STOCK OPTIONS AND WARRANTS

12 Months Ended

Dec. 31, 2019

As of December 31, 2019, the Board of Directors of the Company had granted non-qualified stock options and warrants exercisable for a total of 184,001 shares of common stock to its officers, and consultants.

As further discussed in Note 3, on November 30, 2018 in connection with the Merger, the Company issued a ten-year option to purchase 444,445 shares of common stock of the Company, at an exercise price of $1.13. The option vested upon grant but may not be exercised for 2 years from the date of the Merger. Stock-based compensation of $599,998, measured at the grant date using a multinomial lattice model, was included in the purchase price recorded in the Merger and recorded to additional paid-in capital. This option was surrendered upon the sale of EllisLab Corp. on September 30, 2019.

On November 30, 2018, the Company also issued ten-year warrants to two consultants to purchase a total of 177,778 shares of common stock of the Company, at an exercise price of $1.13. The warrants vested upon grant but may not be exercised for two years from the date of issuance. Stock-based compensation of $188,127, measured at the grant date using a multinomial lattice model, was included in general and administrative expenses for the year ended December 31, 2018 and recorded to derivative liabilities due to the existence of a tainted equity environment.

We recognized no stock-based compensation expense for the year ended December 31, 2019.

A summary of the Company’s stock options and warrants as of December 31, 2019, and changes during the two years then ended is as follows:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contract Term (Years)		Aggregate Intrinsic Value

Outstanding at December 31, 2017		6,290		$	42.75
Granted		622,223		$	1.13
Exercised		-		$	-
Forfeited or expired		(38	)	$	3,044.25

Outstanding at December 31, 2018		628,475		$	1.36
Granted		-		$	-
Exercised		-		$	-
Forfeited or expired		(444,474	)	$	1.28

Outstanding at December 31, 2019		184,001		$	1.544		8.65	$	0

The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on the closing price of our common stock of $0.0676 as of December 31, 2019, which would have been received by the holders of in-the-money options and warrants had the holders exercised their options and warrants as of that date.