Stock Options

3 Months Ended

Mar. 31, 2021

Stock Options

Stock Options

Note 7 – Stock Options

Stock option activity for the quarter ended March 31, 2021, is summarized as follows:

	Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value		Weighted Average Remaining Contractual Life (Years)
Options outstanding and exercisable at December 31, 2020		12,180,500			0.11	$	4,750,395		4.63
Granted		20,000			0.45		3,000		—
Expired/forfeited		(1,350,000	)		0.54		—		—
Options outstanding and exercisable at March 31, 2020		10,850,500			0.15	$	4,892,855		4.51

On March 31, 2021, an option for 20,000 shares at an exercise price of $.45 per share was issued to Mr. Bryce Johnson in consideration of the Company’s use of his facility for which the Company owed Mr. Bryce Johnson $12,000. The accounts payable was settled in full with the issuance of the stock option with an estimated fair value of $8,200. The Company recognized a gain on the settlement as presented on the statements of operations (see Note 8).

The significant assumptions relating to the valuation of the Company’s stock options granted during the three months ended March 31, 2021 were as follows:

	March 31, 2021
Dividend yield	0.00%
Expected life	3 Years
Expected volatility	1.02%
Risk-free interest rate	0.35%

There was no stock option compensation for the three months ended March 31, 2021 and 2020 and no unrecognized compensation expense associated with the options.