XML 38 R22.htm IDEA: XBRL DOCUMENT v3.21.1
Stock Options
 12 Months Ended
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]  
STOCK OPTIONS

NOTE 16 – STOCK OPTIONS


Our stockholders approved our 2014 Equity Incentive Plan in June 2014 (the “2014 Plan”), our 2015 Equity Incentive Plan in December 2015 (the “2015 Plan”), our 2016 Equity Incentive Plan (the “2016 Plan”) in October 2016, our 2017 Equity Incentive Plan in December 2016 (the “2017 Plan” and together with the 2014 Plan, 2015 Plan, the 2016 Plan, the “Prior Plans”) and our 2018 Equity Incentive Plan in June 2018 (the “2018 Plan,” and together with the Prior Plans, the “Plans”). The Prior Plans are identical, except for number of shares reserved for issuance under each. As of December 31, 2020, the Company had granted an aggregate of 64,310,000 securities under the Plans, with 190,000 shares available for future issuances. 


The Plans provide for the grant of incentive stock options to our employees and our parent and subsidiary corporations’ employees, and for the grant of non-statutory stock options, stock bonus awards, restricted stock awards, performance stock awards and other forms of stock compensation to our employees, including officers, consultants and directors. The Prior Plans also provide that the grant of performance stock awards may be paid out in cash as determined by the committee administering the Prior Plans.


The Company estimates the fair value of share-based compensation utilizing the Black-Scholes option pricing model, which is dependent upon several variables such as the expected option term, expected volatility of the Company’s stock price over the expected term, expected risk-free interest rate over the expected option term and expected dividend yield rate over the expected option term. The Company believes this valuation methodology is appropriate for estimating the fair value of stock options granted. These amounts are estimates and thus may not be reflective of actual future results, nor amounts ultimately realized by recipients of these grants. The Company recognizes compensation on a straight-line basis over the requisite service period for each award.


During the year ended December 31, 2019, the Company granted ten-year options outside of our Plans to purchase up to 250,000 shares of the Company’s common stock for advisory services. The fair value of $14,000, was determined using the Black-Scholes option pricing model, assuming approximately 2.43% risk-free interest, 0% dividend yield, 114% volatility, and expected life of ten years and will be charged to operations over the vesting terms of the options.


A summary of the Company’s stock option activity during the year ended December 31, 2019, is presented below:


Exercise
Price		   Number of
Options		   Vesting Terms
$0.075    250,000   Immediately

There were no options issued during the year ended December 31, 2020.


A summary of the stock option activity for the years ended December 31, 2020 and 2019 is as follows:


   Shares   Weighted-
Average
Exercise
Price		   Weighted-
Average
Remaining
Contractual
Term		   Aggregate
Intrinsic
Value		 
Outstanding at December 31, 2018   27,371,765   $0.50    8.42   $                  - 
Granted   250,000   $0.075           
Exercised   -                
Forfeiture/Cancelled   -                
Outstanding at December 31, 2019   27,621,765   $0.49    7.49   $- 
Granted   -                
Exercised   -                
Forfeiture/Cancelled   -                
Outstanding at December 31, 2020   27,621,765   $0.49    6.49   $- 
Exercisable at December 31, 2020   27,621,765   $0.49    6.49   $- 

 

Exercise Price

  Number of
Options		   Remaining Life
In Years		   Number of Options
Exercisable		 
$0.01 – 0.25   13,306,786    7.26    13,306,786 
0.26 - 0.50   1,939,631    6.26    1,939,631 
0.51 – 0.75   1,820,112    5.68    1,820,112 
0.76 - 1.00   9,926,072    5.70    9,926,072 
1.01 - 2.00   629,164    5.60    629,164 
    27,621,765         27,621,765 

The aggregate intrinsic value of outstanding stock options was $0, based on options with an exercise price less than the Company’s stock price of $0.0063 as of December 31, 2020, which would have been received by the option holders had those option holders exercised their options as of that date.


The fair value of all options that were vested as of the year ended December 31, 2020 and 2019 was $0 and $14,000, respectively. Unrecognized compensation expense of $0 as of December 31, 2020 will be expensed in future periods.