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Stock-Based Compensation

6 Months Ended

Jun. 30, 2019

Share-based Payment Arrangement [Abstract]

Note 7. Stock-Based Compensation

For the six months ended June 30, 2019

During the six months ended June 30, 2019, approximately $1,336,000 in compensation expense was recognized on the following:

	1.	Options to purchase 3,120,000 shares of Common Stock at an exercise price of $2.00 with a 10 year life, which vest one-year from the date of grant, were issued to Christopher Constable under the 2018 Plan during the twelve months ending December 31, 2018.
	2.	Options to purchase 430,000 shares of Common Stock at an exercise price of $2.00 with a 10 year life, which vest 25% each year from the date of grant, were issued to various long term employees under the 2018 Plan during the six months ending June 30, 2019.
	3.	Options to purchase 250,000 shares of Common Stock at an exercise price of $2.00 with a 10 year life, which vest 20% each year from the date of grant, were issued to Zoty Ponce under the 2018 Plan during the six months ending June 30, 2019.
	4.	Options to purchase 25,000 shares of Common Stock at an exercise price of $2.00 with a 10 year life, which vest 25% each year from the date of grant, were issued to various contractors during the six months ending June 30, 2019.

The following table summarizes the assumptions used to estimate the fair value of the stock options granted during 2019:

	2019
Expected Volatility	39%-48	%
Risk Free Interest Rate	2.62%-2.71	%
Expected life of warrants	6.25 – 10.0

Under the Black-Scholes option pricing model, the fair value of the 705,000 options granted during the six months ended June 30, 2019 is estimated at $613,586 on the date of grant. The unrecognized portion of the expense remaining outstanding is $1,395,338.

The following Table represents option activity for the six months ending June 30, 2019:

	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life in Years		Aggregate Intrinsic Value
Outstanding - December 31, 2018		6,240,000	$	1.17		9.86
Exercisable - December 31, 2018		3,120,000	$	0.33		9.86	$	5,210,400
Granted		705,000	$	2.00
Vested		-
Outstanding – June 30, 2019		6,945,000	$	1.25		9.39
Exercisable - June 30, 2019		3,120,000	$	0.33		9.37	$	5,210,400