7. Stock Option Plans and Agreements

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Stock Option Plans and Agreements

The Company has approved stock options plans and agreements covering up to an aggregate of 11,020,000 shares of common stock. Such options may be designated at the time of grant as either incentive stock options or nonqualified stock options. Stock based compensation consists of charges for stock option awards to employees, directors and consultants.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. 75,000 options were granted for the three months ended March 31, 2020. 50,000 options were granted for the three months ended March 31, 2019. The following assumptions were used for the three months ended March 31, 2020.

Risk-free interest rate	1.40	%
Expected dividend yield	0	%
Expected stock price volatility	100	%
Expected life of options	2.75 years

The Company recorded expense for options issued to employees and independent service providers of $2,130 and $260 for the three months ended March 31, 2020 and 2019, respectively.

At March 31, 2020, there was no unrecognized compensation cost related to non-vested options. 25,000 options vested during the three months ended March 31, 2020.

A summary of all stock option activity for the three months ended March 31, 2020 follows:

	Number of Options Outstanding			Weighted Average Exercise Price		Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at December 31, 2019		10,910,500		$	.05
Granted		75,000			.05
Forfeited		0			.00
Expired		(35,000	)		.05
Outstanding at March 31, 2020		10,950,500		$	.05	3.8 years	$	174,700
At March 31, 2020 - vested or
expected to vest and exercisable		10,950,500		$	.05	3.8 years	$	174,700