|3 Months Ended|
Mar. 31, 2022
|Share-Based Payment Arrangement [Abstract]|
The Company issues common stock and stock options as incentive compensation to directors and as compensation for the services of employees, contractors, and consultants of the Company.
On July 14, 2020, the Board of Directors of the Company adopted the 2020 Stock Incentive Plan (the “2020 Plan”), which provides for the granting of equity-based awards, consisting of stock options, restricted stock, restricted stock units, stock appreciation rights, and other stock-based awards to employees, officers, directors and consultants of the Company and its affiliates for up to shares of the Company’s common stock, under terms and conditions as determined by the Company’s Board of Directors. Stockholders holding a majority of the voting power of the common stock of the Company approved the 2020 Plan pursuant to an action by written consent dated July 31, 2020. Stockholders of the Company were notified of such action by written consent pursuant to an Information Statement dated August 31, 2020 and mailed to stockholders on or about September 3, 2020. As of March 31, 2022, unexpired stock options for shares were issued and outstanding under the 2020 Plan and shares were available for issuance under the 2020 Plan.
Effective April 9, 2021, the Board of Directors approved a comprehensive cash and equity compensation package for the members of the Board of Directors and committee members. Cash-based features of the compensation package are described at Notes 5 and 8.
, and .
The fair value of a stock option award is calculated on the grant date using the Black-Scholes option-pricing model. The risk-free interest rate is based on the U.S. Treasury yield curve in effect as of the grant date. The expected dividend yield assumption is based on the Company’s expectation of dividend payouts and is assumed to be zero. The estimated volatility is based on the historical volatility of the Company’s common stock, calculated utilizing a look-back period approximately equal to the contractual life of the stock option being granted. Unless sufficient historical exercise data is available, the expected life of the stock option is calculated as the mid-point between the vesting period and the contractual term (the “simplified method”). The fair market value of the common stock is determined by reference to the quoted market price of the common stock on the grant date.
There were no stock options requiring an assessment of value during the three months ended March 31, 2022.
Schedule of Fair Value of Each Option Award Estimated Assumption
On August 1, 2020, in connection with an employment agreement entered into with .
Effective January 6, 2021, in recognition of their service as directors of the Company over the past year, the Company granted fully-vested stock options to purchase 571,312 ($ per share) and was charged to general and administrative costs in the consolidated statement of operations on the grant date. shares of common stock to each of Dr. Winson Sze Chun Ho, Dr. Yun Yen, Dr. Stephen Forman, and Dr. Philip Palmedo (an aggregate of shares), exercisable for a period of from the grant date at $ per share, which was the approximate fair market value of the Company’s common stock on such date. The fair value of these stock options, as calculated pursuant to the Black-Scholes option-pricing model, was determined to be $
On April 9, 2021,
On May 11, 2021,
On June 30, 2021,
Summary of Stock-based Compensation Costs
Summary of Stock Option Activity Including Options Form of Warrants
Total deferred compensation expense for the outstanding value of unvested stock options was approximately $1,757,000 at March 31, 2022, which will be recognized subsequent to March 31, 2022 over a weighted-average period of approximately months.
Schedule of Exercise Prices of Common Stock Options Outstanding and Exercisable Including Options Form of Warrants
The intrinsic value of exercisable but unexercised in-the-money stock options at March 31, 2022 was approximately $, based on a fair market value of $ per share on March 31, 2022.
Outstanding stock options to acquire shares of the Company’s common stock had not vested at March 31, 2022.
The Company expects to satisfy such stock obligations through the issuance of authorized but unissued shares of common stock.
The entire disclosure for share-based payment arrangement.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef