STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

NOTE 14: STOCK-BASED COMPENSATION

On November 23, 2020, the Board of Directors of the Company approved the 2020 Equity Incentive Plan.

Options

On October 19, 2020, the Company granted 491,250 stock options to board members, advisory board members, employees and consultants. The options have a 10-year term, and are both service-based grants, as well as performance-based grants. As of March 31, 2023 all of the options had vested, and had been either exercised or had expired.

Stock based compensation expense from options for the three months ended March 31, 2023 and 2022 were $0 and $18,223, respectively. As of March 31, 2023, there remains $0 of unrecognized stock-based compensation from options.

The following represents a summary of options:

	Three Months Ended March 31, 2023				Year Ended December 31, 2022
	Number		Weighted Average Exercise Price		Number			Weighted Average Exercise Price
Beginning balance		-	$	-		491,250		$	0.0416
Granted		-		-		-			-
Exercised		-		-		(394,065	)		-
Forfeited		-		-		(97,185	)		0.01
Expired		-		-		-			-
Ending balance		-	$	-		-		$	-
Intrinsic value of options	$	-		-	$	-
Weighted Average Remaining Contractual Life (Years)		-				-

Restricted Stock Awards

On November 23, 2020, the Board of Directors of the Company approved the 2020 Equity Incentive Plan.

On January 1, 2023, the Company granted 5,400,000 restricted stock awards to board members pursuant to the 2020 Equity Incentive Plan. The awards vest over a three-year term and are compensation for the board members’ service.

On January 1, 2023, the Company granted 200,000 restricted stock awards to a director pursuant to the 2020 Equity Incentive Plan. The awards vest over a four-month term and are compensation for the director’s service.

On January 1, 2023, the Company granted 5,930,000 restricted stock awards to the CEO. The awards were granted as a sign-on bonus. 905,000 of the restricted stock awards vested after a three-month term, which ended on March 31, 2023. The remaining 5,430,000 shares vest in six equal installments and all begin vesting on the grant date. The first installment vests during the nine months following the grant date and the remaining installments finish vesting every six months thereafter.

On March 22, 2023, the Company granted 1,800,000 restricted stock awards to a director pursuant to the 2020 Equity Incentive Plan. The awards have a three-year term and are compensation for the director’s service.

The activity for restricted stock awards under the Company’s incentive plans is as follows for the three months ended March 31, 2023 and 2022:

					Weighted
			Weighted		Average
			Average		Remaining
	Number		Grant Date		Contractual
	Shares		Fair Value		Term (years)
Nonvested at December 31, 2021		-	$	-		-
Granted		-	$	-
Shares vested		-	$	-
Forfeitures		-	$	-
Nonvested at March 31, 2022		-	$	-		-
Nonvested at December 31, 2022		-	$	-		-
Granted		13,330,000	$	0.20
Shares vested		905,000	$	0.01
Forfeitures		-	$
Nonvested at March 31, 2023		12,425,000	$	0.21		2.34
Vested and unreleased		905,000
Outstanding at March 31, 2023		13,330,000		0.20		2.34

Stock based compensation expense from restricted stock awards for the three months ended March 31, 2023 and 2022 were $49,548 and $33,208, respectively. As of March 31, 2023, there remains $2,605,353 of unrecognized stock-based compensation from restricted stock awards. The total fair value of restricted shares that vested during the three months ended March 31, 2023 and 2022 was $10,589 and $0, respectively.