STOCKHOLDERS’ EQUITY

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

STOCKHOLDERS’ EQUITY

NOTE 9 – STOCKHOLDERS’ EQUITY

Common Stock

The Company has not issued common stock through June 30, 2022, nor for the year ended December 31, 2021.

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, 2022, and 2021, the Company recorded options expense of $354,296 and $79,058, respectively. The option expense not taken as of June 30, 2022, is $1,660,630, with a weighted average term of 2.30 years.

Through June 30, 2022, the Company granted 850,000 options. There was a total of 700,000 incentive stock options issued to two (2) employees, each vesting on the four (4) year anniversary dates of the respective grants. A total of 100,000 incentive stock options were issued to two (2) independent Board members, fully vested as of each grant date, at exercise prices based on 110% of the fair market value of our common stock on the date of grant, and 50,000 incentive stock options were issued to an independent consultant to the Company, fully vested, as of the date of grant. All option values were computed using the Black-Scholes-Merton pricing model, with a term of 5-years, an average interest-free rate of 2.17% and an average exercise price of $1.09.

The following table represents stock option activity as of and for the six months ended June 30, 2022:

	No. Shares		Weighted Average Exercise Price		Weighted Average Remaining Life	Aggregate Intrinsic Value
Options Outstanding – December 31, 2021		4,260,000	$	0.37	2.25	$	5,862,938
Granted		850,000		1.09	4.63
Exercised		—		—	—		—
Forfeited		—		—	—		—
Options Outstanding – June 30, 2022		5,110,000	$	0.52	2.30	$	4,683,759
Exercisable and Vested, June 30, 2022		3,070,000	$	0.29	1.45	$	2,526,518