STOCK OPTIONS

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

STOCK OPTIONS

11. STOCK OPTIONS

A summary of option activity for the nine months ended September 30, 2022, is presented below.

						Weighted-
				Weighted-		Average
				Average		Remaining		Aggregate
				Exercise		Contractual		Intrinsic
	Options			Price		Life (Years)		Value
Outstanding as of January 1, 2022		5,404,223		$	1.72		2.24	$	107
Granted		2,741,555			1.06		-		-
Forfeited		(2,560,929	)		1.70		-		-
Exercised		(332,730	)		1.13		-		-
Outstanding as of September 30, 2022		5,252,119		$	1.55		2.00	$	19
Vested as of September 30, 2022		2,707,084		$	1.81			$	-
Exercisable as of September 30, 2022		1,686,439		$	2.22			$	-

As of September 30, 2022, the intrinsic value of the outstanding options was $19.

During the nine months ended September 30, 2022, the Company granted stock options to certain employees and consultants to purchase a total of 2,741,555 shares of common stock for services rendered or to be rendered. The options have an average exercise price of $1.06 per share, terms between one and five years, and vest between zero and four years from the respective grant dates. The total grant date fair value of these options was approximately $2,622 using the Black-Scholes option pricing model. The total share-based compensation expense recognized relating to the vesting of stock options for the three and nine months ended September 30, 2022, was $387 and $1,292, respectively. As of September 30, 2022, the remaining share-based compensation expense associated with previously issued stock options was $2,793, which will be recognized in future periods as the options vest.

During the nine months ended September 30, 2022, a total of 332,730 stock options were exercised. As a result of the exercise of the option, the Company issued 332,730 shares of common stock and received cash of $377.

The grant date fair value of option awards is estimated using the Black-Scholes option pricing model based on the following assumptions:

	Nine Months Ended September 30,
	2022			2021
Risk-free interest rate		1.24% - 3.37	%		0.10% - 0.92	%
Average expected term		5 years			5 years
Expected volatility		143.6 – 149.5	%		232.8 - 240.0	%
Expected dividend yield		-			-

The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of measurement corresponding with the expected term of the share option award; the expected term represents the weighted-average period of time that option awards are expected to be outstanding giving consideration to vesting schedules and historical participant exercise behavior; the expected volatility is based upon historical volatility of the Company’s common stock; and the expected dividend yield is based on the fact that the Company has not paid dividends in the past and does not expect to pay dividends in the future.