NOTE 7 – STOCK OPTIONS

During the six months ended June 30, 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 recorded as equity compensation during the six months ended June 30, 2018.

In May 2018, the Company granted options to purchase 200,000 shares of common stock to an employee at an exercise price of $0.90 per share, which expire in May 2023. As of June 30, 2018, the Company recorded approximately $36,000 of the total equity compensation on this grant of approximately $264,000 which shall be recorded over the six-month vesting period.

During the six months ended June 30, 2017, the Company granted options to purchase 100,000 shares of common stock to employees at exercise prices of $0.26 and $0.33, and expiring in March and April 2021. The fair value of these options on the grant date of approximately $19,000 was recorded as equity compensation over the respective vesting periods.

During the six months ended June 30, 2018, options to purchase 700,000 shares of common stock were exercised at exercise prices ranging from $0.08 to $0.63 per share. No options were exercised during the same period in 2017.

Options to purchase 300,000 shares of common stock were forfeited during the six-month period ended June 30, 2018. No options were forfeited during the same period in 2017.

Stock options outstanding and exercisable as of June 30, 2018 were: