In September 2011, the Company adopted the 2011 Employee Stock Incentive Plan (the “2011 Plan”) which provides for the granting of incentive and non-statutory common stock options and stock based incentive awards to employees, non-employee

directors, consultants and independent contractors. The plan was terminated by its terms on August 31, 2021 and no new awards will be issued under the 2011 Plan.

In February 2018, the Company adopted the 2018 Employee Stock Incentive Plan (the “2018 Plan” and together with the 2011 Plan, the “Option Plans”), which will be utilized with the 2011 Plan for employees, corporate officers, directors, consultants and other key persons employed. The 2018 Plan will provide for the granting of incentive stock options, NQSOs, stock grants and other stock-based awards, including Restricted Stock and Restricted Stock Units (as defined in the 2018 Plan).

Incentive stock options granted under the Option Plans are granted at exercise prices not less than 100% of the estimated fair market value of the underlying common stock at date of grant. The exercise price per share for incentive stock options may not be less than 110% of the estimated fair value of the underlying common stock on the grant date for any individual possessing more that 10% of the total outstanding common stock of the Company. Options granted under the Option Plans vest over periods ranging from immediately to four years and are exercisable over periods not exceeding ten years.

The aggregate number of shares that may be awarded under the 2018 Plan as of December 31, 2023 is 62,164,297. As of December 31, 2023, 1,496 of options and restricted stock were granted to employees, directors and consultants of the Company (including 9 shares under our 2011 Plan), and 62,162,810 options were available for future grant under the Option Plans.

During the year ended December 31, 2022, the Company granted options under the 2018 Plan for the purchase of 1,327 shares of common stock to employees and consultants of the Company. These options are 100% vested or vest pro-rata over 12, 24 or 36 months, have a life of 10 years and an exercise price of $3,974.00 per share. The Company valued the stock options using the Black-Scholes option valuation model and the fair value of the awards was determined to be approximately $1.8 million. The fair value of the common stock as of the grant date was determined to be between $3,974.00 per share.

During the year ended December 31, 2023 and 2022, the Company recorded a charge of approximately $1.0 million and $2.9 million, respectively, for the amortization of employee stock options (not including restricted stock awards), which is included in the general and administrative section of the consolidated statement of operations, of which approximately $0.2 million and approximately $1.9 million pertain to discontinued operations.

As of December 31, 2023, the fair value of non-vested options totaled approximately $0.8 million, which will be amortized to expense over the weighted average remaining term of 0.98 years.

The fair value of each employee option grant is estimated on the date of the grant using the Black-Scholes option-pricing model. Key weighted-average assumptions used to apply this pricing model during the year ended December 31, 2022 were as follows:


	For the Year Ended December 31,
	2022
Risk-free interest rate	1.50% - 1.76%
Expected life of option grants	5 years
Expected volatility of underlying stock	37.24% - 37.45%
Dividends assumption	$	—

The expected stock price volatility for the Company’s stock options was determined by the historical volatilities for industry peers and used an average of those volatilities. The Company attributes the value of stock-based compensation to operations on the straight-line single option method. Risk free interest rates were obtained from U.S. Treasury rates for the applicable periods. The dividends assumptions was $0 as the Company historically has not declared any dividends and does not expect to.


	2011 Plan	2018 Plan	Non Plan	Total	Weighted Average Exercise Price		Aggregate Intrinsic Value (in thousands)
Outstanding at January 1, 2022	73	2,519	1	2,593	$	2,335,830.00	$	—
Granted	—	1,327	—	1,327	3,974.00		—
Exercised	—	—	—	—	—		—
Expired	(16)	(145)	—	(161)	8,071,398.00		—
Forfeitures	—	(186)	—	(186)	7,497.00		—
Outstanding at December 31, 2022	57	3,515	1	3,573	$	1,701,544.00	$	—
Granted	—	—	—	—	—		—
Exercised	—	—	—	—	—		—
Expired	(48)	(2,254)	(1)	(2,303)	2,310,676.00		—
Forfeitures	—	(207)	—	(207)	7,437.00		—
Outstanding at December 31, 2023	9	1,054	—	1,063	$	730,081.00	$	—

Exercisable at December 31, 2023	9	620	—	629	$	1,241,985.00	$	—

During the years ended December 31, 2023 and 2022 the Company recorded a charge of approximately $0.03 million and $0.8 million, respectively, for the amortization of vested restricted stock awards.


	Number of Shares	Weighted Average Grant Date Fair Value
Balance, January 1, 2022	558	$	13,500.00
Granted	—	$	—
Forfeited	(128)	$	13,725.00
Balance, December 31, 2022	430	$	13,426.00
Granted	—	$	—
Forfeited	—	$	—
Balance, December 31, 2023	430	$	13,426.00