The Company periodically issues stock options and warrants to employees and non-employees in capital raising transactions, for services, and for financing costs.

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 June 30, 2024 was 3.4 years. Stock option activity for the period January 1, 2024 up to June 30, 2024, was as follows:

The weighted average exercise prices, remaining contractual lives for options granted, exercisable, and expected to vest as of June 30, 2024 were as follows:

During the six-month periods ended June 30, 2024 and 2023, the Company recognized compensation costs based on the fair value of options that vested of $0 and $0 respectively.

As of June 30, 2024, the market price of the Company’s stock was $0.06 per share. At June 30, 2024, the aggregate intrinsic value of the options outstanding at June 30, 2024 was $115,400. 

Warrants

The following table summarizes certain information about the Company’s stock purchase warrants activity for the period starting January 1, 2024 up to June 30, 2024.

The weighted average exercise prices, remaining contractual lives for warrants granted, exercisable, and expected to vest as of June 30, 2024 were as follows:

In the six-month period ending June 30, 2024, the Company issued warrants to purchase 199,998 shares of common stock in exchange for services. The warrants are exercisable at a price range of $0.03 to $0.07, vesting one month from the date of grant, and expiring two years from the date of grant. Total fair value of these warrants at grant date was $9,000 using the Black-Scholes Option Pricing model with the following assumptions: life of 2 years; risk free interest rate of 4.39% to 4.97%; volatility of 181% to 188% and dividend yield of 0%. During the six-month period ended June 30, 2024, the Company recognized compensation costs based on the fair value of warrants that vested of $9,000.

At June 30, 2024, the Company’s common stock was $0.06 per share. At June 30, 2024, the aggregate intrinsic value of warrants outstanding was $188,000.

In the six-month period ending June 30, 2023, the Company issued warrants to purchase 699,998 shares of common stock in exchange for services. The warrants are exercisable at a price range of $0.03 to $0.05, 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 warrants at grant date was $27,000 using the Black-Scholes Option Pricing model with the following assumptions: life of 2 to 5 years; risk free interest rate of 0.73% to 3.21%; volatility of 193% to 245% and dividend yield of 0%. During the six-month period ended June 30, 2023, the Company recognized compensation costs based on the fair value of warrants that vested of $27,000.

At June 30, 2023, the aggregate intrinsic value of the warrants outstanding was $221,000.