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STOCK-BASED COMPENSATION | 9 Months Ended
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Sep. 30, 2021
Share-based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION | NOTE 6 – STOCK-BASED COMPENSATION Stock Options: The following table summarizes stock option-based compensation for the three and nine months ended September 30, 2021 and 2020: SCHEDULE OF STOCK BASED COMPENSATION
|  | For the three months ended September 30, |  |  | For the nine months ended September 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Research and development |  | $ | 432,000 |  |  | $ | 765,000 |  |  | $ | 1,649,000 |  |  | $ | 2,380,000 |
General and administrative |  |  | 955,000 |  |  |  | 484,000 |  |  |  | 2,148,000 |  |  |  | 1,703,000 |
Stock option-based compensation expense included in operating expense |  | $ | 1,387,000 |  |  | $ | 1,249,000 |  |  | $ | 3,797,000 |  |  | $ | 4,083,000 |
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, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Expected volatility |  |  | 92 | % |  |  | 110 | % |  |  | 97 | % |  |  | 111 | %
Expected term |  |  | 6.08 years |  |  |  | 6.25 years |  |  |  | 5.97 years |  |  |  | 6.25 years |
Risk-free interest rate |  |  | 0.97 | % |  |  | 0.16 | % |  |  | 0.98 | % |  |  | 0.29 | %
Expected dividend yield |  |  | 0 | % |  |  | 0 | % |  |  | 0 | % |  |  | 0 | %
The following table summarizes the options granted for the periods indicated: SCHEDULE OF OPTIONS ACTIVITY
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
|  | For the three months ended September 30, |  |  | For the nine months ended September 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Options granted |  |  | 1,028,000 |  |  |  | 342,100 |  |  |  | 4,383,308 |  |  |  | 3,415,146 |
Weighted-average: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Exercise price |  | $ | 1.25 |  |  | $ | 3.08 |  |  | $ | 1.86 |  |  | $ | 2.38 |
Grant date fair value |  | $ | 0.94 |  |  | $ | 2.56 |  |  | $ | 1.44 |  |  | $ | 1.99 |
Restricted Common Stock: The following table summarizes restricted common stock compensation expense for the three and nine months ended September 30, 2021 and 2020: SCHEDULE OF STOCK BASED COMPENSATION
|  | For the three months ended September 30, |  |  | For the nine months ended September 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Research and development |  | $ | 256,000 |  |  | $ | 89,000 |  |  | $ | 1,286,000 |  |  | $ | 561,000 |
General and administrative |  |  | 894,000 |  |  |  | 72,000 |  |  |  | 1,832,000 |  |  |  | 251,000 |
Restricted stock-based compensation expense included in operating expense |  | $ | 1,150,000 |  |  | $ | 161,000 |  |  | $ | 3,118,000 |  |  | $ | 812,000 |
The following table summarizes the restricted common stock granted for the periods indicated: SUMMARY OF RESTRICTED COMMON STOCK
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
|  | For the three months ended September 30, |  |  | For the nine months ended September 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Restricted common stock granted |  |  | 767,934 |  |  |  | - |  |  |  | 2,743,668 |  |  |  | 1,083,313 |
Restricted common stock forfeited |  |  | (293,109 | ) |  |  | (265,080 | ) |  |  | (721,768 | ) |  |  | (265,080 | )
Weighted-average: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Grant date fair value-granted awards |  | $ | 1.24 |  |  | $ | - |  |  | $ | 1.77 |  |  | $ | 3.19 |
Grant date fair value-forfeited awards |  | $ | 1.93 |  |  | $ | 3.18 |  |  | $ | 1.90 |  |  | $ | 3.18 |

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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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