Quarterly report pursuant to Section 13 or 15(d)

StockBased Compensation

v3.22.2.2
StockBased Compensation
9 Months Ended
Sep. 30, 2022
StockBased Compensation  
Stock-based Compensation

Note 7 - Stock-Based Compensation

 

a) Warrants

 

The following table summarizes the changes in warrants outstanding of the Company during the nine-month period ended September 30, 2022:

 

 

 

Number of

 

 

Weighted Average

 

 

 

Warrants

 

 

Exercise Price ($)

 

Outstanding at December 31, 2021

 

 

485,000

 

 

 

3.88

 

Granted

 

 

54,000

 

 

 

3.05

 

Outstanding at September 30, 2022

 

 

539,000

 

 

 

3.80

 

 

 

 

 

 

 

 

 

 

Exercisable at September 30, 2022

 

 

485,000

 

 

 

3.88

 

 

Below is a table summarizing the warrants issued and outstanding as of September 30, 2022, which have an aggregate weighted average remaining contractual life of 3.49 years.

 

 

 

 

 

 

 

 

Weighted Average

 

 

 

 

 

 

 

 

 

 

 

Remaining

 

 

Proceeds to

 

Number

 

 

Number

 

 

Exercise

 

 

Contractual

 

 

Company if

 

Outstanding

 

 

Exercisable

 

 

Price ($)

 

 

Life (Years)

 

 

Exercised ($)

 

 

125,000

 

 

 

125,000

 

 

 

2.47

 

 

 

0.41

 

 

 

308,750

 

 

54,000

 

 

 

-

 

 

 

3.05

 

 

 

6.02

 

 

 

164,700

 

 

50,000

 

 

 

50,000

 

 

 

3.45

 

 

 

3.42

 

 

 

172,500

 

 

125,000

 

 

 

125,000

 

 

 

3.95

 

 

 

4.26

 

 

 

493,750

 

 

185,000

 

 

 

185,000

 

 

 

4.90

 

 

 

4.34

 

 

 

906,500

 

 

539,000

 

 

 

485,000

 

 

 

 

 

 

 

 

 

 

 

2,046,200

 

 

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.

 

Stock-based compensation expense related to warrants of $68,852 and $524,780 was recorded in the nine months ended September 30, 2022 and September 30, 2021, respectively. Total remaining unrecognized compensation cost related to non-vested warrants is $51,063 and is expected to be recognized over a period of 1.51 years. As of September 30, 2022, the total intrinsic value of warrants outstanding was $nil.

b) Options

 

The following table summarizes the changes in options outstanding of the Company during the nine-month period ended September 30, 2022:

 

 

 

Number of

 

 

Weighted Average

 

 

 

Options

 

 

Exercise Price ($)

 

Outstanding at December 31, 2021

 

 

5,027,518

 

 

 

3.87

 

Granted

 

 

-

 

 

 

-

 

Exercised

 

 

-

 

 

 

-

 

Expired/Cancelled

 

 

(2,515 )

 

 

3.40

 

Outstanding at September 30, 2022

 

 

5,025,003

 

 

 

3.87

 

 

 

 

 

 

 

 

 

 

Exercisable at September 30, 2022

 

 

4,465,846

 

 

 

3.93

 

 

Below is a table summarizing the options issued and outstanding as of September 30, 2022, all of which were issued pursuant to the Company’s 2011 Equity Incentive Plan (for option issuances prior to 2016) or the 2015 Stock Incentive Plan (for option issuances commencing in 2016) and which have an aggregate weighted average remaining contractual life of 5.50 years. As of September 30, 2022, an aggregate of 7,750,000 shares of common stock were authorized for issuance under the 2015 Stock Incentive Plan, of which 1,928,740 shares of common stock remained available for future issuance thereunder.

 

 

 

 

 

 

 

Weighted Average

 

 

 

 

 

 

 

 

Remaining

 

Proceeds to

Number

 

Number

 

Exercise

 

Contractual

 

Company if

Outstanding

 

Exercisable

 

Price ($)

 

Life (Years)

 

Exercised ($)

635,000

 

635,000

 

3.25

 

2.37

 

2,063,750

2,717

 

2,717

 

3.35

 

0.92

 

9,102

1,057,485

 

498,328

 

3.40

 

8.85

 

3,595,449

800,000

 

800,000

 

3.60

 

7.60

 

2,880,000

1,682,837

 

1,682,837

 

4.00

 

4.01

 

6,731,348

11,801

 

11,801

 

4.35

 

0.70

 

51,334

89,163

 

89,163

 

4.38

 

5.32

 

390,534

50,000

 

50,000

 

4.80

 

4.26

 

240,000

696,000

 

696,000

 

5.00

 

4.49

 

3,480,000

5,025,003

 

4,465,846

 

 

 

 

 

19,441,517

b) Options (continued)

 

Stock-based compensation expense related to stock options of $1,021,938 and $664,819 was recorded in the nine months ended September 30, 2022 and September 30, 2021, respectively. Total remaining unrecognized compensation cost related to non-vested stock options is $436,344 and is expected to be recognized over a period of 1.01 years. As of September 30, 2022, the total intrinsic value of stock options outstanding was $nil.

 

c) Restricted Stock Units

 

Below is a table summarizing the RSUs issued and outstanding as of September 30, 2022, all of which were issued pursuant to the 2015 Stock Incentive Plan.

 

 

 

Number of

 

 

Weighted Average

 

 

 

RSUs

 

 

Share Price ($)

 

Outstanding at December 31, 2021

 

 

810,750

 

 

 

3.33

 

Granted

 

 

295,102

 

 

 

2.57

 

Vested/Settled

 

 

(333,352 )

 

 

3.34

 

Cancelled

 

 

(34,365 )

 

 

3.35

 

Outstanding at September 30, 2022

 

 

738,135

 

 

 

3.02

 

 

Effective February 8, 2022, the Company granted aggregate RSUs of 8,000 shares of common stock to an employee in exchange for services provided to the Company. These RSUs vest over 24 months, with 50% vesting on each of February 8, 2023 and February 8, 2024, subject to continued service, and will result in total compensation expense of $22,640.

 

Effective March 1, 2022, the Company granted aggregate RSUs of 30,000 shares of common stock to various employees in exchange for services provided to the Company. These RSUs vest over 24 months, with 50% vesting on each of March 1, 2023 and March 1, 2024, subject to continued service, and will result in total compensation expense of $84,300.

 

On March 28, 2022, 15,000 RSUs vested and resulted in the issuance of 15,000 shares of common stock.

 

Effective April 4, 2022, the Company granted aggregate RSUs of 32,000 shares of common stock to employees of the Company and /or its subsidiaries in exchange for services provided to the Company and /or its subsidiaries. The RSUs shall vest in two equal installments at 12 months and 24 months from the grant date, subject to continued service, and will result in total compensation expense of $94,400.

 

Effective April 4, 2022, the Company granted aggregate RSUs of 104,000 shares of common stock to employees of the Company and /or its subsidiaries in exchange for services provided to the Company and /or its subsidiaries. The RSUs shall vest in three equal installments at 12 months, 24 months and 36 months from the grant date, subject to continued service, and will result in total compensation expense of $306,800.

 

On April 19, 2022, 26,250 RSUs vested and resulted in the issuance of 21,712 shares of common stock and the remaining 4,538 shares of common stock were withheld for taxes and returned as authorized shares under the 2015 Stock Incentive Plan.

 

On May 1, 2022, 50,000 RSUs vested and resulted in the issuance of 35,000 shares of common stock and the remaining 15,000 shares of common stock were withheld for taxes and returned as authorized shares under the 2015 Stock Incentive Plan.

 

On May 31, 2022, an aggregate of 33,000 RSUs previously granted to employees were cancelled and returned as authorized shares under the 2015 Stock Incentive Plan upon the resignation of  such employees prior to vesting.

 

Effective June 1, 2022, the Company granted aggregate RSUs of 33,000 shares of common stock to various employees in exchange for services provided to the Company. These RSUs vest over two years, with 50% vesting on each of June 1, 2023 and June 1, 2024, subject to continued service, and will result in total compensation expense of $80,850.

c) Restricted Stock Units (continued)

 

On August 3, 2022, 230,102 RSUs vested and resulted in the issuance of 191,992 shares of common stock and the remaining 38,110 shares of common stock were withheld for taxes and returned as authorized shares under the 2015 Stock Incentive Plan.

 

Effective August 15, 2022, the Company granted aggregate RSUs of 63,102 shares of common stock to various employees in exchange for services provided to the Company. These RSUs vest over two years, with 50% vesting on each of August 15, 2023 and August 15, 2024, subject to continued service, and will result in total compensation expense of $126,835.

 

On August 18 2022, 1,365 RSUs previously granted to employees were cancelled and returned as authorized shares under the 2015 Stock Incentive Plan upon the resignation of  such employees prior to vesting.

 

On September 7, 2022, 12,000 RSUs vested and resulted in the issuance of 7,038 shares of common stock and the remaining 4,962 shares of common stock were withheld for taxes and returned as authorized shares under the 2015 Stock Incentive Plan.

 

Effective September 21, 2022, the Company granted aggregate RSUs of 25,000 shares of common stock to various employees in exchange for services provided to the Company. These RSUs vest over two years, with 50% vesting on each of September 21, 2023 and September 21, 2024, subject to continued service, and will result in total compensation expense of $42,250.

 

Below is a table summarizing the RSUs issued and outstanding as of September 30, 2022 and which have an aggregate weighted average remaining contractual life of 1.02 years.

 

 

 

 

 

Weighted

 

 

 

 

Average

 

 

 

 

Remaining

Number

 

Share

 

Contractual

Outstanding

 

Price ($)

 

Life (Years)

25,000

 

1.69

 

1.48

63,102

 

2.01

 

1.33

33,000

 

2.45

 

1.17

30,000

 

2.81

 

0.92

8,000

 

2.83

 

0.86

136,000

 

2.95

 

1.23

39,809

 

3.04

 

0.51

328,724

 

3.31

 

0.86

12,000

 

3.32

 

0.94

4,000

 

3.38

 

0.71

43,500

 

3.51

 

0.59

15,000

 

3.59

 

0.48

738,135

 

 

 

 

 

Stock-based compensation expense related to RSUs of $1,317,620 and $435,678 was recorded in the nine months ended September 30, 2022 and September 30, 2021, respectively. Total remaining unrecognized compensation cost related to non-vested RSUs is $1,120,983.