STOCKHOLDERS’ EQUITY

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

STOCKHOLDERS’ EQUITY

NOTE 8 – STOCKHOLDERS’ EQUITY

Common Stock

The Company has not issued any common stock through June 30, 2021, nor for the year ended December 31, 2020; however, one holder of incentive stock options delivered a Notice of Exercise regarding certain granted and vested incentive stock options to the Company on June 29, 2021. See Note 9-Subsequent Events.

Stock Compensation

The Company offers stock option equity grants to directors and key employees. Options vest in tranches and typically expire in five (5) years. For the six months ended June 30, 2021, and 2020, the Company recorded options expense of $79,058 and $20,514, respectively. The option expense not taken as of June 30, 2021, is $43,639, with a weighted average term of 3.92 years.

The stock option valuation as of June 30, 2021, was computed using the Black-Scholes-Merton pricing model using an average stock price of $0.559, a strike price of $0.531, an expected term of five (5) years, volatility of 258.10% and a risk-free discount rate of 1.52%.

The following table represents stock option activity as of and for the six months ended June 30, 2021:

	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Life	Aggregate Intrinsic Value
Options Outstanding – December 31, 2020	3,800,000	$	0.21	3.6	$	—
Granted	385,000		0.51	4.8		—
Exercised	0		—	—		—
Forfeited	175,000		—	—		—
Options Outstanding – June 30, 2021	4,010,000	$	0.22	2.7	$	—
Exercisable and Vested, June 30, 2021	3,525,000	$	0.22	2.0	$	—