Stock Based Compensation

3 Months Ended

Mar. 31, 2022

Share-Based Payment Arrangement [Abstract]

Stock Based Compensation

Note 8 – Stock Based Compensation

Options

In 2019, the Company adopted the 2019 Omnibus Equity Incentive Plan (the "2019 Plan").   Awards granted under the 2019 Plan have a ten-year term and may be incentive stock options, non-statutory stock options, restricted stock, restricted stock units, stock appreciation rights, performance units or performance shares. The awards are granted at an exercise price equal to the fair market value on the date of grant and generally vest over a four-year period.

3,624,000 options were granted on March 16, 2022 when the Company’s shareholders approved the merger with Nutex resulting in a stock compensation expense of $14.2 million in the current period.

Stock option activity during the three months ended March 31, 2022 and 2021 follows:

	Options Outstanding		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Options outstanding at December 31, 2020		1,174,814	$	1.61		8.11
Options granted		1,225,000		1.61
Options assumed in merger		490,617		2.00
Options outstanding at  March 31, 2021		2,890,431	$	1.68		7.64
Options outstanding at  December 31, 2021		2,876,010	$	1.69		6.90
Options granted		3,624,000		2.78
Options outstanding at  March 31, 2022		6,500,010	$	2.30		6.62

Options outstanding at March 31, 2022 consist of:

Date Issued	Number Outstanding		Number Exercisable		Exercise Price		Expiration Date
August 5, 2019		40,480		40,480	$	5.56	August 5, 2029
October 29, 2019		3,600		3,600	$	0.0725	June 6, 2027
January 27, 2020		307,884		307,884	$	1.50	January 27, 2030
January 27, 2020		225,000		225,000	$	1.50	January 27, 2027
February 29, 2020		95,794		95,794	$	1.25	February 28, 2030
May 11, 2020		380,000		380,000	$	1.50	May 11, 2027
June 30, 2020		122,056		122,056	$	1.45	June 30, 2030
January 28, 2021		1,000,000		1,000,000	$	1.61	January 28, 2031
January 28, 2021		225,000		225,000	$	1.61	January 28, 2028
February 25, 2021		201,196		201,196	$	2.00	March 15, 2025
February 25, 2021		200,000		200,000	$	2.00	February 25, 2031
August 16, 2021		75,000		75,000	$	2.51	August 16, 2027
March 16, 2022		2,975,000		2,975,000	$	2.75	September 7, 2027
March 16, 2022		492,000		492,000	$	2.75	September 27, 2027
March 16, 2022		157,000		157,000	$	3.50	December 17, 2027
Total		6,500,010		6,500,010

Warrants

In 2018, the Company issued fully vested warrants to investors as part of a private placement offering. Each unit offered in the private placement consisted of one share of common stock, and a warrant convertible into 0.4 shares of common stock at an exercise of $1.50 per whole share. The warrants are exercisable for a period of five years from the date of issuance. The warrants were cancelled on March 1, 2019 and reissued upon the Qualmetrix acquisition and are each convertible into one share of common stock at an exercise price of $6.67 per share until December 31, 2024.

In November 2019, the Company issued fully vested warrants to investors as part of private placement subscription agreements pursuant to which the Company issued convertible promissory notes. Each noteholder received warrants to purchase common stock of 50% of the principal at an exercise price of $5.56 per share with an expiration date of October 31, 2025.

Warrant activity during the three months ended March 31, 2022 and 2021 follows:

	Warrants Outstanding			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Warrants outstanding at December 31, 2020		557,873		$	6.77		3.79
Warrants assumed in merger		5,534,513			—
Warrants outstanding at March 31, 2021		6,092,386		$	2.27		4.52
Warrants outstanding at December 31, 2021		12,383,550		$	2.04		4.64
Warrants granted		33,820			1.51
Warrants exercised		(16,130	)		1.55
Warrants outstanding at December 31, 2021		12,401,240		$	2.04		4.65

Warrants outstanding at March 31, 2022 consist of:

Date Issued	Number Outstanding		Number Exercisable		Exercise Price		Expiration Date
March 21, 2019		96,433		96,433	$	6.67	December 31, 2024
April 30, 2019		3,598		3,598	$	6.67	December 31, 2024
May 13, 2019		14,393		14,393	$	6.67	December 31, 2024
May 28, 2019		199,703		199,703	$	6.67	December 31, 2024
June 5, 2019		7,197		7,197	$	6.67	December 31, 2024
June 25, 2019		208,361		208,361	$	6.67	December 31, 2024
September 6, 2019		25,188		25,188	$	6.67	December 31, 2024
October 29, 2019		1,500		1,500	$	25.00	February 5, 2023
October 29, 2019		1,500		1,500	$	25.00	April 27, 2023
November 19, 2019		16,250		16,250	$	1.25	October 31, 2025
February 25, 2021		1,650,443		1,650,443	$	1.55	October 31, 2025
February 25, 2021		500,000		500,000	$	4.00	February 26, 2026
February 25, 2021		1,456,452		1,456,452	$	1.55	February 1, 2027
February 25, 2021		2,694,190		2,694,190	$	1.55	July 31, 2026
May 14, 2021		651,429		651,429	$	1.75	May 30, 2027
May 28, 2021		228,571		228,571	$	1.75	May 30, 2027
June 11, 2021		182,857		182,857	$	1.75	May 30, 2027
June 22, 2021		137,143		137,143	$	1.75	May 30, 2027
June 24, 2021		169,143		169,143	$	1.75	May 30, 2027
June 28, 2021		45,714		45,714	$	1.75	May 30, 2027
June 29, 2021		45,714		45,714	$	1.75	May 30, 2027
July 6, 2021		28,571		28,571	$	1.75	May 31, 2027
July 22, 2021		12,857		12,857	$	1.75	May 31, 2027
July 29, 2021		57,142		57,142	$	1.75	May 31, 2027
August 6, 2021		157,143		157,143	$	1.75	May 31, 2027
August 10, 2021		14,286		14,286	$	1.75	May 31, 2027
August 11, 2021		128,571		128,571	$	1.75	May 31, 2027
August 12, 2021		42,857		42,857	$	1.75	May 31, 2027
August 16, 2021		14,286		14,286	$	1.75	May 31, 2027
August 17, 2021		14,286		14,286	$	1.75	May 31, 2027
August 27, 2021		28,571		28,571	$	1.75	May 31, 2027
August 31, 2021		71,429		71,429	$	1.75	May 31, 2027
September 1, 2021		228,572		228,572	$	1.75	May 31, 2027
September 3, 2021		50,000		50,000	$	1.75	May 31, 2027
September 9, 2021		88,571		88,571	$	1.75	May 31, 2027
September 17, 2021		14,286		14,286	$	1.75	May 31, 2027
September 20, 2021		422,856		422,856	$	1.75	May 31, 2027
September 22, 2021		1,328,002		1,328,002	$	1.75	May 31, 2027
September 23, 2021		500,000		500,000	$	3.50	May 31, 2027
October 8, 2021		564,069		564,069	$	1.75	May 31, 2027
October 22, 2021		281,964		281,964	$	1.75	May 31, 2027
March 18, 2022		17,142		17,142	$	1.75	May 31, 2027
Total		12,401,240		12,401,240