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Stockholders' Equity
 6 Months Ended
Jun. 30, 2022
Stockholders' Equity Note [Abstract]  
STOCKHOLDERS' EQUITY

NOTE 9 – STOCKHOLDERS’ EQUITY

 

Common Stock

 

Common Stock Issued for Services

 

During the three and six months ended June 30, 2022, the Company issued an aggregate 56,579 and 107,898, respectively, of immediately vested shares of the Company’s common stock as compensation to consultants, directors, and officers, with an aggregate issuance date fair value of $75,627 and $225,346, respectively, which was charged immediately to the condensed consolidated statement of operations for the three and six months ended June 30, 2022.

 

Restricted Stock Shares

 

During the three and six months ended June 30, 2022, the Company issued 12,000 restricted shares of the Company's common stock, or Restricted Stock Shares, as of the end of both periods as compensation to consultants with an issuance date fair value of $48,600 as of the end of both periods. Per the two year consulting agreement, the Restricted Stock Shares are issued at the beginning of the contract term and annually and vest monthly over a period of 24 months. The Company recognized stock-based compensation expense related to the amortization of the Restricted Stock Shares of $8,100 and $14,175 for the three and six months ended June 30, 2022.

 

Below is a table summarizing the Restricted Stock Shares granted and outstanding as of and for the six months ended June 30, 2022:

 

   Unvested Restricted   Weighted Average Grant Date 
   Stock   FV Price 
Unvested as of January 1, 2022   
-
   $
-
 
Granted   12,000    4.05 
Vested   3,500    4.05 
Unvested as of June 30, 2022   8,500    4.05 
Total unrecognized expense remaining  $34,425      
Weighted-average years expected to be recognized over   1.5    
-
 

 

Stock Options

 

A summary of the option activity during the six months ended June 30, 2022 is presented below:

 

       Weighted   Weighted     
       Average   Average     
   Number of   Exercise   Remaining   Intrinsic 
   Options   Price   Term (Years)   Value 
Outstanding, January 1, 2022   2,741,000    4.77    9.4    70,500 
Granted   518,121    1.36    
 
    
 
 
Exercised   
-
    
-
    
 
    
 
 
Expired   
-
    
-
    
 
    
 
 
Forfeited   
-
    
-
    
 
    
 
 
Outstanding, June 30, 2022   3,259,121    4.23    9.1   $
-
 
                     
Exercisable, June 30, 2022   1,473,391    4.10    9.0   $
-
 

 

For options issued during the six months ended June 30, 2022, the assumptions used in the Black Scholes valuation method were as follows:

 

Risk-free interest rate   2.88%
Expected term in years   5.00-5.77
Expected volatility   91.00%
Expected dividends   0%

 

A summary of outstanding and exercisable stock options as of June 30, 2022 is presented below:

 

Stock Options Outstanding   Stock Options Exercisable 
        Weighted     
        Average     
Exercise   Number of   Remaining   Number of 
Price   Shares   Life in Years   Shares 
$2.49    50,000    8.4    50,000 
$4.43    1,580,000    8.7    877,778 
$7.56    436,000    9.1    99,917 
$3.95    675,000    9.4    255,729 
$1.36    518,121    9.9    189,967 
      3,259,121    9.0    1,473,391 

 

The Company recognized stock-based compensation expense of $855,674 and $1,601,854 for the three and six months ended June 30, 2022, respectively, related to the amortization of stock options and Restricted Stock Shares. Expense of $711,264 and $1,375,673 is included within general and administrative expenses on the condensed consolidated statements of operations for the three and six month periods, respectively, and expense of $144,410 and $226,181 is included within research and development expenses on the condensed consolidated statements of operations for the three and six month periods, respectively. The full amount of stock-based compensation recognized for the three and six month periods ended June 30, 2022 is considered to be related party expense. Stock-based compensation expense related to the amortization of stock options for the three and six months ended June 30, 2021 was $344,095 and $1,436,494, respectively; these expenses were included within general and administrative expenses on the condensed consolidated statement of operations for both of those periods. The full amount of stock-based compensation recognized for the three and six month periods ended June 30, 2021, respectively, was considered to be related party expense. As of June 30, 2022, there was $5,432,652 of unrecognized stock-based compensation expense related to stock options that will be recognized over the weighted average remaining vesting period of 2.6 years, as well as $34,425 of unrecognized expense related to Restricted Stock Shares that will be recognized over the weighted average remaining vesting period of 1.5 years.