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Stock Based Compensation
 3 Months Ended
Sep. 30, 2022
Stock Based Compensation  
Note 8 - Stock Based Compensation

Note 8 — Stock Based Compensation

 

The equity incentive plan of the Company was established in February of 2017. The Board of Directors of the Company may from time to time, in its discretion grant to directors, officers, consultants and employees of the Company, non-transferable options to purchase common shares, provided that the number of options issued do not exceed 25,000,000. The options are exercisable for a period of up to 4 years from the date of the grant. The number of shares authorized to be issued under the equity incentive plan was increased from 10,000,000 to 25,000,000 through consent of stockholders to amend and restate the equity incentive plan.

 

The average fair value of stock options granted was estimated to be $0.14 and $0.07. This estimate was made using the Black-Scholes option pricing model and the following weighted average assumptions for the three months ended September 30, 2022:

 

Expected option life (years)

 

2-4

 

Expected stock price volatility

 

227 to 258%

 

Expected dividend yield

 

 

-

 

Risk-free interest rate

 

0.44 to 0.54%

 

A summary of option activity under the employee share option pan as of September 30, 2022 and changes during the year then ended is presented below.

 

 

 

Shares

 

 

Weighted-Average Exercise Price

 

 

Weighted-Average Remaining Contractual Price

 

 

Aggregate Intrinsic Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Options:

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at July 1, 2022

 

 

15,832,062

 

 

$0.06

 

 

 

 

 

 

 

Granted

 

 

-

 

 

$0.00

 

 

 

 

 

 

 

Exercised, converted

 

 

-

 

 

$0.00

 

 

 

 

 

 

 

Forfeited / exchanged / modification

 

 

-

 

 

$0.00

 

 

 

 

 

 

 

Outstanding at September 30, 2022

 

 

15,832,062

 

 

$0.06

 

 

 

2.5

 

 

$-

 

Exercisable at September 30, 2022

 

 

6,482,009

 

 

$0.06

 

 

 

3.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of options available for grant at end of period

 

 

426,870

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A summary of the status of the Company’s nonvested shares as of September 30, 2022, and changes during the year quarter September 30, 2022, is presented below:

 

Options

 

Shares

 

 

Weighted-Average Grant-Date Fair Value

 

Nonvested at July 1, 2022

 

 

13,450,170

 

 

$0.08

 

Granted

 

 

-

 

 

$0.00

 

Vested

 

 

-

 

 

$0.04

 

Forfeited

 

 

-

 

 

$0.00

 

Nonvested at September 30, 2022

 

 

13,450,170

 

 

$0.08

 

Stock-based compensation expense attributable to stock options was approximately $88,211 for the quarter ended September 30, 2022. As of September 30, 2022, there was approximately $514,416 of unrecognized compensation expense related to 13,450,170 nonvested stock options outstanding, and the weighted average vesting period for those options was 2 years.

Warrants

 

At September 30, 2022, the Company had outstanding warrants to purchase the Company’s common stock which were issued in connection with multiple financing arrangements. Information relating to these warrants is summarized as follows:

 

Warrants

 

Remaining

Number

Outstanding

 

 

Weighted

Average

Remaining

Life (Years)

 

 

Weighted

Average

Exercise

Price

 

Warrants - SEDA Financing

 

 

86,957

 

 

 

1.80

 

 

$1.15

 

Warrants - Issued with Convertible Notes

 

 

600,000

 

 

 

2.23

 

 

$0.75

 

Warrants - Securities Purchase Agreement

 

 

360,577

 

 

 

3.02

 

 

$0.78

 

Warrants A - Securities Purchase Agreement

 

 

28,072,364

 

 

 

3.02

 

 

$0.16

 

Total

 

 

29,119,898

 

 

 

 

 

 

 

 

 

Aggregate intrinsic value at September 30, 2022

 

$0