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Stock Options and Warrants | 3 Months Ended
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Mar. 31, 2020
Share-based Payment Arrangement [Abstract] |
STOCK OPTIONS AND WARRANTS | NOTE 9 — STOCK OPTIONS AND WARRANTS Stock Options During the three months ended March 31, 2020, we recorded $464,585 of compensation expense related to stock options granted in prior years. No options were granted during the three months ended March 31, 2020. Warrants Recorded as Derivative Liabilities No warrants were issued during the three months ended March 31, 2020. The Company identified embedded features in the warrants issued with Series D Preferred Stock in 2019 which caused the warrants to be classified as a liability. These embedded features included the right for the holders to request for the Company to cash settle the warrants to the holder by paying to the holder an amount of cash equal to the Black-Scholes value of the remaining unexercised portion of the warrants on the date of the consummation of a fundamental transaction, as defined in the warrant instrument. The accounting treatment of derivative financial instruments requires that the Company treat the whole instrument as liability and record the fair value of the instrument as a derivative as of the inception date of the instrument and to adjust the fair value of the instrument as of each subsequent balance sheet date. During the three months ended March 31, 2020, the Company recorded other expense of $565,088 related to the change in the fair value of the derivative. The fair value of the embedded derivative was $1,177,130 as of March 31, 2020, determined using a binomial model based on a risk-free interest rate of 0.33%, an expected term of 4.0 – 4.21 years, an expected volatility of 374 - 381% and a 0% dividend yield.

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- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: 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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- References No definition available. + Details
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