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11. Options

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Note 11 – Options

The 2020 Equity Plan was approved by written consent of a majority of shareholders of record as of November 12, 2019 and adopted by the Board on December 5, 2019, as provided in the definitive information statement filed with Securities and Exchange Commission on January 10, 2020 (the “DEF 14C”). The description of the 2020 Equity Plan is qualified in its entirety by the text of the 2020 Equity Plan, a copy of which was attached as Annex C to the DEF 14C.

Outstanding Options

Options to purchase an aggregate total of 274,204 shares of common stock at a weighted average strike price of $16.41, exercisable over a weighted average life of nine years were outstanding as of March 31, 2020.

Options Granted

On February 26, 2020, the Company’s Board of Directors granted an aggregate amount of 240,000 stock options pursuant to the 2020 Equity Plan to purchase shares of the Company’s common stock to several officers, directors, and employees at an exercise price of $5.41 per share, which represents the closing price of the Company’s shares on the OTCQB marketplace on February 20, 2020. The officers and directors receiving grants and the amounts of such grants were as follows:

	Stock Option
Name and Title	Shares Granted
Ken DeCubellis, Chief Executive Officer and Interim Chief Financial Officer		60,377
Michael Eisele, Chief Operating Officer		42,264
Bradley Berman, Chairman of the Board and Director		24,151
Joseph Lahti, Director		24,151
Benjamin Oehler, Director		24,151
Lyle Berman, Director		24,151
Total:		199,245

All of the stock options granted under the 2020 Equity Plan presented in the table above will vest in five equal installments, commencing one year from the date of grant on February 26, 2021, and continuing for the next four anniversaries thereof until fully vested.

No options were granted during the three months ended March 31, 2019.

The Company recognized a total of $21,489, and $27,931 of compensation expense during the three months ended March 31, 2020 and 2019, respectively, related to common stock options issued to Employees and Directors that are being amortized over the implied service term, or vesting period, of the options. The remaining unamortized balance of these options is $889,412 as of March 31, 2020.

Options Exercised

No options were exercised during the three months ended March 31, 2020 and 2019.

Options Forfeited

No options were forfeited during the three months ended March 31, 2020. A total of 125,000 options expired and were forfeited during the three months ended March 31, 2019.