Share-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

The assumptions used in the Black-Scholes option pricing model for stock options granted during the nine months ended September 30, 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 nine months ended September 30, 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)	(123,000)	1.88
Expired	—	—
Canceled	—	—
Outstanding at September 30, 2020	4,650,390	$2.44	5.9	$23,870,114

Exercisable at September 30, 2020	3,292,794	$1.78	4.7	$19,067,568

_________________

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 123,000 stock options exercised with a weighted average exercise price of $1.88.

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 September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
General and administrative	$	354,264	$	118,754	$	1,125,217	$	957,843
Research and development	46,417		25,426		139,016		76,503
Total	$	400,681	$	144,180	$	1,264,233	$	1,034,346