Note 10 – Stock-Based Compensation, Restricted Stock and Stock Options:

The Company grants equity based compensation under its 2016 Equity Incentive Plan (the "Plan"). The Plan allows the Company to grant incentive and nonqualified stock options, and shares of restricted stock to its employees, directors and consultants. As of September 30, 2019, there is a total of 22,000,000 shares of the Company's common stock available under the Plan.

Stock-based compensation:

The Company recognized total expenses for stock-based compensation during the three and six months ended September 30, 2019 and 2018, which are included in the accompanying statements of operations, as follows (unaudited):

As of September 30, 2019, the Company had approximately $3.3 million of unrecognized compensation expense related to options and restricted stock granted under the Company's equity incentive plan.

Restricted stock awards:

A summary of the Company's restricted stock activity during the six months ended September 30, 2019 is as follows:

The Company issued 6,000,000 shares of restricted stock to employees during the six months ended September 30, 2019.

The fair value of restricted stock awards are measured based on their fair value at the grant date and amortized over the vesting period of 24 months. As of September 30, 2019, the unrecognized stock-based compensation expense related to restricted stock awards was approximately $2.9 million.

Stock Options:

The Company provides stock-based compensation to employees, directors and consultants under the Plan. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option pricing model. The Company historically has been a private company and lacks company-specific historical and implied volatility information. Therefore, it estimates its expected stock volatility based on the historical volatility of a publicly traded set of peer companies and expects to continue to do so until such time as it has adequate historical data regarding the volatility of its own traded stock price. The risk free interest rate is determined by referencing the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is based on the fact that the Company has never paid cash dividends and does not expect to pay any cash dividends in the foreseeable future. There were no options granted during the six months ended September 30, 2019.

A summary of activity under the Plan for the six months ended September 30, 2019 is as follows:

Warrants:

During the six months ended September 30, 2019, the Company issued 346,338 warrants to purchase shares of the Company's common stock. During the three and nine months ended September 30, 2019, the Company recognized approximately $182,000 of stock-based compensation expense related to the warrants, respectively. The Company estimated the fair value of the warrants using the Black-Scholes pricing model consisting of; an expected term of 5 years, a risk free interest rate of 2.34%, a stock price of $0.82 per share and a volatility of 50%.