STOCK OPTIONS

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

STOCK OPTIONS

NOTE 15 – STOCK OPTIONS

During the nine months ended September 30, 2021, the Company granted three- and five-year options to purchase up to 16,651,421 shares of common stock at exercise prices ranging from $0.30 to $1.00 per share. The fair value of these options of approximately $10,142,000 in the aggregate is being amortized to compensation expense over the respective option vesting periods, of which approximately $5,993,000 was amortized during the nine months ended September 30, 2021. Additionally, compensation expense in the first half of 2021 for options issued in previous years, and continuing to be amortized over their respective vesting periods, approximated $638,000.

During the nine months ended September 30, 2020, five-year options to purchase up to 1,064,500 shares of common stock were issued to employees at exercise prices of $0.15 and $0.30 per share. The fair value of these options of approximately $117,000 in the aggregate is being amortized to compensation expense over their respective vesting periods, of which approximately $100,000 was amortized during the nine months ended September 30, 2020. Additionally, compensation expense in the first half of 2020 for options issued in previous years, and continuing to be amortized over their respective vesting periods, approximated $746,000.

During the nine months ended September 30, 2021, options to purchase 251,000 shares of common stock were exercised at prices ranging from $0.21 to $0.45 per share. Of these exercised options, 125,000 were exercised on a cashless basis with the exercise prices paid via the surrender of 72,115 shares of common stock. No options were exercised during the nine months ended September 30, 2020.

During the nine months ended September 30, 2021 and 2020, options to purchase 152,000 and 210,000 shares of common stock, respectively, were forfeited or expired, resulting in an aggregate reduction of amortized compensation expense of zero in 2021 and approximately $208,000 in 2020.

Stock options outstanding and exercisable as of September 30, 2021 were:

Exercise Price	Shares Under Option				Remaining Life
per Share	Outstanding		Exercisable		in Years
$0.140		160,000		80,000		3.78
$0.149		500,000		500,000		4.25
$0.169		200,000		200,000		4.12
$0.225		2,000,000		1,250,000		4.11
$0.250		20,000		20,000		3.67
$0.250		50,000		12,500		4.07
$0.250		800,000		600,000		4.12
$0.250		80,000		60,000		4.15
$0.250		50,000		50,000		3.42
$0.300		403,000		403,000		3.50
$0.417		900,000		900,000		3.24
$0.505		100,000		50,000		4.26
$0.505		800,000		200,000		4.28
$0.590		15,000		15,000		3.19
$0.630		300,000		300,000		0.25
$0.740		590,000		356,250		4.58
$0.770		200,000		200,000		1.25
$0.830		287,000		143,500		4.48
$0.830		600,000		-		4.66
$0.840		878,921		600,000		4.79
$0.840		99,000		19,800		4.84
$0.850		90,000		33,125		4.71
$0.880		11,550,000		5,925,000		4.78
$0.880		15,000		-		4.87
$0.890		10,000		2,500		4.31
$0.892		40,000		20,000		4.31
$0.895		25,000		12,500		4.32
$0.900		50,000		50,000		1.61
$0.910		50,000		50,000		1.06
$0.920		300,000		-		4.76
$0.928		500,000		100,000		4.86
$0.950		50,000		50,000		1.25
$0.970		100,000		50,000		4.71
$0.983		145,000		-		4.74
$0.990		500,000		-		4.97
$0.992		300,000		300,000		2.99
$1.000		15,000		15,000		2.71
$1.000		125,000		125,000		3.09
$1.350		100,000		100,000		1.83
$1.950		375,000		375,000		1.75
$2.320		100,000		100,000		1.95
$2.450		2,000,000		2,000,000		1.23
$2.500		100,000		100,000		1.91
$2.650		200,000		200,000		1.98
$2.850		56,250		56,250		1.20
$2.850		100,000		100,000		2.20
$3.000		25,000		25,000		2.21
$3.725		100,000		100,000		2.19
		26,054,171		15,849,425

NOTE 16 – WARRANTS

During the nine months ended September 30, 2021, the Company issued warrants to purchase up to 2,100,000 shares of common stock at exercise prices ranging from $0.50 to $0.83 per share, expiring three and five years from issuance. The fair value of these warrants on their issuance dates approximated $1,487,000 in the aggregate which was charged to compensation expense. Also during this period, the Company issued warrants to Hadron to purchase up to 15,540,540 shares of common stock at an exercise price of $1.087 per share, expiring four years from issuance, as part of the Hadron transaction previously discussed in Note 13 – Mezzanine Equity. The fair value of these warrants on the issuance date of approximately $9.5 million was allocated to the warrant of the $23.0 million of proceeds from the Hadron transaction and recorded in additional paid in capital.

During the nine months ended September 30, 2020, in conjunction with the $21M Debentures discussed in Note 12 – Debentures Payable, the Company issued three-year warrants to purchase up to 180,000 shares of common stock at an exercise price of $0.75 per share. Also during this period, (i) in conjunction with the $8.8M Note discussed in Note 11 – Promissory Notes, the Company issued three-year warrants to purchase up to 750,000 shares of common stock at an exercise price of $0.50 per share, and (ii) in consideration of the Second Extension Agreement, also discussed in Note 11 – Promissory Notes, the Company issued four-year warrants to purchase up to 5,000,000 shares of the Company’s common stock at an exercise price of $0.25 per share. The fair value of these warrants on their issuance dates approximated $639,000 in the aggregate, of which approximately $10,000 was amortized to interest expense in the period and the remainder to be amortized over the terms of the respective debt instruments.

During the nine months ended September 30, 2021, warrants to purchase 1,237,500 shares of common stock were exercised at exercise prices ranging from $0.11 to $0.55 per share. Of these exercised warrants, 437,500 were exercised on a cashless basis with the exercise prices paid via the surrender of 257,438 shares of common stock. No warrants were exercised during the same period in 2020.

During the nine months ended September 30, 2021, warrants to purchase 5,517,474 shares of common stock with exercise prices ranging from $0.90 to $4.30 per share were forfeited. No warrants were forfeited during the same period in 2020.

At September 30, 2021 and 2020, warrants to purchase up to 27,802,734 and 17,735,107 shares of common stock, respectively, were outstanding with exercise prices ranging from $0.11 to $5.50 per share across both periods.