Stock Options and Warrants

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

Stock Options and Warrants

8. Stock Options and Warrants

The Company periodically issues stock options and warrants to employees and non-employees in capital raising transactions, for services, and for financing costs.

Options

Options vest according to the terms of the specific grant and expire from 2 to 10 years from date of grant. The weighted-average, remaining contractual life of employee and non-employee options outstanding at September 30, 2023 was 4.1 years. Stock option activity for the period January 1, 2023 up to September 30, 2023, was as follows:

	Options			Weighted Avg. Exercise Price
January 1, 2023		26,057,601		$	0.15
Granted		–			–
Exercised		–			–
Expired		(300,446	)		0.72
September 30, 2023		25,757,155		$	0.14

The weighted average exercise prices, remaining contractual lives for options granted, exercisable, and expected to vest as of September 30, 2023 were as follows:

	Outstanding Options						Exercisable Options
Option Exercise Price Per Share	Shares		Life (Years)		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
$0.02 - $0.24		22,055,551		4.3	$	0.10		22,055,551	$	0.10
$0.25 - $0.49		3,238,552		3.0	$	0.36		3,238,552	$	0.36
$0.50 - $0.99		463,052		0.6	$	0.85		463,052	$	0.85
		25,757,155		4.1	$	0.14		25,757,155	$	0.14

During the nine-month periods ended September 30, 2023 and 2022, the Company recognized compensation costs based on the fair value of options that vested of $0 and $0 respectively.

As of September 30, 2023, the market price of the Company’s stock was $0.06 per share. At September 30, 2023, the aggregate intrinsic value of the options outstanding at September 30, 2023 was $115,000.

Warrants

The following table summarizes certain information about the Company’s stock purchase warrants activity for the period starting January 1, 2023 up to September 30, 2023.

	Warrants			Weighted Avg. Exercise Price
January 1, 2023		20,314,153		$	0.04
Granted		12,382,411			0.07
Exercised		(1,316,661	)		0.04
Expired		(13,459,997	)		0.04
September 30, 2023		17,919,906		$	0.06

The weighted average exercise prices, remaining contractual lives for warrants granted, exercisable, and expected to vest as of September 30, 2023 were as follows:

	Outstanding Warrants						Exercisable Warrants
Warrant Exercise Price Per Share	Shares		Life (Years)		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
$0.02 - $0.24		17,849,906		0.9	$	0.06		17,816,573	$	0.06
$0.50 - $1.00		70,000		0.6	$	0.80		70,000	$	0.80
		17,919,906		0.9	$	0.06		17,886,573	$	0.06

In the nine-month period ending September 30, 2023, the Company issued warrants to purchase 666,663 shares of common stock in exchange for services. The warrants are exercisable at a price range of $0.04 to $0.08, vesting up to one month from the date of grant, and expiring one to two years from the date of grant. Total fair value of these warrants at grant date was $34,000 using the Black-Scholes Option Pricing model with the following assumptions: life of 2 to 5 years; risk free interest rate of 4.17% to 5.12%; volatility of 170% to 207% and dividend yield of 0%. During the nine-month period ended September 30, 2023, the Company recognized compensation costs based on the fair value of warrants that vested of $34,000.

At September 30, 2023, the aggregate intrinsic value of warrants outstanding was $145,000.

In the nine-month period ending September 30, 2022, the Company issued warrants to purchase 799,997 shares of common stock in exchange for services. The warrants are exercisable at a price range of $0.02 to $0.09, vesting up to one month from the date of grant, and expiring two to five years from the date of grant. Total fair value of these warrants at grant date was $31,000 using the Black-Scholes Option Pricing model with the following assumptions: life of 2 to 5 years; risk free interest rate of 0.73% to 3.25%; volatility of 193% to 245% and dividend yield of 0%. During the nine-month period ended September 30, 2022, the Company recognized compensation costs based on the fair value of warrants that vested of $31,000.

At September 30, 2022, the aggregate intrinsic value of warrants outstanding was $1,332,000.