STOCKHOLDERS’ EQUITY

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

STOCKHOLDERS’ EQUITY

NOTE 8 – STOCKHOLDERS’ EQUITY

Common Stock

The Company has issued 575,000 shares of common stock through September 30, 2021. All shares were issued as result of three (3) holders of incentive stock options delivering Notices of Exercise and required exercise payments regarding certain granted and vested incentive stock options. No common stock was issued during the year ended December 31, 2020.

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 three months ended September 30, 2021 and 2020, the Company recorded options expense of $62,877 and $10,257 respectively. For the nine months ended September 30, 2021, and 2020, the Company recorded options expense of $141,935 and $30,771, respectively. The option expense not taken as of September 30, 2021, is $62,876, with a weighted average term of 4.62 years.

The stock option valuation as of September 30, 2021, was computed using the Black-Scholes-Merton pricing model using an average stock price of $0.794, a strike price of $0.874, an expected term of five (5) years, volatility of 236.05% and a risk-free discount rate of 0.78%.

The following table represents stock option activity as of and for the nine months ended September 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		3.60	$	2,622,000
Granted		485,000		0.56		4.62		164,900
Exercised		575,000		—		—		—
Forfeited		198,116		—		—		—
Options Outstanding – September 30, 2021		3,511,884	$	0.22		2.89	$	2,786,900
Exercisable and Vested, September 30, 2021		2,979,884	$	0.23		1.75	$	1,966,522