Share Based Compensation

3 Months Ended

Mar. 31, 2019

Compensation Related Costs [Abstract]

Share Based Compensation

Note 7: SHARE-BASED COMPENSATION

The Company’s 2018 Incentive Award Plan (the “2018 Plan”) became effective on December 1, 2018, under which the Company may issue up to 2,000,000 shares of common stock, which the Company reserved, as incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, and other forms of compensation to employees, directors and consultants. In addition, the 2018 Plan provides for the grant of performance cash awards to employees, directors and consultants. All these shares were reserved on that date.

On December 1, 2018, 1,350,000 shares of common stock were awarded to employees in the form of restricted shares and 335,000 shares of common stock were awarded to consultants as compensation. The fair value of these shares on the grant date was $0.01 per share. As of December 31, 2018, 185,000 shares awarded to consultants were vested and none of the shares awarded to employees were vested. During the three months ended March 31, 2019, all of the 335,000 shares awarded to consultants were vested and 750,000 of the shares awarded to employees were vested.

The Company made no awards in any other form during the three months ending March 31, 2019, and March 31, 2018. The Company expensed $420,642 and $0 for share-based compensation in the three months ended March 31, 2019, and March 31, 2018, for its employees and nonemployees in the accompanying consolidated statements of operations.

The following table summarizes vesting of the common stock shares issued per the 2018 Plan:

	Employees		Consultants
Dates common stock shares were vested:
December 31, 2018	-		185,000
January 1, 2019		750,000		-
March 31, 2019		-		150,000
Total common stock shares vested at March 31, 2019		750,000		335,000