| Stock Options and Warrants |
| 9. |
Stock Options and Warrants |
The Company periodically issues
stock options and warrants to employees and non-employees in capital raising transactions, for services and for financing costs. Options
and warrants vest and expire according to terms established at the grant date.
Options
Employee options vest according
to the terms of the specific grant and expire from 5 to 10 years from date of grant. The weighted average, remaining contractual life
of employee and non-employee options outstanding at December 31, 2023 was 3.9 years. Stock option activity for the period January 1, 2022
to December 31, 2023, was as follows:
| Stock options outstanding |
|
|
|
|
|
|
|
|
| |
|
Options |
|
|
Weighted Avg. Exercise Price
|
|
| Options outstanding, December 31, 2021 |
|
|
31,080,601 |
|
|
$ |
0.17 |
|
| Options granted |
|
|
– |
|
|
|
– |
|
| Options exercised |
|
|
(250,000 |
) |
|
|
0.08 |
|
| Options cancelled |
|
|
(4,773,000 |
) |
|
|
0.26 |
|
| Options outstanding, December 31, 2022 |
|
|
26,057,601 |
|
|
$ |
0.15 |
|
| Options granted |
|
|
– |
|
|
|
– |
|
| Options exercised |
|
|
– |
|
|
|
– |
|
| Options cancelled |
|
|
(300,446 |
) |
|
|
0.72 |
|
| Options outstanding, December 31, 2023 |
|
|
25,757,155 |
|
|
$ |
0.14 |
|
The weighted average exercise
prices, remaining contractual lives for options granted, exercisable, and expected to vest as of December 31, 2023, were as follows:
As of December 31, 2023, the market
price of the Company’s stock was $0.06 per share. At December 31, 2023 the aggregate intrinsic value of the options outstanding
was $115,000. Future unamortized compensation expense on the unvested outstanding options at December 31, 2023 is $0.
| Schedule of options outstanding by per share price |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Outstanding Options |
|
|
Exercisable Options |
|
Option
Exercise Price
Per Share |
|
Shares |
|
|
Life
(Years) |
|
Weighted
Average
Exercise Price
|
|
|
Shares |
|
|
Weighted
Average
Exercise Price
|
|
| $0.02 - $0.24 |
|
|
22,055,551 |
|
|
4.1 |
|
$ |
0.10 |
|
|
|
22,055,551 |
|
|
$ |
0.10 |
|
| $0.25 - $0.49 |
|
|
3,238,552 |
|
|
2.7 |
|
|
0.36 |
|
|
|
3,238,552 |
|
|
|
0.36 |
|
| $0.50 - $0.99 |
|
|
463,052 |
|
|
0.4 |
|
|
0.85 |
|
|
|
463,052 |
|
|
|
0.85 |
|
| |
|
|
25,757,155 |
|
|
3.9 |
|
$ |
0.14 |
|
|
|
25,757,155 |
|
|
$ |
0.14 |
|
Year Ending December 31, 2023
During the year ended December 31, 2023
did not issue options to employees, officers or members of the Board of Directors.
Year Ending December 31,
2022
During the year ended December 31, 2022,
the Company did not issue options to employees, officers or members of the Board of Directors.
Warrants
The following table summarizes
certain information about the Company’s stock purchase warrants.
| Schedule of warrants activity |
|
|
|
|
|
|
|
|
| |
|
Warrants |
|
|
Weighted Avg. Exercise Price
|
|
| Warrants outstanding, December 31, 2021 |
|
|
19,977,149 |
|
|
$ |
0.04 |
|
| Warrants granted |
|
|
16,426,657 |
|
|
|
0.04 |
|
| Warrants exercised |
|
|
(14,483,825 |
) |
|
|
0.04 |
|
| Warrants expired |
|
|
(1,605,828 |
) |
|
|
0.04 |
|
| Warrants outstanding, December 31, 2022 |
|
|
20,314,153 |
|
|
$ |
0.04 |
|
| Warrants granted |
|
|
12,482,410 |
|
|
|
0.07 |
|
| Warrants exercised |
|
|
(1,383,327 |
) |
|
|
0.04 |
|
| Warrants expired |
|
|
(13,459,997 |
) |
|
|
0.04 |
|
| Warrants outstanding, December 31, 2023 |
|
|
17,953,239 |
|
|
$ |
0.06 |
|
At December 31, 2023 the
price of the Company’s common stock was $0.06 per share and the aggregate intrinsic value of the warrants outstanding was $145,000.
As of December 31, 2023, 17,919,906 warrants were fully vested and 33,333 warrants vest in January 2024.
| Schedule of warrants outstanding by per share price |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Outstanding Warrants |
|
|
Exercisable Warrants |
|
Warrant
Exercise Price
Per Share |
|
Shares |
|
|
Life
(Years) |
|
Weighted
Average
Exercise Price
|
|
|
Shares |
|
|
Weighted
Average
Exercise Price
|
|
| $0.02 - $0.24 |
|
|
17,883,239 |
|
|
0.6 |
|
$ |
0.06 |
|
|
|
17,849,906 |
|
|
$ |
0.06 |
|
| $0.25 - $0.49 |
|
|
– |
|
|
– |
|
|
– |
|
|
|
– |
|
|
|
– |
|
| $0.50 - $1.00 |
|
|
70,000 |
|
|
0.3 |
|
|
0.80 |
|
|
|
70,000 |
|
|
|
0.80 |
|
| |
|
|
17,953,239 |
|
|
0.6 |
|
$ |
0.06 |
|
|
|
17,919,906 |
|
|
$ |
0.06 |
|
Year Ending December 31, 2023
| |
· |
In March through September 2023, pursuant to terms of convertible notes issued, the Company granted warrants to purchase 11,715,748 shares of common stock with an exercise price of $0.07 per share, vesting immediately upon grant and expiring one year from the date of grant. |
| |
|
|
| |
· |
In January through December 2023, pursuant to terms of consulting agreements, the Company granted warrants to purchase 766,662 shares of common stock with an exercise price of $0.03 to $0.13 per share, vesting up to one month from the date of grant and expiring one to two years from the date of grant. Total fair value of these options at grant date was approximately $35,000 determined using the Black-Scholes Option Pricing model with the following assumptions: life of 1 to 2 years; risk free interest rate of 0.73% to 5.07%; volatility of 182% to 245%; and dividend yield of 0%. During the year ended December 31, 2023, the Company recognized compensation expense of $37,000 based on the fair value of the warrants that vested. |
Year Ending December 31, 2022
| |
· |
In September 2022, pursuant to terms of convertible notes issued, the Company granted warrants to purchase 14,409,995 shares of common stock with an exercise price of $0.04 per share, vesting immediately upon grant and expiring one year from the date of grant. |
| |
|
|
| |
· |
In January through December 2022, pursuant to terms of consulting agreements, the Company granted warrants to purchase 2,016,662 shares of common stock with an exercise price of $0.02 to $0.09 per share, vesting up to one month from the date of grant and expiring two to five years from the date of grant. Total fair value of these options at grant date was approximately $127,000 determined using the Black-Scholes Option Pricing model with the following assumptions: life of 2 to 5 years; risk free interest rate of 0.13% to 4.49%; volatility of 193% to 245%; and dividend yield of 0%. During the year ended December 31, 2022, the Company recognized compensation expense of $127,000 based on the fair value of the warrants that vested. |
|