NOTE 8 – STOCK OPTIONS

The following table summarizes stock option activity:

Effective July 8, 2016 the Company’s board of directors approved the Polar Power 2016 Omnibus Incentive Plan (the “2016 Plan”), authorizing the issuance of up to 1,754,385 shares of common stock as incentives to employees and consultants to the Company with awards limited to a maximum of 350,877 shares to any one participant in any calendar year.

At December 31, 2020 and 2019, the Company had total outstanding options of 140,000, which are fully vested, exercise prices ranging from $4.84 to $5.09, and with 30,000 option shares set to expire in December 2027 and the remaining 110,000 option shares set to expire in April 2028. On October 1, 2019, the Company’s three executive officers agreed to terminate their rights to 220,000 stock option shares that had not vested as of April 1, 2019.

During the year ended December 31, 2019, the Company recorded stock-based compensation costs of $79 related to the vesting of these options. There was no unamortized cost compensation remaining as of December 31, 2019 As such, no further stock compensation expense was recorded during the year ended December 31, 2020.

There was no intrinsic value of the outstanding options at December 31, 2020.