NOTE 9 – EQUITY

On September 6, 2019, the Company filed a Certificate of Elimination of Certificate of Designations (the “Certificate of Elimination”) with the Secretary of State of the State of Delaware. The Certificate of Withdrawal eliminated the Company’s Series B Preferred Stock, par value $.001 per share (the “Series B Preferred”), from the Company’s Certificate of Incorporation. Prior to filing the Certificate of Elimination, Mark Meller, the Company’s Chief Executive Officer and Chairman and owner of the only share of Series B Preferred, cancelled the only share of Series B Preferred issued and outstanding.

On October 10, 2019, the Company’s Board of Directors authorized a new stock repurchase program, under which the Company may repurchase up to $2 million of its outstanding common stock. Under this new stock repurchase program, the Company may repurchase shares in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The extent to which the Company repurchases its shares, and the timing of such repurchases, will depend upon a variety of factors, including market conditions, regulatory requirements and other corporate considerations, as determined by the Company’s management. The repurchase program may be extended, suspended or discontinued at any time. The Company expects to finance the program from existing cash resources. As of December 31, 2020, no repurchases have been made.

On December 24, 2019, the Company announced the payment of a $0.50 special cash dividend per share of Common Stock payable on January 14, 2020 for an aggregate amount of $2,250,636, which was applied against paid in capital.

On December 10, 2020, the Company announced the payment of a $0.40 special cash dividend per share of Common Stock payable on December 28, 2020 for an aggregate amount of $1,800,509 which was applied against paid in capital.

Stock Options

The fair value of each option awarded is estimated on the date of grant using the Black-Scholes option valuation model that uses the assumptions noted in the following table. Expected volatilities are based on historical volatility of Common Stock. The expected life of the options granted represents the period from date of grant to expiration (5 years). The risk-free interest rate is based on the U.S. Treasury yield in effect at the time of grant. There were no stock options granted for the year ended December 31, 2020. As of December 31, 2020, the Company has no outstanding stock options.

A summary of the status of the Company’s stock option plans for the fiscal years ended December 31, 2020 and 2019 and changes during the years are presented below (in number of options):

	Number of Options			Average Exercise Price		Average Remaining Contractual Term	Aggregate Intrinsic Value

Outstanding options at January 1, 2019		56,280		$	3.75	1.0 years	$	-0-
Options granted		-			-
Options canceled/forfeited		(30,000	)	$	3.78

Outstanding options at December 31, 2019		26,280		$	3.71	0.7 years	$	-0-
Options granted		-		$	-
Options canceled/forfeited		(26,280	)	$	3.71

Outstanding options at December 31, 2020		-		$	-	-	$	-0-

Vested Options:
December 31, 2020:		-		$	-	-	$	-0-
December 31, 2019:		21,960		$	3.72	0.6 years	$	-0-

Total stock compensation recognized for the year ended December 31, 2020 and 2019 was $10,194 and $16,910, respectively

As of December 31, 2020, the unamortized compensation expense for stock options was $0.

Warrants

The following table summarizes the warrants transactions:

	Warrants Outstanding		Weighted Average Exercise Price		Average Remaining Contractual Term

Balance, January 1, 2019		208,241	$	5.26	2.3 years
Granted		-	$	-
Exercised		16,698	$	5.09
Canceled		-	$	-
Outstanding and Exercisable December 31, 2019		191,543	$	5.28	.3 years

Granted		-	$	-
Exercised		-	$	-
Canceled		186,555	$	5.31
Outstanding and Exercisable December 31, 2020		4,988	$	4.01	1.24 years