Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2020

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of valuation assumptions

The assumptions used in the Black-Scholes option pricing model for stock options granted during the three months ended March 31, 2020 are as follows:

Risk-Free interest rate	0.25% - 1.72%
Expected dividend yield	—	%
Expected stock price volatility	39.94% - 51.22%
Expected life of options	1.75 - 6.25 Years

Schedule of stock option activity

The following table summarizes the stock option activities during the three months ended March 31, 2020: 

	Shares	Weighted-Average Exercise Price	Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding at December 31, 2019	3,860,390	$1.76	5.7	$13,287,932
Granted (1)	913,000	5.24
Exercised (2)	(110,000)	1.78
Expired	—	—
Canceled	—	—
Outstanding at March 31, 2020	4,663,390	$2.44	6.4	$13,017,190
Exercisable at March 31, 2020	3,167,983	$1.67	5.1	$11,201,783

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Notes:

(1) Represents the following stock options granted:

•Annual share-based compensation awards on January 2, 2020, including: (a) 525,000 stock options with an exercise price of $5.27 per share granted to executives and key personnel, vesting upon one year anniversary, or annually in equal installments over four years, (b) 325,000 stock options with an exercise price of $5.27 per share granted to the Board of Directors, vesting upon one year anniversary, (c) 23,000 stock options with an exercise price of $5.27 per share granted to employees, vesting annually in equal installments over four years, and (d) 15,000 stock options with an exercise price of $5.27 per share granted to a consultant, vesting upon one year anniversary.

•One-time awards on March 22, 2020, including 25,000 stock options to a contractor with an exercise price of $3.99 per share, vesting in six months from the date of grant.

(2) Represents the following stock options exercised:

•A total of 110,000 stock options exercised with a weighted average market price of $1.78, among which, 10,000 shares were issued in May 2020.

Schedule of non-cash stock option compensation expense

Total non-cash stock option compensation expense was allocated among the following expense categories: 

	Three Months Ended March 31,
	2020		2019
General and administrative	$	380,251	$	233,214
Research and development	46,688		76,349
Total	$	426,939	$	309,563