Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

v3.22.2
Stockholders' Equity
 3 Months Ended
Mar. 31, 2022
Stockholders' Equity Note [Abstract]
Stockholders’ Equity

Note 5 – Stockholders’ Equity

Stock Options

A summary of the option activity during the three months ended March 31, 2022 is presented below:

Weighted Weighted
Average Average
Number of Exercise Remaining Intrinsic
Options Price Term (Yrs) Value
Outstanding, January 1, 2022 2,415,000 $ 3.73
Granted
-
-
Exercised
-
-
Expired
-
-
Forfeited
-
-
Outstanding, March 31, 2022 2,415,000 $ 3.73 7.27 $
-
Exercisable, March 31, 2022 1,600,000 $ 3.80 6.57 $
-

Options outstanding and exercisable as of March 31, 2022 are as follows:

Options Outstanding Options Exercisable
Weighted
Outstanding Average Exercisable
Exercise Number of Remaining Life Number of
Price Options In Years Options
$ 2.11 80,000 8.25 20,000
$ 2.17 120,000 8.35 120,000
$ 2.21 350,000 9.29 200,000
$ 2.48 160,000 9.10 40,000
$ 4.09 1,425,000 5.60 1,060,000
$ 5.66 280,000 7.47 160,000
2,415,000 6.57 1,600,000

The expected term used for options is the estimated period of time that options granted are expected to be outstanding. The Company utilizes the “simplified” method to develop an estimate of the expected term of “plain vanilla” option grants. The Company uses a blended volatility calculation, the components of which are the Company’s historical volatility for the period from its initial public offering through the valuation date and the average peer-group data of four comparable entities to supplement the Company’s own historical data for the preceding years in computing the expected volatility. Accordingly, the Company is utilizing an expected volatility figure based on a review of the historical volatility of comparable entities over a period of time equivalent to the expected life of the instrument being valued. The risk-free interest rate was determined from the implied yields from U.S. Treasury zero-coupon bonds with a remaining term consistent with the expected term of the instrument being valued.

For the three months ended March 31, 2022 and 2021, the Company recorded $318,951 and $282,999, respectively, of stock-based compensation expense related to stock options, of which $0 and $56,296, respectively, was included in income from discontinued operations before the sale of WPT on the accompanying condensed consolidated statement of operations. As of March 31, 2022, there was $901,830 of unrecognized stock-based compensation expense related to the stock options that will be recognized over the weighted average remaining vesting period of 2.10 years.

Restricted Common Stock

A summary of the non-vested restricted common stock activity during the three months ended March 31, 2022 is presented below:

Weighted
Number of Average
Restricted Grant Date
Stock Fair Value
Non-vested balance, January 1, 2022 80,000 $ 2.00
Vested (80,000 ) 2.00
Non-vested balance, March 31, 2022
-
 $
-

For the three months ended March 31, 2022 and 2021, the Company recorded $82,345 and $80,006, respectively, of stock-based compensation expense related to restricted stock of which $0 and $13,561, respectively, was included in income from discontinued operations before the sale of WPT on the accompanying condensed consolidated statement of operations. As of December 31, 2021, all restricted common stock was fully vested.