The Company has shareholder-approved stock-based compensation plans. The Stock Incentive Plan was adopted in ( Plan”) and had options granted under it through On the shareholders ratified the IAI Stock Incentive Plan ( Plan”), which had been approved by the Board of Directors on

 

The Company recognizes compensation costs only for those shares expected to vest on a straight-line basis over the requisite service period of the awards. Such options generally vest over periods of months to years. Fair values of option awards granted in the months and months ended and were estimated using the Black-Scholes option pricing model under the following assumptions:

 

		Three Months Ended			Three Months Ended			Nine Months Ended						Nine Months Ended
		September 30, 2020			September 30, 2019			September 30, 2020						September 30, 2019
Risk-free interest rate		0.26%			n/a				0.26%	-	0.33%			2.31%
Dividend yield		0%			n/a					0%				0%
Expected term (in years)		5			n/a					5				5
Expected volatility		69.6%			n/a				65.8%	-	69.6%			57.9%

 

 

 

The Plan became effective and expires The Plan provides for the granting of equity awards to key employees, including officers and directors. The maximum number of shares for which equity awards be granted under the Plan is Options under the Plan expire later than years from the date of grant or within prescribed periods following cessation of employment, whichever comes first, and vest over periods determined by the Board of Directors. The minimum exercise price of each option is the quoted market price of the Company's stock on the date of grant. At there were unexpired options for shares issued under the Plan, of which were exercisable.

 

The Plan became effective and expired The Plan provides for the granting of equity awards to key employees, including officers and directors. Options under the Plan were generally granted at-the-money or above, expire later than years from the date of grant or within months of within prescribed periods following cessation of employment, whichever comes first, and vest over periods determined by the Board of Directors. The number of shares subject to options available for issuance under the Plan could exceed There were unexpired options remaining from the Plan at all of which were exercisable.

 

The status of the options issued under the foregoing option plans as of and changes during the months ended were as follows:

 

		Options outstanding
						Weighted average			Weighted average		Aggregate
						exercise price			remaining		intrinsic
Incentive Options		Shares				per share			contractual term		value
Outstanding at December 31, 2019			1,349,000			$	0.23
Options granted			-				-
Options exercised			-				-
Options expired			(129,000	)			0.17
Options forfeited			-				-
Outstanding at March 31, 2020			1,220,000			$	0.24
Options granted			10,000				0.15
Options exercised			-				-
Options expired			(10,000	)			0.19
Options forfeited			-				-
Outstanding at June 30, 2020			1,220,000			$	0.24
Options granted			210,000				0.66
Options exercised			-				-
Options expired			-				-
Options forfeited			-				-
Outstanding at September 30, 2020			1,430,000			$	0.30		4 years, 5 months		$	487,773
Exercisable at September 30, 2020			1,208,500			$	0.24		3 years, 5 months		$	482,268

 

There were options granted during the months and option granted during the months ended and there were options granted during the months and options granted during the months ended There were options exercised during the months and months ended and there were options exercised during the months and options exercised during the months ended As of there was of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the stock incentive plans; that cost is expected to be recognized over a weighted-average period of months.

 

Total compensation expense related to these plans was and for the months ended and respectively, and and for the months ended and respectively.

 

Nonvested option awards as of and changes during the months ended were as follows:

 

		Nonvested
						Weighted average
						grant date
		Shares				fair value
Nonvested at January 1, 2020			23,500			$	0.17
Granted			-				-
Vested			(5,000	)			0.21
Forfeited			-				-
Nonvested at March 31, 2020			18,500			$	0.15
Granted			10,000				0.08
Vested			(15,500	)			0.16
Forfeited			-				-
Nonvested at June 30, 2020			13,000			$	0.09
Granted			210,000				0.37
Vested			(1,500	)			0.12
Forfeited			-				-
Nonvested at September 30, 2020			221,500			$	0.36