EQUITY-BASED COMPENSATION

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Equity Incentive Plans

The Company has granted options to employees, directors, and consultants under the 2015 Equity Incentive Plan (the "2015 Plan"). The 2015 Plan provides for the grant of incentive stock options ("ISOs"), nonstatutory stock options, restricted stock awards, restricted stock units, stock appreciation rights, performance-based stock awards and other stock-based awards. Additionally, the 2015 Plan provides for the grant of performance-based cash awards. ISOs may be granted only to the Company's employees. All other awards may be granted to the Company's employees, including officers, and to non-employee directors and consultants. As of September 30, 2021, there were 1,026,690 shares remaining available for the grant of stock awards under the 2015 Plan.

During the nine-month periods ended September 30, 2021 and 2020, the Company awarded 79,000 and 182,000, respectively, stock options to its employees and directors, pursuant to the plan described above. Stock options generally vest over one to four years and have a contractual term of ten years. Stock options are valued using the Black-Scholes option pricing model and compensation cost is recognized based on the resulting value over the service period. Expected volatilities utilized in the model are based on implied volatilities from traded stocks of peer

companies. Similarly, the dividend yield is based on historical experience and the estimate of future dividend yields. The risk-free interest rate is derived from the U.S. Treasury yield curve in effect at the time of grant. The expected term of the options is based on the average period the stock options are expected to remain outstanding. The fair value of the option grants awarded during each of the nine month periods ended September 30, 2021 and 2020 was $0.1 million and $0.7 million, respectively, which has been estimated with the following assumptions on the grant date.


	3/10/2021		6/16/2021		9/2/2021
Risk-free interest rate	1.00	%	1.09	%	0.93	%
Volatility	133.35	%	131.06	%	130.44	%
Expected life (years)	6.00		6.00		6.00
Expected dividend yield	0	%	0	%	0	%

The following table summarizes stock option activity for employees and non-employees for the nine months ended September 30, 2021 and 2020:


	Shares	Weighted-Average Exercise Price	Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding at December 31, 2019	166,233	$34.42	6.53	$—
Granted	743,118	0.61
Exercised	—
Forfeited	(36,613)	—
Expired	(30,766)
Outstanding at September 30, 2020	841,972	$4.55	9.32
Exercisable at September 30, 2020	69,813	$37.84	5.43	$—

Outstanding at December 31, 2020	1,563,972	$2.78	9.47	$175,770
Granted	79,000	$1.04-$1.49
Exercised	—
Forfeited	(45,000)
Expired	—
Outstanding at September 30, 2021	1,597,972	$2.75	8.75	$271,540
Exercisable at September 30, 2021	323,730	$9.27	7.74	$34,440

As of September 30, 2021 and 2020, there was approximately $1.0 million and $0.4 million respectively of total unrecognized compensation cost related to unvested stock options. Total unrecognized compensation cost will be adjusted for future changes in employee and non-employee forfeitures, if any. The Company expects to recognize that cost over a remaining weighted-average period of 2.45 years.