NOTE 14 – STOCK OPTIONS

During the six months ended June 30, 2021, the Company granted three- and five-year options to purchase up to 2,802,000 shares of common stock at exercise prices ranging from $0.30 to $1.00 per share. The fair value of these options of approximately $1,458,000 in the aggregate is being amortized to compensation expense over their respective vesting periods, of which approximately $704,000 was amortized during the six months ended June 30, 2021. Additionally, compensation expense in the first half of 2021 for options issued in previous years, and continuing to be amortized over their respective vesting periods, approximated $180,000.

During the six months ended June 30, 2020, five-year options to purchase up to 564,500 common shares were issued to employees at an exercise price of $0.30 per share. The fair value of these options of approximately $67,000 in the aggregate is being amortized to compensation expense over their respective vesting periods, of which approximately $25,000 was amortized during the six months ended June 30, 2020. Additionally, compensation expense in the first half of 2020 for options issued in previous years, and continuing to be amortized over their respective vesting periods, approximated $549,000.

During the six months ended June 30, 2021, options to purchase 155,000 shares of common stock were exercised at prices of $0.30 and $0.45 per share. Of these exercised options, 125,000 were exercised on a cashless basis with the exercise prices paid via the surrender of 72,115 shares of common stock. No options were exercised during the six months ended June 30, 2020.

During the six months ended June 30, 2021 and 2020, options to purchase 50,000 and 30,000 shares of common stock, respectively, were forfeited or expired, resulting in an aggregate reduction of amortized compensation expense of zero in 2021 and approximately $19,000 in 2020.

Stock options outstanding and exercisable as of June 30, 2021 were:

 SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE