Stock Options and Warrants

6 Months Ended

Jun. 30, 2023

Stock Options and Warrants [Abstract]

STOCK OPTIONS AND WARRANTS

7.  STOCK OPTIONS AND WARRANTS  

Stock Options 

The Company used the historical industry index to calculate volatility, since the Company’s stock history did not represent the expected future volatility of the Company’s common stock.

The fair value of options granted during the six months ending June 30, 2023, and 2022, were determined using the Black Scholes method with the following assumptions:

	Six months ended June 30, 2023			Year ended December 31, 2022
Risk free interest rate		4.49	%		1.29	%
Stock volatility factor		206	%		229	%
Weighted average expected option life		3.5 years			2.5 years
Expected dividend yield		-	%		-	%

A summary of the Company’s stock option activity and related information follows:

	Six months ended June 30, 2023					Year ended December 31, 2022
	Options			Weighted average exercise price		Options			Weighted average exercise price
Outstanding - beginning of year		879,733,332		$	0.0092		768,233,332		$	0.0052
Granted		100,000,000			0.0100		125,500,000			0.0068
Exercised		(9,222,228	)		0.0057		(4,000,000	)		0.0019
Forfeited		(361,423,890	)		0.0090		(7,000,000	)		0.0127
Outstanding - end of the year		609,087,214		$	0.0091		879,733,332		$	0.0092
Exercisable at the end of the year		424,270,281		$	0.0071		519,773,058		$	0.0072
Weighted average fair value of options granted during the year				$	1,000,000				$	2,495,600

As of June 30, 2023, and December 31, 2022, the intrinsic value of the stock options was approximately $2,563,500 and $362,102, respectively.  Stock option expense for the six months ended June 30, 2023, and 2022 were $836,261 and $894,117, respectively. 

The Black Scholes option valuation model was developed for use in estimating the fair value of traded options, which do not have vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions, including the expected stock price volatility. Because the Company’s employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employee stock options. 

The weighted average remaining contractual life of options outstanding, as of June 30, 2023, was as follows:

Exercise prices		Number of options outstanding		Weighted Average remaining contractual life (years)
$	0.0100		100,000,000		4.93
$	0.0068		257,000,000		2.52
$	0.0019		150,566,666		1.55
$	0.0018		17,000,000		1.93
$	0.0295		84,520,548		1.59
			609,087,214

Warrants

As of June 30, 2023, and December 31, 2022, there were 162,703,869 and 162,703,869 warrants outstanding, respectively.  

The fair value of warrants issued during the six months ended June 30, 2023, and 2022, were determined using the Black Scholes method with the following assumptions:

	Six months ended June 30, 2023			Year ended December 31, 2022
Risk free interest rate			%		1.86	%
Stock volatility factor			%		272	%
Weighted average expected warrant life		- years			5 years
Expected dividend yield		--	%		--	%

A summary of the Company’s warrant activity and related information follows:

	Six months ended June 30, 2023				Year ended December 31, 2022
	Warrants		Weighted average exercise price		Warrants		Weighted average exercise price
Outstanding - beginning of period		162,703,869	$	0.048		162,703,869	$	0.048
Issued		-		-		-		-
Exercised		-		-		-		-
Forfeited		-		-		-		-
Outstanding - end of period		162,703,869	$	0.048		162,703,869	$	0.048
Exercisable at the end of period		162,703,869	$	0.048		162,703,869	$	0.048
Weighted average fair value of warrants granted during the period			$	-			$	-

Warrant expense for the three months ended June 30, 2023, and 2022 were $0 and $0, respectively.