OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK

9 Months Ended

Sep. 30, 2022

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Options And Warrants To Purchase Common Stock

NOTE 9 – 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, 2022:

	Shares Issuable
	upon Exercise of		Weighted Average
	Outstanding Warrants		Exercise Price
Outstanding at December 31, 2021		11,000,000	$	0.10
Issued		10,860,000		0.046
Exercised		-		-
Forfeited		-		-
Outstanding at September 30, 2022		21,860,000	$	0.0526

At September 30, 2022 the intrinsic value of the outstanding warrants was $16,290.

In August 2022 the Company granted a financial advisory firm warrants to purchase 9.86 million shares of common stock at $0.005 per share and 1 million shares of common stock at $0.001 per share. The financial advisory firm provided, among other things, capital introduction services to the Company. The warrants were issued with a 5-year term and vested immediately. The Black Scholes fair value of the warrants on the grant date totaled $31,056.

A summary of the status of the warrants outstanding and exercisable at September 30, 2022 is presented below:

			Warrants Outstanding and Exercisable
				Weighted Average
			Shares Issuable upon Exercise of	Remaining Contractual Life		Weighted Average
Exercise Price			Outstanding Warrants	(years)		Exercise Price
	$	0.10	11,000,000	0.20	$	0.10
	$	0.005	9,860,000	4.86		0.005
	$	0.001	1,000,000	4.86	$	0.001
			21,860,000	2.51	$	0.0526

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.

A summary of the status and changes of the options granted under stock option plans and other agreements during the nine months ended September 30, 2022:

	Shares Issued Upon Exercise of Options			Weighted Average Exercise Price
Outstanding at December 31, 2021		52,790,845		$	0.25
Granted		4,000,000			0.001
Exercised		-			-
Forfeited		(3,854,653	)		0.79
Outstanding at September 30, 2022		52,936,192		$	0.19

In August 2022 the Company granted a financial advisory firm an option to purchase 4 million shares of common stock at $0.001 per share. The financial advisory firm provided, among other things, capital introduction services to the Company. The option was issued with a 5-year term and vested immediately. The Black Scholes fair value of the option on the grant date was $13,107.

A summary of the status of the options outstanding at September 30, 2022 is presented below:

	Options Outstanding						Options Exercisable
Range of per share exercise price	Shares		Weighted average remaining contractual life (years)		Per share weighted average exercise price		Shares		Weighted average remaining contractual life (years)		Per share weighted average exercise price
$0.001 - $0.08		42,409,881		4.68	$	0.05		42,409,881		4.68	$	0.05
$0.10 - $0.84		6,784,251		1.32		0.34		6,784,251		1.32		0.34
$1.10 - $1.66		3,742,060		0.26		1.57		3,742,060		0.26		1.57
		52,936,192		2.89	$	0.19		52,936,192		2.89	$	0.19

Compensation expense of $92,006 and $155,058 was recognized for the vesting of options during the nine months ended September 30, 2022 and 2021, respectively. The aggregate intrinsic value of the outstanding options at September 30, 2022 was $0.