STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2022

STOCK-BASED COMPENSATION

Stock-based Compensation

NOTE 6 – STOCK-BASED COMPENSATION

On September 6, 2021, the Company’s Board of Directors and holders of a majority of the voting power of the Company’s stockholders approved the Company’s 2021 Equity Incentive Plan (the “2021 Plan”), and reserved 600,000 shares of common stock for the issuance of awards thereunder. The 2021 Plan provides for the granting to our employees, officers, directors, consultants and advisors of performance awards payable in shares of common stock, stock options (non-statutory and incentive), restricted stock awards, stock appreciation rights (“SARs”), restricted share units (“RSUs”) and other stock-based awards. The purpose of the 2021 Plan is to secure for the Company and its stockholders the benefits arising from capital stock ownership by eligible participants who are expected to contribute to the Company’s future growth and success.

During the three-months ended March 31, 2022 Messrs. Warbington and Dickerson received 10-year options to purchase an aggregate of 111,187 shares of common stock with an exercise price of $1.69. The options vested immediately as to 25% of the shares subject to the option, and will vest in three equal installments of 25% of the shares subject to the option on each of the next three annual anniversary dates of the grant date. The value of the options was determined to be $145,525 based upon the Black-Scholes method, see variables used below.

	Inputs Used
Annual dividend yield	$	-
Expected life (years)		10.0
Risk-free interest rate		0.81	%
Expected volatility		92.95	%
Common stock price	$	1.69

During the three-months ended March 31, 2021, the fair market value of the options was insignificant to the financial statements.

Since the expected life of the options was greater than the Company’s historical stock information available, the Company determined the expected volatility based on price fluctuations of comparable public companies.

There were no options issued during the three months ended March 31, 2021.

Option activity for the three-months ended March 31, 2022 consists of the following:

	Stock  Options		Weighted Average Exercise  Price		Weighted Average  Life  Remaining
Outstanding, December 31, 2021		7	$	13125		5.64
Issued		111,817				-
Exercised		-		-		-
Expired		-		-		-
Outstanding, March 31, 2022		111,824	$	2.51		10.00
Vested, March, 31, 2022		27,961	$	4.98		10.00