XML 21 R12.htm IDEA: XBRL DOCUMENT v3.22.2
STOCKHOLDERS’ DEFICIT
 6 Months Ended
Jun. 30, 2022
Equity [Abstract]  
STOCKHOLDERS’ DEFICIT

NOTE 6 - STOCKHOLDERS’ DEFICIT

 

Common Stock

 

During the six months ended June 30, 2022, the Company issued 75,649 shares of common stock for the conversion of notes and interest. (See Note 5)

 

Stock-Based Compensation

 

The Company adopted an Employee, Director and Consultant Stock Plan on June 17, 2016 (the “2016 Plan”), pursuant to the 2016 Plan, the Company’s Compensation Committee may grant awards to any employee, officer, director, consultant, advisor or other individual service provider of the Company or any subsidiary. On each of January 1, 2017, January 1, 2019 and January 1, 2020, pursuant to an annual “evergreen” provision contained in the 2016 Plan, the number of shares reserved for future grants was increased by 564,378 shares, or a total of 1,693,134 shares. On January 1, 2021, 569,826 shares of common stock were added to the 2016 Plan pursuant to this evergreen provision. On January 1, 2022, 737,040 additional shares of common stock are available for issuance under the 2016 Plan as a result of operation of the evergreen provision: (a) 564,278 shares resulting from operation of the evergreen provision in 2019, which were never previously registered and (b) 172,762 shares resulting from operation of the evergreen provision in 2022. As a result of these increases, as of June 30, 2022 and December 31, 2021, the aggregate number of shares of common stock available for awards under the 2016 Plan was 6,175,489 shares and 5,438,449 shares, respectively. Options issued under the 2016 Plan are exercisable for up to ten years from the date of issuance.

 

 

There were 5,504,861 options outstanding as of June 30, 2022. The fair value of each stock option granted during the six months ended June 30, 2022 was estimated using the Black-Scholes assumptions and or factors as follows:

 

Exercise price  $1.21 
Expected dividend yield   0%
Risk free interest rate   1.73%
Expected life in years   10 
Expected volatility   146%

 

The following is an analysis of the stock option grant activity under the Plan:

 

      

Weighted

Average

  

Weighted

Average

 
   Number   Exercise Price   Remaining Life 
Stock Options               
                
Outstanding December 31, 2021   5,520,861   $1.84    6.32 
Granted   50,000   $1.21    9.53 
Expired   (66,000)  $2.12    - 
Exercised   -   $-    - 
Outstanding June 30, 2022   5,504,861   $1.84    5.92 

 

A summary of the status of the Company’s nonvested options as of June 30, 2022, and changes during the six months ended June 30, 2022, is presented below:

 

Nonvested Options  Options  

Weighted-

Average

Exercise Price

 
Nonvested at December 31, 2021   810,333   $3.08 
Granted   50,000   $1.21 
Vested   (183,958)  $2.67 
Forfeited   -   $- 
Nonvested at June 30, 2022   676,375   $3.05 

 

As of June 30, 2022, the Company had 5,504,861 shares issuable under options outstanding at a weighted average exercise price of $1.84 and an intrinsic value of $0.

 

The total number of options granted during the six months ended June 30, 2022 and 2021 was 50,000 and 546,000, respectively. The exercise price for these options ranges from $1.21 to $5.60 per share.

 

The Company recognized compensation expense related to options issued of $215,535 and $722,966 during the three months ended June 30, 2022 and 2021, respectively, in which $195,624 and $721,490 is included in general and administrative expenses and $19,911 and $1,476 in research and development expenses, respectively. For the three months ended June 30, 2022, $48,828 of the stock compensation was related to employees and $166,517 was related to non-employees.

 

The Company recognized compensation expense related to options issued of $430,881   and $1,068,941 during the six months ended June 30, 2022 and 2021, respectively, in which $372,573 and $1,065,988 is included in general and administrative expenses and $58,308 and $2,953 in research and development expenses, respectively. For the six months ended June 30, 2022, $99,370 of the stock compensation was related to employees and $331,511 was related to non-employees.

 

 

As of June 30, 2022, the unamortized stock option expense was $1,820,003 with $155,908 being related to employees and $1,664,095 being related to non-employees. As of June 30, 2022, the weighted average period for the unamortized stock compensation to be recognized is 2.59 years.

 

On January 6, 2022, the Company issued a total of 50,000 options to purchase shares of the Company’s common stock to a consultant. These options had a grant date fair value of $68,614. These options have an exercise price of $1.21, a term of 10 years, and vest over four years.

 

Warrants:

 

A summary of warrant issuances are as follows:

 

      

Weighted

Average

  

Weighted

Average

 
   Number   Exercise Price   Remaining Life 
Warrants               
                
Outstanding December 31, 2021   6,132,630   $3.38    3.15 
Granted   16,000    1.25    4.52 
Expired   -    -    - 
Exercised   -    -    - 
Outstanding June 30, 2022   6,148,630   $3.37    2.66 

 

As of June 30, 2022, the Company had 6,148,630 shares issuable under warrants outstanding at a weighted average exercise price of $3.37 and an intrinsic value of $0.

 

The Company recognized compensation expense related to warrants issued of $20,433 and $0 during the three months ended June 30, 2022 and 2021, respectively.

 

The Company recognized compensation expense related to warrants issued of $20,433 and $0 during the six months ended June 30, 2022 and 2021, respectively.

 

On January 6, 2022, the Company cancelled 16,000 options and replaced them with 16,000 warrants with a 5-year term and an exercise price of $1.25.