Stock Options, Warrants and 401(k) Savings Plan

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Stock Options, Warrants and 401(k) Savings Plan

10.

Stock Options, Warrants and 401(k) Savings Plan

Our Company follows FASB ASC 718, Share Based Payment, which requires that the cost resulting from all share-based payment transactions be recognized in the Company’s financial statements. FASB ASC 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized in the statement of operations based on their fair values.

At December 31, 2020, our Company did not have an active stock option plan. Our Company uses the Black-Scholes option pricing model to calculate the grant-date fair value of an award. There was no compensation expense recognized during the years ended December 31, 2020 and December 31, 2019 and there was no unrecognized portion of expense at December 31, 2020.

At December 31, 2020, our Company had 141,365 warrants to purchase common stock of our Company outstanding at an exercise price of $0.02 and expiring at various dates through July 2021. The warrants are held by two investors who acquired convertible debentures from our Company in 2014.

A summary of outstanding warrants follows:

				Weighted
		Exercise		Average
	Number of	Price Range		Exercise
	Shares	Per Share		Price
Outstanding at December 31, 2018 and December 31, 2019	691,365	$0.02		$0.02
Warrants exercised	550,000		0.02		0.02
Outstanding at December 31, 2020	141,365		$0.02		$0.02
Weighted average remaining contractual life (years)	.52
					Weighted
			Exercise		Average
	Number of		Price Range		Exercise
	Shares		Per Share		Price
Exercisable warrants at year end:
2020	141,365	$0.02		$0.02
Weighted average remaining contractual life (years)	.52

The aggregate intrinsic value of warrants outstanding and exercisable as of December 31, 2020 was approximately $17,700. The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying warrants and the closing stock price of $0.145 for our Company’s common stock on December 31, 2020. At December 31, 2020, our Company has reserved 141,365 shares of common stock for possible future issuance upon the exercise of 141,365 warrants.

Our Company sponsors a 401(k) savings plan, covering substantially all employees, providing for employee and employer contributions. Employer contributions are made at the discretion of our Company. There were no contributions charged to expense during 2020 or 2019.