Quarterly report pursuant to Section 13 or 15(d)

EQUITY (Tables)

EQUITY (Tables)

3 Months Ended

Mar. 31, 2018

The following table summarizes the shares of the Company’s common stock issuable upon exercise of options outstanding at March 31, 2018:

Options Outstanding								Options Exercisable
Range of Exercise Price		Number Outstanding at March 31, 2018		Range of Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number Exercisable at March 31, 2018		Weighted Average Exercise Price
$	0.50		2,000,000		8.87	$	0.50		777,778	$	0.50
	1.49		60,000		4.08		1.49		60,000		1.49
	1.00		230,000		3.02		1.00		110,000		1.00
	2.50		120,000		4.76		2.50		30,000		2.50
$	0.50–2.50		2,410,000		7.98	$	0.67		977,778	$	0.68

Employee Stock Option [Member]

Schedule of stock option activities

Employee and director stock option activities for the three months ended March 31, 2018 were as follows:

	Number of Options		Weighted Average Exercise Price
Outstanding at December 31, 2017		2,110,000	$	0.54
Granted		120,000		2.50
Exercised		—		—
Outstanding at March 31, 2018		2,230,000		0.65
Options exercisable at March 31, 2018		887,778	$	0.65
Options expected to vest		1,342,222	$	0.65

Schedule of fair value of the options using the Black-Scholes option-pricing model

The fair values of these options granted to employee and director during the three months ended March 31, 2018 were estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions:

Dividend rate	0
Terms (in years)	5.0
Volatility	185.28	%
Risk-free interest rate	2.25	%

Schedule of non vested stock option activities

A summary of the status of the Company’s nonvested employee and director stock options granted as of March 31, 2018 and changes during the three months ended March 31, 2018 is presented below:

	Number of Options			Weighted Average Exercise Price			Grant Date Fair Value
Nonvested at December 31, 2017		1,428,889		$	0.51		$	1,876,079
Granted		120,000			2.50			289,150
Vested		(206,667	)		(0.81	)		(315,613	)
Forfeited		—			—			—
Nonvested at March 31, 2018		1,342,222		$	0.65		$	1,849,616

Non Employee Stock Option [Member]

Schedule of stock option activities

Non-employee stock option activities for the three months ended March 31, 2018 were as follows:

	Number of Options			Weighted Average Exercise Price
Outstanding at December 31, 2017		180,000		$	1.00
Granted		—			—
Vested		(90,000	)		(1.00	)
Exercised		—			—
Outstanding at March 31, 2018		90,000			1.00
Options exercisable at March 31, 2018		90,000		$	1.00
Options expected to vest		90,000		$	1.00

Schedule of fair value of the options using the Black-Scholes option-pricing model

The fair values of these non-employee options vested in the three months ended March 31, 2018 and nonvested non-employee options as of March 31, 2018 were estimated using the Black-Scholes option-pricing model with the following assumptions:

Dividend rate			0
Terms (in years)			3.0
Volatility			183.23% - 188.29%
Risk-free interest rate			2.29% - 2.37%

Schedule of non vested stock option activities

A summary of the status of the Company’s nonvested non-employee stock options granted as of March 31, 2018 and changes during the three months ended March 31, 2018 is presented below:

	Number of Options			Weighted Average Exercise Price			Fair Value at March 31, 2018
Nonvested at December 31, 2017		180,000		$	1.00
Granted		—			—
Vested		(90,000	)		(1.00	)
Forfeited		—			—
Nonvested at March 31, 2018		90,000		$	1.00		$	202,193