Quarterly report pursuant to Section 13 or 15(d)


3 Months Ended
Mar. 31, 2022
Share-Based Payment Arrangement [Abstract]  



A summary of option activity for the three months ended March 31, 2022 is presented below.


          Weighted-     Average        
          Average     Remaining     Aggregate  
          Exercise     Contractual     Intrinsic  
    Options     Price     Life (Years)     Value  
Outstanding at January 1, 2022     5,404,223     $ 1.72       2.24     $ 107  
Granted     1,983,555       1.25       -       -  
Forfeited     (1,177,405 )     1.54       -       -  
Exercised     (332,730 )     1.13       -       -  
Outstanding at March 31, 2022     5,877,643     $ 1.64       2.29       $    
Vested March 31, 2022     2,993,429     $ 1.86             $ -  
Exercisable at March 31, 2022     1,982,249     $ 2.08             $ -  


At March 31, 2022, the intrinsic value of the outstanding options was $0.


During the three months ended March 31, 2022, the Company granted stock options to employees and consultants to purchase a total of 1,983,555 shares of common stock for services rendered. The options have an average exercise price of $1.25 per share, expire between one and five years, vesting from zero and four years from grant date. The total fair value of these options at grant date was approximately $2,241 using the Black-Scholes Option Pricing model. The total stock compensation expense recognized relating to the vesting of stock options for the three months ended March 31, 2022 amounted to $531. As of March 31, 2022, the total unrecognized share-based compensation expense was $4,276, which is expected to be recognized as part of operating expense through March 2026.


In addition, a total of 332,730 shares of 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.


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


    Three Months Ended March 31,  
    2022     2021  
Risk-free interest rate       1.24% - 2.10 %         0.10% - 0.36 %
Average expected term       5 years           5 years  
Expected volatility     149.53 %     240.03 %
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.