Annual report pursuant to Section 13 and 15(d)

StockBased Compensation

v3.22.4
StockBased Compensation
12 Months Ended
Dec. 31, 2022
StockBased Compensation  
Stock-based Compensation

Note 8 - Stock-Based Compensation

 

a) Warrants

 

The following table summarizes the changes in warrants outstanding of the Company during the year ended December 31, 2022 and December 31, 2021:

 

 

 

 

 

Weighted Average

 

 

 

Number of

 

 

Exercise Price

 

 

 

Warrants

 

 

$

 

Outstanding at December 31, 2020

 

 

175,000

 

 

 

2.75

 

Granted

 

 

310,000

 

 

 

4.52

 

Exercised

 

 

-

 

 

 

-

 

Expired

 

 

-

 

 

 

-

 

Outstanding at December 31, 2021

 

 

485,000

 

 

 

3.88

 

Granted

 

 

54,000

 

 

 

3.05

 

Exercised

 

 

-

 

 

 

-

 

Expired

 

 

-

 

 

 

-

 

Outstanding at December 31, 2022

 

 

539,000

 

 

 

3.80

 

 

 

 

 

 

 

 

 

 

Exercisable at December 31, 2022

 

 

485,000

 

 

 

3.88

 

 

2022

 

Effective April 4, 2022, the Company granted a warrant to purchase 54,000 shares of common stock to a Company employee for services to the Company and/or its subsidiaries. This warrant shall vest in two equal installments at 12 months and 24 months from the grant date, subject to continued service and expire on April 4, 2028 and April 4, 2029, respectively, with an exercise price of $3.05 per share. The Company has calculated the estimated fair market value of this warrant at $80,901, using the Black-Scholes model and the following assumptions: term 3.5 years, stock price $2.95, exercise price $3.05, 71.07% volatility, 2.53% risk-free rate, and no forfeiture rate.

 

2021

 

Effective January 1, 2021, the Company granted warrants to purchase 125,000 shares of common stock to a Company employee for services to the Company. These warrants vest on January 1, 2022 (subject to continued employment through such date) and expire on January 1, 2027, with an exercise price of $3.95 per share. The Company has calculated the estimated fair market value of these warrants at $242,877, using the Black-Scholes model and the following assumptions: term 3.5 years, stock price $3.80, exercise price $3.95, 74.53% volatility, 0.50% risk free rate, and no forfeiture rate.

 

Effective February 1, 2021, the Company granted warrants to purchase 185,000 shares of common stock to a Company employee for services to the Company. These warrants vested on February 1, 2022 (subject to continued employment through such date) and expire on February 1, 2027, with an exercise price of $4.90 per share. The Company has calculated the estimated fair market value of these warrants at $459,352, using the Black-Scholes model and the following assumptions: term 3.5 years, stock price $4.80, exercise price $4.90, 75.03% volatility, 0.59% risk free rate, and no forfeiture rate.

 

Below is a table summarizing the warrants issued and outstanding as of December 31, 2022. The warrants outstanding have a weighted average price of $3.80 per share and an aggregate weighted average remaining contractual life of 3.24 years. The warrants exercisable have a weighted average price of  $3.88 per share.

 

 

 

 

 

 

 

 

Weighted Average

 

 

Proceeds to

 

 

 

 

 

 

Exercise

 

 

Remaining

 

 

Company if

 

Number

 

 

Number

 

 

Price

 

 

Contractual

 

 

Exercised

 

Outstanding

 

 

Exercisable

 

 

($)

 

 

Life (Years)

 

 

$

 

125,000

 

 

 

125,000

 

 

 

2.47

 

 

 

0.15

 

 

 

308,750

 

54,000

 

 

 

-

 

 

 

3.05

 

 

 

5.76

 

 

 

164,700

 

50,000

 

 

 

50,000

 

 

 

3.45

 

 

 

3.17

 

 

 

172,500

 

125,000

 

 

 

125,000

 

 

 

3.95

 

 

 

4.01

 

 

 

493,750

 

185,000

 

 

 

185,000

 

 

 

4.90

 

 

 

4.09

 

 

 

906,500

 

539,000

 

 

 

485,000

 

 

 

 

 

 

 

 

 

 

 

2,046,200

 

 

Stock-based compensation expense related to warrants of $84,102 and $701,781 was recorded for the years ended December 31, 2022, and December 31, 2021, respectively. Total remaining unrecognized compensation cost related to non-vested warrants is approximately $35,812 and is expected to be recognized over a period of 1.26 years. As of December 31, 2022, the total intrinsic value of warrants was $0.

 

b) Options

 

The Company currently has options outstanding under both its 2011 Equity Incentive Plan (the “2011 Plan”) (for option issuances prior to 2016,) and its 2015 Stock Incentive Plan (the “2015 Plan”) (for option issuances commencing in 2016). Effective as of January 1, 2016, no additional awards were or may be made under the 2011 Plan.

 

The 2015 Plan was adopted by the Board of Directors on August 18, 2015 and approved by the stockholders at an annual meeting held on October 30, 2015. On August 5, 2016, the Board of Directors adopted an amendment to the 2015 Plan to increase the number of shares of common stock available for issuance under such Plan by 750,000 shares to an aggregate maximum of 1,750,000 shares, which amendment was approved by the stockholders at an annual meeting held on October 7, 2016. On June 13, 2017, the Board of Directors adopted a subsequent amendment to the 2015 Plan to increase the number of shares of common stock available for issuance under such Plan by 750,000 shares to an aggregate maximum of 2,500,000 shares, which amendment was approved by the stockholders at an annual meeting held on September 8, 2017. On June 15, 2018, the Board of Directors adopted a subsequent amendment to the 2015 Plan to increase the number of shares of common stock available for issuance under such Plan by 750,000 shares to an aggregate maximum of 3,250,000 shares, which amendment was approved by the stockholders at an annual meeting held on September 7, 2018.

 

On March 27, 2019, the Board of Directors adopted a subsequent amendment to the 2015 Plan to increase the number of shares of common stock available for issuance under such Plan by 1,000,000 shares to an aggregate maximum of 4,250,000 shares, which amendment was approved by the stockholders at an annual meeting held on June 14, 2019. On March 31, 2021, the Board of Directors adopted a subsequent amendment to the 2015 Plan to increase the number of shares of common stock available for issuance under such  Plan by 1,750,000 shares to an aggregate maximum of 6,000,000 shares, which amendment was approved by the stockholders at an annual meeting held on June 17, 2021.

 

On April 4, 2022, the Board of Directors adopted a subsequent amendment to the 2015 Plan to increase the number of shares of common stock available for issuance under such plan by 1,750,000 shares to an aggregate maximum of 7,750,000 shares, which amendment was approved by the stockholders at an annual meeting held on June 13, 2022.

 

The 2015 Plan permits the grant of incentive stock options, non-statutory stock options, restricted stock awards, stock bonus awards, stock appreciation rights, restricted stock units and performance awards. The primary purpose of the 2015 Plan is to enhance the Company’s ability to attract and retain the services of qualified employees, officers, directors, consultants and other service providers upon whose judgment, initiative and efforts the successful conduct and development of the Company’s business largely depends, and to provide additional incentives to such persons or entities to devote their utmost effort and skill to the advancement and betterment of the Company, by providing them an opportunity to participate in the ownership of the Company that is tied to the Company’s performance, thereby giving them an interest in the success and increased value of the Company.  The 2015 Plan is administered by the Compensation Committee comprised solely of members of the Board of Directors or by the Board of Directors as a whole.

 

The following table summarizes the changes in options outstanding of the Company during the years ended December 31, 2022 and December 31, 2021:

 

 

 

 

 

Weighted Average

 

 

 

Number of

 

 

Exercise Price

 

 

 

Options

 

 

$

 

Outstanding at December 31, 2020

 

 

4,278,619

 

 

 

4.00

 

Granted

 

 

1,090,000

 

 

 

3.41

 

Exercised

 

 

(277,634 )

 

 

4.19

 

Expired/Cancelled

 

 

(63,467 )

 

 

3.64

 

Outstanding at December 31, 2021

 

 

5,027,518

 

 

 

3.87

 

Granted

 

 

-

 

 

 

-

 

Exercised

 

 

-

 

 

 

-

 

Expired/Cancelled

 

 

(42,413 )

 

 

3.43

 

Outstanding at December 31, 2022

 

 

4,985,105

 

 

 

3.87

 

 

 

 

 

 

 

 

 

 

Exercisable at December 31, 2022

 

 

4,495,011

 

 

 

3.93

 

 

2022

 

During the year ended December 31, 2022, no options were granted.

 

On August 18, 2022, 2,515 Options previously granted to an employee on August 3, 2021 were cancelled and returned as authorized shares under the 2015 Plan upon the resignation of such employee.

 

On November 18, 2022, 5,000 Options previously granted to an employee on April 13, 2020 were cancelled and returned as authorized shares under the 2015 Plan upon three months following the termination of such employee.

 

On November 18, 2022, 32,383 Options previously granted to an employee on August 3, 2021 were cancelled and returned as authorized shares under the 2015 Plan upon the resignation of such employee.

 

On November 18, 2022, 2,515 Options previously granted to an employee on August 3, 2021 were cancelled and returned as authorized shares under the 2015 Plan upon three months following the termination of such employee.

2021

 

Effective May 20, 2021, the Company granted stock options to purchase 40,000 shares of common stock to a Company employee in exchange for services provided to the Company. These options vested on May 20, 2022 and were initially scheduled to expire six years after the grant date, with an exercise price of $3.60 per share. The Company extended the expiration date to ten years after the original grant date. The Company has calculated the estimated fair market value of these options at $73,641, using the Black-Scholes model and the following assumptions: term 3.5 years, stock price $3.50, exercise price $3.60, 76.16% volatility, 0.58% risk free rate, and no forfeiture rate.

 

During the year ended December 31, 2021, the Company modified a total of 3,342,518 options to extend their expiration dates to ten years from the original dates of grant. This resulted in $2,450,349 of expense. 

 

The following table summarizes the amendments to the expiration dates of various options approved during the year ended December 31, 2021. Except as otherwise noted, the expiration dates for all options in the table below were extended from six years to ten years from the original date of grant.

 

 

Amendment

 

Equity Incentive

 

Stock Options

 

Grant

 

New Expiration

 

Option Expense

Note

 

Date 

 

Plan 

 

#

 

Date 

 

Date 

 

$

(i)

 

Jul 14, 2021

 

2011

 

292,000

 

 Jul 23, 2015

 

 Jul 23, 2025

 

442,273

 

 

 Jul 14, 2021

 

2011

 

6,367

 

 Mar 20, 2013

 

 Mar 20, 2023

 

4,151

 

 

 Jul 14, 2021

 

2011

 

8,151

 

 Sep 2, 2013

 

 Sep 2, 2023

 

6,009

 

 

 Sep 21, 2021

 

2015

 

335,000

 

 Apr 13, 2020

 

 Apr 13, 2030

 

163,945

(ii)

 

Sep 21, 2021

 

2015

 

89,163

 

 Jan 23, 2018

 

 Jan 23, 2028

 

24,194

(ii)

 

Sep 21, 2021

 

2015

 

308,066

 

 Feb 13, 2017

 

 Feb 13, 2027

 

127,719

 

 

 Nov 3, 2021

 

2015

 

760,000

 

 Apr 15, 2016

 

 Apr 15, 2026

 

984,511

 

 

 Nov 3, 2021

 

2015

 

15,000

 

 Jun 23, 2016

 

 Jun 23, 2026

 

19,582

 

 

 Nov 3, 2021

 

2015

 

50,000

 

 Jan 1, 2017

 

 Jan 1, 2027

 

32,456

 

 

 Nov 3, 2021

 

2015

 

387,934

 

 Mar 30, 2017

 

 Mar 30, 2027

 

224,901

 

 

 Nov 3, 2021

 

2015

 

615,837

 

 Jan 23, 2018

 

 Jan 23, 2028

 

213,646

 

 

 Dec 8, 2021

 

2015

 

425,000

 

 Apr 13, 2020

 

 Apr 13, 2030

 

180,267

 

 

 Dec 8, 2021

 

2015

 

10,000

 

 Dec 1, 2020

 

 Dec 1, 2030

 

5,209

 

 

 Dec 8, 2021

 

2015

 

40,000

 

 May 20, 2021

 

 May 20, 2031

 

21,486

 

 

 

 

 

 

3,342,518

 

 

 

 

 

2,450,349

 

(i)

The expiration date of these options were extended from five and a half years to ten years from the original date of grant.

 

 

(ii)

These options were previously amended on December 16, 2019 and amended again on September 21, 2021.

Effective August 3, 2021, the Company approved the granting of options under the 2015 Plan vesting upon achievement of certain corporate goals (see additional details in Note 10 (h)). Pursuant to this approval, the Company granted stock options to purchase an aggregate of 926,640 shares of common stock to various personnel (including directors, executives, members of management and employees of the Company and/or its subsidiaries) in exchange for services provided to the Company and/or its subsidiaries. These options vest over two years with options to purchase up to 463,328 shares vesting on August 3, 2022, and options to purchase up to 463,312 shares vesting on August 3, 2023, subject to continued service by the optionee, and expire 10 years from the date of grant with an exercise price of $3.40 per share. The actual number of options that are eligible for the time-based vesting is contingent upon the timely achievement of certain pre-determined corporate goals by the Company and/or its subsidiaries as set forth in the grant documents. The Company has calculated the estimated fair market value of these options at $1,811,216, using the Black-Scholes model and the following assumptions: term 5.5 years, stock price $3.31, exercise price $3.40, 69.13% volatility, 1.19% risk free rate, and no forfeiture rate.

 

Effective September 7, 2021, the Company granted stock options to purchase 50,000 shares of common stock to two employees in exchange for services provided to the Company and/or its subsidiaries. These options vest over two years with 25,000 shares vesting on September 7, 2022, and 25,000 shares vesting on September 7, 2023 subject to continued service by the optionee, and expire 10 years from the date of grant with an exercise price of $3.40 per share. The Company has calculated the estimated fair market value of these options at $98,322, using the Black-Scholes model and the following assumptions: term 5.5 years, stock price $3.32, exercise price $3.40, 68.98% volatility, 1.38% risk free rate, and no forfeiture rate.

 

Effective October 4, 2021, the Company approved the granting of options under the 2015 Plan vesting upon achievement of certain corporate goals (see additional details in Note 10 (h)). Pursuant to this approval the Company granted stock options to purchase 73,360 shares of common stock to an employee in exchange for services provided to the Company and/or its subsidiaries. These options vest over two years with 36,680 shares vesting on October 4, 2022, and 36,680 shares vesting on October 4, 2023, subject to continued service by the optionee, and expire 10 years from the date of grant with an exercise price of $3.40 per share. The actual number of options that are eligible for the time-based vesting is contingent upon the timely achievement of certain pre-determined corporate goals by the Company and/or its subsidiaries as set forth in the grant documents. The Company has calculated the estimated fair market value of these options at $128,003, using the Black-Scholes model and the following assumptions: term 5.5 years, stock price $3.04 exercise price $3.40, 68.80% volatility, 1.49% risk free rate, and no forfeiture rate.

Below is a table summarizing the options issued and outstanding as of December 31, 2022, all of which were issued pursuant to the 2011 Plan (for option issuances prior to 2016) or the 2015 Plan (for option issuances commencing in 2016)and which have a weighted average exercise price of $3.87 per share and an aggregate weighted average remaining contractual life of 5.22 years.

 

 

 

 

 

 

 

Weighted Average

 

Proceeds to

 

 

 

 

Exercise

 

Remaining

 

Company if

Number

 

Number

 

Price

 

Contractual Life

 

Exercised

Outstanding

 

Exercisable

 

($)

 

(Years)

 

$

635,000

 

635,000

 

3.25

 

2.12

 

2,063,750

2,717

 

2,717

 

3.35

 

0.67

 

9,102

1,022,587

 

532,493

 

3.40

 

8.32

 

3,476,796

795,000

 

795,000

 

3.60

 

6.94

 

2,862,000

1,682,837

 

1,682,837

 

4.00

 

3.76

 

6,731,348

11,801

 

11,801

 

4.35

 

0.44

 

51,334

89,163

 

89,163

 

4.38

 

5.07

 

390,534

50,000

 

50,000

 

4.80

 

4.01

 

240,000

696,000

 

696,000

 

5.00

 

4.24

 

3,480,000

 

 

 

 

 

 

 

 

 

4,985,105

 

4,495,011

 

 

 

 

 

19,304,864

 

Stock-based compensation expense related to stock options of $1,127,502 and $1,069,605 was recorded for the year ended December 31, 2022 and December 31, 2021 respectively. Total remaining unrecognized compensation cost related to non-vested stock options is approximately $287,363 and is expected to be recognized over a period of 0.76 years. As of December 31, 2022, the total intrinsic value of stock options was $nil.

 

As of December 31, 2022, an aggregate of 417,318 shares of common stock remained available for future issuance under the 2015 Plan.

c) Restricted Stock Units (RSUs)

 

Below is a table summarizing the RSUs issued and outstanding as of December 31, 2022, all of which were issued pursuant to the 2015 Plan.

 

 

 

 

 

Weighted Average

 

 

 

Number of

 

 

Exercise Price

 

 

 

RSUs

 

 

$

 

Outstanding at December 31, 2020

 

 

67,500

 

 

 

3.47

 

Granted

 

 

789,500

 

 

 

3.33

 

Vested

 

 

(31,250 )

 

 

3.55

 

Cancelled

 

 

(15,000 )

 

 

3.3

 

Outstanding at December 31, 2021

 

 

810,750

 

 

 

3.33

 

Granted

 

 

1,892,102

 

 

 

1.64

 

Vested

 

 

(377,007 )

 

 

3.33

 

Cancelled

 

 

(62,937 )

 

 

2.88

 

Outstanding at December 31, 2022

 

 

2,262,908

 

 

 

2.05

 

 

2022

 

Below is a table summarizing the RSUs granted during the year ended December 31, 2022, all of which were issued pursuant to the 2015 Plan. These RSUs vest equally over periods stated on the dates noted, subject to continued service, and will result in the compensation expense stated. The exception to this is specified in note (iv) which is described in detail below.

 

 

 

Equity

 

 

 

 

 

 

 

First

 

Second

 

Third

 

RSU

 

 

 Incentive

 

RSUs

 

Grant

 

Vesting

 

Vesting

 

Vesting

 

Vesting

 

 Expense

Note

 

 Plan

 

#

 

Date

 

 Period

 

Date

 

Date

 

Date

 

$

 

 

2015

 

8,000

 

 Feb 8, 2022

 

24 Months

 

 Feb 8, 2023

 

 Feb 8, 2024

 

N/A

 

22,640

 

 

2015

 

30,000

 

 Mar 1, 2022

 

24 Months

 

 Mar 1, 2023

 

 Mar 1, 2024

 

N/A

 

84,300

 

 

2015

 

32,000

 

 Apr 4, 2022

 

24 Months

 

 Apr 4, 2023

 

 Apr 4, 2024

 

N/A

 

94,400

 

 

2015

 

104,000

 

 Apr 4, 2022

 

36 Months

 

 Apr 4, 2023

 

 Apr 4, 2024

 

 Apr 4, 2025

 

306,800

 

 

2015

 

33,000

 

 Jun 1, 2022

 

24 Months

 

 Jun 1, 2023

 

 Jun 1, 2024

 

N/A

 

80,850

 

 

2015

 

63,102

 

 Aug 15, 2022

 

24 Months

 

 Aug 15, 2023

 

 Aug 15, 2024

 

N/A

 

126,835

 

 

2015

 

25,000

 

 Sep 21, 2022

 

24 Months

 

 Sep 21, 2023

 

 Sep 21, 2024

 

N/A

 

42,250

(iii)

 

2015

 

1,144,000

 

 Oct 4, 2022

 

36 Months

 

 Oct 4, 2023

 

 Oct 4, 2024

 

 Oct 4, 2025

 

1,670,240

(iv)

 

2015

 

450,000

 

 Oct 4, 2022

 

Up to 42 Months

 

Variable

 

Variable

 

Variable

 

321,078

(v)

 

2015

 

3,000

 

 Nov 29, 2022

 

36 Months

 

 Nov 29, 2023

 

 Nov 29, 2024

 

 Nov 29, 2025

 

6,450

 

 

 

 

1,892,102

 

 

 

 

 

 

 

 

 

 

 

2,755,843

 

(iii)

These RSUs vest upon the achievement of corporate goals focused around product development and commercialization with further time-based vesting, subject to continued service of the award recipient to the Company through the applicable vesting dates. On October 13, 2022, the Compensation Committee of the Board of Directors approved the satisfactory achievement of certain corporate goals previously established by the Compensation Committee, which resulted in the vesting of the rights with respect to an aggregate of 198,275 RSUs. The RSUs are further subject to a three-year time based vesting schedule, vesting in three equal installments on the dates set forth in the table above, and conditioned upon the recipient’s continued service through the applicable vesting date. On January 12, 2023, the Compensation Committee of the Board of Directors approved the satisfactory achievement of certain additional corporate goals, which resulted in the vesting of the rights with respect to an aggregate of an additional 424,875 RSUs, subject to the foregoing time-based vesting and conditioned upon the recipient’s continued service through the applicable vesting date.

 

 

(iv)

These RSUs vest upon the share price closing above $5.00 per share for a minimum of ten consecutive trading days within a period of three years from the date of grant, with further time-based vesting in a single installment six months after the timely achievement of the target, if at all, and subject to continued service. The estimated fair value of the RSUs that include a market vesting condition will be measured on the grant date using a Monte Carlo Simulation of a Geometric Brownian Motion stock path model and incorporating the probability of vesting occurring. The estimated fair value of these awards will be recognized over the derived service period (as determined by the valuation model), with such recognition occurring regardless of whether the market condition is met.

 

 

(v)

The Company granted an aggregate of 3,000 RSUs on November 29, 2022 as an employment inducement award. These RSUs are subject to time-based vesting and subject to the continued service of each recipient.

 

Below is a table summarizing the RSUs vested during the year ended December 31, 2022, all of which were issued pursuant to the 2015 Plan.

 

Equity Incentive

 

RSUs

 

Vest

 

Shares 

 

Shares Withheld for

Plan 

 

#

 

Date

 

Issued 

 

Taxes 

2015

 

15,000

 

 Mar 25, 2022

 

15,000

 

-

2015

 

26,250

 

 Apr 13, 2022

 

21,712

 

4,538

2015

 

50,000

 

 May 1, 2022

 

35,000

 

15,000

2015

 

230,102

 

 Aug 3, 2022

 

191,992

 

38,110

2015

 

12,000

 

 Sep 7, 2022

 

7,038

 

4,962

2015

 

19,905

 

 Oct 4, 2022

 

13,022

 

6,883

2015

 

21,750

 

 Nov 1, 2022

 

12,344

 

9,406

2015

 

2,000

 

 Dec 15, 2022

 

1,181

 

819

 

 

377,007

 

 

 

297,289

 

79,718

Below is a table summarizing the RSUs cancelled during the year ended December 31, 2022, all of which were originally issued pursuant to the 2015 Plan.

 

Equity Incentive

 

RSUs

 

 

Cancellation

 

RSUs

 

 Plan

 

#

 

 

Date

 

Cancelled

 

2015

 

 

33,000

 

 

 May 31, 2022

 

 

33,000

 

2015

 

 

1,365

 

 

 Aug 18, 2022

 

 

1,365

 

2015

 

 

17,572

 

 

 Nov 18, 2022

 

 

17,572

 

2015

 

 

11,000

 

 

 Nov 21, 2022

 

 

11,000

 

 

 

 

62,937

 

 

 

 

 

62,937

 

2021

 

Below is a table summarizing the RSUs granted during the year ended December 31, 2021, all of which were issued pursuant to the 2015 Plan.

 

 

Equity Incentive

 

RSUs

 

Grant

 

Vesting

 

First Vesting

 

Second Vesting

 

Third Vesting

 

RSU Expense

Note

 

Plan 

 

#

 

Date

 

Period

 

Date

 

Date

 

Date

 

$

 

 

2015

 

5,000

 

 Jan 1, 2021

 

-

 

 Jan 1, 2021

 

N/A

 

N/A

 

19,450

 

 

2015

 

30,000

 

 Mar 25, 2021

 

24 Months

 

 Mar 25, 2022

 

 Mar 25, 2023

 

N/A

 

107,700

 

 

2015

 

150,000

 

 May 1, 2021

 

36 Months

 

 May 1, 2022

 

 May 1, 2023

 

 May 1, 2024

 

496,500

(i)

 

2015

 

460,191

 

 Aug 3, 2021

 

24 Months

 

 Aug 3, 2022

 

 Aug 3, 2023

 

N/A

 

1,523,232

 

 

2015

 

38,000

 

 Sep 7, 2021

 

24 Months

 

 Sep 7, 2022

 

 Sep 7, 2023

 

N/A

 

126,160

(ii)

 

2015

 

39,809

 

 Oct 4, 2021

 

24 Months

 

 Oct 4, 2022

 

 Oct 4, 2023

 

N/A

 

121,019

 

 

2015

 

43,500

 

 Nov 1, 2021

 

24 Months

 

 Nov 1, 2022

 

 Nov 1, 2023

 

N/A

 

152,685

 

 

2015

 

23,000

 

 Dec 15, 2021

 

24 Months

 

 Dec 15, 2022

 

 Dec 15, 2023

 

N/A

 

77,740

 

 

 

 

789,500

 

 

 

 

 

 

 

 

 

 

 

2,624,486

 

(i)

Effective August 3, 2021, the Company approved the granting of RSUs under the 2015 Plan vesting upon achievement of certain corporate goals (see additional details in Note 10 (h)). Pursuant to this approval, the Company granted RSUs of 460,191 shares of common stock to various personnel (including directors, executives, members of management and employees of the Company and/or its subsidiaries) in exchange for services provided to the Company and/or its subsidiaries. The actual number of RSUs that are eligible for the time-based vesting is contingent based upon the timely achievement of certain pre-determined corporate goals by the Company and/or its subsidiaries as set forth in the grant documents as well as continued service by the participant through the applicable vesting date. The RSUs eligible for vesting shall vest over two years with up to 230,102 units vesting on August 3, 2022, and up to 230,089 units vesting on August 3, 2023 and will result in total compensation expense of $1,523,232.

 

 

(ii)

Effective October 4, 2021, the Company approved the granting of RSUs under the 2015 Plan vesting upon achievement of certain corporate goals (see additional details in Note 10 (h)). Pursuant to this approval, the Company granted RSUs of 39,809 shares of common stock to an employee of the Company and/or its subsidiaries in exchange for services provided to the Company and/or its subsidiaries. The actual number of RSUs that are eligible for the time-based vesting is contingent based upon the timely achievement of certain pre-determined corporate goals by the Company and/or its subsidiaries as set forth in the grant documents as well as continued service by the participant through the applicable vesting date. These RSUs vest over two years with 19,905 units vesting on October 4, 2022, and 19,904 units vesting on October 4, 2023, subject to continued service and will result in total compensation expense of $121,019.

 

Below is a table summarizing the RSUs vested during the year ended December 31, 2021, all of which were issued pursuant to the 2015 Plan.

 

Equity Incentive

 

RSUs

 

 

Vest

 

 

 

 

 Plan

 

#

 

 

Date

 

Shares Issued 

 

 

Shares Withheld for Taxes 

 

2015

 

 

5,000

 

 

 Jan 1, 2021

 

 

3,000

 

 

 

2,000

 

2015

 

 

26,250

 

 

 Apr 13, 2021

 

 

21,712

 

 

 

4,538

 

 

 

 

31,250

 

 

 

 

 

24,712

 

 

 

6,538

 

 

Below is a table summarizing the RSUs cancelled during the year ended December 31, 2021, all of which were originally issued pursuant to the 2015 Plan.

 

 

RSUs

 

 

 

 

Equity Incentive Plan

 

#

 

 

Vest Date

 

RSUs Cancelled

 

2015

 

 

15,000

 

 

 Dec 31, 2020

 

 

15,000

 

 

 

 

15,000

 

 

 

 

 

15,000

 

 

Below is a table summarizing the RSUs issued and outstanding as of December 31, 2022 of which the last to vest have a remaining contractual life of 3.26 years.

 

 

 

 

Weighted Average

 

 

Weighted Average

 

 

 

 

Grant date

 

 

Remaining

 

Number

 

 

Fair Value

 

 

Contractual Life

 

Outstanding

 

 

$

 

 

 (Years)

 

450,000

 

 

 

0.69

 

 

 

3.26

 

1,133,000

 

 

 

1.46

 

 

 

1.76

 

25,000

 

 

 

1.69

 

 

 

1.22

 

63,102

 

 

 

2.01

 

 

 

1.08

 

3,000

 

 

 

2.15

 

 

 

1.91

 

33,000

 

 

 

2.45

 

 

 

0.92

 

30,000

 

 

 

2.81

 

 

 

0.67

 

8,000

 

 

 

2.83

 

 

 

0.61

 

136,000

 

 

 

2.95

 

 

 

0.97

 

19,904

 

 

 

3.04

 

 

 

0.38

 

311,152

 

 

 

3.31

 

 

 

0.59

 

12,000

 

 

 

3.32

 

 

 

0.68

 

2,000

 

 

 

3.38

 

 

 

0.48

 

21,750

 

 

 

3.51

 

 

 

0.42

 

15,000

 

 

 

3.59

 

 

 

0.23

 

2,262,908

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense related to RSUs of $1,903,054 and $898,910 was recorded in the years ended December 31, 2022, and December 31, 2021, respectively. Total remaining unrecognized compensation cost related to non-vested RSUs is $2,214,593.