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OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK
 3 Months Ended
Mar. 31, 2021
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
NOTE 10 – OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK
 
Outstanding Stock Warrants
 
A summary of the status and changes of the warrants issued for the nine months ended September 30, 2020:
 
 
 
 		 
 
 		Shares Issuable
upon Exercise of
Outstanding Warrants		 
 
 		 
 
 		 
Weighted Average
Exercise Price		 
 
 
       
Outstanding at January 1, 2021  24,619,623  $0.16 
Issued  -   - 
Exercised  -     
Forfeited  -   - 
Outstanding at March 31, 2021  24,619,623  $0.16 
 
At March 31, 2021, the intrinsic value of the outstanding warrants was $0.
 
A summary of the status of the warrants outstanding and exercisable at March 31, 2021 is presented below:
 
   Warrants Outstanding and Exercisable 
   Shares Issuable  Weighted Average    
   upon Exercise of  Remaining  Weighted Average 
Exercise Price  Outstanding Warrants  Contractual Life (years)  Exercise Price 
$1.15   461,340   0.07  $1.15 
$0.25   3,283,283   0.23  $0.25 
$0.10   11,000,000   1.70  $0.10 
$0.15   9,875,000   0.22  $0.15 
     24,619,623   0.88  $0.16 
 
Outstanding Stock Options
On November 20, 2012, the shareholders of the Company approved the adoption of the Applied Minerals, Inc. 2012 Long-Term Incentive Plan (“LTIP”) and the Short-Term Incentive Plan (“STIP”) and the performance criteria used in setting performance goals for awards intended to be performance-based. Under the LTIP, 8,900,000 shares are authorized for issuance. The STIP does not refer to a particular number of shares under the LTIP, but would use the shares authorized in the LTIP for issuance under the STIP. The CEO, the CFO, and named executive officers, and directors, among others are eligible to participate in the LTIP and STIP. Prior to the adoption of the LTIP and STIP, stock options were granted under individual arrangements between the Company and the grantees, and approved by the Board of Directors.
On December 7, 2016, the stockholders of the Company approved the 2016 Incentive Plan. The purpose of the 2016 Incentive Plan is to enhance the profitability and value of the Company for the benefit of its stockholders by enabling the Company to offer eligible employees, consultants, and non-employee directors incentive awards in order to attract, retain and reward such individuals and strengthen the mutuality of interests between such individuals and the Company’s stockholders. The aggregate number of shares of Common Stock that may be issued or used for reference purposes under the 2016 Incentive Plan or with respect to which awards may be granted may not exceed 15,000,000 shares, which may be either (i) authorized and unissued Common Stock or (ii) Common Stock held in or acquired for the treasury of the Company.  
  
The Compensation Committee of the Company Board of Directors has full authority to administer and interpret the 2016 Incentive Plan, to grant awards under the 2016 Incentive Plan, to determine the persons to whom awards will be granted, to determine the types of awards to be granted, to determine the terms and conditions of each award, to determine the number of shares of Common Stock to be covered by each award and to make all other determinations in connection with the 2016 Incentive Plan and the awards thereunder as the Committee, in its sole discretion, deems necessary or desirable.
 
The fair value of each of the Company's stock option awards is estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility is based on an average of historical volatility of the Company's common stock. The risk-free interest rate for periods within the contractual life of the stock option award is based on the yield curve of a zero-coupon U.S. Treasury Bond on the date the award is granted with a maturity equal to the expected term of the award. The Company did not grant any stock option awards during the three months ended March 31, 2021.
 
A summary of the status and changes of the options granted under stock option plans and other agreements during the three months ended March 31, 2021:
 
 
 
Shares Issued
Upon Exercise of
Options
 
 
Weighted Average
Exercise Price
 
       
Outstanding at December 31, 2020  56,661,515  $0.28 
Granted  -   - 
Exercised  (9,528,689)  0.06 
Forfeited  (428,326)  0.28 
Outstanding at March 31, 2021
  46,704,500  $0.32 
A summary of the status of the options outstanding at March 31, 2021 is presented below:
 
 
 
 
 
 
Options Outstanding
 
 
 
Options Exercisable
 
 
Range of
per share
exercise
price
 
 
 
Shares
 
 
 
Weighted
average
remaining
contractual
life
 
 
 
Per share
weighted
average
exercise
price
 
 
 
Shares
 
 
 
Weighted
average
remaining
contractual
life
 
 
 
Per share
weighted
average
exercise
price
 
$
0.04 - $0.08
 
 
 
28,959,881
 
 
 
6.44
 
 
$
0.06
 
 
 
27,681,410
 
 
 
6.44
 
 
$
0.06
 
$
0.10 - $0.84
 
 
 
12,802,559
 
 
 
1.76
 
 
 
0.42
 
 
 
12,802,559
 
 
 
1.76
 
 
 
0.42
 
$
1.10 - $1.90
 
 
 
4,942,060
 
 
 
1.47
 
 
 
1.63
 
 
 
4,942,060
 
 
 
1.47
 
 
 
1.63
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
46,704,500
 
 
 
4.63
 
 
$
0.32
 
 
 
45,426,029
 
 
 
4.58
 
 
$
0.33
 
 
Compensation expense of $3,943 was re
c
ognized for vested options for the three months ended March 31, 2021. The a
g
gregate intrinsic value of the outstanding options at March 31, 2021 was $0. At March 31, 2021, (i) $11,696 of unamortized compensation expense for time-based unvested options will be recognized over the next 0.76 years on a weighted average basis; (ii) $38,784 of unamortized compensation expense for performance-based unvested options will be recognized if the performance targets are achieved.
 
On August 18, 2017, the Company’s management was granted performance-based options to purchase 27.5 million shares of the Company’s common stock at $0.06 per share. The options expire on August 18, 2027. On November 1, 2017, the first fifty percent (50%) of the performance-based options vested as management was able to (i) close the sale of an aggregate of $600,000 of units (consisting of a share of common stock of the Company and a warrant to buy 0.25 of a share of common stock of the Company) at $0.04 per unit and (ii) establish toll processing arrangements with two toll processors of halloysite that, in management’s good faith belief, can process halloysite to the Company’s specifications. An additional twenty-five percent (25%) of the performance-based options vested on January 18, 2018 when management generated $900,000 of additional cash proceeds through (i) the sale of common stock and (ii) the licensing of a right to explore the Dragon Mine property for certain precious metals. The vesting of the remaining 8.3%, 8.3% and 8.4% of the performance-based options occurs when (i) EBITDA is positive over a twelve-month period, (ii) EBITDA is at or greater than $2 million over a twelve-month period and (iii) EBITDA is at or greater than $4 million over a twelve-month period, respectively. Of the 27.5 million performance options granted to management in August 2017, approximately 14.3
million were outstanding at March 31, 2021. The reduction was due to the forefeiture of options to purchase
 0.4
million shares of common stock and the exercise of options to purchase approximately
 9.5
million shares of common stock during the three months ended March 31, 2021. At March 31, 2021, management, based on its financial expectations for 2020, did not consider the vesting of the
remaining
25% of the option grants owned by management to be probable.