Quarterly report pursuant to Section 13 or 15(d)

STOCK OPTIONS

v3.23.2
STOCK OPTIONS
 6 Months Ended
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]  
STOCK OPTIONS

11. STOCK OPTIONS

 

A summary of option activity for the six months ended June 30, 2023 is presented below.

 

SCHEDULE OF STOCK OPTION ACTIVITY

                Weighted-        
          Weighted-     Average        
          Average     Remaining     Aggregate  
          Exercise     Contractual     Intrinsic  
    Options     Price     Life (Years)     Value  
                         
Outstanding at January 1, 2023     139,054     $ 52.11       3.37     $ -  
Granted     1,005,685       1.18       -       -  
Forfeited     (45,216 )     48.11       -       -  
Exercised     -       -       -       -  
Outstanding at June 30, 2023     1,099,523     $ 5.69       4.78     $ -  
                                           
Vested June 30, 2023     77,304     $ 50.47             $ -  
                                 
Exercisable at June 30, 2023     77,304     $ 50.47             $ -  

 

At June 30, 2023, the intrinsic value of the outstanding options was $0.

 

During the six months ended June 30, 2023, the Company granted stock options to board members to purchase a total of 8,090 stock options as replacement awards related to forfeited restricted stock units. The options have an average exercise price of $9.20 per share, expire in five years, and vested on the grant date. The total fair value of these options at grant date was $66 using the Black-Scholes Option Pricing model.

 

On June 21, 2023, the Company granted stock options to board members to purchase a total of 997,595 stock options. The options have an average exercise price of $1.11 per share, expire in five years, and vest annually over 4 years. The total grant date fair value of these options was $953 based on the Black-Scholes option pricing model.

 

The total stock compensation expense recognized relating to the vesting of stock options for the six months ended June 30, 2023 amounted to $514. As of June 30, 2023, the total unrecognized share-based compensation expense was $2,665, which is expected to be recognized as part of operating expense through June 2027.

 

The fair value of share option award is estimated using the Black-Scholes option pricing method based on the following weighted-average assumptions:

 

SCHEDULE OF FAIR VALUE ASSUMPTIONS USING BLACK-SCHOLES METHOD

    Six Months Ended June 30,  
    2023     2022  
Risk-free interest rate     3.95 %     1.24% - 3.01 %
Average expected term     5 years       5 years  
Expected volatility     127.5 %     147.8-149.5 %
Expected dividend yield     -       -  

 

The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of measurement corresponding with the expected term of the share option award; the expected term represents the weighted-average period of time that share option awards granted are expected to be outstanding giving consideration to vesting schedules and historical participant exercise behavior; the expected volatility is based upon historical volatility of the Company’s common stock; and the expected dividend yield is based on the fact that the Company has not paid dividends in the past and does not expect to pay dividends in the future.