STOCK OPTION PLAN AND STOCK-BASED COMPENSATION | NOTE 7 – STOCK OPTION PLAN AND STOCK-BASED COMPENSATION During the year ended December 31, 2010, the Company adopted a stock option plan entitled "The 2010 Stock Plan" (2010 Plan) under which the Company may grant Options to Purchase Stock, Stock Awards or Stock Appreciation Rights up to 15% of common stock, automatically adjusted on January 1 each year. As of December 31, 2018, there were no outstanding awards under the 2010 Plan. As of December 31, 2019, there were 341,000 outstanding stock options with a fair market value of $257,143 and 1,127,000 shares issued with a fair market value of $864,551 at the time of award. At December 31, 2018, there were no outstanding stock options, nor any shares awarded. Under the terms of the stock plans, the Board of Directors shall specify the exercise price and vesting period of each stock option on the grant date. Vesting of the options is typically immediate and the options typically expire in five years. Stock Awards may be directly issued under the Plan (without any intervening options). Stock Awards may be issued which are fully and immediately vested upon issuance. Shares Awarded and Issued: On November 2, 2018, the Company granted 4,000 shares with a fair market value of $0.51 to four members of the Company Board as compensation for their contribution in the Company's Board of Directors, for a total of $2,040. The shares were issued in 2019. On November 6, 2018, the Company granted 1,000 shares with a fair market value of $0.52 to one member of the Audit Committee as compensation for his contribution in this Company Committee, for a total of $520. The shares were issued in 2019. On November 29, 2018, the Company granted 4,000 shares with a fair market value of $1.00 to four members of the Audit Committee as compensation for his contribution in this Company Committee, for a total of $4,000. The shares were issued in 2019. On March 7, 2019, the Company granted 3,000 shares with a fair market value of $0.27 to three members of the Audit Committee as compensation for their contribution in the Audit Committee, for a total of $810. On March 11, 2019 the Company granted 100,000 shares with a fair market value of $0.266, to a consultant as compensation for their work with the Company's IR, for a total of $26,600. On May 10, 2019 the Company granted 3,000 shares with a fair market value of $1.00 to three members of the Audit Committee as compensation for their contribution in the Audit Committee, for a total of $3,000. On May 17, 2019, the Company granted 4,000 shares with a fair market value of $1.49 to four members of the Company Board as compensation for their contribution in the Company's Board of Directors, for a total of $5,960. On June 11, 2019 the Company granted 250,000 shares with a fair market value of $1.39 to a Financial Advisory Board Member for his contribution in the Company's Advisory Board, for a total of $347,500. On July 15, 2019 the Company granted 100,000 shares with a fair market value of $0.75 to a Financial Advisory Board Member for his contribution in the Company's Advisory Board, for a total of $75,000. On July 16, 2019 the Company granted 100,000 shares with a fair market value of $1.00 to a Financial Advisory Board Member for his contribution in the Company's Advisory Board, for a total of $100,000. On August 9, 2019, the Company granted 2,000 shares with a fair market value of $0.80 to two members of the Audit Committee as compensation for their contribution in the Audit Committee, for a total of $1,600. On October 17, 2019 the Company granted 3,000 shares with a fair market value of $0.60 to four members of the Company Board as compensation for their contribution in the Company's Board of Directors, for a total of $1,800. On October 21, 2019 the Company granted 300,000 shares with a fair market value of $0.554 at the time of award, to a consultant as compensation for their work with the Company's IR, for a total of $166,283. On November 8, 2019 the Company granted 3,000 shares with a fair market value of $0.65 to four members of the Company Board as compensation for their contribution in the Company's Board of Directors, for a total of $1,950. On November 11, 2019 granted a subcontractor 250,000 shares with a fair market value of $0.51 at the time of award, as compensation for their work with the Company's IR, for a total of $127,500. Number of Shares Fair Value Weighted Shares Granted as of December 31, 2018 - $ - $ - Shares Granted 1,127,000 0.27 - 1.49 0.77 Shares Granted not Issued as of December 31, 2019 1,127,000 $ 0.27 - 1.49 $ 0.77 For the year ended December 31, 2019, the Company recorded stock-based compensation expense of $864,551 in connection with share-based payment awards. The Company did not record any recorded stock-based compensation expense during 2018. Stock options granted and vested: On May 1, 2019, the Company granted 45,000 three-year options at an exercise price of $1.21, to a Medical Advisory Board Member for his contribution in the Company's Advisory Board. The options total fair value at the time of award was $44,820. On July 1, 2019 the Company granted 3,000 three-year options at an exercise price of $1.09 to a Medical Advisory Board Member for his contribution in the Company's Advisory Board. The options total fair value at the time of award was $2,447. On August 1, 2019 the Company granted 45,000 three-year options at an exercise price of $1.10 a Medical Advisory Board Member for his contribution in the Company's Advisory Board. The options total fair value at the time of award was $39,731. On September 13, 2019 the Company granted 200,000 three-year options at an exercise price of $0.95 to two Financial Advisory Board Members for their contribution in the Company's Advisory Board. The options total fair value at the time of award was $141,060. On October 1, 2019 the Company granted 3,000 three-year options at an exercise price of $0.73 a Medical Advisory Board Member for his contribution in the Company's Advisory Board. The options total fair value at the time of award was $1,635. On November 1, 2019 the Company granted 45,000 three-year options at an exercise price of $0.61 a Medical Advisory Board Member for his contribution in the Company's Advisory Board. The options total fair value at the time of award was $27,450. The fair value of stock options granted and revaluation of non-employee consultant options for the year ended December 31, 2019 was calculated with the following assumptions: 2019 Risk-free interest rate 1.34 - 2.32 % Expected dividend yield 0 % Volatility factor (weekly) 122.25 % Expected life of option 3 years For the year ended December 31, 2019, the Company recorded compensation expense of $257,143 in connection with awarded stock options. The Company did not record any awarded option valuation as compensation expense during 2018. As at December 31, 2019, there was no unrecognized compensation expense related to non-vested stock option awards. The following table summarizes the Company's stock option activity during the year ended at December 31, 2019: Number of Shares Exercise Weighted Outstanding as of December 31, 2018 - $ - $ - Granted 341,000 0.61 - 1.21 0.96 Exercised - - - Options forfeited/cancelled - - - Outstanding as of December 31, 2019 341,000 $ 0.61 - 1.21 $ 0.96 The following table summarizes information about stock options that are vested or expected to vest at December 31, 2019: Options Outstanding Exercisable Options Exercise Number of Options Weighted Average Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Number of Options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic $ 0.61 45,000 $ 0.61 2.84 $ - 45,000 $ 0.61 2.84 $ - 0.73 3,000 0.73 2.73 - 3,000 0.73 2.73 - 0.95 200,000 0.95 2.70 - 200,000 0.95 2.70 - 1.09 3,000 1.09 2.50 - 3,000 1.09 2.50 - 1.10 45,000 1.10 2.58 - 45,000 1.10 2.58 - 1.21 45,000 1.21 2.33 - 45,000 1.21 2.33 - $ 0.61-1.21 341,000 $ 0.96 2.65 $ - 341,000 $ 0.96 2.65 $ - The following table sets forth the status of the Company's non-vested stock options as of December 31, 2019 and December 31, 2018: Number of Weighted- Non-vested as of December 31, 2018 - $ - Granted 341,000 0.77 Forfeited - - Vested 341,000 0.77 Non-vested as of December 31, 2019 - $ - The weighted-average remaining contractual life for options exercisable at December 31, 2019 is 2.65 years. The aggregate intrinsic value for fully vested, exercisable options was $0 at December 31, 2019. The aggregate intrinsic value of options exercised for the year ended at December 31, 2019 was $0 as no options were exercised. The actual tax benefit realized from stock option exercises for the year ended at December 31, 2018 was no options available for exercise. At December 31, 2019 the Company has 11,297,551 options or stock awards available for grant under the 2010 Plan. |