XML 25 R16.htm IDEA: XBRL DOCUMENT
v3.20.2

Stock-based Compensation | 6 Months Ended
--- | ---
Jun. 30, 2020
Compensation Related Costs [Abstract] |
Stock-based Compensation | Note 10 – StocK-BASED COMPENSATION The Company accounted for its stock-based compensation in accordance with the fair value recognition provisions of ASC 718. 2019 Equity Incentive Plan The Board of Directors approved the Company’s 2019 Equity Incentive Plan (the “2019 Plan”) on June 6, 2019 and the stockholders of the Company holding a majority of the outstanding shares of common stock of the Company approved and adopted the 2019 Plan on June 6, 2019. The maximum number of shares of the Company’s common stock that may be issued under the Company’s 2019 Plan is 25,000,000 shares with a maximum term of ten years. The shares delivered under the 2019 Plan upon exercise shall be made available from (i) authorized but unissued shares of common stock, (ii) common stock held in treasury of the Company, or (iii) previously issued shares of common stock reacquired by the Company, including shares purchased on the open market. Options The Company granted 3,775,000 options during the six months ended June 30, 2020. The Company granted 1,100,000 options during the six months ended June 30, 2019. The weighted average grant date fair value of options issued and vested during the six months ended June 30, 2020 was $165,982 and $16,125, respectively. The weighted average grant date fair value of non-vested options was $1,785,954 at June 30, 2020. The weighted average grant date fair value of options issued during the six months ended June 30, 2019 was $25,147. Compensation-based stock option activity for qualified and unqualified stock options are summarized as follows:
|  |  |  |  | Weighted |
|  |  |  |  | Average |
|  | Shares |  |  | Exercise Price |
Outstanding at January 1, 2020 |  |  | 17,245,000 |  |  | $ | 0.46 |
Granted |  |  | 3,775,000 |  |  |  | 0.50 |
Exercised |  |  | - |  |  |  | - |
Expired or cancelled |  |  | (200,000 | ) |  |  | 0.50 |
Outstanding at June 30, 2020 |  |  | 20,820,000 |  |  | $ | 0.47 |
The following table summarizes information about options to purchase shares of the Company’s common stock outstanding and exercisable at June 30, 2020:
|  |  |  |  |  | Weighted- |  |  | Weighted- |  |  |  |
|  |  |  |  |  | Average |  |  | Average |  |  |  |
|  |  | Outstanding |  |  | Remaining Life |  |  | Exercise |  |  | Number |
Exercise Prices |  |  | Options |  |  | In Years |  |  | Price |  |  | Exercisable |
$ | 0.38 |  |  |  | 3,000,000 |  |  |  | 4.12 |  |  | $ | 0.38 |  |  |  | - |
| 0.40 |  |  |  | 3,600,000 |  |  |  | 4.06 |  |  |  | 0.40 |  |  |  | - |
| 0.50 |  |  |  | 14,220,000 |  |  |  | 4.62 |  |  |  | 0.50 |  |  |  | 424,167 |
|  |  |  |  | 20,820,000 |  |  |  | 4.45 |  |  | $ | 0.47 |  |  |  | 424,167 |
The compensation expense attributed to the issuance of the options is recognized ratably over the vesting period. Options granted under the 2019 Plan are exercisable for five to ten years from the grant date and generally vest over three years from the grant date. Total compensation expense related to the options was $343,910 and $669,339 for the three and six months ended June 30, 2020, respectively. As of June 30, 2020, there was future compensation cost of $2,777,590 with a weighted average recognition period of 1.82 years. The aggregate intrinsic value totalled $60,000 and was based on the Company’s estimated fair value of the stock price of $0.40 as of June 30, 2020, respectively, which would have been received by the option holders had all option holders exercised their options as of that date. On January 1, 2020, the Company granted options to purchase 720,000 shares of the Company’s common stock to Mr. Reithinger, with an exercise price of $0.50 per share. The options vest monthly over a three-year period. The options issued were valued using the Black-Scholes-Merton option pricing model under the following assumptions: stock price - $0.40; strike price - $0.50; expected volatility – 72%; risk free interest rate – 1.67%; dividend rate – 0%; and expected term – 5.75 years. On January 1, 2020, the Company granted options to purchase 50,000 shares of the Company’s common stock to an employee, with an exercise price of $0.50 per share. The options for 33% of the shares vest on the one-year anniversary of the grant date and then monthly over the subsequent two-year period. The options issued were valued using the Black-Scholes-Merton option pricing model under the following assumptions: stock price - $0.40; strike price - $0.50; expected volatility – 72%; risk free interest rate – 1.59%; dividend rate – 0%; and expected term – 3.49 years. On January 29, 2020, the Company granted options to purchase 1,000,000 shares of the Company’s common stock to William Santos, Chief Operating Officer, with an exercise price of $0.50 per share. The options for 33% of the shares vest on the one-year anniversary of the grant date and then monthly over the subsequent two-year period. The options issued were valued using the Black-Scholes-Merton option pricing model under the following assumptions: stock price - $0.40; strike price - $0.50; expected volatility – 72%; risk free interest rate – 1.41%; dividend rate – 0%; and expected term – 3.49 years. On January 29, 2020, the board of directors approved the issuance of options to purchase an aggregate of 600,000 shares of the Company’s common stock to three members of the board, with an exercise price of $0.50 per share. The options for 50% of the shares vest on the one-year anniversary of the grant date and then monthly over the subsequent one-year period. The options issued were valued using the Black-Scholes-Merton option pricing model under the following assumptions: stock price - $0.40; strike price - $0.50; expected volatility – 72%; risk free interest rate – 1.41%; dividend rate – 0%; and expected term – 3.25 years. On February 13, 2020, the Company granted 200,000 options to an employee, with an exercise price of $0.50 per share. The options for 33% of the shares vest on the one-year anniversary of the grant date and then monthly over the subsequent two-year period. The Company terminated the employee in March 2020 and, as a result, no stock-based compensation was recorded relating to these options. On June 9, 2020, the Company granted options to purchase an aggregate of 1,205,000 shares of the Company’s common stock to various employees, with an exercise price of $0.50 per share. The options for 33% of the shares vest on the one-year anniversary of the grant date and then monthly over the subsequent two-year period. The options issued were valued using the Black-Scholes-Merton option pricing model under the following assumptions: stock price - $0.40; strike price - $0.50; expected volatility – 74%; risk free interest rate – 0.40%; dividend rate – 0%; and expected term – 3.49 years.

X
- References No definition available. + Details
Name: | us-gaap_CompensationRelatedCostsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for compensation costs, including compensated absences accruals, compensated absences liability, deferred compensation arrangements and income statement compensation items. Deferred compensation arrangements may include a description of an arrangement with an individual employee, which is generally an employment contract between the entity and a selected officer or key employee containing a promise by the employer to pay certain amounts at designated future dates, usually including a period after retirement, upon compliance with stipulated requirements. This type of arrangement is distinguished from broader based employee benefit plans as it is usually tailored to the employee. Disclosure also typically includes the amount of related compensation expense recognized during the reporting period, the number of shares (units) issued during the period under such arrangements, and the carrying amount as of the balance sheet date of the related liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 710 -URI http://asc.fasb.org/topic&trid=2127225 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 710 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6409950&loc=d3e20396-108366 + Details
Name: | us-gaap_CompensationRelatedCostsGeneralTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration