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Stock Options and Warrants
 12 Months Ended
Dec. 31, 2024
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 and warrants vest and expire according to terms established at the grant date.

 

Options

 

Employee options vest according to the terms of the specific grant and expire from 5 to 10 years from date of grant. The weighted average, remaining contractual life of employee and non-employee options outstanding at December 31, 2024 was 2.9 years. Stock option activity for the period January 1, 2023 to December 31, 2024, was as follows:

          
   Options  

Weighted Avg.

Exercise Price

 
Options outstanding, December 31, 2022   26,057,601   $0.15 
Options granted   –    – 
Options exercised   –    – 
Options cancelled   (300,446)   0.72 
Options outstanding, December 31, 2023   25,757,155   $0.14 
Options granted   –    – 
Options exercised   –    – 
Options cancelled   (463,052)   0.85 
Option outstanding, December 31, 2024   25,294,103   $0.13 

 

The weighted average exercise prices, remaining contractual lives for options granted, exercisable, and expected to vest as of December 31, 2024, were as follows:

 

As of December 31, 2024, the market price of the Company’s stock was $0.15 per share. At December 31, 2024 the aggregate intrinsic value of the options outstanding was $1,287,000. Future unamortized compensation expense on the unvested outstanding options at December 31, 2024 is $0.

                    
   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   22,055,551    3.1   $0.10    22,055,551   $0.10 
$0.25 - $0.49   3,238,552    1.7    0.36    3,238,552    0.36 
    25,294,103    2.9   $0.13    25,294,103   $0.13 

 

Year Ending December 31, 2024 and 2023

 

During the year ended December 31, 2024 and 2023, the Company did not issue any options.

 

Warrants

 

The following table summarizes certain information about the Company’s stock purchase warrants.

         
   Warrants  

Weighted Avg.

Exercise Price

 
Warrants outstanding, December 31, 2022   20,314,153   $0.04 
Warrants granted   12,482,410    0.07 
Warrants exercised   (1,383,327)   0.04 
Warrants expired   (13,459,997)   0.04 
Warrants outstanding, December 31, 2023   17,953,239   $0.06 
Warrants granted   44,340,676    0.04 
Warrants exercised   (1,496,661)   0.05 
Warrants cancelled   (16,753,245)   0.06 
Warrants outstanding, December 31, 2024   44,044,009   $0.04 

 

At December 31, 2024 the price of the Company’s common stock was $0.15 per share and the aggregate intrinsic value of the warrants outstanding was $4,704,000. As of December 31, 2024, 44,010,676 warrants were fully vested and 33,333 warrants vest in January 2025.

                    
   Outstanding Warrants   Exercisable Warrants 
Option
Exercise Price
Per Share		  Shares   Life
(Years)		   Weighted
Average
Exercise Price		   Shares   Weighted
Average Exercise
Price		 
$0.03 - $0.24   44,044,009    0.7   $0.04    44,010,676   $0.04 
    44,044,009    0.7   $0.04    44,010,676   $0.04 

 

Year Ending December 31, 2024

 

  · During 2024, pursuant to terms of convertible notes issued, the Company granted warrants to purchase 42,457,348  shares of common stock with an exercise price of $0.04 to $0.07 per share, vesting immediately upon grant and expiring one year from the date of grant.
     
  · During 2024, pursuant to terms of consulting agreements, the Company granted warrants to purchase 1,883,328 shares of common stock with an exercise price of $0.03 to $0.15 per share, vesting up to one month from the date of grant and expiring one to two years from the date of grant. Total fair value of these options at grant date was approximately $152,000 determined using the Black-Scholes Option Pricing model with the following assumptions: life of 1 to 2 years; risk free interest rate of 3.55% to 4.97%; volatility of 167% to 188% and dividend yield of 0%. During the year ended December 31, 2024, the Company recognized compensation expense of $150,000 based on the fair value of the warrants that vested.

 

Year Ending December 31, 2023

 

  · During 2023, pursuant to terms of convertible notes issued, the Company granted warrants to purchase 11,715,748 shares of common stock with an exercise price of $0.07 per share, vesting immediately upon grant and expiring one year from the date of grant.
     
  · During 2023, pursuant to terms of consulting agreements, the Company granted warrants to purchase 766,662 shares of common stock with an exercise price of $0.03 to $0.13 per share, vesting up to one month from the date of grant and expiring one to two years from the date of grant. Total fair value of these options at grant date was approximately $37,000 determined using the Black-Scholes Option Pricing model with the following assumptions: life of 1 to 2 years; risk free interest rate of 0.73% to 5.07%; volatility of 182% to 245%; and dividend yield of 0%. During the year ended December 31, 2023, the Company recognized compensation expense of $37,000 based on the fair value of the warrants that vested.