STOCK OPTIONS AND RESTRICTED STOCK UNITS

12 Months Ended

Dec. 31, 2022

STOCK OPTIONS AND RESTRICTED STOCK UNITS

STOCK OPTIONS AND RESTRICTED STOCK UNITS

NOTE 13 — STOCK OPTIONS AND RESTRICTED STOCK UNITS

On June 21, 2004, our Stockholders approved the adoption of the 2004 Employee Stock Option Plan (the “2004 Employee Stock Option Plan”) that provided for incentive stock options and nonqualified stock options to be granted to key employee and certain directors. Each option vested on either January 1, 2004 or immediately upon issuance thereafter. The exercise price of each option issued pursuant to the 2004 Plan is equal to the market value of our Common Stock on the date of grant, as determined by the closing bid price for our Common Stock on the Exchange on the date of grant or, if no trading occurred on the date of grant, on the last day prior to the date of grant on which our securities were listed and traded on the Exchange. Of the options issued under the 2004 Employee Stock Option Plan, 15,000 remain outstanding. Options issued pursuant to the 2004 Employee Stock Option Plan have no expiration date. The Company previously determined there will be no additional grants under the 2004 Employee Stock Option Plan.

On December 7, 2016, Stockholders of the Company approved the adoption of the 2016 Equity Incentive Plan (the “2016 Plan”), which reserved 1,100,000 shares for issuance pursuant to awards issued thereunder. As of December 31, 2022, no awards had been made under the 2016 Plan.

The following table summarizes the activity in common shares subject to options and warrants:

	Years Ended December 31,
	2022				2021
			Weighted				Weighted
			average exercise				average exercise
	Shares		price		Shares		price
Outstanding at beginning or year		15,000	$	2.17		15,000	$	2.17
Granted		-		-		-		-
Exercised		-		-		-		-
Forfeited		-		-		-		-
Outstanding at end of year		15,000	$	2.17		15,000	$	2.17
Options exercisable at end of year		15,000	$	2.17		15,000	$	2.17

The 15,000 options exercisable at the end of the year are potential dilutive shares.

Information about stock options outstanding at December 31, 2022 is summarized as follows:

		Options Outstanding and Exercisable
				Weighted average
				remaining			Weighted		Aggregate
		Number		contractual life			average		intrinsic
Exercise price		outstanding		(Years)			exercise price		value
$	2.13		10,000		NA	(1)	$	2.13	$	31,300
$	2.25		5,000		NA	(1)	$	2.25	$	15,050
			15,000						$	46,350

Options currently issued pursuant to the Company’s 2004 Employee Stock Option Plans have no expiration date. The aggregate intrinsic values in the above table were based on the closing price of our Common Stock of $5.26 as of December 31, 2022. During Fiscal years 2022 and 2021, there was $0 recognized in stock-based compensation expense.