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STOCK-BASED COMPENSATION | 9 Months Ended
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Sep. 30, 2020
Share-based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION | NOTE 7 – STOCK-BASED COMPENSATION Stock Options: The following table summarizes stock option-based compensation for the three and nine months ended September 30, 2020 and 2019: SCHEDULE OF STOCK BASED COMPENSATION
|  | For the three months ended September 30, |  |  | For the nine months ended September 30, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Research and development |  | $ | 765,000 |  |  | $ | 972,000 |  |  | $ | 2,380,000 |  |  | $ | 3,013,000 |
General and administrative |  |  | 484,000 |  |  |  | 854,000 |  |  |  | 1,703,000 |  |  |  | 2,594,000 |
Stock option-based compensation expense included in operating expense |  |  | 1,249,000 |  |  |  | 1,826,000 |  |  |  | 4,083,000 |  |  |  | 5,607,000 |
Total stock option-based compensation expense |  |  | 1,249,000 |  |  |  | 1,826,000 |  |  |  | 4,083,000 |  |  |  | 5,607,000 |
Tax benefit |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Stock option-based compensation expense, net of tax |  | $ | 1,249,000 |  |  | $ | 1,826,000 |  |  | $ | 4,083,000 |  |  | $ | 5,607,000 |
Stock Option [Member] We estimate the fair value of each option award on the date of grant using the Black-Scholes option valuation model. We then recognize the grant date fair value of each option as compensation expense ratably using the straight-line attribution method over the service period (generally the vesting period). The Black-Scholes model incorporates the following assumptions:
| ● | Expected volatility – we estimate the volatility of our share price at the date of grant using a “look-back” period which coincides with the expected term, defined below. We believe using a “look-back” period which coincides with the expected term is the most appropriate measure for determining expected volatility.
| ● | Expected term – we estimate the expected term using the “simplified” method, as outlined in Staff Accounting Bulletin No. 107, “Share-Based Payment.”
| ● | Risk-free interest rate – we estimate the risk-free interest rate using the U.S. Treasury yield curve for periods equal to the expected term of the options in effect at the time of grant.
| ● | Dividends – we use an expected dividend yield of zero because we have not declared or paid a cash dividend, nor do we have any plans to declare a dividend.
We used the following weighted-average assumptions to estimate the fair value of the options granted for the periods indicated: SCHEDULE OF WEIGHTED-AVERAGE ASSUMPTIONS TO ESTIMATE THE FAIR VALUE OF THE OPTIONS GRANTED
|  | For the three months ended September 30, |  |  | For the nine months ended September 30, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Expected volatility |  |  | 110% |  |  |  | 103% |  |  |  | 111% |  |  |  | 108% |
Expected term |  |  | 6.25 years |  |  |  | 6.25 years |  |  |  | 6.25 years |  |  |  | 5.09 years |
Risk-free interest rate |  |  | 0.16% |  |  |  | 1.83% |  |  |  | 0.29% |  |  |  | 2.21% |
Expected dividend yield |  |  | 0% |  |  |  | 0% |  |  |  | 0% |  |  |  | 0% |
The following table summarizes the options granted for the periods indicated: SCHEDULE OF OPTIONS ACTIVITY
|  | For the three months ended September 30, |  |  | For the nine months ended September 30, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Options granted |  |  | 342,100 |  |  |  | 105,600 |  |  |  | 3,415,146 |  |  |  | 1,490,490 |
Weighted-average: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Exercise price |  | $ | 3.08 |  |  | $ | 2.58 |  |  | $ | 2.38 |  |  | $ | 6.53 |
Grant date fair value |  | $ | 2.56 |  |  | $ | 2.09 |  |  | $ | 1.99 |  |  | $ | 5.14 |
Restricted Common Stock: The following table summarizes restricted common stock compensation expense for the three and nine months ended September 30, 2020 and 2019: SCHEDULE OF STOCK BASED COMPENSATION
|  | For the three months ended September 30, |  |  | For the nine months ended September 30, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Research and development |  | $ | 89,000 |  |  | $ | 66,000 |  |  | $ | 561,000 |  |  | $ | 66,000 |
General and administrative |  |  | 72,000 |  |  |  | 32,000 |  |  |  | 251,000 |  |  |  | 282,000 |
Restricted stock-based compensation expense included in operating expense |  |  | 161,000 |  |  |  | 98,000 |  |  |  | 812,000 |  |  |  | 348,000 |
Total restricted stock-based compensation expense |  |  | 161,000 |  |  |  | 98,000 |  |  |  | 812,000 |  |  |  | 348,000 |
Tax benefit |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Restricted stock-based compensation expense, net of tax |  | $ | 161,000 |  |  | $ | 98,000 |  |  | $ | 812,000 |  |  | $ | 348,000 |
We granted 818,233 shares of restricted common stock, net of cancellations, during the nine months ended September 30, 2020. There were 265,080 shares of restricted common stock canceled during the three months ended September 30, 2020. We granted 376,625 shares of restricted common stock during the three and nine months ended September 30, 2019.

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- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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