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NOTE 6. STOCK OPTIONS AND SUBSCRIPTIONS PAYABLE
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3 Months Ended |
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Mar. 31, 2013
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| Notes to Financial Statements | |
| NOTE 6. STOCK OPTIONS AND SUBSCRIPTIONS PAYABLE |
The Company accounts for employee and non-employee stock options under ASC 718, whereby option costs are recorded based on the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. Unless otherwise provided for, the Company covers option exercises by issuing new shares.
The Companys stock option activity is described below.
Non-employee stock options
At the beginning of 2011, the Company had 22,500 options outstanding for shares in TransBiotec CA. During the year ended December 31, 2011 no options were exercised or expired, leaving a December 31, 2011 outstanding balance of 22,500 non-employee stock options, exercisable at prices from $0.10 - $0.15 per share with the option terms expiring from January 2012 through January 2015. All of these options are for the stock of TransBiotec - CA. During the year ended December 31, 2012 no options were exercised, and 20,000 options expired, leaving a December 31, 2012 outstanding balance of 2,500 non-employee stock options, exercisable at $0.10 per share with the option terms expiring in January 2015. All of these options are for the stock of TransBiotec - CA.
During 2012 the Company granted 29,678 stock options for shares in TransBiotec - DE. The fair value of the option grants was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: risk free interest rate of 0.8%, dividend yield of 0%, expected life of five years, volatility of 189%. No options were exercised or expired, leaving a December 31, 2012 outstanding balance of 29,678 options for TransBiotec DE. The Company incurred and recorded compensation expense under these stock option grants of $4,042 in 2012.
During the three months ended March 31, 2013 the Company granted 473,733 stock options for shares in TransBiotec - DE. The fair value of the option grants was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: risk free interest rate of 0.8%, dividend yield of 0%, expected life of five years, volatility of 186%. No options were exercised or expired, leaving a March 31, 2013 outstanding balance of 503,411 options for TransBiotec DE. The Company incurred and recorded compensation expense under these stock option grants of $41,069 during the three months ended March 31, 2013.
Employee stock options
The parent company had no outstanding employee stock options.
Stock subscriptions payable
At March 31, 2013 the Company had stock subscriptions payable of $26,000 for 80,696 common shares to be issued. |