Stock Compensation

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

STOCK COMPENSATION

5. STOCK COMPENSATION

Stock Incentive Plans

In 2018, the Company adopted the 2018 Stock Incentive Plan (the “2018 Plan”) for employees, consultants, and directors. The 2018 Plan, which is administered by the Board of Directors, permits the Company to grant incentive and nonqualified stock options for the purchase of common stock, and restricted stock awards. The maximum number of shares reserved for issuance under the 2018 Plan is 629,440.  At June 30, 2022, there were 262,269 shares available for grant under the 2018 Plan.

On July 6, 2021, the Company’s board of directors and stockholders approved and adopted the Bluejay Diagnostics, Inc. 2021 Stock Plan (the “2021 Plan”). A total of 1,960,000 shares of common stock were approved to be initially reserved for issuance under the 2021 Stock Plan. At June 30, 2022, there were 1,349,721 shares available for grant under the 2021 Plan.

Stock Award Activity

The following table summarizes the status of the Company’s non-vested restricted stock awards for the six months ended June 30, 2022:

	Non-vested Restricted Stock Awards
	Number of Shares		Weighted Average Grant Date Fair Value
Outstanding at December 31, 2021		-	$	-
Granted		105,000		1.29
Vested		-		-
Forfeited		-		-
Outstanding at June 30, 2022		105,000	$	1.29

The following is a summary of stock option activity for the six months ended June 30, 2022:

	Number of Stock Options			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life in Years		Aggregate Intrinsic Value
Outstanding at December 31, 2021		589,786		$	1.86		8.3	$	605,187
Granted		226,279			1.84
Exercised		-
Cancelled and forfeited		(10,260	)		2.68
Outstanding at June 30, 2022		805,805		$	1.84		8.3	$	140,248
Exercisable at June 30, 2022		393,312		$	1.45		7.4	$	133,968

The weighted average grant date fair value of options granted during the six months ended June 30, 2022 was $1.45 per share.

The Company calculated the grant-date fair value of stock option awards granted during the six months ended June 30, 2022 and 2021 using the Black-Scholes model with the following assumptions:

	Six Months Ended June 30,
	2022		2021
Risk-free interest rate		1.58% – 3.06%		0.31% - 0.56%
Expected dividend yield		0.00%		0%
Volatility factor		102.03% - 104.40%		88.60%
Expected life of option (in years)		5.37 – 6.00		2.81 – 4.22

Stock-Based Compensation Expense

For the three and six months ended June 30, 2022 and 2021, the Company recorded stock-based compensation expense as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Research and development	$	16,392	$	-	$	33,704	$	-
General and administrative		89,562		155		197,866		319
Sales and marketing		160		-		630		-
Total stock-based compensation	$	106,114	$	155	$	232,200	$	319

At June 30, 2022, there was approximately $340,077 of unrecognized compensation expense related to non-vested stock option awards that are expected to be recognized over a weighted-average period of 2.0 years. At June 30, 2022, there was approximately $130,392 of unrecognized compensation expense related to non-vested restricted stock awards that are expected to be recognized over a weighted-average period of 2.5 years.