Quarterly report pursuant to Section 13 or 15(d)

STOCK OPTIONS

v3.23.1
STOCK OPTIONS
 3 Months Ended
Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]  
STOCK OPTIONS

11. STOCK OPTIONS

 

A summary of option activity for the three months ended March 31, 2023 is presented below.

                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     8,090       9.20       -       -  
Forfeited     (16,070 )     52.46       -       -  
Exercised     -       -       -       -  
Outstanding at March 31, 2023     131,074     $ 49.42       3.17     $ -  
                                 
Vested March 31, 2023     80,690     $ 52.40             $ -  
                                 
Exercisable at March 31, 2023     80,690     $ 52.40             $ -  

 

At March 31, 2023, the intrinsic value of the outstanding options was $0.

 

During the three months ended March 31, 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. The total stock compensation expense recognized relating to the vesting of stock options for the three months ended March 31, 2023 amounted to $367. As of March 31, 2023, the total unrecognized share-based compensation expense was $1,815, which is expected to be recognized as part of operating expense through December 2025.

 

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,  
    2023     2022  
Risk-free interest rate     1.24%$ - 4.27 %       1.24% - 2.10 %
Average expected term       5 years         5 years  
Expected volatility     155.85 %     149.53 %
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.