A summary of option activity for the years ended December 31, 2022 and 2021 are presented below.

SCHEDULE OF STOCK OPTION ACTIVITY 

As of December 31, 2022, the intrinsic value of the outstanding options was $0.

During the year ended December 31, 2022, the Company granted stock options to certain employees and consultants to purchase a total of 3,774,965 shares of common stock for services rendered or to be rendered. The options have an average exercise price of $0.83 per share, terms between one and five years, and vest between zero and four years from the respective grant dates. The total grant date fair value of these options was approximately $2,778 using the Black-Scholes option pricing model. The total share-based compensation expense recognized relating to the vesting of stock options for the year ended December 31, 2022 was $1,652. As of December 31, 2022, the remaining share-based compensation expense associated with previously issued stock options was $1,532, which will be recognized in future periods as the options vest. The granted stock options include 235,848 for its Chief Executive Officer and 508,290 for directors associated with the return of previously issued stock in exchange for stock options. 227,272 stock options were granted to directors as part of the Cost Savings Plan.

During the year ended December 31, 2022, a total of 332,730 stock options were exercised. As a result of the exercise of the option, the Company issued 332,730 shares of common stock and received cash of $377.

During the year ended December 31, 2021, the Company granted stock options to employees and consultants to purchase a total of 2,494,333 shares of common stock for services rendered. The options have an average exercise price of $1.71 per share, expire between zero and five years, vesting from zero and four years from grant date. The total fair value of these options at grant date was approximately $3,927, determined using the Black-Scholes option pricing model. The total stock compensation expense recognized relating to the vesting of stock options for the year ended December 31, 2021 amounted to $1,596. As of December 31, 2021, the total unrecognized share-based compensation expense was $2,591, which is expected to be recognized as part of operating expense through December 2025.

The grant date fair value of option awards is estimated using the Black-Scholes option pricing model based on the following assumptions:

SCHEDULE OF FAIR VALUE ASSUMPTIONS USING BLACK-SCHOLES METHOD 

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 option awards 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.