Note 9 - Stockholders' Equity

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

9.

    Stockholders' Equity:

The holders of common stock are entitled to

one

vote for each share held.  There are

no

restrictions that limit the Company's ability to pay dividends on its common stock.  The Company has

not

declared any dividends since incorporation.  The Company's common stock has

no

par value per common stock.

(a)   Common stock issuances:

There have

not

been any shares issued during the quarter ended

March 31, 2020.

During the period ended

March 31, 2019,

the Company closed a TSX Venture Exchange approved private placement financing totaling

$2,000,000.

The private placement consisted of

5,000,000

common shares priced at

$0.40

per share. Pursuant to the private placement the Company paid a commission of

$200,000

and incurred share issuance expense of

$36,800.

During the period ended

March 31, 2019,

the Company issued

52,450,286

shares for total consideration of

$20,603,655

in the acquisition of all the issued and outstanding ordinary and preferred shares in the capital stock of Kidoz Ltd., a company incorporated under the laws of the State of Israel. (Note

3

)

(b)        Stock option plans:

2015

stock option plan

In the year ended

December 31, 2015,

the shareholders approved the

2015

stock option plan and the

1999,

2001

and the

2005

plans were discontinued. The

2015

stock option plan is intended to provide incentive to employees, directors, advisors and consultants of the Company to encourage proprietary interest in the Company, to encourage such employees to remain in the employ of the Company or such directors, advisors and consultants to remain in the service of the Company, and to attract new employees, directors, advisors and consultants with outstanding qualifications. The maximum number of shares issuable under the Plan shall

not

exceed

10%

of the number of Shares of the Company issued and outstanding as of each Award Date unless shareholder approval is obtained in advance. The Board of Directors determines the terms of the options granted, including the number of options granted, the exercise price and their vesting schedule. The maximum term possible is

10

years. Under the

2015

plan we have reserved

10%

of the number of Shares of the Company issued and outstanding as of each Award Date.

During the quarter ended

March 31, 2020,

70,000

options were cancelled unexercised and

no

options were granted or exercised.

As at

March 31, 2020,

there were a total of

3,130,750

stock options (

December 31, 2019 -

3,200,750

) outstanding. Of the options outstanding at

March 31, 2020,

a total of

3,049,050

(

December 31, 2019 -

3,065,000

) were fully vested and a total of

81,700

(

December 31, 2019 -

135,750

) were issued where

10%

vests at the grant date,

15%

one

year following the grant date and

2%

per month starting

13

months after the grant date.

	Number of options			Weighted average exercise price
Outstanding, December 31, 2019		3,200,750		$	0.45
Granted		-			-
Exercised		-			-
Cancelled		(70,000	)		(0.42	)
Outstanding March 31, 2020		3,130,750		$	0.45

The aggregate intrinsic value for options as of

March 31, 2020

was

$nil

(

December 31, 2019 -

$nil

).

The following table summarizes information concerning outstanding and exercisable stock options at

March 31, 2020:

Range of exercise prices per share		Number outstanding		Number exercisable		Expiry date
$	0.42		620,000		620,000	December 20, 2021
	0.42		522,750		427,250	November 8, 2022
	0.42		713,000		713,000	June 4, 2023
	0.50		1,275,000		1,275,000	June 4, 2023
			3,130,750		3,035,250

The Company recorded stock-based compensation of

$541

on the options granted and vested (

March 31, 2019 -

$4,980

) and as per the Black-Scholes option-pricing model, with a weighted average fair value per option of

$0.29

(

2019

-

$0.29

).