Stock Based Compensation | Note 10 – Stock Based Compensation Options In 2019, the Company adopted the 2019 Omnibus Equity Incentive Plan (the "2019 Plan"). Awards granted under the 2019 Plan have a ten-year term and may be incentive stock options, non-statutory stock options, restricted stock, restricted stock units, stock appreciation rights, performance units or performance shares. The awards are granted at an exercise price equal to the fair market value on the date of grant and generally vest over a four year period. Stock option activity during the six months ended June 30, 2021 and 2020 follows: Schedule of stock option activities Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Options outstanding at December 31, 2019 48,854 $ 5.11 8.05 Options granted 1,130,734 1.49 Options expired (400 ) 0.01 Options cancelled (4,374 ) 5.56 Options outstanding at June 30, 2020 1,174,814 $ 1.61 8.61 Options outstanding at December 31, 2020 1,174,814 $ 1.61 8.11 Options granted 1,225,000 1.61 Options assumed in merger 490,617 2.00 Options outstanding at June 30, 2021 2,890,431 $ 1.68 7.39 Options outstanding at June 30, 2021 consist of: Schedule of stock options outstanding Date Number Number Exercise Expiration Issued Outstanding Exercisable Price Date August 5, 2019 40,480 40,480 $ 5.56 August 5, 2029 October 29, 2019 3,600 3,600 $ 0.0725 June 6, 2027 January 27, 2020 307,884 307,884 $ 1.50 January 27, 2030 January 27, 2020 225,000 225,000 $ 1.50 January 27, 2027 February 29, 2020 95,794 95,794 $ 1.25 February 28, 2030 May 11, 2020 380,000 380,000 $ 1.50 May 11, 2027 June 30, 2020 122,056 122,056 $ 1.45 June 30, 2030 January 28, 2021 1,000,000 1,000,000 $ 1.61 January 28, 2031 January 28, 2021 225,000 225,000 $ 1.61 January 28, 2028 February 25, 2021 290,617 290,617 $ 2.00 March 15, 2025 February 25, 2021 200,000 200,000 $ 2.00 February 25, 2031 Total 2,890,431 2,890,431 Warrants In 2018, the Company issued fully vested warrants to investors as part of a private placement offering. Each unit offered in the private placement consisted of one share of common stock, and a warrant convertible into 0.4 shares of common stock at an exercise of $1.50 per whole share. The warrants are exercisable for a period of five years from the date of issuance. The warrants were cancelled on March 1, 2019 and reissued upon the Qualmetrix acquisition and are each convertible into one share of common stock at an exercise price of $6.67 per share until December 31, 2024. In November 2019, the Company issued fully vested warrants to investors as part of private placement subscription agreements pursuant to which the Company issued convertible promissory notes. Each noteholder received warrants to purchase common stock of 50% of the principal at an exercise price of $5.56 per share with an expiration date of October 31, 2025. Warrant activity during the six months ended June 30, 2021 and 2020 follows: Schedule of Warrants, Activity Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Warrants outstanding at December 31, 2019 1,065,251 $ 6.04 5.17 Warrants cancelled (507,378 ) — Warrants outstanding at June 30, 2020 557,873 $ 6.77 4.29 Warrants outstanding at December 31, 2020 557,873 $ 6.77 3.79 Warrants granted 1,460,571 1.75 Warrants assumed in merger 6,415,965 1.74 Warrants outstanding at June 30, 2021 8,434,409 $ 2.07 4.91 Warrants outstanding at June 30, 2021 consist of: Schedule of Outstanding Warrants Date Number Number Exercise Expiration Issued Outstanding Exercisable Price Date March 21, 2019 96,433 96,433 $ 6.67 December 31, 2024 April 30, 2019 3,598 3,598 $ 6.67 December 31, 2024 May 13, 2019 14,393 14,393 $ 6.67 December 31, 2024 May 28, 2019 199,703 199,703 $ 6.67 December 31, 2024 June 5, 2019 7,197 7,197 $ 6.67 December 31, 2024 June 25, 2019 208,361 208,361 $ 6.67 December 31, 2024 September 6, 2019 25,188 25,188 $ 6.67 December 31, 2024 October 29, 2019 1,500 1,500 $ 25.00 February 5, 2023 October 29, 2019 1,500 1,500 $ 25.00 April 27, 2023 February 25, 2021 1,666,573 1,666,573 $ 1.55 October 31, 2025 February 25, 2021 48,750 48,750 $ 1.25 October 31, 2025 February 25, 2021 500,000 500,000 $ 4.00 February 26, 2026 February 25, 2021 1,506,452 1,506,452 $ 1.55 February 1, 2027 February 25, 2021 2,694,190 2,694,190 $ 1.55 July 31, 2026 May 14, 2021 651,429 651,429 $ 1.75 May 31, 2027 May 28, 2021 228,571 228,571 $ 1.75 May 31, 2027 June 11, 2021 182,857 182,857 $ 1.75 May 31, 2027 June 22, 2021 137,143 137,143 $ 1.75 May 31, 2027 June 24, 2021 169,143 169,143 $ 1.75 May 31, 2027 June 28, 2021 45,714 45,714 $ 1.75 May 31, 2027 June 29, 2021 45,714 45,714 $ 1.75 May 31, 2027 Total 8,434,409 8,434,409 |