Annual report pursuant to Section 13 and 15(d)

STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLAN

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STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLAN
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLAN

NOTE 15 – STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLAN

 

Except as noted below, we do not have a qualified stock option plan, but have issued stock purchase warrants and stock options on a discretionary basis to employees, directors, service providers, private placement participants and outside consultants.

 

The Company utilizes ASC 718, Stock Compensation, related to accounting for share-based payments and, accordingly, records compensation expense for share-based awards based upon an assessment of the grant date fair value for stock options and restricted stock awards. The Black Scholes option pricing model was used to estimate the fair value of the options granted. This option pricing model requires a number of assumptions, of which the most significant are the expected stock price volatility and the expected option term (the amount of time from the grant date until the options are exercised or expire). The Company does not estimate forfeitures, and accounts for forfeitures as they occur. The Company estimated a volatility factor utilizing a weighted average of comparable published volatilities. The Company applied the simplified method to determine the expected term of all stock-based compensation grants. The risk-free interest rate is based on or approximates the U.S. Treasury yield curve in effect at the time of the grant.

 

Stock compensation expense for stock options is recognized on a straight-line basis over the vesting period of the award. The Company accounts for stock options as equity awards.

 

A summary of stock option activity for the year ended December 31, 2023, and 2022 is presented as follows:

 

                Weighted     Weighted        
    Weighted           Average     Average        
    Average     Number of     Remaining     Optioned     Aggregate  
    Exercise     Optioned     Contractual     Grant Date     Intrinsic  
    Price     Shares     Term in Years     Fair Value     Value  
                               
Balance as of December 31, 2021   $ 0.67       1,590,000       1.91     $ 0.04     $ -  
                                         
Granted     -       -               -          
Exercised     -       -               -          
Cancelled/expired     0.70       (500,000 )             0.03          
                                         
Balance as of December 31, 2022   $ 0.65       1,090,000       1.55     $ 0.04     $ -  
                                         
Granted     -       -               -          
Exercised     -       -               -          
Cancelled/expired     0.10       (90,000 )             0.06          
                                         
Balance as of December 31, 2023   $ 0.65       1,000,000       0.67     $ 0.04     $ -  
                                         
Vested and exercisable as of December 31, 2023   $ 0.65       1,000,000       0.67     $ 0.04     $ -  

 

 

For the years ended December 31, 2023, and 2022, we recorded stock-based compensation awarded to employees of $0.

 

As of December 31, 2023, there was no unrecognized compensation cost related to non-vested stock options.

 

Employee Benefit Plan

 

The Company has a defined contribution 401(k) plan that covers substantially all employees. Additionally, at the discretion of management, the Company may make contributions to eligible participants, as defined. During the years ended December 31, 2023, and 2022, we made no contributions in each year.