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Stock Options

3 Months Ended

Mar. 31, 2022

14. Stock Options

In February 2021, the board granted 283,936 stock options to officers, board members, and employees. These options vested immediately and are exercisable at $5.60 for 3 years. Total stock-based compensation recognized on these options was $604,571. In March 2021, the Company granted 3,572 stock options to an individual for services rendered to the Company. These options vested immediately and are exercisable at $5.60 for 3 years. Total stock-based compensation recognized on these options was $9,860. No options were granted in the first quarter of 2022. The fair value of stock option awards granted, and the key assumptions used in the Black-Scholes valuation model to calculate the fair value of the options are as follows:

	February 11, 2021			March 15, 2021
Fair value	$	604,572		$	9,860
Options issued		283,936			3,572
Exercise price	$	5.60		$	5.60
Expected term (in years)		3.0			3.0
Risk-free rate		0.19	%		0.33	%
Volatility		97.9	%		99.3	%

In the first quarter of 2022, 51,789 options were exercised in exchange for 28,981 shares at an average price of $9.72 per share in a cashless warrant exercise. Activity in the Company’s stock options is as follows:

	Number of Options			Exercise Prices
Balance December 31, 2020		150,000		$	1.40-1.96
Granted		469,674		$	5.60
Exercised		(101,786	)	$	1.40-1.96
Forfeited		(10,713	)	$	1.96-5.60
Balance December 31, 2021		507,175		$	1.96-5.60
Exercised		(51,789	)	$	1.96-5.60
Balance March 31, 2022		455,386		$	1.96-5.60
Outstanding and exercisable at March 31, 2022		455,386		$	1.96-5.60

At March 31, 2022, outstanding stock options have a weighted average remaining term of approximately 2.02 years and an intrinsic value of approximately $2,317,000. Intrinsic value of the options exercised for the three-month period ended March 31, 2022, was $134,360.