17. EQUITY

Common Stock

At March 31, 2021 and December 31, 2020, a total of 2,837,580 shares are deemed issued but not outstanding by the Company. These include 2,623,171 shares of treasury stock.

Three months ended March 31, 2021:

During the three months ended March 31, 2021 in connection with stock based compensation based upon the terms of employment agreements with its employees and compensation agreements with the Company’s independent board members, the Company charged to operations the amount of $22,500 for the vesting of a total of 50,070 shares of common stock issuable to two of its independent board members, and $99,211 for the vesting of a total of 236,184 shares of common stock issuable to its Chief Executive Officer and its Director of Strategic Acquisitions pursuant to their employment agreements. The Company also recognized non-cash compensation in the amount of $36,080 during the three months ended March 31, 2021 in connection with stock options issuable to management and board members.

Three months ended March 31, 2020:

The Company issued 38,943 shares of common stock with a fair value of $17,135 to an employee as a bonus.

The Company issued 4,762 shares of common stock with a fair value of $2,286 to a service provider.

The Company charged the amount of $12,500 in connection with the vesting of 24,258 shares of common stock issuable to board members in connection with their compensation agreements.

The Company charged the amount of $34,120 in connection with the vesting of stock options to management and board members.

Options

The following table summarizes the options outstanding at March 31, 2021 and the related prices for the options to purchase shares of the Company’s common stock issued by the Company:

						Weighted				Weighted
				Weighted		average				average
				average		exercise				exercise
Range of		Number of		Remaining		price of		Number of		price of
exercise		options		contractual		outstanding		options		exercisable
Prices		Outstanding		life (years)		Options		Exercisable		Options
$	0.60		50,000		4.75	$	0.60		6,250	$	0.60
$	0.62		360,000		2.75	$	0.62		270,000	$	0.62
$	0.85		540,000		2.75	$	0.85		405,000	$	0.85
$	1.00		50,000		4.75	$	1.00		6,250	$	1.00
$	1.10		75,000		0.12	$	1.10		75,000	$	1.10
$	1.20		1,050,000		2.60	$	1.20		825,000	$	1.20
$	1.50		125,000		0.75	$	1.50		125,000	$	1.50
			2,250,000		2.57	$	1.02		1,712,500	$	1.04

Transactions involving stock options are summarized as follows:

	Number of Shares		Weighted Average Exercise Price
Options outstanding at December 31, 2020		2,250,000	$	1.02

Granted		-	$	-
Exercised		-	$	-
Cancelled / Expired		-	$	-

Options outstanding at March 31, 2021 (unaudited)		2,250,000	$	1.02
Options exercisable at March 31, 2021 (unaudited)		1,712,500	$	1.04

Aggregate intrinsic value of options outstanding and exercisable at March 31, 2021 and 2020 was $0. Aggregate intrinsic value represents the difference between the Company’s closing stock price on the last trading day of the fiscal period, which was $0.43 and $0.34 as of March 31, 2021 and 2020, respectively, and the exercise price multiplied by the number of options outstanding.

During the three months ended March 31, 2021 and 2020, the Company charged $36,080 and $34,120, respectively, to operations to recognized stock-based compensation expense for employee stock options.

Accounting for warrants and stock options

The Company valued warrants and stock options granted during the three months ended March 31, 2021 and 2020 using the Black-Scholes valuation model utilizing the following variables:

	March 31,			March 31,
	2021			2020
Volatility		-	%		59.4	%
Dividends		-			-
Risk-free interest rates		-	%		2.49	%
Term (years)		-			5.00