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Stock-Based Compensation

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

15.

Stock-Based Compensation

On April 30, 2015, the Company entered into a Non-qualified Stock Option Agreement with Sophie Pibouin, a director of the Company, in accordance with the 2015 Plan. The agreement granted options to purchase 2,560 shares prior to the expiration date of April 29, 2025 at an exercise price of $37.50. The options granted vested on a graded scale over a period of time through October 31, 2015.

On January 1, 2016, the Company granted employees stock options to purchase 5,000 shares at an exercise price of $45.00 per share in accordance with the 2015 Plan. The options were fully vested as of January 1, 2019. The total fair value of $196,250 for these stock options was recognized by the Company over the applicable vesting period.

On February 10, 2016, the Company granted employees stock options to purchase 4,200 shares at an exercise price of $48.00 per share in accordance with the 2015 Plan. The options were fully vested as of February 10, 2020. The total fair value of $174,748 for these stock options is being recognized by the Company over the applicable vesting period.

On December 6, 2016, the Company granted one employee stock options to purchase 2,000 shares at an exercise price of $38.00 per share in accordance with the 2015 Plan, with vesting continuing until December 2020. The total fair value of $63,937 for these stock options is being recognized by the Company over the applicable vesting period.

On September 25, 2017, the Company granted an employee stock options to purchase 15,000 shares at an exercise price of $15.00 per share and 10,000 shares at an exercise price of $19.00 per share, in accordance with the 2015 Plan. The options were fully vested as of September 25, 2019. The total fair value of $321,011 for these stock options was recognized by the Company over the applicable vesting period.

On January 30, 2019, the Company entered into a Non-qualified Stock Option Agreement with an individual consultant to the Company, in accordance with the 2015 Plan. The agreement granted options to purchase 250 shares prior to the expiration date of December 31, 2025 at an exercise price of $45.00. The options granted were 100% vested as of the grant date.

On March 11, 2019, the Company canceled previously granted stock options to employees in the following amounts: 3,000 shares at an exercise price of $45.00 per share; 3,200 shares at an exercise price of $48.00 per share; 2,000 shares at an exercise price of $38.00 per share; 15,000 shares at an exercise price of $15.00 per share; and 10,000 shares at an exercise price of $19.00 per share. On March 11, 2019, the Company replaced those canceled stock options exercisable for a total of 33,200 shares with virtually identical stock options at an exercise price of $6.50 per share in accordance with the 2015 Plan. The incremental fair value of $24,898 for these stock options is being recognized by the Company over the applicable vesting periods, which range by tranche from fully vested at issuance through vesting by December 2020.

On March 11, 2019, the Company granted employees stock options to purchase 10,100 shares at an exercise price of $6.50 per share in accordance with the 2015 Plan, with vesting continuing until 2023. The total fair value of $44,591 for these stock options is being recognized by the Company over the applicable vesting period.

The weighted average estimated values of director and employee stock option grants, as well as the weighted average assumptions that were used in calculating such values during the six months ended June 30, 2020 and 2019, were based on estimates at the date of grant as follows:

	April 30,			January 1,			February 10,
	2015 Grant			2016 Grant			2016 Grant
Risk-free interest rate		1.43	%		1.76	%		1.15	%
Weighted average expected term		5 years			5 years			5 years
Expected volatility		143.10	%		134.18	%		132.97	%
Expected dividend yield		0.00	%		0.00	%		0.00	%

	December 6,			September 25,
	2016 Grant			2017 Grant
Risk-free interest rate		1.84	%		1.85	%
Weighted average expected term		5 years			5 years
Expected volatility		123.82	%		130.79	%
Expected dividend yield		0.00	%		0.00	%

	January 30,			March 11,
	2019 Grant			2019 Grant
Risk-free interest rate		2.54	%		2.44	%
Weighted average expected term		5 years			5 years
Expected volatility		115.80	%		116.46	%
Expected dividend yield		0.00	%		0.00	%

A summary of stock option activity during the six months ended June 30, 2020 and 2019 is as follows:

					Weighted-
			Weighted-		Average
	Shares		Average		Remaining		Aggregate
	Under		Exercise		Contractual		Intrinsic
	Option		Price		Life		Value
Outstanding at January 1, 2020		46,860	$	9.02		9 years		19,200

Outstanding at June 30, 2020		46,860	$	9.02		8 years	$	19,200

Exercisable at June 30, 2020		38,785	$	9.54		8 years	$	19,200

						Weighted-
				Weighted-		Average
	Shares			Average		Remaining		Aggregate
	Under			Exercise		Contractual		Intrinsic
	Option			Price		Life		Value
Outstanding at January 1, 2019		36,760		$	25.04		8 years		79,200
Granted		43,550			6.72
Forfeited and expired		(33,450	)		43.00

Outstanding at June 30, 2019		46,860		$	9.02		9 years	$	19,200

Exercisable at June 30, 2019		31,835		$	10.20		9 years	$	19,200

There were no grants during the six months ended June 30, 2020. The weighted-average grant date fair value of options granted during the six months ended June 30, 2019 was $4.49.

As of June 30, 2020, and December 31, 2019, there was $37,250 and $56,012, respectively, of total unrecognized compensation costs related to stock options granted under our stock option agreements. The unrecognized compensation cost is expected to be recognized over a weighted-average period of two years. The total fair value of stock options that vested during the six months ended June 30, 2020 and 2019 was $14,963 and $91,723, respectively.