|12 Months Ended
Dec. 31, 2020
|Share-based Payment Arrangement [Abstract]
NOTE 14 – STOCK-BASED COMPENSATION
Stock-based compensation expense for the years ended December 31, 2020 and 2019 was $1,803,403 and $1,830,426, respectively based on the vesting schedule of the stock grants and options. During the year ended December 31, 2020, 48,889 shares vested and were issued to employees. No cash flow affects are anticipated for stock grants.
In January 2017, the Company began granting stock to attract, retain, and reward employees with Common Stock. Stock grants are offered as part of the employment offer package, to ensure continuity of employment or as a reward for performance. Each of these grants requires a specific tenure of employment before the grant vests with typical vesting periods of 1 to 3 years of employment.
In January 2018, the Company implemented an equity incentive plan to reward and attract employees and compensate vendors for services when applicable. Stock options are offered as part of an employment offer package, to ensure continuity of service or as a reward for performance. The stock option plan authorizes 500,000 shares of common stock.
In May 2019, the Company adopted a new equity incentive plan, authorizing an aggregate of 588,333 shares of Common Stock for issuance thereunder. Stock grants under the equity incentive programs are valued at the price of the stock on the date of grant. The fair value of stock options granted under the equity incentive plans is calculated using the Black-Scholes pricing model based on the estimated market value of the underlying stock at the valuation measurement date, the remaining contractual term of the stock options, risk-free interest rate, and expected volatility of the underlying Common Stock. There is a moderate degree of subjectivity involved when estimating the value of stock options with the Black-Scholes option pricing model as the assumptions used are moderately judgmental. Stock grants and stock options are sometimes offered as part of an employment offer package, to ensure continuity of service or as a reward for performance. Stock grants and stock options typically require a 1 to 3 year period of continued employment or service performance before the stock grant or stock option vests.
The following schedule shows stock grant activity for the year ended December 31, 2020 and 2019:
The following table summarizes stock grant vesting periods.
The following schedule shows stock option activity for the year ended December 31, 2020 and 2019.
The following table summarizes stock option vesting periods under the two stock option plans.
The aggregate intrinsic value of the stock options outstanding and exercisable at December 31, 2020 is $0.