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9. STOCK OPTIONS AND WARRANTS

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

9.	STOCK OPTIONS AND WARRANTS

Stock Options

During the six months ended June 30, 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 six months ended June 30, 2020 and 2019, the Company recorded non-cash stock-based compensation of $54,136 and $3,832, respectively. As of June 30, 2020, there is $357,040 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 June 30, 2020 was 288,808. During the six months ended June 30, 2020, there were no options forfeited or expired.

Warrants

During the six months ended June 30, 2020, 49,271 warrants were exercised generating $317,185 of proceeds. At June 30, 2020, there were 2,486,519 warrants outstanding at a weighted average exercise price of $6.41.