Stock-based Compensation

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

Stock-based Compensation

Note 12. Stock Based Compensation

During the three months ended March 31, 2021, the Company issued stock-based compensation for employees and service providers pursuant to its 2015 Equity Incentive Plan. During the years ended December 31, 2020, the Company’s expense for restricted shares to Company employees was $15,664 and $4,503 which was the result of the following activity:

Restricted Shares

From time to time, the Company grants certain employees restricted shares of its common stock to provide further compensation in-lieu of wages and to align the employee’s interests with the interests of its stockholders. Because vesting is based on continued employment, these equity-based incentives are also intended to attract, retain and motivate personnel upon whose judgment, initiative and effort the Company’s success is largely dependent.

During the three months ended March 31, 2021, the Company granted 67,808 restricted shares and recognized $15,664 in associated employee stock-based compensation expense, which have not been issued at March 31, 2021. The shares are not issued until terms set by the Board of Directors are met and so the shares earned are treated as a stock payable until such time that they are issued. The fair value of restricted stock unit is determined based on the quoted closing price of the Company’s common stock on the date grant.

During the three months ended March 31, 2020, the Company granted 89,708 restricted shares and recognized $4,503 in associated employee stock-based compensation expense. The fair value of the restricted stock is determined based on the quoted closing price of the Company’s common stock on the date of grant.

During the three months ended March 31, 2020, the Company issued 478,261 shares of restricted shares granted during the fiscal year ended December 31, 2019.

Net Loss Per Share

Basic net loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the reporting period. Diluted net loss per share is computed similarly to basic loss per share, except that it includes the potential dilution that could occur if dilutive securities are exercised.

Outstanding stock options and common stock warrants are considered anti-dilutive because we are in a net loss position.  Accordingly, the number of weighted average shares outstanding for basic and fully diluted net loss per share are the same.

The following summarizes equity instruments that may, in the future, have a dilutive effect on earnings per share:

	March 31, 2021		December 31, 2020
Warrants		10,000		397,500
Stock Payables		67,808		—
Total		77,808		397,500

Warrants

During the three months ended March 31, 2021, warrants with a cashless exercise provision were exercised for 100,000 restricted shares by an officer/director of the Company.

During the three months ended March 31, 2021, the Company did not issue or approve any warrants. Warrants exercisable for 287,500 shares expired.