2. STOCK BASED COMPENSATION

6 Months Ended

Jun. 30, 2023

Notes

2. STOCK BASED COMPENSATION

2.     STOCK BASED COMPENSATION

The following table summarizes our employee stock option activity for the six months ended June 30, 2023:

Schedule of Employee Stock Option Activity
	Options	Weighted average exercise price	Weighted average remaining contractual life (yrs)	Aggregate Intrinsic value
Options outstanding, December 31, 2022	556,330	$0.051	6.74	$184,485
Options exercised during the period	382,333	$0.014
Options forfeited during the period	33,000	$0.003
Options outstanding June 30, 2023	140,997	$0.163	7.33	$29,898
Options exercisable June 30, 2023	61,497	$0.122	6.19	$14,913

During the six months ended June 30, 2023, no nonqualified employee stock options were granted.

During the six months ended June 30, 2023, certain employees of ours exercised options to purchase 382,333 restricted shares of our common stock, par value $0.00001 per share. Proceeds from the exercise of the Options were $5,383. 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.

On June 15, 2023, we paid the May 15, 2023 dividends declared on our common stock of $64,602, to shareholders of record on May 31, 2023. On March 15, 2023, we paid the February 15, 2023 dividends declared on our common stock of $63,339, to shareholders of record on February 28, 2023.

Total stock-based compensation expense for the six months ended June 30, 2023 was $3,945, all of which is 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).