The weighted average grant date fair value of options granted during the years ended December 31, 2016 and 2015 was $0.09 and $0.15 per option, respectively. The total expense recognized relating to stock options for the years ended December 31, 2016 and 2015 amounted to $457,881 and $836,592, respectively. As of December 31, 2016, total unrecognized stock-based compensation expense was $369,730 which is expected to be recognized as an operating expense through July 2019.