NOTE 7 – STOCK GRANTS

Director stock grants

In 2016, the Company granted its independent directors an aggregate of 468,254 shares of restricted common stock in the Company. The total fair value of this stock on the date of grant was $41,666. These shares were fully vested upon issuance.

During the three and nine-months ended September 30, 2017, the Company granted its independent directors an aggregate of 95,109 and 418,025, shares of restricted common stock in the Company respectively. The total fair value of this stock on the date of grant was $43,750 and $93,750 for the three and nine-months ended September 30, 2017, respectively. These shares were fully vested upon issuance.

The Company recognizes the expense related to these grants ratably over the requisite service period. Total stock compensation expense recognized as a result of these grants were $43,750 and $93,750 for the three and nine-months ended September 30, 2017, respectively, and $4,166 and $29,166 for the three and nine-months ended September 30, 2016, respectively.

Consultant stock grant

On April 10, 2017, the Company granted a consultant 100,000 shares of restricted common stock valued at $0.23 per share. These shares are subject to a risk of forfeiture and vest quarterly in arrears commencing on April 1, 2017. The Company recognized $5,750 and $11,500 in stock based compensation related to this grant during the three and nine-months ended September 30, 2017, respectively.

On August 8, 2017, the Company granted a consultant 100,000 shares of restricted common stock valued at $0.175 per share. These shares are subject to a risk of forfeiture and vest 25% upon grant and quarterly in arrears thereafter commencing on September 1, 2017. The Company recognized $8,750 in stock based compensation related to this grant during the three and nine-months ended September 30, 2017.