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Stock Options

12 Months Ended

Dec. 31, 2020

Paycheck Protection Program Loan Payable [Abstract]

14. STOCK OPTIONS

On October 30, 2020, the Company issued an aggregate of 545,182 shares of common stock in lieu of unpaid salaries of certain employees and unpaid consulting fees under the 2016 Equity Incentive Plan, as amended, at a conversion price of $2 per share; the total amount of converted salaries and consulting fees was $1,090,361. On November 21, 2020, the Company has entered into acknowledgement agreements and stock option purchase agreements with these employees and consultant; pursuant to which the Company granted stock options to purchase 545,182 shares of the Company's common stock in lieu of common stock. The options were vested at the grant date and become exercisable for 10 years from the grant date.

Options issued and outstanding as of December 31, 2020, and their activities during the year then ended are as follows:

					Weighted-
			Weighted-		Average
	Number of		Average		Contractual
	Underlying		Exercise Price		Life Remaining		Aggregate
	Shares		Per Share		in Years		Intrinsic Value
Outstanding as of January 1, 2020		-	$	-			$
Granted		545,182		2.00		9.89		616,056
Forfeited		-		-
Outstanding as of December 31, 2020		545,182		2.00		9.89	$	616,056
Exercisable as of December 31, 2020		545,182		2.00		9.89	$	616,056
Vested and expected to vest		545,182	$	2.00		9.89	$	616,056

The fair value of stock options granted for the year ended December 31, 2020 was calculated using the Black-Scholes option-pricing model applying the following assumptions:

	Year ended
	December 31, 2019

Risk free interest rate		0.38	%
Expected term (in years)		5.00
Dividend yield		0	%
Expected volatility		89.01	%

The weighted average grant date fair value of options granted during 2020 was $3.13. There are 2,812,949 options available for grant under the 2016 Equity Incentive Plan as of December 31, 2020. Compensation costs associated with the Company's stock options are recognized, based on the grant-date fair values of these options over vesting period. Accordingly, the Company recognized stock-based compensation expense of $1,706,419 and $0 for the years ended December 31, 2020 and 2019, respectively. As of December 31, 2020, there were no unvested options.