STOCK OPTIONS
 9 Months Ended
Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
NOTE 6 – STOCK OPTIONS
 
On May 27, 2015, the Company’s board of directors adopted the 2015 Long-Term Incentive Equity Plan (“2015 Stock Option Plan”). The 2015 Stock Option Plan provides for the grant of stock options, stock appreciation rights, restricted stock and other stock-based awards to, among others, the officers, directors, employees and consultants of the Company. The total number of shares of common stock reserved under the Plan are 466,667.
 
On May 27, 2015, as part of their employment agreements, the Company granted the officers of the Company and Mr. Panza, options to purchase 194,667 shares at an exercise price of $3.75 which are exercisable until May 26, 2020. These options vest on a quarterly basis over the two year period from the date of issuance.
 
The following table summarizes the stock option activity of the Company:
 
 
 
 
 
 
 
Weighted Average Grant Date Fair
 
Average Remaining Contractual Term
 
 
 
 
 
Shares
 
Weighted Average Exercise Price
 
Value
 
(Years)
 
Aggregate Intrinsic Value
 
Outstanding at January 1, 2015
 
 
-
 
$
-
 
$
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Granted
 
 
194,667
 
$
3.75
 
$
6.22
 
 
 
 
 
 
 
Exercised
 
 
-
 
$
-
 
$
-
 
 
 
 
 
 
 
Expired, forfeited or cancelled
 
 
-
 
$
-
 
$
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding at September 30, 2015
 
 
194,667
 
$
3.75
 
$
6.22
 
 
4.7
 
$
1,168,002
 
Exerciseable at September 30, 2015
 
 
24,333
 
$
3.75
 
$
6.22
 
 
4.7
 
$
146,000
 
 
As of September 30, 2015, there was a total of $1,002,514 of unrecognized compensation arrangements granted related to unvested options. The cost is expected to be recognized through 2017 over a weighted average period of 1.65 years.
 
The Company accounts for all stock based compensation as an expense in the financial statements and associated costs are measured at the fair value of the award. For the three months and nine months ended September 30, 2015, the Company recorded stock based compensation expense of $151,354 and $207,949 respectively.
 
The Black Scholes method option pricing model was used to estimate fair value as of the date of grants during 2015 using the assumptions: a stock price of $8.70, a dividend yield of 0%, expected volatility of 79%, a risk free interest rate of 0.99%, and an expected life of 3.25 years. The simplified method was used to determine the expected life as the granted options as the options were considered to be plain-vanilla options.