Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

v3.22.1
Stockholders' Equity
 3 Months Ended
Mar. 31, 2022
Stockholders' Equity Note [Abstract]  
STOCKHOLDERS' EQUITY

NOTE 9 – STOCKHOLDERS’ EQUITY

 

Common Stock

 

Common Stock Issued for Services

 

During the three months ended March 31, 2022, the Company issued an aggregate of 51,319 immediately vested shares of the Company’s common stock as compensation to consultants, directors, and officers, with an aggregate issuance date fair value of $149,718, which was charged immediately to the condensed consolidated statement of operations for the three months ended March 31, 2022.

 

Stock Options

 

A summary of the option activity during the three months ended March 31, 2022 is presented below:

 

          Weighted     Weighted        
          Average     Average        
    Number of     Exercise     Remaining     Intrinsic  
    Options     Price     Term (Yrs)     Value  
Outstanding, January 1, 2022     2,741,000       4.77       9.4       70,500  
Granted    
-
      
-
      
 
      
 
  
Exercised    
-
      
-
      
 
      
 
  
Expired    
-
      
-
      
 
      
 
  
Forfeited    
-
      
-
      
 
      
 
  
Outstanding, March 31, 2022     2,741,000       4.77       9.2     $ 5,000  
                                 
Exercisable, March 31, 2022     1,105,528       4.46       9.1     $ 5,000  

 

As indicated in the table above, no options were issued for the three months ended March 31, 2022. For options issued during the three months ended March 31, 2021, the assumptions used in the Black Scholes valuation method were as follows:

 

    For the Three Months Ended March 31, 2022
Risk-free interest rate   0.75%
Expected term in years   5.27 – 5.38
Expected volatility   100%
Expected dividends   0%

 

A summary of outstanding and exercisable stock options as of March 31, 2022 is presented below:

 

Stock Options Outstanding     Stock Options Exercisable  
            Weighted        
            Average        
Exercise     Number of     Remaining     Number of  
Price     Shares     Life in Years     Shares  
$ 2.49       50,000       8.7       50,000  
$ 4.43       1,580,000       8.9       772,444  
$ 7.56       436,000       9.3       72,667  
$ 3.95       675,000       9.7       210,417  
          2,741,000       9.1       1,105,528  

 

The Company recognized stock-based compensation expense of $596,467 for the three months ended March 31, 2022, related to the amortization of stock options. Expense of $514,696 is included within general and administrative expenses and expense of $81,771 is included within research and development expenses on the condensed consolidated statements of operations. The full amount of stock-based compensation recognized for the period ended March 31, 2022 is considered to be related party expense. Stock-based compensation expense for the three months ended March 31, 2021 was $1,092,399; these expenses were included within general and administrative expenses on the condensed consolidated statement of operations for that period. The full amount of stock-based compensation recognized for the period ended March 31, 2021 was considered to be related party expense. As of March 31, 2022, there was $5,705,889 of unrecognized stock-based compensation expense that will be recognized over the weighted average remaining vesting period of 2.81 years.