Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

STOCK OPTIONS AND WARRANTS (Details 1)

v3.7.0.1
STOCK OPTIONS AND WARRANTS (Details 1)
 12 Months Ended
Dec. 31, 2016
USD ($)
$ / shares
Dividend yield | $ $ 0
Expected volatility 100.00% [1]
Risk-free interest rate 0.94%
Expected term (years) 2 years 6 months [2]
Exercise price $ 0.0026
Stock price $ 0.15 [3]
[1] Due to the low trading volume of the Company’s Common Stock, the expected volatility was based on the historical volatility of the share price of other public companies that operate in the same industry sector as the Company.
[2] Due to the fact that the Company does not have sufficient historical exercise data, the expected term was determined based on the "simplified method" in accordance with SEC Staff Accounting Bulletin No. 110.
[3] The Common Stock price, per share for the year ended December 31, 2016 reflects the Company’s management’s estimation of the fair value per share of Common Stock. In reaching its estimation for December 31, 2016, management considered, among other things, the valuation of the issuance of the shares under the private placement (see Note 10-F above)