NOTE 12 – STOCK GRANTS

Stock grants to convertible note holders

During the year ended December 31, 2020, the Company granted convertible note holders an aggregate of 81,409 shares of restricted common stock as consideration for commitment fees (“commitment shares”). 27,777 commitment shares were cancelled upon repayment of a convertible note in accordance with its terms and another 27,777 commitment shares are returnable upon repayment of a convertible note in accordance with its terms.

During the year ended December 31, 2020, the Company granted a convertible note holder 6,250 shares of restricted common stock as consideration for extension fees.

Director stock grants

During the years ended December 31, 2020 and 2019, the Company granted its independent directors an aggregate of 28,737 and 11,054, respectively, shares of restricted common stock. These shares were fully vested upon issuance. The expense recognized for these grants based on the fair value on the grant date was $75,000 and $350,000 for the years ended December 31, 2020 and 2019, respectively. Effective as of the quarter ended March 31, 2020, certain independent directors elected to receive compensation in the form of warrants rather than stock.

Consultant stock grants

During the year ended December 31, 2020, the Company did not grant consultants any stock and accordingly did not recognize any related expense.

During the year ended December 31, 2019, the Company granted consultants an aggregate of 750 shares of restricted common stock, which were fully vested upon issuance. The expense recognized for these grants based on the fair value on the grant date was $16,650.