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13. STOCK-BASED COMPENSATION
 9 Months Ended
Sep. 30, 2019
Share-based Payment Arrangement [Abstract]  
13. STOCK-BASED COMPENSATION

Pursuant to the Company’s Amended and Restated 2007 Equity Incentive Plan approved in 2011(“Plan”), the aggregate number shares of the Company’s common stock available for grant of stock options and issuance is 4,341,989 shares. On October 5, 2015, during the annual meeting of the Company’s stockholders, the aggregate number of shares reserved and available for grant and issuance pursuant to the Plan was increased to 10,341,989. As of September 30, 2019, the number of shares of the Company’s common stock available for issuance under the Plan is 4,920,989.

 

The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model. The risk free rate is based on the yield-to-maturity in continuous compounding of the US Government Bonds with the time-to-maturity similar to the expected tenor of the option granted, volatility is based on the annualized historical stock price volatility of the Company, and the expected life is based on the historical option exercise pattern.

 

On April 01, 2019, the Company granted to one employee staff options to purchase 150,000 shares of the Company’s common stock, at an exercise price of $0.91 per share and the options vested immediately. The options were valued at $45,900 fair value, with assumed 45.26% volatility, a four-year expiration term with an expected tenor of 1.60 years, a risk free rate of 2.37% and no dividend yield.

 

During the three months ended September 30, 2019, there were no options issued to employees or non-employees.

 

The following table summarizes all Company stock option transactions between January 1, 2019 and September 30, 2019.

 

    Number of Option
and Warrants
Outstanding and exercisable		   Weighted- Average Exercise price of Option
and Warrants		   Range of
Exercise Price per Common Share
Balance, January 1, 2019     2,518,000       $0.97       $0.71 - $4.80  
Granted and vested during the period ended September 30, 2019     150,000       $0.91       $0.91  
Exercised during the period ended September 30, 2019     (1,897,000)       $0.73       $0.73  
Expired/cancelled during the period ended September 30, 2019     (65,500)       $2.31       $2.61  
Balance, September 30, 2019     705,500       $1.47       $0.71 - $2.10  

 

Stock and Warrants Options Exercisable and Outstanding
                      Weighted Average  
                      Remaining  
      Outstanding at September 30, 2019      

Range of

Exercise Prices

      

Contractual Life

 (Years)

  
Exercisable and outstanding     705,500       $0.71 - $2.10       1.74  

 

The aggregate intrinsic value of options outstanding and exercisable as of September 30, 2019 was $0.

 

During the three months ended September 30, 2019, 0 shares of common stock were issued upon cashless exercise of 0 options.

 

During the nine months ended September 30, 2019, 759,281 shares of common stock were issued upon cashless exercise of 1,897,000 options.

 

The aggregate intrinsic value of options exercised during the three months ended September 30, 2019 was $0. There was no option exercised during the three months ended September 30, 2018.

 

The aggregate intrinsic value of options exercised during the nine months ended September 30, 2019 was $922,429. There was no option exercised during the nine months ended September 30, 2018.