| Summary of option award activity and awards outstanding |
A summary of the option award activity and awards outstanding at
December 31, 2019 is as follows:
| |
|
Shares
Under Option
|
|
Weighted
Average
Exercise
Price
|
|
Weighted
Average
Remaining
Contractual
Life
|
|
Aggregate
Intrinsic
Value
|
| Outstanding at December 31, 2015 |
|
|
93,208,997 |
|
|
$ |
0.015 |
|
|
|
2.2 years |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Granted |
|
|
7,300,000 |
|
|
|
0.002 |
|
|
|
|
|
|
|
|
|
| Exercised |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Forfeited |
|
|
(4,800,000 |
) |
|
|
0.024 |
|
|
|
|
|
|
|
— |
|
| Expired |
|
|
(10,926,994 |
) |
|
|
0.008 |
|
|
|
|
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Outstanding at December 31, 2016 |
|
|
84,782,003 |
|
|
|
0.015 |
|
|
|
1.7 years |
|
|
|
— |
|
| Granted |
|
|
3,500,000 |
|
|
|
0.004 |
|
|
|
|
|
|
|
|
|
| Exercised |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Forfeited |
|
|
(7,500,000 |
) |
|
|
0.006 |
|
|
|
|
|
|
|
— |
|
| Expired |
|
|
(28,195,311 |
) |
|
|
0.018 |
|
|
|
|
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Outstanding at December 31, 2017 |
|
|
52,586,692 |
|
|
|
0.013 |
|
|
|
1.6 years |
|
|
|
600 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Granted |
|
|
118,750,000 |
|
|
|
0.015 |
|
|
|
|
|
|
|
|
|
| Exercised |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Forfeited |
|
|
(24,959,377 |
) |
|
|
0.015 |
|
|
|
|
|
|
|
— |
|
| Expired |
|
|
(8,950,000 |
) |
|
|
0.022 |
|
|
|
|
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Outstanding at December 31, 2018 |
|
|
137,427,315 |
|
|
|
0.014 |
|
|
|
4.4 years |
|
|
|
28,260 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Granted |
|
|
66,500,000 |
|
|
|
0.019 |
|
|
|
|
|
|
|
|
|
| Exercised |
|
|
(2,500,000 |
) |
|
|
0.006 |
|
|
|
|
|
|
|
|
|
| Forfeited |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
— |
|
| Expired |
|
|
(2,400,000 |
) |
|
|
0.010 |
|
|
|
|
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Outstanding at December 31, 2019 |
|
|
199,027,315 |
|
|
|
0.016 |
|
|
|
3.6 years |
|
|
|
14,360,463 |
|
| Vested and exercisable at December 31, 2019 |
|
|
184,964,315 |
|
|
$ |
0.016 |
|
|
|
3.6 years |
|
|
$ |
13,468,745 |
|
|
| Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions |
The following table illustrates the assumptions
used in estimating the fair value of options granted during the periods presented:
| |
|
For the Years Ended December 31, |
| |
|
2019 |
|
2018 |
|
2017 |
|
2016 |
| Expected Term (in Years) |
|
|
2 to 5 |
|
|
|
2 to 5 |
|
|
|
3 to 3.75 |
|
|
|
3.75 |
|
| Volatility |
|
|
123 |
% |
|
|
123 |
% |
|
|
175%-189% |
|
|
|
142%-156% |
|
| Risk Free Rate |
|
|
2.8 |
% |
|
|
2.8 |
% |
|
|
1.9%-2.0% |
|
|
|
1.4%-2.0% |
|
| Dividend Yield |
|
|
0 |
% |
|
|
0 |
% |
|
|
0 |
% |
|
|
0 |
% |
| Suboptimal Exercise Factor (1) |
|
|
1.3 |
|
|
|
1.3 |
|
|
|
n/a |
|
|
|
n/a |
|
| Exit Rate Pre-vesting (2) |
|
|
0 |
% |
|
|
0 |
% |
|
|
n/a |
|
|
|
n/a |
|
| Exit Rate Post-vesting (3) |
|
|
0 |
% |
|
|
0 |
% |
|
|
n/a |
|
|
|
n/a |
|
| Aggregate Grant Date Fair Value |
|
$ |
326,644 |
|
|
$ |
396,074 |
|
|
$ |
12,737 |
|
|
$ |
19,038 |
|
| (1) |
The suboptimal exercise factor estimates the value realized by the holder upon exercise of the option and the estimated point at which an option holder would exercise an in-the-money option. The Company estimated the suboptimal factor based on the holder realizing a pre-tax profit of $500,000. Used for lattice model purposes only. |
| (2) |
Assumed forfeiture rate for market condition option awards prior to vesting. Used for lattice model purposes only. |
| (3) |
Assumed expiration or forfeiture rate for market condition option awards after vesting. Used for lattice model purposes only. |
|