Stock-Based Compensation

12 Months Ended

Dec. 31, 2021

Share-Based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

NOTE 12 – STOCK-BASED COMPENSATION

Terms of the Company’s share-based on compensation are governed by the Company’s 2010 Equity Incentive Plan (“the 2010 Plan”). The 2010 Plan permits the Company to grant non-statutory stock options, incentive stock options, restricted stocks, and stock purchase rights to the Company’s employees, outside directors and consultants; however incentive stock options may only be granted to the Company’s employees. As of June 30, 2021, the maximum aggregate number of shares of common stock that may be issued is 3,342,869 shares under the 2010 Plan, subject to adjustment due the effect of any stock split, stock dividend, combination, recapitalization or similar transaction. The exercise price for each option is determined by the Board of Directors, but will be (i) in the case of an incentive stock option, (A) granted to an employee who, at the time of grant of such option, is a 10% Holder, no less than 110% of the fair market value per share on the date of grant; or (B) granted to any other employee, no less than 100% of the fair market value per share on the date of grant; and (ii) in the case of a nonstatutory stock option, no less than 100% of the fair market value per share on the date of grant. The options awarded under the 2010 Plan shall vest as determined by the Board of Directors but shall not exceed a ten-year period.

Restricted Stock Units

During year ended December 31, 2021, the company granted 3,407,206 restricted stock units (RSU) to its employees. Of these, 265,703 were forfeited due to employee resignations. Restricted stock is valued at the fair market value on the date of grant with expense recognized over the vesting period from June 4, 2021 till February 20, 2023. The Company has recognized an expense for vested RSU within general and administrative expense in the accompanying Statements of Operations of approximately $21,077 for year ended December 31, 2021.

Options Issued to Directors and Employees as Compensation and to Nonemployees for Services Received

Pursuant to the terms of the 2010 Plan, from 2010 to 2020, the Company has granted an aggregate of 5,077,341 options to its executive officers and employees of the Company and to Nonemployees for Services Received. Of these, 2,608,508 options were exercised or forfeited and 2,468,834 remain outstanding as of December 31, 2020. The exercise prices of these grants, as determined by the Company’s Board of Directors, were $0.058 to $0.46 per share.

During year ended December 31, 2021, the Company granted an aggregate of 263,503 options to purchase the Company’s common stock to its executive officers and employees of the Company and to Nonemployees for Services Received. During year ended December 31, 2021, 155,002 options were exercised or forfeited, and 2,577,355 options remain outstanding. The exercise prices of these option grants, as determined by the Company’s Board of Directors, was $0.29 per share. The Company has recognized an expense for these services within general and administrative expense in the accompanying Statements of Operations of approximately $139,515 and $82,238 for years ended December 31, 2021 and 2020, respectively. As of December 31, 2021, there was approximately $167,731 of total unrecognized compensation cost related to non-vested share-based compensation arrangements. This cost is expected to be recognized over a weighted average period of 2.81 years.

Stock-based Compensation Summary Tables

The following table represents a summary of the options granted to employees and non-employees outstanding at December 31, 2021 and changes during the period then ended:

						Total
				Weighted Average		Weighted Average
	Options			Exercise Price		Intrinsic Value		Remaining Life
Outstanding at December 31, 2020		2,468,834		$	0.23	$	0.06		6.56
Granted		263,503			0.29		-		9.28
Exercised/Expired/Forfeited		(155,002	)		-0.29		-		-
Outstanding at December 31, 2021		2,577,335		$	0.23	$	0.06		5.92
Exercisable at December, 2021		2,299,318		$	0.23	$	0.06		5.03
Expected to be vested		278,017		$	0.29	$	0.00		8.89