Quarterly report pursuant to Section 13 or 15(d)

Stock-based Compensation

v3.21.2
Stock-based Compensation
 6 Months Ended
Jun. 30, 2021
Share-based Payment Arrangement [Abstract]  
Stock-based Compensation

5. Stock-based Compensation

 

The Company recognized stock-based compensation on all employee and non-employee awards as follows:

    For the Three Months Ended June 30, 2021     For the Three Months Ended June 30, 2020     For the Six Months Ended June 30, 2021     For the Six Months Ended June 30, 2020  
Research and development   $ 48,761     $ 25,328     $ 79,688     $ 147,847  
General and administrative     182,379       131,817       1,275,213       874,408  
Total Stock-based compensation   $ 231,140     $ 157,145     $ 1,354,901     $ 1,022,255  

 

 

The following table summarizes the stock option activity during the six months ended June 30, 2021:

    Number of Shares    

Weighted

Average Exercise Price

    Weighted Average Remaining Contractual Term (In Years)     Aggregate Intrinsic Value(1)  
Outstanding at December 31, 2020     5,801,349     $ 0.90       8.52     $ 2,773  
Granted     1,670,000     $ 1.20       —     $ —  
Exercised     (556,540 )   $ 0.48       —     $ —  
Forfeited     (417,167 )   $ 1.24       —     $ —  
Outstanding at June 30, 2021     6,497,642     $ 0.99       7.26     $ 759,709  
                                 
Exercisable at June 30, 2021     5,564,305     $ 1.00       6.96     $ 677,808  

 

(1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock option awards and the closing market price of our common stock as of December 31, 2020 and June 30, 2021, respectively.

 

Total unrecognized compensation cost related to unvested stock options was $442,856 as of June 30, 2021 and is expected to be recognized over a weighted-average period of less than two years.

 

As of June 30, 2021, 955,068 shares of common stock are available for future awards under the 2012 Equity Incentive Plan (the “Plan”).

 

 

Each executive officer and non-employee director receiving equity-based awards is subject to a minimum dollar value stock ownership holding requirement with respect to the awards received as well as all prior equity awards under the Plan which requirements are intended to align the ability to sell shares with the performance of the Company’s stock price. The executive officer recipients each have a minimum dollar value stock ownership holding requirement threshold equal to two times (2x) their then base salaries below which dollar threshold they would be precluded from selling any shares of Company stock obtained from the Company under its Plan. Also, the non-employee directors are each subject to a minimum dollar value stock ownership holding requirement threshold equal to six times the annual Board retainer ($270,000) below which dollar threshold they would be precluded from selling shares of Company stock acquired from the Company under its Plan.

 

The Company entered into a separation agreement with its former chief executive officer which provided for severance payments as contemplated by his employment agreement and (i) accelerated the vesting of certain outstanding option awards; and (ii) extended the time for the exercise of certain vested options for one year from the date of separation. The former executive exercised options to acquire 400,000 shares of common stock during the period.