The Company periodically issues stock options and warrants to employees and non-employees in capital raising transactions, for services and for financing costs. Options vest and expire according to terms established at the grant date.

Options

Options vest according to the terms of the specific grant and expire from 2 to 10 years from date of grant. The weighted-average, remaining contractual life of employee and non-employee options outstanding at September 30, 2020 was 5.7 years. Stock option activity for the period January 1, 2020 up to September 30, 2020, was as follows:

The weighted average exercise prices, remaining contractual lives for options granted, exercisable, and expected to vest as of September 30, 2020 were as follows:

During the nine-month period ending September 30, 2020, and pursuant to the Company’s Board Compensation policy approved by the Board June 19, 2015, the Company granted options to purchase 3,299,998 shares of common stock to members of the Company’s Board of Directors and an executive officer under terms of an employment agreement. The options are exercisable at $0.02 to $0.15 per share, vest monthly over a twelve-month period, and expire ten years from the date granted. Total fair value of these options at grant date was $365,000 using the Black-Scholes Option Pricing model with the following assumptions: life of 5.5 years; risk free interest rate of 0.6% to 1.7%; volatility of 128% to 188% and dividend yield of 0%.

During the nine-month periods ended September 30, 2020 and 2019, the Company recognized compensation costs based on the fair value of options that vested of $283,000 and $265,000 respectively. During the three-month periods ended September 30, 2020 and 2019, the Company recognized compensation costs based on the fair value of options that vested of $81,000 and $82,000 respectively.

At September 30, 2020, the Company’s closing stock price was $0.03 per share. The aggregate intrinsic value of the options outstanding at September 30, 2020 was $1,000. Future unamortized compensation expense on the unvested outstanding options at September 30, 2020 is approximately $72,000 to be recognized through December 2020.

Warrants

The following table summarizes certain information about the Company’s stock purchase warrants activity for the period starting January 1, 2020 up to September 30, 2020.

The weighted average exercise prices, remaining contractual lives for warrants granted, exercisable, and expected to vest as of September 30, 2020 were as follows:

In the nine-month period ending September 30, 2020, pursuant to terms of convertible notes issued, the Company granted warrants to purchase 3,324,517 shares of common stock with an exercise price of $.04 to $0.18 per share, vesting immediately upon grant and expiring one year from the date of grant (see Note 5, above).

In the nine-month period ending September 30, 2020, the Company issued warrants to purchase 299,997 shares of common stock in exchange for services. The warrants are exercisable at a price of $0.03 to $0.14, vesting one month from the date of grant and expiring two years from the date of grant. Total fair value of these options at grant date was $14,000 using the Black-Scholes Option Pricing model with the following assumptions: life of 2 years; risk free interest rate of 0.4% to 1.5%; volatility of 163% to 192% and dividend yield of 0%. During the nine-month period ended September 30, 2020, the Company recognized compensation costs based on the fair value of warrants that vested of $13,000.

At September 30, 2020, the aggregate intrinsic value of the warrants outstanding was $1,000.