Note 7 - Stock Options

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

7. Stock Options

As a result of the Merger closing (see Notes 2 and 3) there were 649,643 fully vested stock options outstanding at March 15, 2021 that were previously issued by ADOMANI, Inc. and assumed in the Merger. The outstanding options at September 30, 2022 consisted of the following:

						Weighted
						Average
						Remaining
	Number of			Exercise		Contractual Life
	Shares			Price		(years)
Outstanding at December 31, 2021		338,500		$	5.80		6.98
Options granted during 9 months ended September 30, 2022:
Options Granted at $2.00 Exercise Price		250,000		$	2.00
Options Granted at $2.40 Exercise Price		90,893		$	2.40
Options Granted at $3.62 Exercise Price		2,762		$	3.62
Options Granted at $9.00 Exercise Price		1,111		$	9.00
Exercised		(50,000	)	$	2.40
Cancelled / Forfeited at $9.00 Exercise Price		(25,000	)	$	9.00
Subtotal, as follows:		608,266
Outstanding Options at $2.00 Exercise Price		250,000		$	2.00		9.30
Outstanding Options at $2.40 Exercise Price		90,893		$	2.40		9.30
Outstanding Options at $3.62 Exercise Price		2,762		$	3.62		4.34
Outstanding Options at $9.00 Exercise Price		257,861		$	9.00		8.21
Outstanding Options at $26.20 Exercise Price		6,750		$	26.20		5.55
Outstanding at September 30, 2022		608,266		$	5.30		8.77

On January 7, 2022, the Company’s Compensation Committee granted Phillip W. Oldridge, the Company’s Chief Executive Officer, options to purchase 150,000 shares of common stock at an exercise price of $2.00 per share and options to purchase 50,000 shares of common stock at an exercise price of $2.40 per share. The options vested immediately and expire on the tenth anniversary of grant.

On January 7, 2022, the Company’s Compensation Committee granted Susan M. Emry, the Company’s Executive Vice President, options to purchase 100,000 shares of common stock at an exercise price of $2.00 per share and options to purchase 40,893 shares of common stock at an exercise price of $2.40 per share. The options vested immediately and expire on the tenth anniversary of grant.

On January 31, 2022, the Company’s Compensation Committee granted Christian S. Rodich, the Company’s Chief Financial Officer, options to purchase 2,763 shares of common stock at an exercise price of $3.62 per share and options to purchase 1,111 shares of common stock at an exercise price of $9.00 per share. The options vest ratably at 1/60th per month over five years and expire on the tenth anniversary of grant.

On March 15, 2022, options to purchase 50,000 shares of common stock were exercised by the former President and CEO of the Company at a price of $2.40 per share, resulting in a payment to the Company of $120,000. Also on March 15, 2022, options to purchase an aggregate of 25,000 shares of common stock with an exercise price of $9.00 per share were forfeited by the former executive, as they were not exercised prior to their expiration on March 15, 2022.

As of September 30, 2022, outstanding options had intrinsic value of $873,288.