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STOCKHOLDERS’ EQUITY
 6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
STOCKHOLDERS’ EQUITY

NOTE 9 – STOCKHOLDERS’ EQUITY

 

Common Stock

 

On May 9, 2024, Robert Beaty, an independent Board member, conveyed to the Company 7,028 shares of the Company’s common stock at a price of $0.63, in an exempt transaction pursuant to Section 16b-3(c), and in full payment of the exercise of 25,000 incentive stock options granted to him in 2019 at a price of $0.1771 per share, which was 110% of the fair market value of our common stock on the date of such grant. These 25,000 ISO shares were issued to Mr. Beaty on May 9, 2024, in exchange for the conveyance of the 7,028 shares to the Company.

 

Non-Compensatory Stock Option Grant 

 

On June 17, 2024, D. Sean McEwen, the Chairman and CEO of the Company, exercised his sixth tranche of 187,500 equity stock options by conveying to the Company 65,737 shares of the Company’s common stock at a price of $0.6275, in an exempt transaction and in full payment of the exercise of the 187,500 stock options granted to him in 2017 at a price of $0.22 per share, which shares were issued on June 17, 2024.

 

Stock Option Grants

 

There were no Stock Option Grants provided for during the quarter ended June 30, 2024.

 

Stock Compensation

 

The Company offers incentive stock option grants to directors and key employees. Options vest in tranches and typically expire five (5) years from the date of grant. For the six (6) months ended June 30, 2024, and 2023, the Company recorded options expense of $446,747 and $282,569, respectively. For the three months ended June 30, 2024, and 2023, the Company recorded options expense of $222,677 and $139,970, respectively. The option expense not taken as of June 30, 2024, is $2,101,424, with a weighted average term of 3.42 years.

 

The following table represents stock option activity as of and for the six (6) months ended June 30, 2024:

 

   Number of   Weighted Average   Weighted Average   Aggregate 
   Shares   Exercise Price   Remaining Life   Intrinsic Value 
                 
Options Outstanding – December 31, 2023   6,000,000   $0.74    3.69   $872,463 
Granted   100,000    0.78           
Exercised   (400,000)   0.43           
Forfeited   —                  
Options Outstanding – June 30, 2024   5,700,000   $0.78    3.25   $—   
                     
Exercisable and Vested, June 30, 2024   171,339   $0.59    1.56   $5,944 

 

The aggregate intrinsic value for options outstanding as of June 30, 2024, is not calculated because the closing stock price on June 30, 2024, is less than the weighted average exercise price of outstanding options on that date.