NOTE 17 – STOCK BASED COMPENSATION

During the three months ended June 30, 2021, a total of 1,031,500 restricted shares were awarded. The compensation expense related to restricted stock grants was $2,162 during the three months ended June 30, 2021, and $471 during three months ended June 30, 2020. As of June 30, 2021, there was $38,020 of total unrecognized compensation cost related to non-vested shares of common stock granted. The cost is expected to be recognized over a weighted average period of 4.84 years.

The Company has determined the fair value of restricted shares awarded during the three months ended June 30, 2021 using the Monte Carlo valuation model based on the following key assumptions:

The table below summarizes the activity for the Company’s restricted stock outstanding during the three months ended June 30, 2021:

During the three months ended June 30, 2021 and 2020, no stock options were awarded. Total compensation expense related to outstanding options was $0 for the three months ended June 30, 2021, and $54 for the three months ended June 30, 2020.

The Company has determined the fair value of such stock options using the Black Scholes option valuation model based on the following key assumptions:

Stock-based compensation expense for the cost of the awards granted is based on the grant-date fair value. For stock option awards, the fair value is estimated at the date of grant using the Black-Scholes option-pricing model. This model requires the input of highly subjective assumptions, changes to which can materially affect the fair value estimate. Additionally, there may be other factors that would otherwise have a significant effect on the value of employee stock options granted but are not considered by the model. Accordingly, while management believes that the Black-Scholes option-pricing model provides a reasonable estimate of fair value, the model does not necessarily provide the best single measure of fair value for the Company’s employee stock options.

The following is a summary of stock option activity for the three months ended June 30, 2021: