Quarterly report pursuant to Section 13 or 15(d)

Stock Options and Warrants

v3.22.2
Stock Options and Warrants
6 Months Ended
Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]  
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

 

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, 2022 was 5.3 years. Stock option activity for the period January 1, 2022 up to June 30, 2022, was as follows: 

           
    Options     Weighted
Avg. Exercise
Price
 
January 1, 2022     31,080,601     $ 0.17  
Granted            
Exercised            
Expired     (4,765,000 )     0.26  
June 30, 2022     26,315,601     $ 0.15  

 

The weighted average exercise prices, remaining contractual lives for options granted, exercisable, and expected to vest as of June 30, 2022 were as follows: 

                                   
    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     22,305,551     5.6   $ 0.10       22,305,551     $ 0.10  
$0.25 - $0.49     3,388,552     4.1   $ 0.36       3,388,552     $ 0.36  
$0.50 - $0.99     471,052     1.8   $ 0.85       471,052     $ 0.85  
$1.00 - $2.00     150,446     1.1   $ 1.18       150,446     $ 1.18  
      26,315,601     5.3   $ 0.15       26,315,601     $ 0.15  

 

At June 30, 2022, the aggregate intrinsic value of the options outstanding was $8,000.

 

During the six-month period ending June 30, 2021, the Company granted options to purchase 300,000 shares of common stock to a former executive officer under terms of an employment agreement. The options are exercisable at $0.02 to $0.05 per share, vest monthly over a one-month period, and expire ten years from the date granted. Total fair value of these options at grant date was $11,000 using the Black-Scholes Option Pricing model with the following assumptions: life of 10 years; risk free interest rate of 1.11%; volatility of 141% to 147% and dividend yield of 0%.

 

During the six-month periods ended June 30, 2021, the Company recognized compensation costs based on the fair value of options that vested of $12,000. During the three-month periods ended June 30, 2021, the Company recognized compensation costs based on the fair value of options that vested of $2,000.

 

Warrants

 

The following table summarizes certain information about the Company’s stock purchase warrants activity for the period starting January 1, 2022 up to June 30, 2022. 

           
    Warrants     Weighted Avg.
Exercise Price
 
January 1, 2022     19,977,149     $ 0.04  
Granted     699,998       0.04  
Exercised     (3,260,000 )     0.03  
Expired     (267,498 )     0.06  
June 30, 2022     17,149,649     $ 0.04  

 

The weighted average exercise prices, remaining contractual lives for warrants granted, exercisable, and expected to vest as of June 30, 2022 were as follows: 

                                   
    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     17,079,649     0.8   $ 0.04       17,046,316     $ 0.04  
$0.50 - $1.00     70,000     1.8   $ 0.80       70,000     $ 0.80  
      17,149,649     0.8   $ 0.04       17,116,316     $ 0.04  

  

In the six-month period ending June 30, 2022, 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, 2022, the Company recognized compensation costs based on the fair value of warrants that vested of $27,000.

 

At June 30, 2022, the aggregate intrinsic value of warrants outstanding was $2,000.

 

In the six-month period ending June 30, 2021, the Company issued warrants to purchase 199,998 shares of common stock in exchange for services. The warrants are exercisable at a price of $0.02 to $0.05, 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 $6,000 using the Black-Scholes Option Pricing model with the following assumptions: life of 2 years; risk free interest rate of 0.13% to 0.27%; volatility of 204% to 233% and dividend yield of 0%. During the six-month period ended June 30, 2021, the Company recognized compensation costs based on the fair value of warrants that vested of $6,000. During the three-month period ended June 30, 2021, the Company recognized compensation costs based on the fair value of warrants that vest of $3,000.

 

At June 30, 2021, the aggregate intrinsic value of the warrants outstanding was $2,000.