Stockholders' Equity

12 Months Ended

Dec. 31, 2020

Equity [Abstract]

Stockholders' Equity

NOTE 10 – STOCKHOLDERS’ EQUITY

Stock Compensation

The Company offers stock option equity awards to directors and key employees. Options vested in tranches and expire in five (5) years. During the year ended December 31, 2020, and 2019, the Company recorded vested options expense of $80,603 and $338,333 respectively. The option expense not taken as of December 31, 2020, is $1,058,593, with a weighted average term of 2.2 years.

The stock option valuation as of December 31, 2020 was computed using the Black-Scholes-Merton pricing model using an average stock price of $0.141, a strike price of $0.155, an expected term of five (5) years, volatility of 280.02% and a risk-free discount rate of 0.9%. The stock option valuation as of December 31, 2019 was computed using the Black-Scholes-Merton pricing model using a stock price of $.152, a strike price of $.15, an expected term of five (5) years, volatility of 258.10% and a risk-free discount rate of 1.52%.

The estimated grant-fair value of stock option grants was calculated using the Black-Scholes-Merton option-pricing model using the following assumptions:

Weighted average	280.02	%	278.0	%
Weighted average expected term (years)	2.2		3.0
Risk free interest rate	0.9	%	1.59	%
Expected dividend yield	—		—

The following table represents stock option activity as of and for the year ended December 31, 2020:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Life		Aggregate Intrinsic Value
Options Outstanding – December 31, 2019		3,800,000		$	.20		3.0	$	—
Granted		400,000		$	.15		4.5
Exercised
Forfeited		(400,000	)
Options Outstanding – December 31, 2020		3,800,000		$	.21		3.6	$	812,350
Exercisable and Vested, December 31, 2020		3,600,000		$	.22		2.4	$	698,475

In 2020, 400,000 share options were granted to two (2) members of the Board of Directors. Each member was granted 25,000 shares per quarter of service for 2019 and 2020 for a total of 200,000 shares each. During the year, 350,000 share options were forfeited. The forfeited options were 300,000 from a key employee and 50,000 from a board member who had resigned and had not exercised his options prior to their expiration. The Aggregate Intrinsic Value is based on the market value of the Company’s common stock of $0.421 on December 31, 2020.

The following table represents stock option activity as of and for the year ended December 31, 2019:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Life		Aggregate Intrinsic Value
Options Outstanding – December 31, 2018		4,250,000		$	0.24		3.9	$	—
Granted		1,100,000		$	0.17		4.8
Exercised		—
Forfeited		(1,550,000	)
Options Outstanding – December 31, 2019		3,800,000		$	0.20		3.0	$	—
Exercisable and Vested, December 31, 2019		3,400,000		$	0.24		3.1	$	—

In 2019, 1,100,000 share options were granted. 500,000 share options were granted as part of the acquisition of IM Telecom. 600,000 share options were granted to key employees. During the year, 1,550,000 share options were forfeited. The forfeited options were 1,000,000 from a key employee, 500,000 from the IM Telecom acquisition amendment, and 50,000 from a board member who had resigned and not exercised the options prior to their expiration.