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Stock-Based Compensation | 12 Months Ended
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Dec. 31, 2020
Share-based Payment Arrangement [Abstract] |
Stock-Based Compensation | 6. Stock-Based Compensation Stock Incentive Plan On October 31, 2014, after the closing of the Merger, the Board approved the Company’s 2014 Omnibus Incentive Plan (the “2014 Plan”). The 2014 Plan initially reserved 3,200,000 shares for future grants. In October 2018, the Company increased the share reserve under the 2014 Plan to equal 10% of the number of issued and outstanding shares of common stock of the Company. In August 2020, the Company approved Amendment No. 2 to the 2014 Plan, which increased the share reserve by an additional 7,876,835 shares over the 10% of the number of issued and outstanding shares of common stock and removed certain restrictions on the number of shares of common stock and the amount of cash-based awards up to which participants of the 2014 Plan can receive in a calendar year. The 2014 Plan authorizes the issuance of awards including stock options, stock appreciation rights, restricted stock, stock units and performance units to employees, directors, and consultants of the Company. As of December 31, 2020, the shares available for future grant under the 2014 Plan are as follows:
Shares Available for Grant
Available as of December 31, 2019 | 13,128,381
Share pool increase | 18,394,752
Forfeited | 1,837,407
Cancelled | 5,830,235
Granted | (26,400,000 | )
Available as of December 31, 2020 | 12,790,775
Stock Options Options granted under the 2014 Plan expire no later than ten years from the date of grant. Options granted under the 2014 Plan may be either incentive or non-qualified stock options. For incentive and non-qualified stock option grants, the option price shall be at least 100% of the fair value on the date of grants, as determined by the Company’s Board of Directors. If at any time the Company grants an option, and the optionee directly or by attribution owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company, the option price shall be at least 110% of the fair value and shall not be exercisable more than five years after the date of grant. Options granted under the 2014 Plan may be immediately exercisable if permitted in the specific grant approved by the Board of Directors and, if exercised early may be subject to repurchase provisions. The shares issued generally vest over a period of one to five years from the date of grant. The following is a summary of option activities under the Company’s 2014 Plan for the year ended December 31, 2020:
|  | Number of Shares |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Term (Years) |  |  | Aggregate Intrinsic Value* |
Outstanding, December 31, 2019 |  |  | 3,317,642 |  |  | $ | 0.33 |  |  |  | 8.34 |  |  |  |
Granted |  |  | 26,400,000 |  |  |  | 0.05 |  |  |  |  |  |  |  |
Cancelled |  |  | (5,830,235 | ) |  |  | 0.07 |  |  |  |  |  |  |  |
Forfeited |  |  | (1,837,407 | ) |  |  | 0.26 |  |  |  |  |  |  |  |
Outstanding, December 31, 2020 |  |  | 22,050,000 |  |  | $ | 0.06 |  |  |  | 9.52 |  |  | $ | — |
Exercisable, December 31, 2020 |  |  | 3,465,000 |  |  | $ | 0.15 |  |  |  | 8.88 |  |  | $ | — |
Vested and expected to vest, December 31, 2020 |  |  | 22,050,000 |  |  | $ | 0.06 |  |  |  | 9.52 |  |  | $ | — |
*The aggregate intrinsic value is the sum of the amounts by which the quoted market price of the Company’s stock exceeded the exercise price of the stock options at December 31, 2020 for those stock options for which the quoted market price was in excess of the exercise price (“in-the-money options”). The weighted-average grant-date fair value of stock options granted for the years ended December 31, 2020 and 2019 was $0.04 and $0.22, respectively. The total fair value of the stock options that vested during the years ended December 31, 2020 and 2019 was $168,168 and $473,030, respectively. The fair value of each stock option grant was estimated on the date of grant using the Black-Scholes option-pricing model under the following assumptions:
|  | Year Ended December 31, |
|  | 2020 |  |  | 2019 |
Dividend yield |  |  | 0.00 | % |  |  | 0.00 | %
Risk-free interest rate |  | 0.28—0.46 | % |  |  | 1.49 | %
Expected term (years) |  | 5.65—6.13 |  |  |  | 5.65 |
Volatility |  | 92.51—107.87 | % |  |  | 93.72 | %
Restricted Stock Awards During the year ended December 30, 2020, 643,501 restricted stock awards (“RSAs”) with a weighted average grant date fair value of $0.26 vested and were released from their service condition restriction. As of December 31, 2020, there are no unvested RSA awards outstanding under the 2014 Plan. There was no restricted stock award (“RSA”) activity under the Company’s 2014 Plan during the year ended December 31, 2019. Awards Granted Outside the 2014 Plan Options During the year ended December 31, 2020, 325,929 stock options with a weighted average exercise price of $0.25 were forfeited in connection with the separation and release of the Company’s former CFO. As of December 31, 2020, an additional 869,144 options vested and outstanding with a weighted average exercise price of $0.25 were cancelled unexercised. There was no option activity outside of the 2014 Plan during the year ended December 31, 2019. The total fair value of stock options that vested during the years ended December 31, 2020 and 2019 were $18,252 and $54,756, respectively. Restricted Stock Awards The following is a summary of RSA activity outside of the Company’s 2014 Plan during the year ended December 31, 2020:
|  | Number of Shares |  |  | Weighted Average Grant Date Fair Value |
Unvested, December 31, 2019 |  |  | 450,000 |  |  | $ | 0.19 |
Granted |  |  | — |  |  |  | — |
Released |  |  | (450,000 | ) |  |  | 0.19 |
Unvested, December 31, 2020 |  |  | — |  |  | $ | — |
The Company recognizes stock-based compensation expense using the straight-line method over the requisite service period. The Company recognized stock-based compensation expense, including compensation expense for RSAs discussed above, in its Consolidated Statements of Comprehensive (Loss) Income as follows:
|  | Year Ended December 31, |
|  | 2020 |  |  | 2019
Research and development |  | $ | 93,545 |  |  | $ | —
General and administrative |  |  | 209,197 |  |  |  | 680,455 |
|  | $ | 302,742 |  |  | $ | 680,455 |
The total amount of unrecognized compensation cost was $688,410 as of December 31, 2020. This amount will be recognized over a weighted-average period of 3.79 years.

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