Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

v3.22.2.2
Stock-Based Compensation
6 Months Ended
Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION

NOTE 12 – STOCK-BASED COMPENSATION

 

Terms of the Company’s share-based on compensation are governed by the Company’s 2010 Equity Incentive Plan (“the 2010 Plan”). The 2010 Plan permits the Company to grant non-statutory stock options, incentive stock options, restricted stocks, and stock purchase rights to the Company’s employees, outside directors and consultants; however incentive stock options may only be granted to the Company’s employees. As of June 30, 2021, the maximum aggregate number of shares of common stock that may be issued is 19,410,000 shares under the 2010 Plan, subject to adjustment due the effect of any stock split, stock dividend, combination, recapitalization or similar transaction. The exercise price for each option is determined by the Board of Directors, but will be (i) in the case of an incentive stock option, (A) granted to an employee who, at the time of grant of such option, is a 10% Holder, no less than 110% of the fair market value per share on the date of grant; or (B) granted to any other employee, no less than 100% of the fair market value per share on the date of grant; and (ii) in the case of a nonstatutory stock option, no less than 100% of the fair market value per share on the date of grant. The options awarded under the 2010 Plan shall vest as determined by the Board of Directors but shall not exceed a ten-year period.

 

Restricted Stock Units

 

During year ended December 31, 2021, the company granted 3,407,207 restricted stock units (RSU) to its employees. Of these, 265,704 were forfeited due to employee resignations in year ended December 31, 2021 and 43,056 were forfeited in the six month period ended June 30, 2022. Restricted stock is valued at the fair market value on the date of grant with expense recognized over the vesting period from June 4, 2021 till February 20, 2023. The Company has recognized an expense for vested RSU within general and administrative expense in the accompanying Statements of Operations of approximately $18,192 and $0 for period ended June 30, 2022 and 2021, respectively.

 

Options Issued to Directors and Employees as Compensation and to Nonemployees for Services Received

 

Pursuant to the terms of the 2010 Plan, from 2010 to 2021, the Company has granted an aggregate of 5,340,844 options to its executive officers and employees of the Company and to Nonemployees for Services Received. Of these, 2,763,489 options were exercised or forfeited and 2,577,355 remain outstanding as of December 31, 2021. During period of six month ended June 30, 2022 44,779 options were exercised and 2,532,556 remain outstanding as of June 30, 2022. The exercise prices of these grants, as determined by the Company’s Board of Directors, were $0.058 to $0.46 per share. The Company has recognized an expense for these services within general and administrative expense in the accompanying Statements of Operations of approximately $34,443 and $59,094 for six months ended June 30, 2022 and 2021, respectively. As of June 30, 2022, there was approximately $110,379 of total unrecognized compensation cost related to non-vested share-based compensation arrangements. This cost is expected to be recognized over a weighted average period of 2.31 years.

 

Stock-based Compensation Summary Tables

 

The following table represents a summary of the options granted to employees and non-employees outstanding at June 30, 2022 and changes during the period then ended:

 

                Total        
          Weighted
Average
    Weighted
Average
       
    Options     Exercise
Price
    Intrinsic
Value
    Remaining
Life
 
Outstanding at December 31, 2021     2,577,335     $ 0.23     $ 0.06       5.42  
Granted    
-
     
-
     
-
     
-
 
Exercised/Expired/Forfeited     (44,779 )     -0.06      
-
     
-
 
Outstanding at  June 30, 2022     2,532,556     $ 0.23     $ 0.06       5.42  
Exercisable at June 30, 2022     2,345,230     $ 0.23     $ 0.06       4.53  
Expected to be vested     187,326     $ 0.29     $ 0.00       8.39