Stockholders’ Equity (Tables)

9 Months Ended

Sep. 30, 2022

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Schedule of Weighted-Average Assumptions Used to Estimate Fair Value

The following weighted-average assumptions were used to estimate the fair value of options granted during the nine months ended September 30, 2022 and 2021 for the Monte-Carlo simulation:

	Nine Months Ended September 30,
	2022			2021
Vesting Hurdle Price	$	19.39			-
Term (years)		5.00			-
Expected stock price volatility		103.7	%		-
Risk-free rate of interest		1.32	%		-

Summary of Option Activity

A summary of option activity under the Company’s stock option plan for nine months ended September 30, 2022 is presented below:

	Number of Shares		Weighted Average Exercise Price		Total Intrinsic Value		Weighted Average Remaining Contractual Life (in years)
Outstanding as of December 31, 2021		1,235,000	$	2.14	$	1,488,000		4.3
Employee options granted		50,000		1.51		-		4.8
Outstanding as of September 30, 2022		1,285,000	$	2.11	$	-		3.6
Options vested and exercisable as of September 30, 2022		1,229,750	$	2.10	$	-		3.5

Schedule of Restricted Stock Units

The RSUs granted to each executive employee are as follows:

			Total		Market Cap Vesting Thresholds
Officer Name	Title	Grant Date	RSUs Granted		$ 100 million		$ 150 million		$ 200 million		$ 400 million
Charles Allen	Chief Executive Officer	1/2/2022		694,444		173,611		173,611		173,611		173,611
Michal Handerhan	Chief Operations Officer	1/2/2022		444,444		111,111		111,111		111,111		111,111
Michael Prevoznik	Chief Financial Officer	1/2/2022		222,224		55,556		55,556		55,556		55,556
Manish Paranjape	Chief Technology Officer	2/22/2022		160,184		40,046		40,046		40,046		40,046
				1,521,296		380,324		380,324		380,324		380,324

Summary of Restricted Stock

A summary of the Company’s restricted stock units granted under the 2021 Plan during the nine months ended September 30, 2022 are as follows:

	Number of Restricted Stock Units			Weighted Average Grant Day Fair Value
Nonvested at December 31, 2021		29,363		$	5.96
Granted		1,662,607			3.29
Vested		(79,620	)		3.14
Forfeited		-			-
Nonvested at September 30, 2022		1,612,350		$	3.35

Schedule of Stock-based Compensation Expense

Stock-based compensation expense is recorded as a part of selling, general and administrative expenses, compensation expenses and cost of revenues. Stock-based compensation expense for the three and nine months ended September 30, 2022 and 2021 was as follows:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Employee bonus stock awards	$	-	$	-	$	894,027	$	-
Employee stock option awards		16,455		1,638,516		98,901		10,298,844
Employee restricted stock unit awards		434,349		3,027,665		1,182,053		3,029,040
Non-employee restricted stock awards		30,480		75,000		202,218		237,806
Series C-2 Allocation		-		-		-		179,277
	$	481,284	$	4,741,181	$	2,377,199	$	13,744,967

2021 Equity Incentive Plan [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Schedule of Weighted-Average Assumptions Used to Estimate Fair Value

	For the nine months ended September 30,
	2022			2021
Exercise price	$	1.51		$	0.21
Term (years)		5.00			2.25-3.05
Expected stock price volatility		165.8	%		185.9	%
Risk-free rate of interest		2.77	%		0.34	%