Stock Based Compensation

3 Months Ended

Sep. 30, 2023

Stock Based Compensation

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 20,000,000. 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, 2023:

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, 2023 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, 2023		17,774,000	$	0.06
Granted		-	$	0.00
Exercised, converted		-	$	0.00
Forfeited / exchanged / modification		-	$	0.00
Outstanding at September 30, 2023		17,774,000	$	0.06		0.5	$	-
Exercisable at September 30, 2023		5,330,411	$	0.11		2.0
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, 2023, and changes during the year quarter September 30, 2023, is presented below:

Options	Shares		Weighted-Average Grant-Date Fair Value
Nonvested at July 1, 2023		662,608	$	0.11
Granted		0	$	0.00
Vested		-	$	0.00
Forfeited		-	$	0.00
Nonvested at September 30, 2023		662,608	$	0.11

Stock-based compensation expense attributable to stock options was approximately $86,487 for the quarter ended September 30, 2023. As of September 30, 2023, there was approximately $241,713 of unrecognized compensation expense related to 13,450,170 nonvested stock options outstanding, and the weighted average vesting period for those options was 1 year.

Warrants

At September 30, 2023, 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 A - Securities Purchase Agreement		28,072,364		0.75	$	0.17
Total		28,072,364
Aggregate intrinsic value at September 30, 2023	$	0