Quarterly report pursuant to Section 13 or 15(d)


9 Months Ended
Sep. 30, 2021
Share-based Payment Arrangement [Abstract]  



On December 20, 2019, the Company adopted its 2019 Omnibus Incentive Plan (the “Plan”).


At its discretion, the Company grants share option awards to certain employees and non-employees under the Plan and accounts for it in accordance with ASC 718, Compensation – Stock Compensation.


A summary of option activity for the nine months ended September 30, 2021 is presented below.


          Weighted-     Average  
          Average     Remaining  
          Exercise     Contractual  
    Options     Price     Life (Years)  
Outstanding at December 31, 2020     6,031,775     $ 1.55       2.68  
Granted     2,150,833       1.69       -  
Forfeited     (2,078,473 )     2.52       -  
Exercised     (575,730 )     1.28       -  
Outstanding at September 30, 2021     5,528,405     $ 1.70       2.26  
Vested September 30, 2021     2,685,732     $ 2.22          
Exercisable at September 30, 2021     2,013,888     $ 2.01          


At September 30, 2021, the intrinsic value of the outstanding options was $1,939,000.


During the nine months ended September 30, 2021, the Company granted stock options to employees to purchase a total of 2,150,833 shares of Common Stock for services rendered. The options have an average exercise price of $1.69 per share, expire in five years, vesting one and four years from grant date. The total fair value of these options at grant date was approximately $3,563,000 using the Black-Scholes Option Pricing model. The total stock compensation expense recognized relating to the vesting of stock options for the nine months ended September 30, 2021 amounted to $1,234,000. As of September 30, 2021, the total unrecognized stock-based compensation expense was $2,940,000, which is expected to be recognized as part of operating expense through September 2025. In addition, a total of 575,730 shares of stock options were exercised. As a result of the exercise of the option, the Company issued 509,465 shares of common stock and received cash of $569,000.


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



Nine Months Ended

September 30,

    2021     2020  
Risk-free interest rate     0.10% - 0.92 %     0.17% - 0.39 %
Average expected term     5 years       1 to 5 years  
Expected volatility     232.84 -240.03 %     270.10 - 270.57 %
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.