NOTE 13 – STOCK OPTIONS

During the six months ended June 30, 2020, five year 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 on grant date of approximately $67,000 will be charged to compensation expense over the vesting period, of which approximately $25,000 was charged during the six months ended June 30, 2020. No options were granted during the six months ended June 20, 2019.

During the six months ended June 30, 2020 and 2019, the charge to compensation expense for previously issued stock options which are being amortized over their vesting periods approximated $544,000 and $930,000, respectively.

During the six months ended June 30, 2019, options to purchase 270,000 shares of common stock were exercised at prices ranging from $0.26 to $0.77 per share. Of these exercised options, 220,000 were exercised on a cashless basis with the exercise prices paid via the surrender of 40,945 shares of common stock. No options were exercised during the six months ended June 30, 2020.

During the six months ended June 30, 2020, options to purchase 30,000 shares of common stock were forfeited, resulting in an aggregate reduction of amortization expense of approximately $19,000. No options were forfeited during the three months ended June 30, 2019.

Stock options outstanding and exercisable as of June 30, 2020 were:

 SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE