Note 14 - Stock Based Compensation

3 Months Ended

Mar. 31, 2022

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 (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 shares were initially reserved for issuance in connection with awards granted under the 2020 Plan. On  May 14, 2021, the stockholders approved an additional 15,000 shares available for issuance under the 2020 Plan. There are 9,214 options available for grant under the 2020 Plan as of March 31, 2022.

The Company granted options to purchase 2,722 and 0 shares of common stock to employees during the three months ended March 31, 2022 and 2021, respectively. The weighted average grant date fair value of options granted during the three months ended March 31, 2022 was $1.07. There were no options exercised during the three months ended March 31, 2022 and 2021. 

The fair value of stock options granted for the three months ended March 31, 2022, was calculated using the Black-Scholes option-pricing model applying the following assumptions:

	Three Months Ended March 31,
	2022
Risk-free interest rate		1.86% - 2.53%
Expected term (in years)		5.51 - 6.11
Dividend yield		-
Expected volatility		117% - 128%

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 $1,806 and $640 for the three months ended March 31, 2022 and 2021, respectively, which was included in the following captions in the consolidated statements of operations:

	Three Months Ended March 31,
	2022		2021
General and administrative	$	1,184	$	450
Research and development		622		190
Total stock compensation expense	$	1,806	$	640

Options issued and outstanding as of March 31, 2022, and their activities during the three months 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, 2022		10,027	$	2.82			$	1,006
Granted		2,722		1.25
Exercised		-		-
Forfeited		-		-
Expired		-		-
Outstanding as of March 31, 2022		12,749		2.48		8.42	$	-
Exercisable as of March 31, 2022		7,279		2.82		7.67
Vested and expected to vest		12,749	$	2.48		8.42	$	-

At March 31, 2022, there were 5,470 unvested options outstanding and the related unrecognized total compensation cost associated with these options was $8,279. This expense is expected to be recognized over a weighted-average period of 1.48 years.

Defined Contribution Plan

The Company has a defined contribution plan to which employees of the Company may defer compensation for income tax purposes. Participants are eligible to receive employer matching contributions of up to 6% of deferrals. Employees may also be eligible for a discretionary match over 6%. Defined contribution plan employer matching contributions for the three months ended March 31, 2022 and 2021, were $34 and $33, respectively.