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.

There were no such grants during the three-months ended March 31, 2021.

Director stock grants

During the three-months ended March 31, 2021 and 2020, the Company granted an independent director an aggregate of 8,333 and 3,125 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 $18,750 for the three-months ended March 31, 2021 and 2020.

During the year ended December 31, 2020, the Company granted its independent directors an aggregate of 28,737 shares of restricted common stock. These shares were fully vested upon issuance.