Annual report pursuant to Section 13 and 15(d)

Stock Options

v3.21.1
Stock Options
12 Months Ended
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]  
Stock Options

18. Stock options

 

In September 2018, our stockholders approved our 2018 Equity Incentive Plan, which provides for a maximum of 1,150,000 awards that can be issued as options, stock appreciation rights, restricted stock, stock units, other equity awards or cash awards.

 

On October 1, 2020, the Board approved an amendment to the Company’s 2018 Equity Incentive Plan (the “Plan”) to increase the maximum number of shares that may be granted as an award under the Plan to any non-employee director during any one calendar year to: (i) chairperson or lead director – 300,000 shares of common stock; and (ii) other non-employee director - 250,000 shares of common stock, which reflects an increase in the annual limits for awards to be granted to non-employee directors under the Plan.

 

On November 20, 2020, the Company held its 2020 Annual Meeting of Stockholders. At the Annual Meeting, the Company’s stockholders approved an amendment to the Company’s 2018 Equity Incentive Plan to increase the number of shares of common stock that the Company will have authority to grant under the plan by an additional 1,850,000 shares of common stock.

 

During July 2019, we issued an aggregate of 95,313 options to purchase common stock, of which options to purchase 25,000 shares of common stock were issued to our Chief Financial Officer, options to purchase 39,375 shares of common stock were issued to our Chief Executive Officer and options to purchase 30,938 shares of common stock were issued to directors. During August 2019, we issued an aggregate of 150,000 options to purchase shares of common stock of which options to purchase 25,000 shares of common stock were issued to each of Michele Ciavarella, our Chief Executive Officer, Alessandro Marcelli, our Vice President of Operations, Luca Pasquini, our Vice President of Technology, Gabriele Peroni, our Vice President Business Development, Franco Salvagni, our Vice President of Land-based Operations and Beniamino Gianfelici, our Vice President Regulatory Affairs. On November 11,2019 the Company granted options to purchase 70,625 shares of common stock to various employees at an exercise price of $2.80 per share.

 

During September 2020, in terms of the employment agreement entered into with Mr. Monteverdi, the Company granted options to purchase 648,000 shares of common stock that vest pro rata on each of September 1, 2021, September 1, 2022, September 1, 2023 and September 1, 2024.

 

On October 1, 2020, the Board granted to each of Michele Ciavarella, Alessandro Marcelli, Luca Pasquini, Gabriele Peroni, Frank Salvagni, Beniamino Gianfelici and Mark Korb, an option to purchase 140,000, 56,000, 58,000, 36,000, 36,000, 35,000 and 58,000 shares of the Company’s common stock, respectively, under the Company’s 2018 Equity Incentive Plan. The shares of common stock underlying the option awards each vest pro rata on a monthly basis over a thirty-six month period. The options are exercisable for a period of ten years from the date of grant and have an exercise price of $2.03 per share.

 

On October 1, 2020, the Board also granted to each of Paul Sallwasser, Steven Shallcross and Philippe Blanc, as non-executive members of the Board, an option to purchase 55,000, 35,000 and 55,000 shares of the Company’s common stock, respectively, under the Company’s 2018 Equity Incentive Plan. The shares of common stock underlying the option awards each vest pro rata on a monthly basis over a twelve month period. The options are exercisable for a period of ten years from the date of grant and have an exercise price of $2.03 per share.

 

On October 1, 2020, the board granted options to purchase 95,000 shares of common stock to various employees at an exercise price of $2.03 per share.

 

The options awarded during the year ended December 31, 2020 were valued using a Black-Scholes option pricing model.

 

The following assumptions were used in the Black-Scholes model:

   

Year ended

December 31, 2020

Exercise price    
$1.84 to $2.03
 
Risk free interest rate     0.68%  
Expected life of options     10 years  
Expected volatility of underlying stock     231.1 to 231.4 %
Expected dividend rate     0 %

   

A summary of all of the Company’s option activity during the period January 1, 2019 to December 31, 2020 is as follows:

 

    Number of shares   Exercise price per share   Weighted average exercise price
             
Granted     315,938       $2.72 to $2.96     $ 2.84  
Forfeited/cancelled     —         —         —    
Exercised     —         —         —    
Outstanding December 31, 2019     315,938       $2.72 to $2.96     $ 2.84  
Granted     1,307,000       $1.84 to $2.03     $ 1.95  
Forfeited/Cancelled     —         —         —    
Exercised     —         —         —    
Outstanding December 31, 2020     1,622,938       $1.84 to $2.96     $ 2.11  
                         

  

 

The following tables summarize information about stock options outstanding as of December 31, 2020:

 

  Options outstanding   Options exercisable
  Exercise price   Number of shares   Weighted average remaining years   Weighted Average exercise price   Number of shares   Weighted average exercise price
                   
  $ 1.84       648,000       9.73               —    
  $ 2.03       659,000       9.75               79,083     —  
  $ 2.72       25,000       5.50               25,000  
  $ 2.80       220,625       8.73               69,128  
  $ 2.96       70,313       8.52               70,313  
            1,622,938       9.49     $ 2.11       243,524     $2.59
                                       

  

The weighted-average grant-date fair values of options granted during the year ended December 31, 2020 was $2,542,423 ($1.95 per share). $518,106 was recorded as compensation cost for the year ended December 31, 2020. As of December 31, 2020, there were unvested options to purchase $1,379,414 shares of common stock. Total expected unrecognized compensation cost related to such unvested options is $2,722,022 which is expected to be recognized over a period of 44 months.

 

The intrinsic value of the options at December 31, 2020 was $6,151,366.