Stock Options

12 Months Ended

Dec. 31, 2022

Stock Options

Stock Options

Note 3 – Stock Options

The Company adopted the 2022 Stock Incentive Plan (“the Plan”) effective September 30, 2022. The Plan provides for awards of stock options and restricted stock to officers, directors, key employees, and consultants. Under the Plan, option prices are set by the Compensation Committee and may not be less than the fair market value of the stock on the grant date.

The Company accounts for stock-based compensation awards in accordance with the provisions of ASC 718, which addresses the accounting for employee stock options which requires that the cost of all employee stock options, as well as other equity-based compensation arrangements, be reflected in the financial statements over the vesting period based on the estimated fair value of the awards.

On October 15, 2022, the Company granted stock options to the following executive officers:

Stock Options		Exercise Price		Vesting Period		Services		Classification
	50,000	$	0.26		5 years		Board		Non-statutory
	50,000	$	0.26		5 years		Board		Incentive
	500,000	$	0.26		2 years		Employment		Incentive
	50,000	$	0.26		5 years		Board		Non-statutory

On October 25, 2022, the Company granted stock options to the following consultants:

Stock Options		Exercise Price		Vesting Period		Services		Classification
	1,000,000	$	0.28		3 years		Consultant		Non-statutory
	1,000,000	$	0.28		3 years		Consultant		Non-statutory

Based on a Black-Scholes valuation model, these options were valued at $29,713, in accordance with FASB ASC Topic 718, which was expensed on the issuance date in selling, general and administrative expenses within the Company’s statements of operations and comprehensive loss. The valuation assumptions included an expected duration of 2 - 5 years, volatility of 226%, discount rate of 3.00% and dividends of $0.

As of December 31, 2022, and 2021, the weighted average fair value per option grant was $0.26 and $nil 0 .

At December 31, 2022, 3,500,000 shares of common stock were reserved for stock awards granted under the Plan. Of these reserved shares, 850,000 shares were available for future grants.

A summary of the status of the Company's stock options at December 31, 2022, and 2021, and changes during the years then ended is presented below:

	Options (Shares)		Weighted Average Exercise Price		Aggregate Intrinsic Value
Outstanding at December 31, 2020	—	$	—	$	—
Granted	—		—		—
Exercised	—		—		—
Forfeited	—		—		—
Outstanding at December 31, 2021	—	$	—	$	—
Granted	2,650,000		0.28		—
Exercised	—		—		—
Forfeited	—		—		—
Outstanding at December 31, 2022	2,650,000	$	0.28	$	—
Exercisable at December 31, 2022	—	$	—	$	—

Information about the Company’s outstanding and exercisable stock options at December 31, 2022 is as follows:

Exercise Price		Stock Options Outstanding		Exercisable Stock Options		Remaining Contractual Life	Aggregate Intrinsic Value
$	0.26		650,000		—	1.3 years	$	—
$	0.28		2,000,000		—	6.0 years	$	—
	$  0.26 – 0.28		2,650,000		—	4.81 years	$	—