NOTE 14 – STOCK OPTIONS

In January 2018, the Company granted options to purchase 1.45 million shares of common stock to the Company’s board members at exercise prices ranging from $0.14 to $0.77, vesting over a six-month period, and expiring between December 2020 and December 2022. The fair value of these options on grant date of approximately $458,000 was fully amortized by June 30, 2018. No stock options were granted to board members during the six months ended June 30, 2019.

In May 2018, the Company granted five-year options to purchase 200,000 shares of common stock to an employee with an exercise price of $0.90 per share. As of June 30, 2018, the Company amortized approximately $28,000 of the total adjusted fair value of this grant of approximately $208,000. In December 2018, 150,000 of these options were forfeited prior to their vesting dates. Approximately $50,000 of the fair value had been amortized through the forfeiture date, and as a result, approximately $158,000 will not be amortized. No options were granted to employees during the six months ended June 30, 2019.

During the six months ended June 30, 2019 and 2018, options to purchase 520,000 and 700,000 shares of common stock, respectively, were exercised at exercise prices ranging from $0.08 to $0.77 per share in 2019, and $0.08 to $0.63 per share in 2018. Of the options exercised in 2019, 350,000 were exercised on a cashless basis by two board members with the exercise prices paid via the surrender of 139,985 shares of common stock. Of the options exercised in 2018, 400,000 were exercised by a board member on a cashless basis with the exercise price paid via the surrender of 98,000 shares of common stock.

During the six months ended June 30, 2018, options to purchase 300,000 were forfeited, of which 200,000 had been owned by two board members. There were no forfeitures in 2019

Stock options outstanding and exercisable as of June 30, 2019 were: