On November 4, 2020, the Board of Directors authorized the repurchase of up to $25 million of the Company's shares of Common Stock. The timing and amount of any shares purchased on the open market will be determined based on the Company's evaluation of market conditions, share price and other factors. The Company plans to utilize existing cash on hand to fund the share repurchase program.

During the nine months ended September 30, 2021, a cumulative total of 3,202,690 shares, with a weighted average price of $3.72, for a value of $11.9 million,were repurchased and recorded as Treasury Stock in the condensed consolidated balance sheet.

During the nine months ended September 30, 2021, a total of 3,192,505 options to purchase Common Stock, with an aggregate fair market value of approximately $12.9 million, were granted to employees, executive officers and Board of Directors of the Company. Options have a term of 10 years from the grant date. Options granted to employees and officers will vest ratably over a three-year period. Options granted to Board of Directors vest one half immediately and the remaining half on the anniversary of grant.

The fair value of each option award is estimated on the grant date using the Black-Scholes valuation model that uses assumptions for expected volatility, expected dividends, expected term, expected rate of forfeiture and the risk-free interest rate. Expected volatilities are based on implied volatilities from historical volatility of the Common Stock, and other factors estimated over the expected term of the options.

Expected term of options granted is derived using the “simplified method” which computes expected term as the average of the sum of the vesting term plus contract term. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the period of the expected term.

The key assumptions used in determining the fair value of options granted during the nine months ended September 30, 2021 follows:


Expected price volatility			53.70%-59.87%
Risk-free interest rate			0.50%-1.17%
Weighted average expected life in years			6 years
Dividend yield			—

Option activity during the nine months ended September 30, 2021 was as follows:


	Number of shares	Weighted average exercise price per share		Aggregate intrinsic value
Outstanding at January 1, 2021	7,060,966	$	4.55	$	2,831
Granted in 2021:
Officers and Directors	1,345,292	3.83
Employees	1,847,213	4.20
Exercised	(155,690)	2.90
Forfeitures	(539,802)	4.72
Outstanding at September 30, 2021	9,557,979	$	4.40	$	8,589

During the nine months ended September 30, 2021 and 2020, Company employees and directors exercised approximately 155,690 and 1,159,347 stock options, respectively, with net proceeds to the Company of approximately $0.5 million and

$2.8 million, respectively. The intrinsic value of options exercised during the nine months ended September 30, 2021 and 2020 was approximately $0.1 million and $3.1 million, respectively.

As of September 30, 2021, options exercisable totaled 4,153,242. There are approximately $9.3 million of unrecognized compensation costs related to non-vested share-based compensation awards, including options and restricted stock units (“RSUs”) granted. These costs will be expensed through 2024.

During the nine months ended September 30, 2021, a cumulative total of 278,369 RSUs were granted to the Company’s executive officers, members of senior management and the Board of Directors, with a fair market value of approximately $1.1 million. The fair value of restricted units is determined using quoted market prices of the Common Stock and the number of shares expected to vest. RSU grants are time-based, all of which generally vest from a one to three-year period.

Restricted stock activity during the nine months ended September 30, 2021 was as follows:


	Number of restricted shares	Weighted average fair market value per RSU
Outstanding at January 1, 2021	940,759	$	3.71
Granted:
Officers and Directors	242,562	3.83
Employees	35,807	3.84
Vested	(484,159)	3.84
Forfeitures	—	—
Outstanding at September 30, 2021	734,969	$	4.08

The Company has granted warrants to purchase shares of Common Stock. Warrants may be granted to affiliates in connection with certain agreements.

As of September 30, 2021, a cumulative total of 2,051,033 warrants, with exercise prices ranging from $2.38 to $3.42, remain exercisable and outstanding. The warrants were valued using the Black-Scholes Model, which a cumulative fair value of approximately $4.5 million. There were no warrants granted or exercised during the nine months ended September 30, 2021.

As of September 30, 2021, 443 shares of Series B Preferred Stock (“Series B”) are outstanding. There were no conversions of Series B during the nine months ended September 30, 2021.