NOTE 9 – STOCK OPTIONS AND WARRANTS


					Weighted
	Aggregate	Aggregate		Exercise	Average
	Number	Exercise Price		Price Range	Exercise Price
Outstanding, December 31, 2017	510,000	$	318,150	$0.24-3.29	$	0.57
Granted	150,000		114,500	$0.75-0.79	$	0.76
Exercised	—		—	—		—
Cancelled, forfeited or expired	(20,000)		(55,850)	$2.45-3.29	$	2.79
Outstanding, December 31, 2018	640,000	$	376,800	$0.24-2.18	$	0.50
Granted	325,000		141,250	$0.25-0.79	$	0.43
Exercised	—		—	—		—
Cancelled, forfeited or expired	(120,000)		(77,850)	$0.37-2.18	$	1.54
Outstanding, December 31, 2019	845,000	$	440,200	$0.24-2.00	$	0.45
Exercisable, December 31, 2019	886,667	$	376,167	$0.24-2.00	$	0.42

Summary of stock option information is as follows:

On July 26 , 2019 the Company issued 100,000 common stock options to each of the three independent directors with a total fair value of $87,825. The options vest immediately, have an exercise price of $0.45 and a five-year term. During the year ended December 31, 2019, the Company recognized option expense of $87,825.

On October 17, 2019, we issued 30,000 shares of our restricted common stock and 25,000 fully vested common stock options with a five-year term and exercisable at $0.25 for accounting consulting services with a fair value of $3,677. During the year ended December 31, 2019, the Company recognized option expense of $3,677.

In May 2018 the Company issued 100,000 stock warrant with an exercise price of $0.75 that vest in twelve equal monthly tranches following issuance. The warrants expire five years after issuance. Option expense of $51,567 will be recorded over the vesting term.

In July 2018, the Company granted 50,000 stock options to a consultant with a five-year term and an exercise price of $0.79. The options vest annually over a three-year period with the first one-third vesting July 10, 2019. Option expense of $34,736 will be recorded over the vesting term.

The weighted average remaining contractual life is approximately 3.03 years for stock options outstanding on December 31, 2019. At December 31, 2019 and 2018 there was $0 and $84,000 in intrinsic value of outstanding stock options, respectively. During the year ended December 31, 2019 and 2018 share based compensation expense of $154,003 and $53,053 was recognized, respectively.

Summary Stock warrant information is as follows:


						Weighted
	Aggregate	Aggregate		Exercise		Average
	Number	Exercise Price		Price Range		Exercise Price
Outstanding, December 31, 2017	—	$	—		—		—
Granted	525,001		218,750		$0.40-$0.75	$	0.42
Exercised	—		—		—		—
Cancelled, forfeited or expired	—		—		—		—
Outstanding, December 31, 2018	525,001		218,750		$0.40-$0.75	$	0.42
Granted	905,000		211,250		$0.15-$0.30	$	0.30
Exercised	—		—		—		—
Cancelled, forfeited or expired	—		—		—		—
Outstanding, December 31, 2019	1,430,001	$	430,000		$0.15-$0.75	$	0.30
Exercisable, December 31, 2019	1,430,001	$	430,000		$0.15-$0.75	$	0.30

In May 2019, the Company granted 100,000 stock warrants to a debt holder with five-year terms and an exercise price of $0.30. The warrants are fully vested at the time of issuance. The Company valued the warrants using the Black-Scholes model with the following key assumptions ranging from: Stock price, $0.45, Exercise price, $0.30, Term 5 years, Volatility 199%, Discount rate, 2.3%. During the year ended December 31, 2019, the fair value of $44,091 was recoded as a note payable discount and was fully amortized over the life of the note payable.

In June 2019, the Company granted 270,000 stock warrants to a debt holder with ten-year terms and an exercise price of $0.30. The warrants are fully vested at the time of issuance. The Company valued the warrants using the Black-Scholes model with the following key assumptions ranging from: Stock price, $0.45, Exercise price, $0.30, Term 10 years, Volatility 175% %, Discount rate, 2.1%. During the year ended December 31, 2019, the fair value of $121,004 was recoded as a note payable discount and was fully amortized over the life of the note payable.

In September 2019, the Company granted 200,000 stock warrants to a debt holder with five-year terms and an exercise price of $0.25. The warrants are fully vested at the time of issuance. The Company valued the warrants using the Black-Scholes model with the following key assumptions ranging from: Stock price, $0.17, Exercise price, $0.25, Term 5 years, Volatility 206%, Discount rate, 1.7%. During the year ended December 31, 2019, the fair value of $33,155 was recoded as a note payable discount and was fully amortized over the life of the note payable.

In October 2019, the Company granted 260,000 stock warrants to three debt holders with ten-year terms and an exercise price of $0.15. The warrants are fully vested at the time of issuance. The Company valued the warrants using the Black-Scholes model with the following key assumptions ranging from: Stock price, $0.12, Exercise price, $0.15, Term 10 years, Volatility 179%, Discount rate, 1.7%. During the year ended December 31, 2019, the fair value of $31,049 was recoded as a note payable discount and will be amortized over the life of the note payable.

In December 2019, the Company granted 75,000 stock warrants a debt holder with ten-year terms and an exercise price of $0.15. The warrants are fully vested at the time of issuance. The Company valued the warrants using the Black-Scholes model with the following key assumptions ranging from: Stock price, $0.24, Exercise price, $0.15, Term 10 years, Volatility 182%, Discount rate, 1.9%. During the year ended December 31, 2019, the fair value of $17,947 was recoded as a note payable discount and will be amortized over the life of the note payable.

The weighted average remaining contractual life is approximately 6.38 years for stock warrants outstanding on December 31, 2019. At December 31, 2019 and 2018 there was $30,150 and $35,000 in intrinsic value of outstanding stock warrants, respectively.