KORU Medical Systems Annual report pursuant to Section 13 and 15(d)

STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2018

Treasury issues with a term equal to the expected life of the option being valued.

	December 31, 2018		December 31, 2017

Dividend yield		0.00%		0.00%
Expected Volatility		61.1-65.2%		70.1%-72.2%
Weighted-average volatility		—		—
Expected dividends		—		—
Expected term (in years)		5-10 Years		5 Years
Risk-free rate		2.8-3.15%		2.3%-2.36%

The following table summarizes the status of the Company’s stock option plan:

	December 31, 2018				December 31, 2017
	Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price

Outstanding at January 1		1,038,000	$	0.41		1,345,000	$	0.39
Granted		1,518,000	$	1.34		318,000	$	0.49
Exercised		125,000	$	0.41		—	$	—
Forfeited		12,000	$	0.87		625,000	$	0.39
Outstanding at year end		2,419,000	$	1.00		1,038,000	$	0.41
Options exercisable		785,094	$	0.55		737,010	$	0.38
Weighted average fair value of options granted during the period			$	0.83		—	$	0.29
Stock-based compensation expense			$	248,040		—	$	(4,417	)

The following table presents information pertaining to options outstanding at December 31, 2018:

Range of Exercise Price	Number Outstanding	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price		Number Exercisable	Weighted Average Exercise Price

$0.36-1.57	2,419,000	5 years	$	1.00	785,094	$	0.55