Stockholders' Equity

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Stockholders' Equity

Note 9. Stockholders’ Equity

Stock Options

The 2015 Omnibus Incentive Plan provided for the issuance of stock options, stock appreciation rights, performance shares, performance units, restricted stock, restricted stock units, shares of our common stock, dividend equivalent units, incentive cash awards or other awards based on our common stock. This plan was reconstituted into a new 2021 Omnibus Plan. The 2021 Omnibus Plan is intended to allow us to continue to use equity awards as part of our ongoing compensation strategy for our key employees. Awards under the Plan will support the creation of long-term value and returns for our stockholders.

The following is a summary of the stock option plan activity during the Three Months ended March 31, 2023 and 2022:

	2023				2022
	Number of		Weighted Average		Number of		Weighted Average
	Options		Exercise Price		Options		Exercise Price
Options Outstanding at Beginning of the year		1,121,262	$	3.26		3,956,827	$	6.22
Granted		-		-		-		-
Cancelled		-		-		-		-
Forfeited		-		-		-		-
Options Outstanding at March 31,		1,121,262	$	3.26		3,956,827	$	6.22
Options Exercisable at March 31,		206,410	$	11.20		3,760	$	293.95

Stock compensation expense recognized for the Three Months ended March 31, 2023 and 2022 was approximately $194 thousand and $3,318 thousand, respectively. There was approximately $455 thousand of unrecognized compensation cost associated with unvested stock options as of March 31, 2023.

The aggregate intrinsic value of the outstanding common stock options as of March 31, 2023 and December 31, 2022 was approximately $0 and $0, respectively. The remaining weighted average life of the options as of March 31, 2023 was 9.3 years.

Stock Issuance

In the year ended December 31, 2021, the Company issued 73,940 shares to management as part of their employment contracts of which $229,500 was expensed. The shares were physically issued in February 2022.

The Company issued 200,000 shares on November 4, 2021 pursuant to an agreement that is for one year with two vendors who provide consulting in the blockchain and crypto currency field. The total fair value of the stock at the time of issuance was approximately $1,318,000 of which we expensed approximately nil and $329,500 for the Three Months ended March 31, 2023 and 2022, respectively.

Warrants

The following is a summary of the warrant activity during the Three Months ended March 31, 2023 and 2022:

	2023				2022
	Number of Warrants		Weighted Average Exercise Price		Number of Warrants		Weighted Average Exercise Price
Warrants Outstanding at Beginning of the year		7,677,441	$	5.00		7,702,441	$	5.00
Granted		-		-		-		-
Exercised		-		-		-		-
Forfeited		-		-		-		-
Warrants Outstanding and Exercisable at March 31,		7,677,441	$	5.00		7,702,441	$	5.00

The aggregate intrinsic value of the outstanding common stock warrants as of March 31, 2023 and December 31, 2022 was approximately $0 and $0 respectively. The remaining weighted average life of the warrants as of March 31, 2023 was 3.5 years.