(10) Share-Based Compensation

Effective upon the closing of the Company’s IPO on January 31, 2020, the Company’s 2019 Equity Incentive Plan (the “2019 Plan”) became effective, succeeding the Company’s previous equity incentive plan. The previous plan had 352,282 options outstanding as of the effective date of the 2019 Plan. Under the 2019 Plan, 1,000,000 shares are authorized to be issued and no new options may be issued under the previous plan, although shares subject to grants which are cancelled or forfeited will again be available under the 2019 Plan. As of December 31, 2020, 168,664 shares were available for future grants.

The 2019 Plan provides for grants to employees, members of the Board, consultants and advisors to the Company, in the form of stock options, stock awards and other equity-based awards. The amount and terms of grants are determined by the Board. Stock options have a maximum term of 10 years after date of grant and are exercisable in cash or as otherwise determined by the Board.

As of December 31, 2020, and 2019, options to purchase common shares of the Company outstanding were as follows:


				Weighted
				Average
				Remaining
		Weighted		Contractual
	Number of	Average		Term
	Shares	Exercise Price		(Years)
Outstanding at December 31, 2018	353,565	$	0.19
Granted	—		—
Exercised	—		—
Forfeited	(1,283)		0.14
Outstanding at December 31, 2019	352,282		0.19
Granted	810,000		3.46
Exercised	(48,435)		0.19
Forfeited	(2,381)		0.14
Outstanding at December 31, 2020	1,111,466		2.57	8.4
Exercisable at December 31, 2020	1,061,466		2.54	8.3

As of December 31, 2020, the aggregate intrinsic value of options outstanding was $5,523,826 and options exercisable was $5,303,326.

810,000 options were issued during the year ended December 31, 2020. Under the grant agreements, 50,000 of the options vest after one year and the remainder of the options were vested and exercisable upon grant. These options have a 10-year term. No options were issued during the year ended December 31, 2019. The weighted average grant date fair value of options issued during the year ended December 31, 2020 was $2.19. The fair value was estimated using the Black Sholes option pricing model using the following weighted average assumptions:


	Year Ended
	December 31, 2020
Risk-free interest rate	0.38	%
Expected life	5.00
Expected volatility	80	%
Expected dividend yield	—

During the year ended December 31, 2020, the Company granted stock awards totaling 25,000 shares to consultants and advisors for services rendered which were vested upon grant. Based on the closing price of the Company’s common stock on the NYSE American on the date of grant, these awards had an aggregate fair value of $122,750, which was recognized in share-based compensation expense upon grant. No stock awards were issued during the year ended December 31, 2019. As of December 31, 2020, there was no unrecognized compensation expense related to stock awards.

Share-based compensation expense in the statements of operations, including the fair value of stock awards to consultants and advisors for services rendered, for the years ended December 31, 2020 and 2019 was $1,864,913 and $8,483, respectively, of which $138,704 and $0, respectively, was included in research and development and the remainder in general and administrative expense. As of December 31, 2020 there was $31,970 unrecognized compensation expense related to unvested options. That cost is expected to be recognized over a weighted-average period of 0.3 years.