Warrants

12 Months Ended

Dec. 31, 2021

Warrants [Abstract]

WARRANTS

NOTE 7 – WARRANTS

On February 1, 2021, the Company issued a five-year warrant to purchase 25,000 shares of common stock at $15.90 per share to a consultant. The fair value of the warrant on the grant date was estimated using the Black-Scholes-Merton option pricing model with a common stock value of $16.13 per share, a contractual life of 5.0 years, a dividend yield of 0%, volatility of 97.09% and an assumed risk-free interest rate of 0.42%. The warrant is immediately exercisable. The fair value of the warrant was determined to be approximately $293,000 and was recorded in general and administrative expenses in the consolidated statement of operations during the year ended December 31, 2021.

In determining the fair value for warrants, the expected life of the Company’s warrants was determined using the contractual life. The methodology in determining all other inputs to calculate the fair value utilizing the Black-Scholes-Merton option pricing model is the same as the stock option methodology described in Note 8 for stock options.

A summary of warrant activity for the years ended December 31, 2021 and 2020 is as follows:

	Number of Shares			Range of Exercise Prices	Weighted-Average Exercise Prices		Weighted-Average Remaining Life
Outstanding at January 1, 2020		1,476,463		$0.01 – $6.25	$	2.71		4.1
Exercised		(659,108	)	2.50 – 6.25		2.75		—
Outstanding at December 31, 2020		817,355		0.01 – 6.25		2.68		3.7
Issued		25,000		15.90		15.90		—
Exercised		(453,122	)	0.01 – 6.25		0.74		—
Outstanding at December 31, 2021		389,233		$2.50 – $15.90	$	5.79		4.4

The warrants outstanding at December 31, 2021 had an aggregate intrinsic value of approximately $1,432,000.