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OPTIONS

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

NOTE 5 – OPTIONS

The Company maintains stock option plans under which certain employees are awarded option grants based on a combination of performance and tenure. The stock option plans provide for the grant of up to 2,333,333 shares, and the Company’s Second Amended and Restated 2019 Equity Incentive Plan provides for automatic increases in the number of shares available under such plan (currently 2,000,000 shares) on April 1^st of each calendar year, beginning in 2021 and ending in 2029 (each a “Date of Determination”), in each case subject to the approval and determination of the administrator of the plan (the Board of Directors or Compensation Committee) on or prior to the applicable Date of Determination, equal to the lesser of (A) ten percent (10%) of the total shares of common stock of the Company outstanding on the last day of the immediately preceding fiscal year and (B) such smaller number of shares as determined by the administrator. The administrator did not approve an increase in the number of shares covered under the plan as of April 1, 2021.

For the nine-month period ended September 30, 2021, options to purchase 36,700 shares were granted, none were forfeited, and none expired. The options granted during the period vest over a four-year period, the weighted average exercise price was $5.74 per share and the options have a term of 5 years. For the nine-month period ended September 30, 2021, options to purchase 30,353 shares of common stock were exercised, for 30,353 shares of common stock resulting in proceeds of $1,821.

The Company uses the Black-Scholes option pricing model to estimate the fair value of stock-based awards on the date of the grant. The following table summarizes the assumptions used to estimate the fair value of the stock options granted during the quarter ended September 30, 2021:

Expected dividend yield 0 %

Weighted-average expected volatility 102-207 %

Weighted-average risk-free interest rate 0.25 %

Expected life of options 5 years

Total compensation cost related to stock options granted was $137,130 and $372,900 for the nine-months ended September 30, 2021, and 2020, respectively.

The following table represents stock option activity for the nine-month period ended September 30, 2021:

SCHEDULE OF STOCK OPTION ACTIVITY

	Number Outstanding			Weighted Average Exercise Price		Contractual Life in Years		Intrinsic Value
Options Outstanding as of December 31, 2020		425,817		$	4.44		5.33	$	597,322
Options Exercisable as of December 31, 2020		282,167		$	4.52		4.56	$	384,226
Options granted		36,700		$	5.74		4.44		-
Options forfeited		-		$	-		-		-
Options expired		-		$	-		-		-
Options exercised		(30,353	)	$	0.06		-		-

Options Outstanding as of September 30, 2021		432,164		$	4.86		4.89	$	368,613
Options Exercisable as of September 30, 2021		295,015		$	4.90		4.58	$	245,551