|
9.
Stock-Based Compensation
A
summary of the Company’s outstanding stock option activity for the three months ended June 30, 2022, and 2021 is as follows:
Schedule of Stock Option Activity
| |
|
|
|
|
June
30, 2022 |
|
|
|
|
| |
|
|
|
|
Weighted- Average
|
|
|
Weighted- Average Remaining Contractual
Life
|
|
|
Intrinsic
|
|
| |
|
Options |
|
|
Exercise
Price |
|
|
(Years) |
|
|
Value |
|
| As of
December 31, 2021 |
|
|
833,892 |
|
|
$ |
3.91 |
|
|
|
8.7 |
|
|
|
87,553 |
|
| Granted |
|
|
357,000 |
|
|
|
0.45 |
|
|
|
10.0 |
|
|
|
- |
|
| Exercised |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Forfeited |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Expired |
|
|
(3 |
) |
|
|
139,237.86 |
|
|
|
- |
|
|
|
- |
|
| As
of June 30, 2022 |
|
|
1,190,889 |
|
|
$ |
2.38 |
|
|
|
8.6 |
|
|
$ |
- |
|
| Exercisable
at June 30, 2022 |
|
|
462,229 |
|
|
$ |
5.22 |
|
|
|
8.1 |
|
|
$ |
- |
|
| Vested
and expected to vest at June 30, 2022 |
|
|
1,117,329 |
|
|
$ |
2.47 |
|
|
|
8.6 |
|
|
$ |
- |
|
| |
|
|
|
|
June
30, 2021 |
|
|
|
|
| |
|
|
|
|
Weighted- Average
|
|
|
Weighted- Average Remaining Contractual
Life
|
|
|
Intrinsic
|
|
| |
|
Options |
|
|
Exercise
Price |
|
|
(Years) |
|
|
Value |
|
| As of
December 31, 2020 |
|
|
465,393 |
|
|
$ |
5.53 |
|
|
|
9.3 |
|
|
|
- |
|
| Granted |
|
|
368,500 |
|
|
|
1.93 |
|
|
|
10.0 |
|
|
|
- |
|
| Exercised |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Forfeited |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Expired |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| As
of June 30, 2021 |
|
|
833,893 |
|
|
$ |
3.98 |
|
|
|
9.2 |
|
|
$ |
743,089 |
|
| Exercisable
at June 30, 2021 |
|
|
376 |
|
|
$ |
6,977.42 |
|
|
|
3.8 |
|
|
$ |
- |
|
| Vested
and expected to vest at June 30, 2021 |
|
|
833,893 |
|
|
$ |
3.98 |
|
|
|
9.2 |
|
|
$ |
743,089 |
|
The
Company estimates the fair value of each stock option on the grant date using the Black-Scholes-Merton valuation model, which requires
several estimates including an estimate of the fair value of the underlying common stock on grant date. The expected volatility was based
on an average of the historical volatility of the Company. The expected term was contractual life of option. The risk-free interest rate
was based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the option. The following weighted
average assumptions were used in the calculation to estimate the fair value of options granted to employees and non-employees during
the six months ended June 30, 2022. During the six months ended June 30, 2022, the Company granted stock options with an estimated fair
value of approximately $0.2 million.
Schedule of Assumption Used for Fair Value of Option
| |
|
June
30, 2022 |
|
| Weighted-average
risk-free interest rate |
|
|
1.70 |
% |
| Weighted-average
expected life (in years) |
|
|
5.5 |
|
| Expected
dividend yield |
|
|
- |
% |
| Weighted-average
expected volatility |
|
|
131.1 |
% |
Of
the 357,000 options granted during the six months ended June 30, 2022, 60,000 were to non-executive members of the board of directors.
Of the 1,190,889 options outstanding as of June 30, 2022, 355,000 were awarded to non-executive members of the board of directors.
Unrecognized
stock-based compensation as of June 30, 2022, is as follows (in thousands):
Schedule of Unrecognized Stock-based Compensation
| |
|
|
|
|
Weighted Average
|
|
| |
|
Unrecognized Stock-Based
|
|
|
Remaining
of
Recognition
|
|
| |
|
Compensation |
|
|
(in
years) |
|
| Stock
options |
|
$ |
515 |
|
|
|
1.7 |
|
| Stock
grants |
|
$ |
38 |
|
|
|
1.9 |
|
|