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9. STOCK OPTIONS AND WARRANTS

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

9.	STOCK OPTIONS AND WARRANTS

Stock Options

During the three months ended March 31, 2020, an option was granted to an employee to purchase up to 49,104 shares of the Company’s common stock. These options will vest over 4 years and have an exercise price of $4.57 per share. The Company estimated the fair value of these options at $222,612 utilizing the Black-Scholes pricing model. The assumptions used in the valuation of these options include volatility of 198.91% based on historical volatility, expected dividends of 0.0%, a discount rate of 1.79% and expected term of 7.0 years based on the simplified method.

During the three months ended March 31, 2020 and 2019, the Company recorded non-cash stock-based compensation of $27,068 and $2,301, respectively. As of March 31, 2020, there is $384,108 of unrecognized stock option-based compensation expense that will be recognized over the next four years.

The number of options to purchase capital stock that were outstanding at March 31, 2020 was 288,808. During the three months ended March 31, 2020, there were no options forfeited or expired.

Warrants

During the three months ended March 31, 2020, 43,993 warrants were exercised generating $282,350 of proceeds. At March 31, 2020, there were 2,491,797 warrants outstanding at a weighted average exercise price of $6.41.