Quarterly report pursuant to Section 13 or 15(d)

16. Stock Options

v3.22.1
16. Stock Options
3 Months Ended
Mar. 31, 2022
Share-Based Payment Arrangement [Abstract]  
16. Stock Options

16. Stock Options

 

In September 2018, the Company’s 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 2020 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. On December 8, 2021, the Company held its 2021 Annual Meeting of Stockholders. At the 2021 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 4,000,000 shares of common stock

 

During the period ended March 31, 2022, the Company issued ten year options to purchase 160,000 shares at an exercise price of $2.50 per share, of which 100,000 were issued to our Interim CFO and 60,000 to an employee.

 

The options awarded during the three months ended March 31, 2022 were valued using a Black-Scholes option pricing model.

 

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

 

Assumptions  

Three months ended

March 31, 2022

Exercise price   $     2.50  
Risk free interest rate         2.41 %
Expected life of options     10 years  
Expected volatility of underlying stock         204.2 %
Expected dividend rate     0 %

   

A summary of all of the Company’s option activity during the period January 1, 2021 to March 31, 2022 is as follows:

 

Stock Option Activity   Number of shares   Exercise price per share   Weighted average exercise price
Outstanding January 1, 2021     1,622,938     $ 1.84 to 2.96     $ 2.11  
Granted     1,193,500       2.62 to 5.10       3.15  
Forfeited/cancelled     (50,000     2.62       2.62  
Exercised                  
Expired                  
Outstanding December 31, 2021     2,766,438     $ 1.84 to 5.10     $ 2.92  
Granted     160,000       2.50       2.50  
Forfeited/cancelled                  
Exercised                  
Outstanding March 31, 2022     2,926,438     $ 1.84 to 5.10     $ 2.90  

 

 

 

The following tables summarize information about stock options outstanding as of March 31, 2022:

 

Stock Options Outstanding
    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       8.48               162,000          
$2.03     659,000       8.51               402,000          
$2.50     160,000       10.00                        
$2.72     25,000       4.25               25,000          
$2.80     220,625       7.48               138,073          
$2.96     70,313       7.27               70,313          
$3.43     25,000       9.72                        
$4.03     1,020,000       9.26               155,000          
$4.07     25,000       9.30                        
$4.20     25,000       9.09                        
$5.10     48,500       9.46               24,250          
      2,926,438       8.74     $ 2.90       976,636     $ 2.59  

  

  

As of March 31, 2022, there were unvested options to purchase 1,949,802 shares of common stock. Total expected unrecognized compensation cost related to such unvested options is $5,385,375 which is expected to be recognized over a period of 48 months.

  

As of March 31, 2022, there was an aggregate of 2,926,438 options to purchase shares of common stock granted under the Company’s 2018 Equity Incentive Plan, and an aggregate of 655,301 restricted shares granted to certain officers and directors of the Company in settlement of liabilities owing to them, with 3,418,261 shares available for future grants.