Stock Options
 12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
STOCK OPTIONS

NOTE 8 – STOCK OPTIONS

 

On November 3, 2021, the Company issued 1,550,000 stock options to executives’ officers and non-employee directors. The options vest on the terms set forth on the table below. Such options can be exercised until, November 2, 2031, and were approved by the Company’s shareholders on December 15, 2021.

 

Name  Number of
Options		   Exercise
Price		   Vesting Schedule
Jeffery D Johnson   500,000   $2.80   125,000 on grant date. 187,5,000 on each of the next 2 Employment Anniversaries.
Shalom Arik Maimon   200,000   $2.80   50% on grant date; 50% on 12 month anniversary of grant date
Michael DePrado   150,000   $2.80   50% on grant date; 50% on 12 month anniversary of grant date
Ran Daniel   100,000   $2.80   50% on grant date; 50% on 12 month anniversary of grant date
Richard Berman   100,000   $2.80   50% on grant date; 50% on 12 month anniversary of grant date
Yochanon Bruk   100,000   $2.80   50% on grant date; 50% on 12 month anniversary of grant date
Jeff Lewis   100,000   $2.80   50% on grant date; 50% on 12 month anniversary of grant date
David Schottenstein   100,000   $2.80   50% on grant date; 50% on 12 month anniversary of grant date
Adiv Baruch   100,000   $2.80   50% on grant date; 50% on 12 month anniversary of grant date
Carol Pepper   100,000   $2.80   50% on grant date; 50% on 12 month anniversary of grant date

 

The Company has estimated the fair value of such options at a value of $4,340 at the date of issuance using the Black-Scholes option pricing model using the following assumptions:

 

Common stock price   2.80 
Dividend yield   0%
Risk-free interest rate   1.60%
Expected term (years)   10 
Expected volatility   480%

  

The following table summarizes all stock option activity for the year ended December 31, 2021:

 

   Shares   Weighted-
Average
Exercise
Price
Per Share		 
Outstanding, December 31, 2020   135,200   $11.18 
Granted   1,550,000   $2.80 
Forfeited   100,000   $2.80 
Outstanding, December 31, 2021   1,585,200   $3.69 

  

The following table discloses information regarding outstanding and exercisable options at December 31, 2021:

 

    Outstanding   Exercisable 
Exercise Prices   Number of
Option Shares		   Weighted Average
Exercise Price		   Weighted Average
Remaining Life
(Years)		   Number of
Option Shares		   Weighted Average
Exercise Price		 
$14.35    79,200   $14.35    1.24    79,200   $14.35 
 7.50    36,000    7.50    1.71    36,000    7.50 
 5.23    20,000    5.23    2.24    20,000    5.23 
 2.80    1,450,000    2.80    9.84    785,000    2.80 
      1,585,200   $3.69    9.13    920,200   $4.24 

 

F-24

The following table summarizes all stock option activity for the year ended December 31, 2020:

 

   Shares   Weighted-
Average
Exercise
Price
Per Share		 
Outstanding, December 31, 2019   84,818   $31.97 
Granted   79,200    14.35 
Forfeited   28,818    81.12 
Outstanding, December 31, 2020   135,200   $11.18 

 

The following table discloses information regarding outstanding and exercisable options at December 31, 2020:

 

    Outstanding   Exercisable 
Exercise Prices   Number of
Option Shares		   Weighted Average
Exercise Price		   Weighted Average
Remaining Life
(Years)		   Number of
Option Shares		   Weighted Average
Exercise Price		 
$14.35    79,200   $14.35    2.24    79,200   $14.35 
 7.50    36,000    7.50    2.71    36,000    7.50 
 5.23    20,000    5.23    3.24    20,000    5.23 
      135,200   $11.18    2.51    135,200   $11.18