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Stock Option Plan
 9 Months Ended
Sep. 30, 2022
Stock Option Plan [Abstract]  
Stock Option Plan

Note 5 – Stock Option Plan

 

The Company’s 2014 Equity Incentive Plan (the “2014 Plan”) permits the grant of options for its common stock and shares of common stock to its employees, board members and consultants for up to 3,500,000 shares.

 

As of September 30, 2022, there were 1,496,081 shares available for future issuance under the 2014 Plan. Generally, option awards are granted with an exercise price equal to the fair value of the Company’s stock at the date of grant and vest over a period of three to four years. No option may have a term in excess of ten years from the option grant date. Certain option and share awards provide for accelerated vesting if there is a change in control (as defined by the 2014 Plan). The weighted average grant date fair value of options granted in the nine-month period ended September 30, 2022 was $0.89 per share. No option awards were granted during the nine months ended September 30, 2021.

 

The stock option activity for the period ended September 30, 2022 is as follows:

 

   Number of
Options		   Weighted-
Average
Exercise
Price
per Share		   Weighted
Average
Remaining
Contractual
Term
(in Years)		 
Outstanding as of December 31, 2021   918,919   $2.09    5.79 
Granted   1,085,000   $1.71      
Outstanding of September 30, 2022   2,003,919   $1.88    7.34 
Exercisable at September 30, 2022   919,088   $2.09    5.04 

 

During the three months ended September 30, 2022 and 2021, the Company recorded $66,996 and $214,745, respectively, of stock-based compensation associated with vesting of stock options, of which $46,394 and $214,745 were included in general and administrative expenses for the three months ended September 30, 2022 and 2021, respectively, and $20,602 and $0 were included in research and development expenses for the three months ended September 30, 2022 and 2021, respectively.

 

During the nine months ended September 30, 2022 and 2021, the Company recorded $189,905 and $218,944, respectively, of stock-based compensation associated with vesting of stock options, of which $131,533 and $218,944 were included in general and administrative expenses for the nine months ended September 30, 2022 and 2021, respectively, and $58,372 and $0 were included in research and development expenses for the nine months ended September 30, 2022 and 2021, respectively.

 

As of September 30, 2022, there was approximately $777,808 of unrecognized compensation expense related to unvested share-based compensation awards, which will be recognized over a weighted average period of approximately 1.62 years.