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Share-Based Compensation & Warrants | 12 Months Ended
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Dec. 31, 2021
Equity [Abstract] |
Share-Based Compensation & Warrants | Note 19. Share-Based Compensation & Warrants Options Generally accepted accounting principles require share-based payments to employees, including grants of employee stock options, warrants, and common stock to be recognized in the income statement based on their fair values at the date of grant, net of estimated forfeitures. As of December 31, 2021 and 2020, the Company has granted stock-based compensation to employees, including a 16,667 share stock award, which was issued in 2018 and vests at the end of four years, and a 166,667 stock options that was issued in 2020 and cliff vests at the end of five years. For the years ended December 31, 2021 and 2020, stock-based compensation was $446,112 and $146,114. In 2020, the Company also granted non-statutory stock options, including 133,333 stock options to the Board of Directors, which vests over 1 year, and a 333,334 stock option to a consultant, which vests over 4 years. Non-statutory stock-based compensation was $1,585,000 and $555,000 for the years ended December 31, 2021 and 2020. There were no other options granted during the years ended December 31, 2021 and 2020, respectively. The assumptions used in the Black-Scholes option pricing model to determine the fair value of the options on the date of issuance are as follows:
|  | Year Ended December 31, 2020
Risk-free interest rate |  | 0.27 - 0.38%
Expected dividend yield |  | None
Expected life of warrants |  | 5-10 years
Expected volatility rate |  | 187 - 273%
The following table summarizes all stock option activity of the Company for the years ended December 31, 2021 and 2020:
Schedule of option activity |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  | Weighted |
|  |  |  |  | Weighted |  |  | Average |
|  |  |  |  | Average |  |  | Remaining |
|  | Number |  |  | Exercise |  |  | Contractual |
|  | of Shares |  |  | Price |  |  | Life (Years) |
Outstanding, December 31, 2019 |  |  | 16,667 |  |  | $ | 11.10 |  |  |  | 1.42 |
Granted |  |  | 633,333 |  |  |  | 12.32 |  |  |  | 8.71 |
Exercised |  |  | – |  |  |  | – |  |  |  | – |
Forfeited |  |  | – |  |  |  | – |  |  |  | – |
Outstanding, December 31, 2020 |  |  | 650,000 |  |  | $ | 12.00 |  |  |  | 8.53 |
Outstanding, December 31, 2021 |  |  | 650,000 |  |  | $ | 12.00 |  |  |  | 7.53 |
Exercisable, December 31, 2020 |  |  | 47,083 |  |  | $ | 12.00 |  |  | $ | 6.93 |
Exercisable, December 31, 2021 |  |  | 180,000 |  |  | $ | 12.00 |  |  | $ | 7.01 |
As of December 31, 2021 and 2020, the aggregate intrinsic value of the Company’s outstanding options was approximately none. The aggregate intrinsic value will change based on the fair market value of the Company’s common stock. Warrants As of December 31, 2021 and 2020, the Company had no warrants outstanding. These expired or exercised warrants during the year ended December 31, 2020 relate to the warrants issued as an incentive to investors with an investment into the Company. The warrants were issued at $12.00 per share of Common Stock. The warrants were granted for a one-year period. Management uses the Black-Scholes option pricing model to determine the fair value of warrants on the date of issuance. The fair value of warrants issued pursuant to the issuance of notes payable was recorded as deferred debt issuance cost and amortized over the remaining term of the associated debt. The assumptions used in the Black-Scholes option pricing model to determine the fair value of the warrants on the date of issuance are as follows:
Schedule of warrant assumptions |  |
Risk-free interest rate |  | 1.2%
Expected dividend yield |  | None
Expected life of warrants |  | 1 years
Expected volatility rate |  | 119%
The following table summarizes the activity of the Company’s share purchase warrants:
Schedule of warrant activity |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  | Weighted |  |  |  |
|  |  |  |  | average |  |  | Aggregate |
|  | Number of |  |  | exercise |  |  | Intrinsic |
|  | warrants |  |  | price |  |  | Value |
Balance, December 31, 2019 |  |  | 36,000 |  |  | $ | 12.00 |  |  | $ | – |
Expired |  |  | (35,333 | ) |  |  | 12.00 |  |  |  |  |
Exercised |  |  | (667 | ) |  |  | 12.00 |  |  |  |  |
Balance, December 31, 2020 |  |  | – |  |  | $ | – |  |  | $ | – |
There were no share purchase warrants outstanding as of December 31, 2021 and 2020.

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- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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