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Stock-Based Compensation

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

9. Stock-Based Compensation

During the year ended December 31, 2020, the shareholders approved the 2020 Equity Incentive Plan. The 2020 Plan provides for the grant of nonqualified stock options, incentive stock options, restricted stock, restricted stock units, stock appreciation rights (SARs), and performance share awards to employees, officers, consultants, advisors, non-employee directors and independent contractors designated by either the board of directors of the Company or if so authorized by the board of directors, the Compensation Committee (the “Committee”) of the board of directors. Under the 2020 Plan, the maximum number of shares of common stock which may be issued is 1,902,520 shares of common stock, which includes 2,520 shares that have been rolled over from our 2012 Plan, as amended.

A summary of the Company’s outstanding stock option activity for the years ended December 31, 2021 and 2020 is as follows:

Summary of Stock Option Activity

				December 31, 2021
				Weighted- Average Exercise		Weighted- Average Remaining Contractual Life		Intrinsic
	Options			Price		(Years)		Value
As of December 31, 2020		465,393		$	5.53		9.3		511,518
Granted		368,500			1.93		10.0		-
Exercised		-			-		-		-
Forfeited		-			-		-		-
Expired		(1	)		139,158.00		-		-
As of December 31, 2021		833,892		$	3.91		8.7	$	87,553
Exercisable at December 31, 2021		268,185		$	10.04		8.3	$	46,449
Vested and expected to vest at December 31, 2021		830,292		$	3.91		8.7	$	86,703

				December 31, 2020
				Weighted- Average Exercise		Weighted- Average Remaining Contractual Life		Intrinsic
	Options			Price		(Years)		Value
As of December 31, 2019		377		$	7,446.69		5.3		-
Granted		465,017			0.47		10.0		-
Exercised		-			-		-		-
Forfeited		-			-		-		-
Expired		(1	)		-		-		-
As of December 31, 2020		465,393		$	5.53		9.3	$	511,518
Exercisable at December 31, 2020		376		$	6,977.42		4.3	$	-
Vested and expected to vest at December 31, 2020		465,393		$	5.53		9.3	$	511,518

The Company estimates the fair value of each stock option on the grant date using the Black-Scholes-Merton valuation model, which requires several estimates including an estimate of the fair value of the underlying common stock on grant date. The expected volatility was based on an average of the historical volatility of the Company. The expected term was contractual life of option. The risk-free interest rate was based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the option. The following weighted average assumptions were used in the calculation to estimate the fair value of options granted to employees and non-employees during the year ended December 31, 2021.

	Year Ended
	December 31, 2021
Weighted-average risk-free interest rate	0.73%-0.85	%
Weighted-average expected life (in years)	5.3-5.9
Expected dividend yield	-	%
Weighted-average expected volatility	138%-139	%

Of the 368,500 options granted during 2021, 60,000 were to non-employees.

Unrecognized stock-based compensation as of December 31, 2021, is as follows (in thousands):

			Weighted Average
	Unrecognized Stock-Based		Remaining of Recognition
	Compensation		(in years)
Stock options	$	531		1.9
Stock grants		11		1.3