Note 14 - Stock Based Compensation

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

NOTE 14: STOCK BASED COMPENSATION

Stock Option and Incentive Plan

On March 24, 2020, the Board of Directors approved the adoption of the 2020 Stock Incentive Plan (the "2020 Plan”) to provide for the grant of equity-based awards to employees, officers, non-employee directors and other key persons providing services to the Company. No awards may be granted under the 2020 Plan after the date that is 10 years from the date of stockholder approval. An aggregate of 3,000,000 shares were initially reserved for issuance in connection with awards granted under the 2020 Plan and on May14, 2021 the stockholders approved an additional 15,000,000 shares available for issuance under the 2020 Plan.

The Company granted 175,000 and 3,818,921 options to purchase shares of common stock during the three and nine months ended September 30, 2021, respectively, and granted 225,000 and 3,140,000 options to purchase shares of common stock during the three and nine months ended September 30, 2020, respectively. There were 699,410 options exercised during the three and nine months ended September 30, 2021 at an average exercise price of $2.46 and there were 225,000 options exercised during the three and nine months ended September 30, 2020 at an average exercise price of $2.40. There are 11,926,079 shares available for grant under the 2020 Plan as of September 30, 2021. Shares may no longer be granted under the expired 2010 Stock Option and Incentive Plan (the "2010 Plan").

The fair value of the stock options granted for the nine months ended September 30, 2021 and 2020 was calculated using the Black-Scholes option-pricing model applying the following assumptions:

	Period ended September 30,
	2021		2020
Risk-free interest rate		0.89%-1.08%		0.28%-0.47%
Expected term (in years)		5.31-6.17		4.50-6.18
Dividend yield		-		-
Expected volatility		122%-130%		103%-129%

Compensation costs associated with the Company’s stock options are recognized, based on the grant-date fair values of these options, over the requisite service period, or vesting period. Accordingly, the Company recognized stock-based compensation expense of $1,794,138 and $3,647,999 for the three and nine months ended September 30, 2021 and $663,593 and $2,387,829 for the three and nine months ended September 30, 2020, respectively. Compensation cost is recognized in the following captions in the condensed consolidated statements of operations. 

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
General and administrative	$	1,231,590	$	489,853	$	2,534,117	$	1,675,414
Research and development		562,548		173,740		1,113,882		712,415
Total stock compensation expense	$	1,794,138	$	663,593	$	3,647,999	$	2,387,829

Options issued and outstanding as of September 30, 2021 under the 2020 and 2010 Plans and their activities during the nine months then ended are as follows:

	Number of Underlying Shares			Weighted- Average Exercise Price Per Share		Weighted- Average Contractual Life Remaining in Years		Aggregate Intrinsic Value
Outstanding as of January 1, 2021		7,067,436		$	2.74		-
Granted		3,818,921			2.98		-		99,800
Exercised		(699,410	)		2.46		-		2,753,652
Forfeited		(75,000	)		3.05		-		-
Expired		(223	)		225.00		-		-
Outstanding as of September 30, 2021		10,111,724			2.84		8.53	$	11,697,962
Exercisable as of September 30, 2021		5,663,935			2.94		7.87	$	9,039,985
Vested and expected to vest		10,111,724		$	2.84		8.53	$	11,697,962

At September 30, 2021, there were 4,447,789 unvested options outstanding and the related unrecognized total compensation cost associated with these options was approximately $9,245,529. This expense is expected to be recognized over a weighted-average period of 1.66 years.