Stock Options and Restricted Stock Units ("RSU's")

6 Months Ended

Jun. 30, 2023

Stock Options and Restricted Stock Units ("RSU's")

Stock Options and Restricted Stock Units ("RSU's")

10)    Stock Options and Restricted Stock Units (“RSU’s”)

The Company established the 2020 Omnibus Incentive Compensation plan (the “2020 Plan”) which provides for the grants of awards to our directors, officers, employees, and consultants. The 2020 Plan authorizes the grant of incentive stock options, nonqualified stock options, stock appreciation rights, stock awards, stock units and other stock-based awards and cash-based awards. On December 22, 2021, our stockholders approved the Second Amendment to the 2020 Plan to increase the total number of shares of common stock issuable under the 2020 Plan by 152,166 shares to a total of 260,000 shares of common stock. As of June 30, 2023, there were 260,000 shares authorized and 7,369 shares available for issuance under the 2020 Plan.

The following is a summary of stock options for the six months ended June 30, 2023 and for the year ended December 31, 2022:

				Weighted-Average
		Weighted-		Remaining	Aggregate Intrinsic
	Number of	Average		Contractual	Value
	Shares	Exercise Price		Term (Years)	($ in thousands)
Options outstanding at December 31, 2022	59,067	$	34.02	8.29	$	—
Options granted	156,000		0.99	—		162.2
Less: options forfeited	—		—	—		—
Less: options expired/cancelled	(5,000)		33.40	—		—
Less: options exercised	—		—	—		—
Options outstanding at June 30, 2023	210,067	$	9.51	9.24	$	162.2
Options exercisable at June 30, 2023	54,067	$	34.08	7.73	$	—

The following is a summary of RSU’s for the six months ended June 30, 2023 and for the year ended December 31, 2022:

				Weighted-Average
		Weighted-		Remaining
	Number of	Average		Contractual
	Shares	Fair Value at Grant Date		Term (Years)
RSU’s outstanding at December 31, 2022	40,238	$	16.87	9.20
RSU’s granted	—		—	—
Less: RSU’s forfeited	—		—	—
Less: RSU’s expired/cancelled	(5)		11.90	—
Less: RSU’s vested	(40,233)		16.88	—
RSU’s outstanding at June 30, 2023	—	$	—	—

On January 4, 2022, pursuant to a consulting agreement, the Company awarded a grant of 5,000 options to purchase shares of common stock of the Company at an exercise price of $33.40 per share. The shares of common stock underlying the options vested 100% upon issuance. These options were canceled pursuant to the cancellation of this consulting agreement, during April 2023.

On April 7, 2022, the Company awarded the four Directors grants of 24,876 total RSU’s with a stock price of $11.90 per share. The RSU’s shall vest 100% on the one-year anniversary of the date of grant. Also on April 7, 2022, Tania King, an employee of Juggernaut Capital Partners LLP, pursuant to her contract, was granted 6,051 RSUs with a stock price of $11.90 per share. The RSU’s vested 100% on the one-year anniversary of the date of grant.
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On April 10, 2023, the Company awarded each of the four Directors a grant of 39,000 options to purchase shares of common stock of the Company at an exercise price of $0.99 per share. The shares of common stock underlying the options will vest 100% on the one-year anniversary of the date of grant.

Stock-based compensation expense recognized for the six months ended June 30, 2023 and 2022 was $173,652 and $658,093, respectively, and is recorded in general and administrative expenses in the consolidated statements of operations.