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Stock Options and Warrants
 6 Months Ended
Jun. 30, 2021
Share-based Payment Arrangement [Abstract]  
Stock Options and Warrants

 

  9. Stock Options and Warrants

 

The Company periodically issues stock options and warrants to employees and non-employees in capital raising transactions, for services and for financing costs.

 

Options

 

Options vest according to the terms of the specific grant and expire from 2 to 10 years from date of grant. The weighted-average, remaining contractual life of employee and non-employee options outstanding at June 30, 2021 was 5 years. Stock option activity for the period January 1, 2021 up to June 30, 2021, was as follows:

        
   Options   Weighted
Avg. Exercise
Price		 
January 1, 2021   32,480,601   $0.18 
Granted   300,000    0.03 
Exercised   –    – 
Forfeited   –    – 
June 30, 2021   32,780,601   $0.18 

  

The weighted average exercise prices, remaining contractual lives for options granted, exercisable, and expected to vest as of June 30, 2021 were as follows:

        
   Outstanding Options   Exercisable Options 
Option
Exercise Price
Per Share		  Shares   Life
(Years)		  Weighted
Average Exercise
Price		   Shares   Weighted
Average Exercise
Price		 
$0.02 - $0.24   21,805,551   6.5  $0.10    21,805,551   $0.10 
$0.25 - $0.49   10,353,552   2.0   0.30    10,353,552    0.30 
$0.50 - $0.99   471,052   2.8   0.85    471,052    0.85 
$1.00 - $2.00   150,446   2.1   1.18    150,446    1.18 
    32,780,601   5.0  $0.18    32,780,601   $0.18 

 

During the six-month period ending June 30, 2021, the Company granted options to purchase 300,000 shares of common stock to a former executive officer under terms of an employment agreement. The options are exercisable at $0.02 to $0.05 per share, vest monthly over a one-month period, and expire ten years from the date granted. Total fair value of these options at grant date was $11,000 using the Black-Scholes Option Pricing model with the following assumptions: life of 10 years; risk free interest rate of 1.11%; volatility of 141% to 147% and dividend yield of 0%.

 

During the six-month periods ended June 30, 2021 and 2020, the Company recognized compensation costs based on the fair value of options that vested of $12,000 and $202,000 respectively. During the three-month periods ended June 30, 2021 and 2020, the Company recognized compensation costs based on the fair value of options that vested of $2,000 and $87,000 respectively.

 

At June 30, 2021, the Company’s closing stock price was $0.03 per share. The aggregate intrinsic value of the options outstanding at June 30, 2021 was $3,000. Future unamortized compensation expense on the unvested outstanding options at June 30, 2021 is approximately $0.

 

Warrants

 

The following table summarizes certain information about the Company’s stock purchase warrants activity for the period starting January 1, 2021 up to June 30, 2021.

        
   Warrants   Weighted Avg.
Exercise Price		 
January 1, 2021   8,683,677   $0.11 
Granted   6,744,998    0.03 
Exercised   –    – 
Cancelled   (3,454,516)   0.04 
June 30, 2021   11,974,159   $0.08 

 

The weighted average exercise prices, remaining contractual lives for warrants granted, exercisable, and expected to vest as of June 30, 2021 were as follows: 

                       
   Outstanding Warrants   Exercisable Warrants 
Warrant Exercise Price Per Share  Shares   Life
(Years)		  Weighted
Average Exercise Price		   Shares   Weighted
Average Exercise Price		 
$0.02 - $0.24   9,904,159   0.8  $0.04    9,870,826   $0.04 
$0.25 - $0.49   2,000,000   0.3   0.30    2,000,000    0.30 
$0.50 - $1.00   70,000   2.8   0.80    70,000    0.80 
    11,974,159   0.8  $0.08    11,940,826   $0.08 

 

In the six-month period ending June 30, 2021, pursuant to terms of convertible notes issued, the Company granted warrants to purchase 6,545,000 shares of common stock with an exercise price of $0.03 per share, vesting immediately upon grant and expiring one year from the date of grant (see Note 5, above).

 

In the six-month period ending June 30, 2021, the Company issued warrants to purchase 199,998 shares of common stock in exchange for services. The warrants are exercisable at a price of $0.02 to $0.05, vesting one month from the date of grant and expiring two years from the date of grant. Total fair value of these options at grant date was $6,000 using the Black-Scholes Option Pricing model with the following assumptions: life of 2 years; risk free interest rate of 0.13% to 0.27%; volatility of 204% to 233% and dividend yield of 0%. During the six-month period ended June 30, 2021, the Company recognized compensation costs based on the fair value of warrants that vested of $6,000.

 

At June 30, 2021, the aggregate intrinsic value of the warrants outstanding was $2,000.