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11. STOCK OPTION PLANS

12 Months Ended

Dec. 31, 2020

2019 Stock Option Plan

On July 9, 2019, the Company established the 2019 Stock Option Plan (the “2019 Option Plan”) for officers and certain full-time and part-time employees of the Company. Non-employee directors of the Company are not entitled to participate under this plan. The 2019 Option Plan provides for 4,000,000 shares of common stock for issuance upon the exercise of stock options granted under the plan. Under this plan, stock options are granted at the discretion of the Compensation Committee of the Board of Directors at an option price not less than the fair market value of the stock on the date of grant. The options are exercisable in accordance with terms specified by the Compensation Committee not to exceed 10 years from the date of grant. Option activity under this plan follows.

	Number of shares			Weighted average exercise price		Weighted Average Remaining Contractual Life
Outstanding as of January 1, 2019		––		$	––		––
Granted		820,000			0.83
Exercised		––			––
Outstanding as of December 31, 2019		820,000		$	0.83		2.68
Granted		277,037			2.02
Assumed with Minim Merger		1,432,018			0.61
Exercised		(276,856	)		0.82
Expired/Forfeited		(205,000	)		0.84
Outstanding as of December 31, 2020		2,047,199		$	0.84		3.51
Options exercisable at December 31, 2020		682,770		$	0.67		2.79

The weighted average grant date fair value of options granted was $2.65 and $0.40 in 2020 and 2019, respectively. The aggregate intrinsic value of options outstanding was approximately $5.7 million and $0.3 million at December 31, 2020 and 2019, respectively. The aggregate intrinsic value of exercisable options was approximately $2.0 million and $0 at December 31, 2020 and 2019, respectively. As of December 31, 2020, there remained 1,675,945 options available to be issued under the 2019 Option Plan. Upon the Minim Merger, the Company converted 1,432,018 options to Minim option holders in exchange for approximately 1,787,654 Minim stock options.

2019 Director Stock Option Plan

On July 9, 2019, the Company established the 2019 Director Stock Option Plan (the "2019 Directors Plan"). The Directors Plan was established for all members of the Board of Directors of the Company except for any director who is a full-time employee or full-time officer of the Company. The option price is the fair market value of the common stock on the date the option is granted. There are 1,000,000 shares authorized for issuance under the 2019 Directors Plan. Option activity under this plan follows.

	Number of shares			Weighted average exercise price		Weighted Average Remaining Contractual Life
Outstanding as of January 1, 2019		––		$	––		––
Granted		45,000			0.97
Exercised		––			––
Outstanding as of December 31, 2019		45,000		$	0.97		2.50
Granted		297,963			2.26
Assumed with Minim Merger		225,981			0.62
Exercised		(56,500	)		1.51
Expired/Forfeited		(15,000	)		1.06
Outstanding as of December 31, 2020		487,354		$	1.52		3.27
Options exercisable at December 31, 2020		282,124		$	0.9958		2.32

The weighted average grant date fair value of options granted was $1.30 and $0.53 in 2020 and 2019, respectively. The aggregate intrinsic value of options outstanding was approximately $964.3 thousand and $9.5 thousand at December 31, 2020 and 2019, respectively. The aggregate intrinsic value of exercisable options was approximately $696.3 thousand and $9.5 thousand at December 31, 2020 and 2019, respectively. As of December 31, 2020, there remained 446,146 options available to be issued under the 2019 Directors Plan. Upon the Minim Merger, the Company converted 225,891 options to Minim option holders in exchange for approximately 281,990 Minim stock options.

2009 Stock Option Plan

On December 10, 2009, the Company established the 2009 Stock Option Plan (the “2009 Option Plan”) for officers and certain full-time and part-time employees of the Company. Non-employee directors of the Company are not entitled to participate under this plan. The 2009 Option Plan provides for 5,500,000 shares of common stock for issuance upon the exercise of stock options granted under the plan. Under this plan, stock options are granted at the discretion of the Compensation Committee of the Board of Directors at an option price not less than the fair market value of the stock on the date of grant. The options are exercisable in accordance with terms specified by the Compensation Committee not to exceed 10 years from the date of grant. Option activity under this plan follows.

	Number of shares			Weighted average exercise price		Weighted Average Remaining Contractual Life
Outstanding as of January 1, 2019		1,569,603			1.41		2.13
Granted		90,000			0.95
Exercised		(199,792	)		0.24
Expired/Forfeited		(150,000	)		---
Outstanding as of December 31, 2019		1,309,811			1.45		1.28
Granted		––			––
Exercised		(655,001	)		1.01
Expired/Forfeited		(236,200	)		1.50
Outstanding as of December 31, 2020		418,610		$	2.06		0.58
Options exercisable at December 31, 2020		418,610		$	2.06		0.58

The weighted average grant date fair value of options granted was $0.46 in 2019. No grants were issued under this plan in 2020. The aggregate intrinsic value of options outstanding was approximately $654 thousand at December 31, 2020 and approximately $369 thousand at December 31, 2019. The aggregate intrinsic value of exercisable options was approximately $654 thousand at December 31, 2020 and $353 thousand at December 31, 2019. As of December 31, 2020, there remained no options available to be issued under the 2009 Option Plan. The 2009 Option Plan terminated on December 1, 2019. The 2019 Stock Option Plan was approved on July 9, 2019 and replaced the 2009 Option Plan.

2009 Directors Option Plan

On December 10, 2009, the Company established the 2009 Directors Option Plan (the "2009 Directors Plan"). The 2009 Directors Plan was established for all Directors of the Company except for any director who is a full-time employee or full-time officer of the Company. The option price is the fair market value of the common stock on the date the option is granted. There are 700,000 shares authorized for issuance under the 2009 Directors Plan. Each option expires five years from the grant date. Option activity under this plan follows.

	Number of shares			Weighted average exercise price		Weighted Average Remaining Contractual Life
Outstanding as of January 1, 2019		342,500			1.71		2.52
Granted		97,500			1.09
Exercised		(60,000	)		0.23
Expired/Forfeited		(80,000	)
Outstanding as of December 31, 2019		300,000			1.63		2.00
Granted		––			––
Exercised		(135,000	)		1.44
Expired/Forfeited		(30,000	)		0.88
Outstanding as of December 31, 2020		135,000		$	1.98		0.82
Options exercisable at December 31, 2020		135,000		$	1.98		0.82

The weighted average grant date fair value of options granted was $0.57 in 2019. No grants were issued under this plan in 2020. The aggregate intrinsic value of options outstanding was approximately $222 thousand at December 31, 2020 and $41 thousand at December 31, 2019. The aggregate intrinsic value of exercisable options was approximately $222 thousand at December 31, 2020 and $41 thousand at December 31, 2019. As of December 31, 2019, there remained no options available to be issued under the 2009 Directors Option Plan. The 2009 Directors Option Plan terminated on December 1, 2019. The 2019 Directors Option Plan was approved on July 9, 2019 and replaced the 2009 Directors Option Plan.

The Black-Scholes range of assumptions for all stock option plans is shown below:

	2020	2019
Assumptions:

Expected life	3.24 (yrs) - 6.25 (yrs)	2.75 (yrs) - 3.5 (yrs)

Expected volatility	37% - 114.41%	77.74% - 87.40%

Risk-free interest rate	0.19% - 1.67%	1.34% - 2.69%

Expected dividend yield	0.00%	0.00%

The unrecognized stock-based compensation expense related to non-vested stock awards was approximately $705.0 thousand as of December 31, 2020. This amount will be recognized through the fourth quarter of 2021.