NOTE 9 — STOCKHOLDERS’ EQUITY

During the nine months ended September 30, 2019, the Company issued an aggregate of 16,166,984 shares of its common stock in settlement of outstanding accounts payable and accrued expenses. In connection with the issuance, the Company incurred a $21,892 net gain in settlement of debt.

During the nine months ended September 30, 2019, the Company issued 3,500,000 shares of its common stock for services.

Stock Options

On April 1, 2013, the Board of Directors approved, subject to subsequently received shareholder approval, the establishment of the Bioheart 2013 Omnibus Equity Compensation Plan, or the “2013 Omnibus Plan” (replacing the 1999 Officers and Employees Stock Option Plan, or the Employee Plan, and the 1999 Directors and Consultants Stock Option Plan). The 2013 Omnibus Plan initially reserved up to fifty thousand (50,000) shares of common stock for issuance. On August 4, 2014, the Board of Directors approved to set the reserve to one hundred thousand (100,000) shares of common stock for issuance and to close the 1999 Officers and Employees Stock Option Plan. On February 2, 2015, at the annual meeting of shareholders, the majority of shareholders approved the 2013 Omnibus Equity Compensation Plan.

On November 2, 2015, the Board of Directors approved the increase of the reserve under the 2013 Omnibus Plan to five hundred million (500,000,000) shares of common stock for issuance, effective September 16, 2016, approved an addition of twenty five million (25,000,000) shares of common stock to the reserve, effective April 21, 2017, approved an addition of twenty five million (25,000,000) shares of common stock to the reserve, effective August 7, 2017, approved an addition of thirty million (30,000,000) shares of common stock to the reserve and effective May 7, 2018, approved an addition of one hundred million (100,000,000) shares of common stock to reserve.

A summary of options at September 30, 2019 and activity during the three months then ended is presented below:

	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)

Options outstanding at December 31, 2018		112,970,693		$	0.03294		8.7
Granted		33,400,000		$	0.0057		10.0
Exercised		—
Forfeited/Expired		(25,332,038	)	$	0.02516
Options outstanding at September 30, 2019		121,038,655		$	0.02663		7.2
Options exercisable at September 30, 2019		64,778,655		$	0.02892		5.8
Available for grant at September 30, 2019		41,668,070

The following information applies to options outstanding and exercisable at September 30, 2019:

Exercise Price		Number Outstanding		Option Outstanding Options Average Remaining Contractual Life (years)		Weighted Average Exercise price		Number Exercisable		Options Exercisable Weighted Average Exercise price
$	0.0043		13,600,000		6.05	$	0.0043		8,050,000	$	0.0043
	0.00557		23,400,000		9.93		0.00557		-		0.00557
	0.0196		21,550,000		5.34		0.0196		19,050,000		0.0196
	0.02511		9,000,000		7.69		0.02511		9,000,000		0.02511
	0.02576		2,220,000		8.86		0.02576		555,000		0.02576
	0.03626		28,095,000		6.44		0.03626		19,985,000		0.03626
	0.0536		22,500,000		7.68		0.0536		7,500,000		0.0536
	0.15402		673,655		4.33		0.15402		638,655		0.15402
Total			121,038,655		6.8	$	0.02701		64,778,655	$	0.02964

The aggregate intrinsic value of the issued and exercisable options of $33,252 and $13,685, respectively, represents the total pretax intrinsic value, based on options with an exercise price less than the Company’s stock price of $0.006 as of September 30, 2019, which would have been received by the option holders had those option holders exercised their options as of that date.

On September 1, 2019, the Company granted an aggregate 33,400,000 options to purchase the Company’s common stock at $0.00557 per share to key employees, vesting over 4 years, at grant date anniversary and exercisable over 10 years. The aggregate fair value of $192,189, determined using the Black Scholes option pricing model with the following assumptions: Dividend yield: 0%; Volatility: 215.10% and Risk-free rate: 1.45%.

The fair value of all options vesting during the three and nine months ended September 30, 2019 of $174,450 and $512,882, respectively, was charged to current period operations.

As of September 30, 2019, the Company had approximately $1,594,448 of total unrecognized compensation cost related to non-vested awards granted under the 2013 Omnibus Plan, which the Company expects to recognize over a weighted average period of 1.31 years.

Warrants

A summary of common stock purchase warrants at September 30, 2019 and activity during the nine months ended September 30, 2019 is presented below:

	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)
Outstanding at December 31, 2018		1,114,019		$	14.735		9.1
Issued		-
Exercised		-
Expired		(1,768	)	$	532.10
Outstanding at September 30, 2019		1,112,251		$	13.91		8.4
Exercisable at September 30, 2019		1,110,706		$	3.24		8.4

The following information applies to common stock purchase warrants outstanding and exercisable at September 30, 2019:

Warrants Outstanding						Warrants Exercisable
Exercise Price		Shares		Weighted- Average Remaining Contractual Term		Weighted- Average Exercise Price		Shares		Weighted- Average Exercise Price
$	0.01 – 20.00		1,086,536		8.5	$	1.267		1,086,536	$	1.27
$	20.01 – 30.00		19,543		4.4	$	25.06		19,543	$	25.06
$	40.01 - 50.00		2,253		3.0	$	48.83		2,253	$	48.83
$	50.01 –60.00		543		1.8	$	60.00		543	$	60.00
> $60.00			3,376		3.3	$	3,988,74		1,831	$	865.62
			1,112,251		8.4	$	13.91	$	1,110,706	$	3.24

The aggregate intrinsic value of the issued and exercisable warrants of $-0- represents the total pretax intrinsic value, based on warrants with an exercise price less than the Company’s stock price of $0.006 as of September 30, 2019, which would have been received by the warrant holders had those warrants holders exercised their warrants as of that date.