Quarterly report pursuant to Section 13 or 15(d)

SHARE-BASED COMPENSATION

v3.21.1
SHARE-BASED COMPENSATION
 3 Months Ended
Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
SHARE-BASED COMPENSATION

 

NOTE 13. SHARE-BASED COMPENSATION

 

Stock Options

 

On May 10, 2018, the Board ratified and confirmed the 2014 Equity Incentive Plan (the “2014 Plan”). The 2014 Plan is a broad-based plan under which shares of our common stock are authorized for issuance for awards, including stock options, stock appreciation rights, restricted stock, and cash incentive awards to members of our Board, executive officers, employees and independent contractors. As of March 31, 2021, a total of 6,550,750 shares of our common stock were authorized for issuance. As of March 31, 2021, 48,367 shares remained available for issuance as new awards under the 2014 Plan.

 

During the three months ended March 31, 2021 and 2020, we issued 30,000 and 225,000 options to purchase our common stock, respectively, to members of our Board, executive officers, employees and independent contractors. The fair value of all stock options granted for the three months ended March 31, 2021 and 2020 was determined to be $38,012 and $255,017, respectively, using the Black-Scholes option pricing model with the following assumptions:

 

 

 

Options Issued 2021

 

 

Options Issued 2020

 

Dividend yield

 

 

0

%

 

 

0

%

Expected volatility

 

 

68.74

%

 

 

70.98

%

Risk-free interest rate

 

 

0.48

%

 

 

1.39

%

Expected life (years)

 

 

5.00

 

 

 

5.00

 

 

A summary of stock option activity is as follows:

 

 

 

Common

Stock

Options

 

 

Weighted-

Average

Exercise

Price

 

 

Aggregate

Intrinsic

Value

 

 

Weighted-

Average

Remaining

Contractual

Term (Years)

 

Outstanding – December 31, 2020

 

 

2,982,000

 

 

$

1.08

 

 

$

2,101,780

 

 

 

2.35

 

Issued

 

 

30,000

 

 

 

2.25

 

 

 

—

 

 

 

—

 

Exercised

 

 

(50,000

)

 

 

0.22

 

 

 

(130,188

)

 

 

—

 

Forfeited

 

 

(41,666

)

 

 

1.04

 

 

 

—

 

 

 

—

 

Outstanding – March 31, 2021

 

 

2,920,334

 

 

$

1.10

 

 

$

5,249,621

 

 

 

2.17

 

Exercisable – March 31, 2021

 

 

2,087,001

 

 

$

0.90

 

 

$

4,163,613

 

 

 

1.56

 

 

A summary of unvested stock option activity is as follows:

 

 

 

Common

Stock

Options

 

 

Weighted-

Average

Exercise

Price

 

 

Aggregate

Intrinsic

Value

 

 

Weighted-

Average

Remaining

Contractual

Term (Years)

 

Unvested – December 31, 2020

 

 

845,000

 

 

$

1.55

 

 

$

197,608

 

 

 

3.83

 

Granted

 

 

30,000

 

 

 

2.25

 

 

 

—

 

 

 

—

 

Vested

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Forfeited

 

 

(41,666

)

 

 

1.04

 

 

 

—

 

 

 

—

 

Unvested – March 31, 2021

 

 

833,334

 

 

$

1.60

 

 

$

1,086,009

 

 

 

3.71

 

 

As of March 31, 2021, our unrecognized share-based compensation expense associated with the stock options issued was $549,503, which will be amortized over a weighted-average of 1.93 years.

 

Restricted Awards

 

During the three months ended March 31, 2021, we issued an aggregate of 55,000 restricted shares of our common stock valued at $159,500 to our Board members in consideration of their service on the Board. These shares vested immediately on the grant date. An additional 80,000 restricted shares of our common stock valued at $181,600 were issued to an employee of the Company on February 17, 2021. These shares were granted in consideration of the individual’s service to the Company. These shares vest on November 12, 2021. As of March 31, 2021, there were 2,236,133 restricted shares outstanding. Of the restricted shares outstanding, 260,000 restricted shares were unvested.