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 September 30, 2022 was 5 years. Stock option activity for the period January 1, 2022 up to September 30, 2022, was as follows: 

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

At September 30, 2022, the aggregate intrinsic value of the options outstanding was $429,000.

During the nine-month period ending September 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 three and nine month periods ended September 30, 2022, the Company did not record any compensation costs related to the fair value of vested options. During the nine-month period ended September 30, 2021, the Company recognized compensation costs based on the fair value of options that vested of $32,000. During the three-month periods ended September 30, 2021, the Company recognized compensation costs based on the fair value of options that vested of $20,000.

Warrants

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

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

At September 30, 2022, the aggregate intrinsic value of warrants outstanding was $1,332,000.

During the nine-month period ending September 30, 2022, the Company issued warrants to purchase 799,997 shares of common stock in exchange for services. The warrants are exercisable at a price range of $0.02 to $0.09, 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 $31,000 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 3.25%; volatility of 193% to 245% and dividend yield of 0%.

During the nine-month period ending September 30, 2021, the Company issued warrants to purchase 299,997 shares of common stock in exchange for services. The warrants are exercisable at a price of $0.02 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 $9,000 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 240% and dividend yield of 0%.

During the nine-month period ended September 30, 2022, the Company recognized compensation costs based on the fair value of warrants that vested of $31,000. During the nine-month period ended September 30, 2021, the Company recognized compensation costs based on the fair value of warrants that vested of $9,000.