NOTE 9 – OPTIONS AND WARRANTS

Options.

The following is a summary of stock option activity:

For options granted during 2016 where the exercise price was less than the stock price at the date of the grant, the weighted-average fair value of such options was $2.45 and the weighted-average exercise price of such options was $0.15.  No options were granted during 2016 where the exercise price was greater than the stock price or equal to the stock price at the date of grant.

The fair value of the stock options was expenses immediately as the options vested immediately. The Company recorded stock option expense of $15,925,010 during the nine months ended September 30, 2016.

The assumptions used in calculating the fair value of options granted using the Black-Scholes option- pricing model for options granted are as follows:

Warrants.

The following is a summary of warrant option activity:

The exercise price for warrants outstanding and exercisable at September 30, 2016 are as follows:

Also see Note 3.