Annual report pursuant to Section 13 and 15(d)

SHARE-BASED COMPENSATION

v3.22.1
SHARE-BASED COMPENSATION
 12 Months Ended
Dec. 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 December 31, 2021, a total of 7,550,750 shares of our common stock were authorized for issuance. As of December 31, 2021, 745,368 shares remained available for issuance as new awards under the 2014 Plan.

During the years ended December 31, 2021 and 2020, we issued 90,000 and 465,000 options to purchase our common stock, respectively, to executive officers, employees and independent contractors. The fair value of all stock options granted for the years ended December 31, 2021 and 2020 was determined to be $162,252 and $435,639, respectively, using the Black-Scholes option pricing model with the following assumptions:

 

 

 

Options Issued For the Twelve Months Ended December 31, 2021

 

 

Options Issued For the Twelve Months Ended December 31, 2020

 

Dividend yield

 

0%

 

 

0%

 

Expected volatility

 

61.12% - 68.74%

 

 

70.98% - 76.97%

 

Risk free interest rate

 

0.48% - 0.98%

 

 

0.27% - 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

 

 

90,000

 

 

$

3.38

 

 

 

—

 

 

 

—

 

Exercised

 

 

(1,094,998

)

 

$

0.82

 

 

$

(3,166,433

)

 

 

—

 

Forfeited or expired

 

 

(42,000

)

 

$

1.04

 

 

 

—

 

 

 

—

 

Outstanding – December 31, 2021

 

 

1,935,002

 

 

$

1.33

 

 

$

4,788,314

 

 

 

1.87

 

Exercisable – December 31, 2021

 

 

1,458,001

 

 

$

1.12

 

 

$

3,914,356

 

 

 

1.35

 

 

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

 

 

90,000

 

 

$

3.38

 

 

 

—

 

 

 

—

 

Vested

 

 

(416,333

)

 

$

1.51

 

 

 

—

 

 

 

—

 

Forfeited

 

 

(41,666

)

 

$

1.04

 

 

 

—

 

 

 

—

 

Unvested – December 31, 2021

 

 

477,001

 

 

$

1.97

 

 

$

873,958

 

 

 

3.45

 

 

As of December 31, 2021, our unrecognized share-based compensation expense associated with the stock options issued was $382,021, which is expected to be amortized over a weighted-average of 1.75 years.

 

Restricted Awards

During the year ended December 31, 2021, we issued an aggregate of 298,333 restricted shares of our common stock valued at $1,112,882 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 vested on November 11, 2021. As of December 31, 2021, there were 2,379,466 restricted shares outstanding. Of the restricted shares outstanding, 100,000 restricted shares were unvested.