Annual report pursuant to Section 13 and 15(d)

STOCK OPTIONS AND WARRANTS (Tables)

v3.21.1
STOCK OPTIONS AND WARRANTS (Tables)
 12 Months Ended
Dec. 31, 2020
Disclosure Text Block [Abstract]  
Summary of option award activity and awards outstanding

A summary of the option award activity and awards outstanding at December 31, 2020 is as follows:

 

    Shares
Under Option		   Weighted
Average
Exercise
Price		   Weighted
Average
Remaining
Contractual
Life		   Aggregate
Intrinsic
Value
Outstanding at December 31, 2019     19,902,732       0.16       3.6 years        14,360,463  
                                 
Granted     1,554,500       0.75       —         —    
Exercised     (1,447,017 )     0.06       —         —    
Forfeited     (600,000 )     0.753       —         —    
Expired     (180,000 )     0.10       —         —    
                                 
Outstanding at December 31, 2020     19,230,214       0.16        3.9 years       30,044,649  
Vested and exercisable at December 31, 2020     17,913,083     $ 0.16       2.9 years     $ 28,160,815  
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,  
    2020     2019  
Expected Term (in Years)     3 to 5         2 to 5  
Volatility     85 %     123 %
Risk Free Rate     1.3 %     2.8 %
Dividend Yield     0 %     0 %
Suboptimal Exercise Factor (1)     n/a       1.3  
Exit Rate Pre-vesting (2)     n/a       0 %
Exit Rate Post-vesting (3)     n/a       0 %
Aggregate Grant Date Fair Value   $ 533,538     $ 326,644  

 

  (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 $50,000. 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.