Stock Options

6 Months Ended

Jun. 30, 2023

Share-based Payment Arrangement [Abstract]

8. Stock Options

The Company has a Stock Incentive Plan (the "SIP"), authorize the granting of stock options up to 10 percent of the total number of issued and outstanding shares of common stock, that provides for the grant of stock options, incentive stock options, stock appreciation rights, restricted stock awards, and incentive awards to eligible individuals including directors, executive officers and advisors that have furnished bona fide services to the Company not related to the sale of securities in a capital-raising transaction. On July 12, 2022, the Company's shareholders, at their Annual Meeting, ratified and reapproved the Stock Option Plan.

In March 2022, the Company granted 1,820,000 stock options to officers and directors of the Company. The fair value of the options was determined to be $158,341 using the Black Scholes model and included share-based payment awards to nonemployees of $13,920. The Company has elected to recognize the effect of forfeitures in compensation cost when they occur. Previously recognized compensation cost for a nonemployee share-based payment award shall be reversed in the period that the award is forfeited. The options are exercisable on or before March 21, 2027, and have an exercise price of $0.09. The options were fully vested upon grant and the entire fair value was recognized as compensation expense during the quarter ended March 31, 2022.

The fair value of each option award was estimated on the date of the grant using the assumptions noted in the following table:

	March 21, 2022
Stock price	$0.088
Exercise price	$0.09
Expected volatility	188.9%
Expected dividends	-
Expected terms (in years)	5.0
Risk-free rate	2.39%

For the six month ended June 30, 2023, no options were granted and no options expired.

The following is a summary of the Company's options issued and outstanding under the SIP:

	Shares			Weighted Average Exercise Price
Outstanding and exercisable at December 31, 2021	3,355,000		$	0.10
Granted	1,820,000			0.09
Expired	(400,000	)		0.09
Outstanding and exercisable at December 31, 2022	4,775,000			0.10

Outstanding and exercisable at June 30, 2022	4,775,000		$	0.093

The average remaining contractual term of the options outstanding and exercisable at June 30, 2023 was 2.22 years. On June 30, 2023, options outstanding and exercisable had no aggregate intrinsic value based on the Company's stock price of $0.06 on June 30, 2023.