Stock-based Compensation

12 Months Ended

Dec. 31, 2021

21. Stock-based compensation

On November 1, 2010, the Company approved the Amended and Restated 2006 Stock Incentive Plan of SANUWAVE Health, Inc. effective as of January 1, 2010 (the “Stock Incentive Plan”). The Stock Incentive Plan permits grants of awards to selected employees, directors and advisors of the Company in the form of restricted stock or options to purchase shares of common stock. Options granted may include non-statutory options as well as qualified incentive stock options. The Stock Incentive Plan is currently administered by the board of directors of the Company. The Stock Incentive Plan gives broad powers to the board of directors of the Company to administer and interpret the particular form and conditions of each option. The stock options granted under the Stock Incentive Plan are non-statutory options which generally vest over a period of up to three years and have a ten-year term. The options are granted at an exercise price determined by the board of directors of the Company to be the fair market value of the common stock on the date of the grant. As of December 31, 2021 and 2020, the Stock Incentive Plan reserved a total of 35,000,000 and 35,000,000, respectively, shares of common stock for grant.

The following is a summary of the activity of the Stock Incentive Plan for the years ended December 31, 2021 and 2020:

	Options			Weighted Average Exercise Price per share		Weighted Average Remaining Contractual Life (years)		Aggregate Intrinsic Value
Outstanding at December 31, 2019		34,303,385		$	0.28		6.62	$	981,088
Granted		100,000			0.26
Exercised		(325,000	)		0.15
Forfeited or expired		(2,140,000	)		0.71
Outstanding at December 31, 2020		31,938,385			0.26		5.94	$	1,372,116
Granted		-			-
Exercised		-			-
Forfeited or expired		(179,000	)		0.18
Outstanding at December 31, 2021		31,759,385			0.26		4.92	$	1,056,236

Vested and exercisable at December 31, 2021		31,409,385		$	0.26		4.92	$	1,056,236

On December 31, 2021, there were 3,240,615 shares of common stock available for grant under the Stock Incentive Plan.

The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model using the following weighted average assumptions for the year ended December 31, 2020 is shown below:

	2020
Weighted average expected life in years		5.00
Weighted average volatility		124	%
Weighted average risk free interest rate		1.6	%
Expected dividend yield		0.00	%

For the years ended December 31, 2021 and 2020, the Company recognized $0 thousand and $22 thousand, respectively, as compensation cost related to options granted. The compensation cost is included in operating expenses in the accompanying consolidated statements of comprehensive loss. As of December 31, 2021 and 2020, there are no unamortized compensation costs related to options granted.