BioTech Medics Inc (BMCS)

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Stock-Based Compensation
A Company may adopt a Statement of Financial Accounting Standards No. 123, "Accounting for Stock-Based Compensation” ("SFAS No.123"), which establishes a fair value method of accounting for stock-based compensation. The provisions of SFAS No. 123 allow companies to either expense the estimated fair value of stock options or to continue to follow the intrinsic value method set forth in Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees", but to disclose the pro forma effect on net loss and net loss per share had the fair value of the stock options been exercised. The Company has elected to continue to account for stock-based compensation plans utilizing the intrinsic value method. Accordingly, compensation cost for stock options is measured as the excess, if any, of the fair market price of the Company's common stock at the date of the grant above the amount an employee must pay to acquire the common stock.