2. STOCK BASED COMPENSATION

3 Months Ended

Mar. 31, 2021

Notes

2. STOCK BASED COMPENSATION

2.     STOCK BASED COMPENSATION

The following table summarizes the Company’s employee stock option activity for the three months ended March 31, 2021:

Schedule of Employee Stock Option Activity
		Options	Weighted average exercise price	Weighted average remaining contractual life (yrs)	Aggregate Intrinsic value
Options outstanding, December 31, 2020	2,989,963		$0.012	7.19
Options exercisable, December 31, 2020	1,727,463		$0.010	5.93	$ 155,595
Options exercised during the period	203,000		$0.003
Options expired during the period	31,334		$0.003
Options outstanding March 31, 2021	2,755,629		$0.012	7.25
Options exercisable March 31, 2021	1,912,133		$0.012	6.62	$ 264,622

During the three months ended March 31, 2021, certain employees of the Company exercised options to purchase 203,000 restricted shares of the Company’s common stock. Proceeds from the exercise of the Options were $609. The common shares were issued pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, without payment of any form of commissions or other remuneration.

Total stock-based compensation expense for the three months ended March 31, 2021 was $1,467 of which all was related to options issued in prior years. Stock-based compensation is measured at the grant date, based on the calculated fair value of the option, and is recognized as an expense on a straight-line basis over the requisite employee service period (generally the vesting period of the grant).