Quarterly report pursuant to Section 13 or 15(d)

Stock Based Compensation

Stock Based Compensation

9 Months Ended

Sep. 30, 2015

NOTE 8 – STOCK BASED COMPENSATION

On May 20, 2014, the Company approved future issuances of performance based restricted common shares to the following employees and outside consultants. The Company accounts the issuances of restricted common shares, as defined by ASC 718, Compensation—Stock Compensation, in accordance with ASC 718. The restricted common shares will be issued upon completion of certain tasks or deliverables and contain certain exercise price with no expiration period.

On May 28, 2015, the Company has elected to grant warrants to certain entities and individuals in lieu of restricted common stocks that has not been issued.

A summary of the status of the Company’s restricted common shares is presented below:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in Years)	Aggregate Intrinsic Value
Outstanding at December 31, 2013		-		-	-		-
Granted		1,760,000	$	0.17
Exercised		-		-	-		-
Forfeited or expired		-		-
Outstanding at December 31, 2014		1,760,000	$	0.17	N/A	$	246,400
Granted		-		-	-		-
Exercised		-		-	-		-
Superseded by May 28 Stock Warrants		1,760,000		-	-		-
Outstanding at September 30, 2015		-	$	-	N/A	$	-

Vested at September 30, 2015		-	$	-	N/A	$	-

The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value, based upon the Company’s closing stock price of $0.01 as of September 30, 2015, which would have been received by the share option award holders had all share option award holders exercised their share option awards as of that date.

The stock warrants issued in lieu of restricted common stock granted but not yet issued is presented below:

Date Issued	Exercise Price		Number of Shares		Weighted Average Remaining Contractual Life		Expiration date

May 28, 2015 (Issued in lieu of restricted common stock)	$	0.11		2,720,000		4.66 years	May 27, 2020
May 28, 2015	$	0.11		25,000		4.66 years	May 27, 2020
June 16, 2015	$	0.11		2,000,000		4.72 years	June 15, 2020
July 8, 2015	$	0.11		25,000		4.77 years -	July 7, 2020
July 8, 2015	$	0.11		25,000		4.77 years	July 7, 2020
August 24, 2015	$	0.11		10,000		4.90 years	August 23, 2020
Total warrants at September 30, 2015				4,805,000

The initial fair value of the new warrants issued on for services in 3^rd quarter, 2015 was estimated at an aggregate value of $635. All warrants are vested and exercisable immediately.