Note 6 - Options Issued to Purchase Common Stock
|9 Months Ended|
Sep. 30, 2018
|Notes to Financial Statements|
|Stockholders' Equity Note Disclosure [Text Block]||
6– Options Issued to Purchase Common Stock
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
$50,000of 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
$50,000value of options calculates to
208,160shares based upon the
$0.24closing price on
June 28, 2017.
$50,000estimated fair value of the option to purchase common stock issued in
2017was determined using the Black-Scholes option pricing model. The expected dividend yield of
$0is 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
tenyears is based on historical exercise behavior and expected future experience.
The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef