STOCKBASED COMPENSATION

6 Months Ended

Jun. 30, 2024

STOCKBASED COMPENSATION

STOCKBASED COMPENSATION

NOTE 4 – 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 60,000 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. As of June 30, 2024, stock options to purchase 11,183 common shares had been granted under the 2021 Plan.

During the six-months ended June 30, 2024 and 2023, 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 six-months ended June 30, 2024 and 2023.

Option activity for the six-months ended June 30, 2024, consists of the following:

	Stock  Options		Weighted Average Exercise  Price		Weighted Average  Life  Remaining
Outstanding, December 31, 2023		11,183	$	83.96		8.11
Issued		-		-		-
Exercised		-		-		-
Expired		-		-		-
Outstanding, June 30, 2024		11,183	$	83.96		7.51
Vested, June 30, 2024		11,183	$	83.96		7.51

In February 2022, we granted a total of 11,183 options to Timothy Warbington and Donald Dickerson at an exercise price of $16.90. The value of the options was determined to be $145,525 based upon the Black-Scholes method, see variables used below. During the six-month periods ended June 30, 2024 and 2023, the Company recorded $18,324 in stock-based compensation. As of June 30, 2024, future estimated stock-based compensation expected to be recorded was estimated to be $21,809.

	Inputs Used
Annual dividend yield	$	-
Expected life (years)		6.5
Risk-free interest rate		0.81	%
Expected volatility		92.95	%
Common stock price	$	16.90

See Note 2 for discussion related to the issuance of common stock in connection with licensing agreements.