Stock Options

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Stock Options

Note 15 - Stock Options

During the year ended December 31, 2018, the Company granted stock options to purchase 598,500 shares of its Common Stock to various employees, vendors and independent contractors. These options vest over periods ranging from twenty-four (24) to thirty-six (36) months, are exercisable for a period of 5 years, and enable the holders to purchase shares of its Common Stock at exercise prices ranging from $3.33 - $4.75. The per-share values of these options range from $1.37 to $1.96, based on Black-Scholes-Merton pricing models with the following assumptions: (i) Volatility of 43.25%, (ii) Term of 5 years, (iii) Risk free rate of 2.6% and (iv) Dividend rate of 0.0%.

At December 31, 2019, the Company had $231,354 of unrecognized compensation costs related to stock options outstanding, which will be recognized through 2023. The Company will recognize forfeitures as they occur. Share-based compensation expense was $111,623 and $455,649 for the years ended December 31, 2019 and 2018, respectively. The total amount recorded in "Additional paid-in capital" related to stock options as of December 31, 2019, was approximately $567,000. The weighted average remaining contractual term for the outstanding options at December 31, 2019 and 2018 is 3.54 and 4.22 years, respectively.

Stock option activity for the years ended December 31, 2019 and 2018, was as follows:

	Number of Shares			Weighted Avg. Exercise Price
Outstanding at December 31, 2017		-		$	-
Options granted		598,500			3.91
Options exercised		-			-
Options forfeited or expired		(87,500	)		-
Outstanding at December 31, 2018		511,000		$	3.82
Options granted		112,500			7.01
Options exercised		-			-
Options forfeited or expired		(279,000	)		-
Outstanding at December 31, 2019		344,500		$	4.57
Vested as of December 31, 2019		260,468		$	3.80
Expected to vest as of December 31, 2019		84,032		$	6.96