NOTE
5. STOCKHOLDERS’ EQUITY
Shares
of common stock issued for service to the Company are valued based on market price on the date of the award.
On
February 2, 2023, the Company declared its annual compensation award to seven directors for their service on the Board of Directors.
Seven directors were awarded $10,000 each and three directors received a total of $10,000 for serving as committee chairpersons and as
a non-employee officer, with such compensation to be paid all in shares of the Company’s common stock, all in cash or a combination
thereof, at each director’s election. Five directors elected to receive all shares, one director elected to receive 60% in shares
and 40% in cash, and one director elected all cash. Based on the closing stock price of $0.40 per share on February 2, 2023, a total
of 162,500 shares were issued on March 9, 2023. The total compensation award cost of $80,000 was reported as an expense in the three
month period ended April 2, 2023.
Effective
February 14, 2023, Lisa Brady the Company’s President and Chief Executive Officer vested in 128,205 shares of the Company’s
common stock, in accordance with the terms of her employment agreement. Those shares are expected to be issued by May 31, 2023. The Company
recorded $50,000 of compensation award cost expense in the three month period ended April 2, 2023.
On
December 13, 2021, the Company declared its annual compensation award to seven directors for their service on the Board of Directors.
Five directors were awarded $10,000 each, two new directors were awarded $2,222 each, and two directors received a total of $7,500 for
serving as committee chairpersons and as a non-employee officer, with such compensation to be paid all in shares of the Company’s
common stock, all in cash or a combination thereof, at each director’s election. Five directors elected to receive all shares,
one director elected to receive 60% in shares and 40% in cash, and one director elected all cash. Based on the closing stock price of
$0.553 per share on December 13, 2021, a total of 84,888 shares were issued on February 21, 2022. The total compensation award cost of
$61,944 was reported as an expense in the three month period ended January 2, 2022.
On
December 13, 2021, the Company awarded a non-director officer $10,000 to be paid in shares of the Company’s common stock, totaling
18,083 shares based on the closing stock price of $0.553 per share on December 13, 2021, which were distributed on February 21, 2022,
and $10,000 of compensation expense was reported in the three month period ended January 2, 2022.
Officers,
directors and their controlled entities own approximately 53.7% of the outstanding common stock of the Company as of April 2, 2023.
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