Options and warrants
12 Months Ended
Dec. 31, 2021
Options And Warrants  
Options and warrants

Note 10 – Options and warrants

 

Options

 

All stock options have an exercise price equal to the fair market value of the common stock on the date of grant. The fair value of each option award is estimated using a Black-Scholes-Merton option valuation model. The Company has not paid any cash dividends on its common stock and does not anticipate paying any cash dividends in the foreseeable future. Consequently, the Company uses an expected dividend yield of zero in the Black-Scholes-Merton option valuation model. Volatility is an estimate based on the calculated historical volatility of similar entities in industry, in size and in financial leverage, whose share prices are publicly available. The expected life of awards granted represents the period of time that they are expected to be outstanding. The Company has no historical experience with which to establish a basis for determining an expected life of these awards. Therefore, the Company only gave consideration to the contractual terms and did not consider the vesting schedules, exercise patterns and pre-vesting and post-vesting forfeitures significant to the expected life of the option award. The Company bases the risk-free interest rate used in the Black-Scholes-Merton option valuation model on the implied yield currently available on U.S. Treasury issues with an equivalent remaining term equal to the expected life of the award.

 

All of the options granted by the Company expired as of December 31, 2020.

 

The following is a summary of the Company’s stock option activity for the year ended December 31, 2020:

 

   Number Of
Options
  

Weighted-Average

Exercise Price

 
         
Outstanding at December 31, 2019   240,117   $1.10 
Granted   -   $- 
Expired   (240,117)  $1.10 
Cancelled   -   $- 
Outstanding at December 31, 2020   -   $- 
Options exercisable at December 31, 2020   -   $           - 

 

 

No stock options were granted during the year ended December 31, 2021.

 

The following tables summarize information about stock options outstanding and exercisable at December 31, 2021 and December 31, 2020:

OPTIONS OUTSTANDING AND EXERCISABLE AT DECEMBER 31, 2020
Range of
Exercise Prices
    Number of
Options
Outstanding
    Weighted-
Average
Remaining
Contractual
Life in Years
    Weighted-
Average
Exercise Price
    Number
Exercisable
    Weighted-
Average
Exercise Price
 
$ -       -       -     $ -       -     $ -  

 

Total stock-based compensation expense in connection with options and modified awards recognized in the consolidated statement of operations for the years ended December 31, 2021 and 2020 was $0 and $0 respectively.

 

Warrants

 

The following is a summary of the Company’s warrant activity for the year ended December 31, 2021:

 

   Number Of
Warrants
  

Weighted-Average

Exercise Price

 
Outstanding at December 31, 2020   100,000   $1.00 
Granted   -   $- 
Expired   (100,000)  $1.00 
Cancelled   -   $- 
Outstanding at December 31, 2021   -   $1.00 
Warrants exercisable at December 31, 2020   100,000   $1.00 
Warrants exercisable at December 31, 2021   -   $- 

 

The following tables summarize information about warrants outstanding and exercisable at December 31, 2020:

 

WARRANTS OUTSTANDING AND EXERCISABLE AT DECEMBER 31, 2020  
Range of
Exercise
Prices
   

Number of

Warrants

Outstanding

   

Weighted-

Average

Remaining

Contractual Life

in Years

   

Weighted-

Average

Exercise Price

   

Number

Exercisable

   

Weighted-

Average

Exercise Price

 
$ 1.00       100,000       .52     $ 1.00       100,000     $ 1.00