On December 19, 2019, the Oblong, Inc. 2019 Equity Incentive Plan (the “2019 Plan”) was approved by the Company’s stockholders at the Company’s 2019 Annual Meeting of Stockholders. The 2019 Plan is an omnibus equity incentive plan pursuant to which the Company may grant equity and cash incentive awards to certain key service providers of the Company and its subsidiaries. As of December 31, 2021, the share pool available for new grants under the 2019 Plan is 2,513,500.

During the year ended December 31, 2020, the Company issued 7,500 shares under the 2019 Plan to a former Board member and recorded stock-based compensation expense of $35,000 in general and administrative expenses (based on the stock price on the date of issuance).

On June 28, 2021, the Company granted 300,000 stock options to certain employees. These options have a term of 10 years, vest equally over 3 years, 1/3 upon each anniversary of the grant date, and have an exercise price of $3.25 per share. Using the Black-Scholes option pricing model, the options were determined to have a fair value of $744,000 which is being expensed ratably over the vesting term. No stock options were granted during the year ended December 31, 2020. The fair value of each stock option granted was estimated using the following assumptions:


			June 28, 2021
Risk free interest rate			0.47%
Expected option lives			3 years
Expected volatility			1.36
Estimated forfeiture rate			—
Expected dividend yields			—
Weighted average grant date fair value of options			$2.48

A summary of stock options expired and forfeited under our plans and options outstanding as of, and changes made during, the years ended December 31, 2021 and 2020 is presented below:


	Outstanding			Exercisable
	Number of Options	Weighted Average Exercise Price		Number of Options	Weighted Average Exercise Price
Options outstanding and exercisable, December 31, 2019	215,345	$	12.27	215,345	$	12.27


Expired	(107,845)	4.92

Options outstanding and exercisable, December 31, 2020	107,500	19.64		107,500	19.64
Granted	300,000	3.25



Options outstanding and exercisable, December 31, 2021	407,500	$	7.57	107,500	$	19.64


	Outstanding Exercisable				Exercisable
Range of price	Number of Options	Weighted Average Remaining Contractual Life (In Years)	Weighted Average Exercise Price		Number of Options	Weighted Average Exercise Price
$0.00 – $10.00	302,500	9.43	$	3.30	2,500	$	9.00
$10.01 – $20.00	97,500	1.06	19.32		97,500	19.32
$20.01 – $30.00	2,500	0.43	21.80		2,500	21.80
$30.01 – $40.00	5,000	0.19	30.20		5,000	30.20

	407,500	7.26	$	7.57	107,500	$	19.64

The intrinsic value of vested options, unvested options and exercised options were not significant for all periods presented. There was $126,000 stock compensation expense, recorded as a component of Research and Development and General and Administrative expense, related to stock options for the year ended December 31, 2021, and $618,000 remaining as unrecognized stock-based compensation expense for options as of December 31, 2021 which will be recognized over a weighted average period of 2.5 years. There was no recognized or unrecognized stock-based compensation expense for options for the year ended and as of December 31, 2020.

As of December 31, 2021 and 2020, there were 627 unvested restricted stock awards outstanding, with a weighted average grant date price of $15.80. The awards were issued in 2014 and vest over the lesser of ten years, a change in control, or separation from the company. Due to the variability of the vesting, the expense was amortized over an average service period of five years; therefore, there is no stock-based compensation expense for restricted stock awards for the years ended December 31, 2021 and 2020.

On August 18, 2021, the Company granted 200,000 restricted stock units (“RSUs”) to certain board members. These RSUs vested immediately upon issuance. The price per share of the Company’s common stock was $2.19 on the grant date, resulting in a total fair value of $438,000 which was included in general and administrative expense, as stock-based compensation expense, upon issuance. No RSUs were granted during the year ended December 31, 2020 and $5,000 of stock compensation expense was recorded for existing RSUs for the year ended December 31, 2020. There was no remaining unrecognized stock-based compensation expense for RSUs at December 31, 2021.

As of December 31, 2021, there were no unvested restricted stock units (“RSUs”) outstanding and 28,904 vested RSUs remain outstanding as shares of common stock have not yet been delivered for these units in accordance with the terms of the RSUs.

In connection with the acquisition of Oblong Industries, all options to purchase shares of Oblong Industries’ common stock held by existing employees of Oblong Industries were canceled and exchanged for an aggregate of 49,967 restricted shares of Series D Preferred Stock (“Restricted Series D Preferred Stock”), which were subject to vesting over a two-year period following the Closing Date. This vesting period and compensation expense were accelerated, in February 2021, when the Restricted Series D shares were converted to shares of Common Stock. Refer to Note 12 - Preferred Stock for discussion on the conversion of the Series D Restricted Preferred Stock.