STOCKHOLDER'S EQUITY

3 Months Ended

Mar. 31, 2020

Equity [Abstract]

STOCKHOLDER'S EQUITY

NOTE 9 – STOCKHOLDER'S EQUITY

Common Stock

During the quarter ended March 31, 2020, the Company granted 4,500,000 shares of Restricted Common Stock of which 3,000,000 shares were granted to two new members of our Board of Directors in connection with their compensation for service as Board Members and 1,500,000 to an employee in connection with his employment compensation . The shares were valued at the fair market value at the date of grant. The restricted stock vests upon the achievement of certain performance criteria.

During the quarter ended March 31, 2020, the Company issued approximately 106,000 shares of common stock to a third party provider of services in lieu of cash compensation.

Warrants

The following is a summary of the Company's warrant activity for the three months ended March 31, 2020:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Life
Outstanding at December 31, 2019		47,453,227	$	0.08		1.4 Years
Outstanding at March 31, 2020		47,453,227	$	0.09		1.2 Years

During the quarter ended March 31, 2020, certain of the 2015 Warrant holders participated in the 2020 Note offering and the Company extended the exercise period two years, subject to an increase in the Exercise Price from $0.05 per share (as defined therein) to $0.06 per share of 2015 Warrants representing the right to acquire 6,380,000 shares of common stock. Mr. Selzer, a director of the Company, holds 880,000 2015 Warrants, which were also extended as a result of his investment. The fair market value of the modification of warrants extended was approximately $95,000.

Stock Options

The Company did not grant any stock options in the first quarter of 2019. During the three months ended March 31, 2020 , the Company determined the grant date fair value of the options granted using the Black Scholes Method. The following assumptions were used in the three months ended March 31, 2020:

Expected Volatility – 75%

Expected Term – 6.5 Years

Risk Free Rate – 0.6%

Dividend Rate – 0.00%

Activity related to stock options for the three months ended March 31, 2020 is summarized as follows:

				Weighted Average		Weighted Average		Aggregate
	Number of			Exercise		Contractual		Intrinsic
	Shares			Price		Term (Yrs.)		Value
Outstanding as of December 31, 2019		109,400,006		$	0.20		6.5	$	280,000
Granted		990,000			0.06		10.0		-
Forfeitures		(566,666	)		0.23
Outstanding as of March 31, 2020		109,823,340			0.20		6.6	$	104,650
Exercisable as of March 31, 2020		102,475,006		$	0.20		6.3	$	104,650

The following table summarizes stock option information as of March 31, 2020:

Exercise Price	Outstanding		Weighted Average Contractual Life (Yrs.)		Exercisable
0.00001		3,500,000		5.75		3,500,000
0.05		35,700,006		6.60		31,950,006
0.06		990,000		9.80		-
0.10		27,200,000		6.75		27,200,000
0.12		1,133,334		9.00		358,333
0.13		250,000		7.80		166,667
0.15		2,800,000		5.85		2,800,000
0.22		2,583,333		8.05		1,500,000
0.25		2,500,000		7.85		1,833,333
0.26		166,667		8.30		166,667
0.29		1,000,000		7.30		1,000,000
0.40		1,000,000		6.17		1,000,000
0.45		31,000,000		5.85		31,000,000
		109,823,340		6.32		102,475,006

During the three months ended March 31, 2020, the Company recognized approximately $121,000 of stock-based compensation expense related to options of which non-employees expense was approximately $7,000. As of March 31, 2020, there was approximately $293,000 of unrecognized compensation costs related to stock options outstanding of which approximately $20,000 was related to non-employees and will be expensed through 2022.