$1,830,000 was funded in full in January 2021. During the six months ended June 30, 2021, and 2020, the Company incurred interest expense on bridge loan of $118,800 and $-0-, respectively. In May 2021, this bridge funding was paid in full. Outstanding principal balance on bridge loan from related party investor on June 30, 2021, and December 31, 2020, was $-0- and $2,000,000, respectively.
During the six months ended June 30, 2021, the Company entered two bridge loans: $250,000 and $500,000, with related party investors. Terms of the bridge loans with related party included repayment of principal on or before June 30, 2021, and an annual interest rate of 18%. In addition to repayment of principal and interest under the bridge loan with related party, the Company issued investors 157,561 and 315,008 shares of Common Stock. In May 2021, the related party bridge loans were paid in full. Outstanding principal balance on bridge loan from related party investors on June 30, 2021, and December 31, 2020, was $-0- and -0- respectively.
NOTE 5 INCOME TAXES
The Company files Federal and state tax returns in as a C-corporation, to the Company’s knowledge, no returns are subject to examination by taxing authorities.
The Company has recorded no provision for income taxes or accrued a deferred tax asset (or liability) in the consolidated financial statements, on the basis that, although expected, the likelihood of the Company realizing any tax benefit (or liability) in the future cannot be calculated as of the date of this Report. As of the date of this Report, the Company follows all required local, state, and federal tax filings.
NOTE 6 COMMITMENTS AND CONTINGENCIES
Operating leases
During the three-month periods ended June 30, 2021, and 2020, the Company had office leases in Miami, FL, Denver, CO, and Belfast, Northern Ireland. Rent expense under those leases totaled approximately $198,000 and $50,000 during the three months ended June 30, 2021, and 2020, respectively.
Employee Equity (Stock) Incentive Plan
The Company has an employee equity stock incentive plan in which, at its sole discretion, it may award employees of the Company Common Stock or Common Stock options, as an incentive for performance (the “Plan”). Total shares of Common Stock reserved under the plan for employee grants is not to exceed 1,575,029 shares of Common Stock. During the six-month period ended June 30, 2021, and the twelve-month period end December 31, 2020, respectively, the Company granted 544,168 and 429,200 Common Stock options under the Plan.
On June 30, 2021, and December 31, 2020, total Common Stock options issued under the Plan were 1,032,432 and 488,264, respectively. Weighted average strike price per employee stock option is approximately $2.00 per share. Management recorded stock-based compensation expense associated with the issuance of employee stock options of $600,249 for the six months ended June 30, 2021.
As of the date of this Report, one employee exercised stock options and received 11,892 restricted common shares.
License Agreement
The Company has finalized two SaaS licensing agreements with customers for using its technology services in fiscal year 2021and expects revenue to be realized in the second half of the year. The Company currently has agreements with rideshare drivers for placement of its tablet devices in their vehicles (See Note 3).
Litigation, Claims, and Assessments
The Company may be involved in legal proceedings, claims and assessments arising in the ordinary course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. There are no such matters as of the date of this Report.