XML 27 R16.htm IDEA: XBRL DOCUMENT v3.21.2
Equity Incentive Plans
 9 Months Ended
Sep. 30, 2021
Share-based Payment Arrangement [Abstract]  
Equity Incentive Plans

Note 10 – Equity Incentive Plans

 

2017 Equity Incentive Plan

 

Under the Company’s 2017 Equity Incentive Plan, as may be modified and amended by the Company from time to time (the “2017 Equity Plan”), the Board of Directors (the “Board”) (or the compensation committee of the Board, if one is established) may award stock options, stock appreciation rights (“SARs”), restricted stock awards (“RSAs”), restricted stock unit awards (“RSUs”), shares granted as a bonus or in lieu of another award, and other stock-based performance awards. The 2017 Equity Plan allocates 50,000,000 shares of the Company’s common stock (“Plan Shares”) for issuance of equity awards under the 2017 Equity Plan. If any shares subject to an award are forfeited, expire, or otherwise terminate without issuance of such shares, the shares will, to the extent of such forfeiture, expiration, or termination, again be available for awards under the 2017 Equity Plan.

 

2021 Equity Incentive Plan

 

On March 22, 2021, the Board approved the 2021 Equity Incentive Plan (the “2021 Equity Plan”), which was approved by the stockholders on July 22, 2021. The 2021 Equity Plan permits the Board to grant awards of up to 100,000,000 shares of common stock. The 2021 Plan provides for the grant of incentive stock options intended to qualify under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), non-qualified stock options, stock appreciation rights (“SARs”), restricted stock awards and restricted stock unit awards and other equity linked awards to our employees, consultants and directors. If an equity award (i) expires or otherwise terminates without having been exercised in full or (ii) is settled in cash (i.e., the holder of the award receives cash rather than stock), such expiration, termination or settlement will not reduce (or otherwise offset) the number of shares of common stock that may be issued pursuant to this Plan.

 

During the nine months ended September 30, 2021, the Company issued no shares of its common stock.

 

During the nine months ended September 30, 2021, the Company granted awards for 3,266,570 non-qualified stock options as described below. Of the total awards granted, 3,035,800 were under the 2017 Equity Plan and 230,770 were issued under the 2021 Equity Plan.

 

As of September 30, 2021, of the 50,000,000 shares authorized under the 2017 Plan for equity awards, 24,553,818 shares have been issued, awards related to 24,399,800 options remain outstanding, and 1,046,382 shares remain available for future equity awards. As of September 30, 2021, of the 100,000,000 shares authorized under the 2021 Equity Plan, 230,770 relate to outstanding options and 99,769,230 shares remain available for future equity awards.

 

There was $90,255 in unrecognized compensation expense for unvested non-qualified stock options at September 30, 2021 which will be recognized over approximately 3 years.

 

 

Surna Inc.

Notes to Condensed Consolidated Financial Statements

September 30, 2021

(in US Dollars except share numbers)

(Unaudited)

 

Non-Qualified Stock Options

 

A summary of the non-qualified stock options granted to employees and consultants under the 2017 Equity Plan during the nine months ended September 30, 2021, are presented in the table below:

Schedule of Stock Option Activity 

   Number of Options   Weighted Average Exercise Price   Weighted Average Remaining Contractual Term   Aggregate Intrinsic Value 
                 
Outstanding, December 31, 2020   14,251,000   $0.083    8.3   $- 
Granted   3,035,800   $0.085    10.0   $- 
Exercised   -                
Forfeited   (287,000)  $0.122    6.6   $- 
Expired   -                
Outstanding, September 30, 2021   16,999,800   $0.083    7.9   $- 
Exercisable, September 30, 2021   15,249,800   $0.085    7.7   $- 

 

During the nine months ended September 30, 2021, we issued a total of 3,035,800 stock options to employees as follows:

 

  ● 1,035,800 stock options were issued to 21 employees in respect of the Company’s 2020 Annual Incentive Awards. The options vested immediately, have a term of 10 years and an exercise price of $0.13.
  ● 2,000,000 stock options were issued to our newly appointed Chief Financial Officer. The options vest as follows: 250,000 vested immediately, 417,000 on June 30, 2022, 665,000 on June 30, 2023 and 668,000 on June 30, 2024. The options have a term of 10 years and an exercise price of $0.061.
  ● During the nine months ended September 30, 2021, 287,000 fully vested stock options were forfeited following the departure of 3 former employees.

 

A summary of non-vested non-qualified stock options activity for employees and consultants under the 2017 Equity Plan for the nine months ended September 30, 2021, are presented in the table below:

 Summary of Non-vested Non-qualified Stock Option Activity

   Number of Options   Weighted Average Grant-Date Fair Value   Aggregate Intrinsic Value   Grant-Date Fair Value 
                
Nonvested, December 31, 2020   -   $-   $-   $- 
Granted   3,035,800   $0.082   $-   $- 
Vested   (1,285,800)  $0.112   $66,412   $- 
Forfeited   -             $- 
Expired   -             $- 
Nonvested, September 30, 2021   1,750,000   $0.061   $-   $104,800 

 

For the nine months ended September 30, 2021 and September 30, 2020, the Company recorded $29,881 and $171,624 as compensation expense related to vested options issued to employees and consultants, net of forfeitures, respectively.

 

 

Surna Inc.

Notes to Condensed Consolidated Financial Statements

September 30, 2021

(in US Dollars except share numbers)

(Unaudited)

 

A summary of the non-qualified stock options granted to directors under the 2017 Equity Plan and the 2021 Equity Plan, during the nine months ended September 30, 2021, are presented in the table below:

 Schedule of Stock Option Activity

   Number of Options   Weighted Average Exercise Price   Weighted Average Remaining Contractual Term   Aggregate Intrinsic Value ($000) 
                 
Outstanding, December 31, 2020   7,400,000   $0.067    7.5   $- 
Granted   230,770   $0.065    10.0   $- 
Exercised   -                
Forfeited/Cancelled   -                
Expired   -                
Outstanding, September 30, 2021   7,630,770   $0.067    6.8   $- 
Exerciseable, September 30, 2021   7,630,770   $0.067    6.8   $- 

 

During the nine months ended September 30, 2021, we issued 230,770 non-qualified stock options to directors as retroactive compensation for the first half of 2021 under the 2021 Equity Plan.

 

A summary of non-vested non-qualified stock options activity for directors under the 2017 Equity Plan and the 2021 Equity Plan, for the nine months ended September 30, 2021, are presented in the table below:

Summary of Non-vested Non-qualified Stock Option Activity 

   Number of Options   Weighted Average Grant-Date Fair Value   Aggregate Intrinsic Value   Grant-Date Fair Value 
                
Nonvested, December 31, 2020   1,000,000   $0.029   $31,000   $- 
Granted   230,770    0.065   $(1,154)  $- 
Vested   (1,230,770)  $0.036   $(29,846)  $- 
Forfeited   -                
Expired   -                
Nonvested, September 30, 2021   -        $-   $- 

 

During the nine months ended September 30, 2021 and September 30, 2020, the Company incurred $21,174 and $55,970, respectively, as compensation expense related to 1,230,770 and 1,521,352 vested options, respectively, issued to directors.

 

Effective June 24, 2020, the Company issued 2 million non-qualified stock options under the 2017 Equity Plan to newly appointed directors. The options vested 50% upon grant and 50% on April 1, 2021, if the Director remained on the Board up to that time. The options have a term of 5 years and have an exercise price equal to the closing price of the Company’s common stock on The OTC Markets on the day immediately preceding the grant date.

 

Effective August 20, 2021, the Company issued 230,770 non-qualified stock options under the 2021 Equity Plan to its directors. The options vested upon grant. The options have a term of 10 years and an exercise price equal to the closing price of the Company’s common stock on The OTC Markets on the day immediately preceding the grant date.

 

Restricted Stock Units

 

There has been no activity related to RSUs during the nine months ended September 30, 2021.

 

The Company recorded $25,163 during the nine months ended September 30, 2020, as compensation expense related to vested RSUs issued to employees, directors and consultants.

 

Effective April 30, 2020, 800,000 RSUs vested. However, the holder elected to cancel the RSUs.

 

 

Surna Inc.

Notes to Condensed Consolidated Financial Statements

September 30, 2021

(in US Dollars except share numbers)

(Unaudited)