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STOCK-BASED COMPENSATION | 3 Months Ended
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Mar. 31, 2022
Share-Based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION | NOTE 9 – STOCK-BASED COMPENSATION We have two stock-based compensation plans: (1) Abeona Therapeutics Inc. 2015 Equity Incentive Plan (the “2015 Incentive Plan”), which was approved by stockholders on May 7, 2015 and last amended on May 20, 2020 and (2) Abeona Therapeutics Inc. 2005 Equity Incentive Plan (the “2005 Inventive Plan”), under which no further grants can be made. The following table summarizes stock-based compensation expense for the three months ended March 31, 2022 and 2021: SCHEDULE OF STOCK BASED COMPENSATION
(in thousands) |  | 2022 |  |  | 2021 |
|  | For the three months ended March 31, |
(in thousands) |  | 2022 |  |  | 2021 |
Research and development |  | $ | 372 |  |  | $ | 1,155 |
General and administrative |  |  | 490 |  |  |  | 795 |
Stock based compensation expense |  | $ | 862 |  |  | $ | 1,950 |
Stock Options: 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.
The Company estimated the fair value of stock options granted in the periods presented utilizing a Black-Scholes option-valuation model utilizing the following assumptions: SCHEDULE OF WEIGHTED-AVERAGE ASSUMPTIONS TO ESTIMATE THE FAIR VALUE OF THE OPTIONS GRANTED
|  | 2022 |  |  | 2021 |
|  | For the three months ended March 31, |
|  | 2022 |  |  | 2021 |
Expected volatility |  |  | 95 | % |  |  | 99 | %
Expected term |  |  | 6.08 years |  |  |  | 6.08 years |
Risk-free interest rate |  |  | 1.73 | % |  |  | 1.00 | %
Expected dividend yield |  |  | 0 | % |  |  | 0 | %
The following table summarizes stock option activity for the 2015 Incentive Plan during the three months ended March 31, 2022 : SCHEDULE OF STOCK OPTIONS ACTIVITY
|  | Number of Options |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Term (years) |  |  | Aggregate Intrinsic Value (in thousands) |
Outstanding at December 31, 2021 |  |  | 7,854,851 |  |  | $ | 1.54 |  |  |  | 7.63 |  |  | $ | - |
Granted |  |  | 104,000 |  |  | $ | 0.26 |  |  |  | - |  |  | $ | - |
Cancelled/forfeited |  |  | (937,048 | ) |  | $ | 1.40 |  |  |  | - |  |  | $ | - |
Exercised |  |  | - |  |  | $ | - |  |  |  | - |  |  | $ | - |
Outstanding at March 31, 2022 |  |  | 7,021,803 |  |  | $ | 1.54 |  |  |  | 7.24 |  |  | $ | 6 |
Exercisable |  |  | 3,516,716 |  |  | $ | 1.51 |  |  |  | 5.49 |  |  | $ | - |
Unvested |  |  | 3,505,087 |  |  | $ | 1.57 |  |  |  | 8.98 |  |  | $ | 6 |
The aggregate intrinsic value of options is calculated as the difference between the exercise price of the underlying options and the fair value of the Company’s common stock for those options that had exercise prices lower than the fair value of the Company’s common stock. As of March 31, 2022, the total compensation cost related to non-vested option awards not yet recognized is approximately $5.0 million with a weighted average remaining vesting period of 2.6 years. The following table summarizes stock option activity for the 2005 Incentive Plan during the three months ended March 31, 2022 : SCHEDULE OF STOCK OPTIONS ACTIVITY
|  | Number of Options |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Term (years) |  |  | Aggregate Intrinsic Value (in thousands) |
Outstanding at December 31, 2021 |  |  | 80,000 |  |  | $ | 1.28 |  |  |  | 1.80 |  |  | $ | - |
Cancelled/forfeited |  |  | - |  |  | $ | - |  |  |  | - |  |  | $ | - |
Exercised |  |  | - |  |  | $ | - |  |  |  | - |  |  | $ | - |
Outstanding at March 31, 2022 |  |  | 80,000 |  |  | $ | 1.28 |  |  |  | 1.54 |  |  | $ | - |
Exercisable |  |  | 80,000 |  |  | $ | 1.28 |  |  |  | 1.54 |  |  | $ | - |
Unvested |  |  | - |  |  | $ | - |  |  |  | - |  |  | $ | - |
Restricted Stock: The following table summarizes restricted stock award activity during the three months ended March 31, 2022: SCHEDULE OF RESTRICTED STOCK AWARD ACTIVITY
|  | Number of Awards |  |  | Weighted Average Grant Date Fair Value |
Outstanding at December 31, 2021 |  |  | 2,431,515 |  |  | $ | 1.86 |
Granted |  |  | 252,000 |  |  | $ | 0.28 |
Cancelled/forfeited |  |  | (377,523 | ) |  | $ | 1.58 |
Vested |  |  | (357,658 | ) |  | $ | 2.31 |
Outstanding at March 31, 2022 |  |  | 1,948,334 |  |  | $ | 1.63 |
As of March 31, 2022, there is approximately $2.8 million of total unrecognized compensation expense related to unvested restricted stock awards, which is expected to be recognized over a weighted average vesting period of 2.7 years.

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