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Stock-Based Compensation | 6 Months Ended
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Jun. 30, 2022
Stock-Based Compensation |
Stock-Based Compensation | 6. Stock-Based Compensation Stock Incentive Plans On March 20, 2007, the Company’s Board of Directors approved the 2007 Stock Incentive Plan (the “2007 Stock Plan”) for the issuance of up to 7,143 shares of common stock to be granted through incentive stock options, nonqualified stock options, stock appreciation rights, dividend equivalent rights, restricted stock, restricted stock units and other stock-based awards to officers, other employees, directors and consultants of the Company and its subsidiaries. This plan was approved by the stockholders on November 2, 2007. The exercise price of stock options under the 2007 Stock Plan was determined by the compensation committee of the Board of Directors and could be equal to or greater than the fair market value of the Company’s common stock on the date the option is granted. As of June 30, 2022, there were 515 options issued and outstanding under the 2007 Stock Plan. 6. Stock-Based Compensation – (continued) On November 2, 2010, the Board of Directors and stockholders adopted the 2010 Stock Incentive Plan (“2010 Stock Plan”) for the issuance of up to 8,572 shares of common stock to be granted through incentive stock options, nonqualified stock options, stock appreciation rights, dividend equivalent rights, restricted stock, restricted stock units and other stock-based awards to officers, other employees, directors and consultants of the Company and its subsidiaries. On October 22, 2013, the stockholders approved and adopted an amendment to the Company’s 2010 Stock Plan to increase the number of shares of Company’s common stock reserved for issuance under the Plan from 8,572 to 17,143; on May 15, 2015, increased the number of shares from 17,143 to 22,858; on August 25, 2016, increased the number of shares from 22,858 to 40,000; on September 7, 2017, increased the number of shares from 40,000 to 50,000; on September 24, 2018 increased the number of shares from 50,000 to 100,000; and on September 5, 2019, increased the number of shares from 100,000 to 400,000 The exercise price of stock options under the 2010 Stock Plan is determined by the compensation committee of the Board of Directors and may be equal to or greater than the fair market value of the Company’s common stock on the date the option is granted. Options become exercisable over various periods from the date of grant and expire between five and ten years after the grant date. As of June 30, 2022, there were 238,820 options issued and outstanding under the 2010 Stock Plan. On September 17, 2020, the stockholders approved and adopted the 2020 Stock Incentive Plan (“2020 Stock Plan”) for the issuance of up to 400,000 shares of Common Stock to be granted through incentive stock options, nonqualified stock options, stock appreciation rights, dividend equivalent rights, restricted stock, restricted stock units and other stock-based awards to officers, other employees, directors and consultants of the Company and its subsidiaries. As of June 30, 2022, there were 368,000 options issued and outstanding under the 2010 Stock Plan. In the event of an employee’s termination, the Company will cease to recognize compensation expense for that employee. Stock forfeitures are recognized as incurred. There is no deferred compensation recorded upon initial grant date. Instead, the fair value of the stock-based payment is recognized over the stated vesting period. The Company has applied fair value accounting for all stock-based payment awards since inception. The fair value of each option or warrant granted is estimated on the date of grant using the Black-Scholes option pricing model. There were no options granted during the three and six months June 30, ended 2021. The assumptions used for the three and six months ended June 30, 2022 are as follows: ​
​ | ​ | ​ | ​ | ​
​ |  | 2022 |
Exercise price | ​ | $ | 2.60 | ​
Expected dividends | ​ |  | 0 | %
Expected volatility | ​ |  | 95 | %
Risk free interest rate | ​ |  | 2.65 | %
Expected life of option (years) | ​ |  | 4.3 | ​
​ Expected dividends —The Company has never declared or paid dividends on its common stock and has no plans to do so in the foreseeable future. Expected volatility—Volatility is a measure of the amount by which a financial variable such as a share price has fluctuated (historical volatility) or is expected to fluctuate (expected volatility) during a period. The expected volatility assumption is derived from the historical volatility of the Company’s common stock over a period approximately equal to the expected term. Risk-free interest rate—The assumed risk-free rate used is a zero coupon U.S. Treasury security with a maturity that approximates the expected term of the option. Expected life of the option—The period of time that the options granted are expected to remain unexercised. Options granted during the year have a maximum term of seven years. The Company estimates the expected life of the option term based on the weighted average life between the dates that options become fully vested and the maximum life of options granted. 6. Stock-Based Compensation – (continued) The Company records stock-based compensation based upon the stated vesting provisions in the related agreements. The vesting provisions for these agreements have various terms as follows:
| ● | immediate vesting,
| ● | in full on the one-year anniversary date of the grant date,
| ● | half vesting immediately and the remaining over three years,
| ● | quarterly over three years,
| ● | annually over three years,
| ● | one-third immediate vesting and the remaining annually over two years,
| ● | one-half immediate vesting and the remaining over nine months,
| ● | one-quarter immediate vesting and the remaining over three years,
| ● | one-quarter immediate vesting and the remaining over 33 months,
| ● | monthly over one year, and
| ● | monthly over three years
During the three and six months ended June 30, 2022, the Company granted 3,000 options to employees having an approximate fair value of $5,000 based upon the Black-Scholes option pricing model, respectively. There were no options granted during the three and six months ended June 30, 2021 6. Stock-Based Compensation – (continued) A summary of stock option activity for the six months ended June 30, 2022 and the year ended December 31, 2021 is as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ |  | Weighted |  | Weighted Average |  | Aggregate
​ | ​ | ​ | ​ | Average Exercise | ​ | Remaining | ​ | Intrinsic
​ | ​ | Options | ​ | Price | ​ | Contractual Life | ​ | Value
Balance - December 31, 2020 |  | 399,742 | ​ | $ | 23.50 |  | 6.09 years | ​ | $ | —
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Granted |  | 226,000 | ​ | ​ | 3.30 |  | ​ | ​ |  | ​
Exercised |  | — | ​ | ​ | — | ​ | ​ | ​ | ​ | ​
Expired |  | (215) | ​ | ​ | 451.50 |  | ​ | ​ |  | ​
Forfeited |  | — | ​ | ​ | — |  | ​ | ​ |  | ​
Balance - December 31, 2021 | ​ | 625,527 | ​ | ​ | 16.10 | ​ | 5.58 years | ​ | ​ | —
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Granted | ​ | 3,000 | ​ | ​ | 2.60 | ​ | ​ | ​ | ​ | ​
Exercised | ​ | — | ​ | ​ | — | ​ | ​ | ​ | ​ | ​
Expired | ​ | (6,651) | ​ | ​ | 39.70 | ​ | ​ | ​ | ​ | ​
Forfeited | ​ | (14,542) | ​ | ​ | 3.60 | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Balance - June 30, 2022 - outstanding |  | 607,334 | ​ | $ | 16.07 |  | 5.07 years | ​ | $ | —
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Balance - June 30, 2022 - exercisable |  | 359,417 | ​ | $ | 24.67 |  | 4.42 years | ​ | $ | —
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Grant date fair value of options granted – three months ended June 30, 2022 | ​ | ​ | ​ | $ | 5,411 |  |  | ​ |  |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Weighted average grant date fair value – three months ended June 30, 2022 | ​ | ​ | ​ | $ | 1.80 |  |  | ​ |  |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Grant date fair value of options granted – year ended December 31, 2021 | ​ | ​ | ​ | $ | 50,100 |  |  | ​ |  |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Weighted average grant date fair value – year ended December 31, 2021 | ​ | ​ | ​ | $ | 2.20 |  |  | ​ |  |
​ Stock-based compensation expense included in general and administrative expenses relating to stock options issued to employees for the three and six months ended June 30, 2022 was $39,000 and $78,000, respectively, and $34,000 and $67,000 for the three and six months ended June 30, 2021, respectively. Stock-based compensation expense included in research and development expenses relating to stock options issued to employees for the three and six months ended June 30, 2022 was $21,000 and $41,000, respectively, and $16,000 and $31,000 for the three and six months ended June 30, 2021, respectively. Stock-based compensation expense included in general and administrative expenses relating to stock options issued to consultants for the three and six months ended June 30, 2022 was $46,000 and $93,000, respectively, and $49,000 and $98,000 for the three and six months ended June 30, 2021, respectively. Stock-based compensation expense included in research and development expenses relating to stock options issued to consultants for the three and six months ended June 30, 2022 was $7,000 and $14,000, respectively, and $3,000 and $7,000 for the three and six months ended June 30, 2020. As of June 30, 2022, total unrecognized stock-based compensation expense related to stock options was $516,000, which is expected to be expensed through April 2024. 6. Stock-Based Compensation – (continued) The FASB’s guidance for stock-based payments requires cash flows from excess tax benefits to be classified as a part of cash flows from operating activities. Excess tax benefits are realized tax benefits from tax deductions for exercised options in excess of the deferred tax asset attributable to stock compensation costs for such options. The Company did not record any excess tax benefits during the three and six months ended June 30, 2022 and 2021.

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