Stock-Based Compensation

12 Months Ended

Dec. 31, 2018

Share-based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

NOTE 18 – STOCK-BASED COMPENSATION

The Company has reserved 2,400,000 shares under its 2018 Stock Incentive Plan (the “Plan”). The Plan was adopted by the board of directors on March 28, 2018, retroactive to February 23, 2018, as a vehicle for the recruitment and retention of qualified employees, officers, directors, consultants, and other service providers. The Plan is administered by the Board of Directors. The Company may issue, to eligible persons, restricted common stock, incentive and non-statutory options, stock appreciation rights and restricted stock units. The terms and conditions of awards under the Plan will be determined by the Board of Directors.

On February 23, 2018, the Board approved the grant of an aggregate of 2,400,000 non-statutory options under the 2018 Plan exercisable at $0.40 per share which expire February 23, 2023 in the amounts and to the following:

● Rick Havenstrite, President and CEO – 1,000,000 options

● Howard Crosby, Director – 1,000,000 options

● John Ryan, Director – 200,000 options

● Linde Havenstrite, Project Engineer – 200,000 options

The options were fully vested on the date of grant. The fair value of each option award is estimated using the Black-Scholes valuation model. Assumptions used in calculating the fair value during the year ended December 31, 2018 were as follows:

	Weighted Average Inputs Used
Annual dividend yield		-
Expected life (years)		5.0
Risk-free interest rate		2.54	%
Expected volatility based on comparable peers		51.2	%
Common stock price based on most recent sale of common stock for cash	$	0.40

Stock based compensation cost for the year ended December 31, 2018 was $456,000, which was included in general and administrative expenses. Option activity for the year ended December 31, 2018 consists of the following:

	Stock Options		Weighted Average Exercise Price		Weighted Average Life Remaining  (years)
Outstanding, December 31, 2017		-		-		-
Issued		2,400,000	$	0.40		4.2
Exercised		-0-		-		-
Expired		-0-		-
Outstanding and exercisable, December 31, 2018		2,400,000	$	0.40		4.2

No options were issued prior to the year ended December 31, 2018. The options have intrinsic value of nil at December 31, 2018.