Note 15 - Stock Based Compensation

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

NOTE 15: STOCK BASED COMPENSATION

 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 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 were 8,251 options available for future grants under the 2020 Plan as of December 31, 2022.

On September 28, 2010, the Board of Directors approved the adoption of the 2010 Stock Option and Incentive Plan (the 2010 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. Awards of incentive options could be granted under the 2010 Plan until September 2020. Shares may no longer be granted under this plan. 

The Company granted 4,079 and 3,819 options to purchase shares of common stock to employees and directors during the years ended December 31, 2022 and 2021, respectively. The weighted average grant date fair value of options granted during 2022 and 2021 was $0.96 and $2.56, respectively. There were 699 options exercised during the year ended December 31, 2021, at a weighted average exercise price of $2.46. The Company issued 298 new common shares upon net exercise of these options. No options were exercised during the year ended December 31, 2022.

The fair values of stock options granted were calculated using the Black-Scholes option-pricing model applying the following assumptions:

	Year Ended December 31,
	2022		2021
Risk-free interest rate		1.86% - 3.56%		0.89% - 1.08%
Expected term (in years)		5.19 - 6.11		5.31 - 6.17
Dividend yield		-		-
Expected volatility		103% - 128%		122% - 130%

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, which was included in the following line items, in the Consolidated Statements of Operations:

	Year Ended December 31,
	2022		2021
General and administrative	$	4,395	$	3,676
Research and development		2,393		1,591
Total stock compensation expense	$	6,788	$	5,267

Options issued and outstanding as of December 31, 2022, and their activities during the year ended 2022 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
Granted		4,079		1.13			$	51
Forfeited		(200)		0.91
Exercised		-		-
Expired		-		-				-
Outstanding as of December 31, 2022		13,906	$	2.35		7.82	$	-
Exercisable as of December 31, 2022		10,283	$	2.59		7.41	$	-
Vested and expected to vest		13,906	$	2.35		7.82	$	-

On December 31, 2022, there were 3,623 unvested options outstanding, and the related unrecognized total compensation cost associated with these options was $4,157. This expense is expected to be recognized over a weighted-average period of 1.04 years.