Quarterly report pursuant to Section 13 or 15(d)

STOCKHOLDERS' EQUITY (DEFICIT)

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STOCKHOLDERS' EQUITY (DEFICIT)
 3 Months Ended
Mar. 31, 2014
Notes to Financial Statements  
STOCKHOLDERS' EQUITY (DEFICIT)

NOTE 9 – STOCK OPTIONS

 

On January 29, 2014, the Company authorized the issuance of 1,000,000 stock options to one of its service providers. The aggregate fair value of the options totaled $195,885 based on the Black Scholes Merton pricing model using the following estimates: exercise price of $0.27, .71% risk free rate, 125% volatility and expected life of the options of 3 years. The Company has booked the $195,885 to additional paid in capital and a deferred expense account, to be amortized over the term of the options. For the three months ended March 31, 2014, $10,882 has been amortized to expense.

 

A summary of the status of the Company’s outstanding stock options and changes during the periods is presented below:

 

  Shares available to purchase with options    

Weighted

Average

Price

    

Weighted

Average

Fair Value
               
Outstanding, December 31, 2013   -     $ -     $ -
                     
Issued   1,000,000       0.27       0.20
Exercised   -       -       -
Forfeited   -       -       -
Expired   -       -       -
Outstanding, March 31, 2014   1,000,000     $ 0.27     $ 0.20
                     
Exercisable, March 31, 2014   1,000,000     $ 0.27     $ 0.20

 

Range of Exercise Prices Number Outstanding at 3/31/14 Weighted Average Remaining Contractual Life   Weighted Average Exercise Price
$0.27 1,000,000 2.94 years $ 0.20