EQUITY-BASED COMPENSATION

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Equity Incentive Plans

The Company has granted options to employees, directors, and consultants under the 2015 Equity Incentive Plan (the "2015 Plan"). The 2015 Plan provides for the grant of incentive stock options ("ISOs"), nonstatutory stock options, restricted stock awards, restricted stock units, stock appreciation rights, performance-based stock awards and other stock-based awards. Additionally, the 2015 Plan provides for the grant of performance-based cash awards. ISOs may be granted only to the Company's employees. All other awards may be granted to the Company's employees, including officers, and to non-employee directors and consultants. As of March 31, 2022, there were 1,126,976 shares remaining available for the grant of option awards under the 2015 Plan.

During the three-months periods ended March 31, 2022 and 2021, the Company awarded 1,254,000 and 40,000 stock options, respectively, to its employees and directors, pursuant to the plan described above. Stock options generally vest over one to four years and have a contractual term of ten years. Stock options are valued using the Black-Scholes option pricing model and compensation cost is recognized based on the resulting value over the service period. Expected volatilities utilized in the model are based on implied volatilities from traded stocks of peer companies. Similarly, the dividend yield is based on historical experience and the estimate of future dividend yields. The risk-free interest rate is derived from the U.S. Treasury yield curve in effect at the time of grant. The expected term of the options is based on the average period the stock options are expected to remain outstanding. The fair value of the option grants awarded during each of the three months periods ended March 31, 2022 and 2021 was $0.5 million and $0.1 million, respectively, which has been estimated with the following assumptions on the grant date.


	1/20/2022	3/10/2021
Risk-free interest rate	1.62%-1.70%	1.00%
Volatility	125.19%	133.35%
Expected life (years)	5.00-6.00	6.00
Expected dividend yield	0%	0%

The following table summarizes stock option activity for employees and non-employees for the three months ended March 31, 2022 and 2021:


	Shares	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding at December 31, 2020	1,563,972	$2.78		9.47	$175,770
Granted	40,000	1.49
Exercised	—
Forfeited	—	—
Expired	—
Outstanding at March 31, 2021	1,603,972	$2.75		9.24	$787,801
Exercisable at March 31, 2021	143,747	$18.96		7.00	$57,900

Outstanding at December 31, 2021	1,597,972	$2.75		8.50	$—
Granted	1,254,000	$	0.48
Exercised	—
Forfeited	—
Expired	—
Outstanding at March 31, 2022	2,851,972	$1.75		8.94	$—
Exercisable at March 31, 2022	768,900	$4.46		8.01	$—

As of March 31, 2022 and 2021, there was approximately $1.3 million of total unrecognized compensation cost related to unvested stock options. Total unrecognized compensation cost will be adjusted for future changes in employee and non-employee forfeitures, if any. The Company expects to recognize that cost over a remaining weighted-average period of 2.8 years.