Stock Options and Warrants

9 Months Ended

Sep. 30, 2020

Stockholders' Equity Note [Abstract]

Stock Options and Warrants

The Company currently has two non-statutory stock option plans, the Fiscal 2001 Non-statutory Stock Option Plan (the “2001 Plan”) and the 2013 Equity Compensation Plan (the “2013 Plan”). Both plans have been adopted by our Board of Directors and approved by our shareholders. Both the 2001 Plan and the 2013 Plan have options available for future issuance. Any common shares issued as a result of the exercise of stock options would be new common shares issued from our authorized issued shares.

During the three months ended September 30, 2020, the Company issued 0 options to purchase shares of common stock. During the three months ended September 30, 2019, the Company issued 0 options to purchase shares of stock to any of its non-employee board members.

Stock option activity for the nine months ended September 30, 2020 and the nine months ended September 30, 2019 is summarized as follows (the figures contained within the tables below have been rounded to the nearest thousand):

	Nine months ended September 30, 2020							Nine months ended September 30, 2019
	Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value as of September 30, 2020		Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value as of September 30, 2019
Options outstanding at beginning of year		2,252,000		$	0.13				2,222,000		$	0.13
Granted		0		NA					80,000		$	0.07
Exercised		0		NA					0		NA
Cancelled/expired		(110,000	)	$	0.10				(50,000	)	$	0.20
Options outstanding at end of period		2,142,000		$	0.13	$	398,000		2,252,000		$	0.13	$	1,000
Options exercisable at end of period		2,142,000		$	0.13				2,172,000		$	0.13

The Company recognized $2,000 in share based payment expense in the nine months ended September 30, 2020 and $4,000 in share based payment expense in the nine months ended September 30, 2019. The Company recognized $0 in share based payment expense in the three months ended September 30, 2020 and $1,000 in share based payment expense in the three months ended September 30, 2019. At September 30, 2020, there was $0 of total unrecognized share based payment expense related to stock options.

 The following table summarizes weighted-average assumptions using the Black-Scholes option-pricing model used on the date of the grants issued during the nine months ended September 30, 2020 and September 30, 2019:

	Nine months ended
	2020	2019
Volatility	NA	85%
Expected term (years)	NA	10 years
Risk-free interest rate	NA	2.01%
Dividend yield	NA	0%

 Warrants

Warrant activity for the nine months ended September 30, 2020 and the nine months ended September 30, 2019 is summarized as follows:

	Nine months ended September 30, 2020						Nine months ended September 30, 2019
	Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value as of September 30, 2020	Shares		Weighted Average Exercise Price		Aggregate Intrinsic Value as of September 30, 2019
Warrants outstanding at beginning of year		2,000,000		$	0.18			2,000,000	$	0.18
Granted		0		NA				0	NA
Exercised		0		NA				0	NA
Cancelled/expired		(2,000,000	)	$	0.18			0	NA
Warrants outstanding at end of year		0		NA		None		2,000,000	$	0.18		None
Warrants exercisable at end of year		0		NA				2,000,000	$	0.18

In the nine months ended September 30, 2020 and September 30, 2019, the Company recognized $0 in debt issuance and deferred finance costs related to the issuance of warrants. In the three months ended September 30, 2020 and September 30, 2019, the Company recognized $0 in debt issuance and deferred finance costs related to the issuance of warrants. As of September 30, 2020, there was $0 of total unrecognized expense.