Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Options Issued to Purchase Common Stock

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Note 6 - Options Issued to Purchase Common Stock
9 Months Ended
Sep. 30, 2018
Notes to Financial Statements  
Stockholders' Equity Note Disclosure [Text Block]
Note
6
– Options Issued to Purchase Common Stock
 
On
March 21, 2017,
the Company and Mr. Michael Kraft entered into a consulting agreement, pursuant to which the Company granted Mr. Kraft an option to purchase from the Company
$50,000
of common stock at the market price on the date of the execution of the Reverse Split, which became effective on
June 28, 2017.
Accordingly, the
$50,000
value of options calculates to
208,160
shares based upon the
$0.24
closing price on
June 28, 2017.  
 
The
$50,000
estimated fair value of the option to purchase common stock issued in
2017
was determined using the Black-Scholes option pricing model. The expected dividend yield of
$0
is based on the average annual dividend yield at the date issued. Expected volatility of
260.52%
is based on the historical volatility of the stock. The risk-free interest rate of
1.84%
is based on the U.S. Treasury Constant Maturity rates as of the issue date. The expected life of the option of
ten
years is based on historical exercise behavior and expected future experience.