Stock Option Plans and Agreements |
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Stock Option Plans and Agreements | Note 9. Stock Option Plans and Agreements
The Company has approved stock option plans and agreements covering up to an aggregate of 16,304,500 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. 95,000 options were granted for the six months ended June 30, 2022. 575,000 options were granted for the six months ended June 30, 2021. The following assumptions were used for the six months ended June 30, 2022.
The Company recorded expense for options issued to employees and independent service providers of $51,708 and $52,631 for the three and six months ended June 30, 2022, respectively ($81,920 and $110,168 for the three and six months ended June 30, 2021).
360,000 options vested during the six months ended June 30, 2022.
The Company issued 750,000 performance-based stock options during 2021 at $0.245 per share to an executive of the Company. Certain revenue targets must be made to grant the options in three tranches of 250,000 shares each. In the three months ended June 30, 2022, the Company amended the targets for these options and recognized one third of the compensation in the amount of $45,275. The remaining unrecognized compensation expense for these options was approximately $90,550 at June 30, 2022.
A summary of all stock option activity for the six months ended June 30, 2022 follows:
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