Stock Based Compensation

6 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

Stock Based Compensation

3. Stock Based Compensation

The Company has a 2008 Stock Incentive Plan under which 5 million shares of common stock are reserved for issuance. As of June 30, 2021, there were approximately 2.3 million shares subject to outstanding stock options and approximately 0.8 million shares outstanding related to restricted stock grants issued from the 2008 Plan. This plan expired on November 20, 2018 and thus no further shares are available for future grant under this plan.

In November 2019, the Company adopted a 2019 Stock Incentive Plan under which 5.4 million shares of common stock are reserved for issuance. As of June 30, 2021, there were 0.6 million shares subject to outstanding stock options. This Plan expires on November 14, 2029.

The following table sets forth the total stock-based compensation expense resulting from stock options, restricted stock and warrants included in our Condensed Consolidated Statements of Operations:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
General and administrative — employee		—		86,659		—		173,321
Total employee stock-based compensation	$	—	$	86,659	$	—	$	173,321

Stock Options

There were no options granted in either of the periods ended June 30, 2021 and June 30, 2020.

Presented below is our stock option activity:

	Six Months Ended June 30, 2021
	Number of Options (Employees)			Number of Options (Non-Employees)		Total Number of Options			Weighted-Average Exercise Price
Outstanding at January 1, 2021		2,801,270			365,000		3,166,270		$	7.43
Exercised		(300,000	)		—		(300,000	)	$	0.26
Forfeited or expired		(3,570	)		—		(3,570	)	$	30.24
Outstanding at June 30, 2021		2,497,700			365,000		2,862,700		$	8.15
Exercisable at June 30, 2021		2,497,700			365,000		2,862,700		$	8.15

The following table summarizes significant ranges of outstanding stock options under our plans at June 30, 2021:

Range of Exercise Prices	Number of Options		Weighted-Average Remaining Contractual Life (years)		Weighted-Average Exercise Price		Number of Options Exercisable		Weighted-Average Remaining Contractual Life (years)		Weighted-Average Exercise Price
$0.26 - $1.00		550,000		8.46	$	0.26		550,000		8.46	$	0.26
$1.01 – $3.00		1,050,673		6.11	$	2.04		1,050,673		6.00	$	2.04
$3.01 – $15.00		852,360		3.47	$	12.56		852,360		3.47	$	12.56
$15.01 –$42.42		409,667		2.62	$	25.24		409,667		2.62	$	25.24
		2,862,700		5.28	$	3.32		2,862,700		5.28	$	3.32

During the three and six-month periods ended June 30, 2021, the Company recorded no stock compensation costs as all options had previously vested, as compared to to $30,692 and $60,787, respectively, for the three and six-month periods ended June 30, 2020. As of June 30, 2021, there was no unrecognized compensation expense related to unvested stock options.

During the six months ended June 30, 2021, options to acquire 300,000 shares of common stock were exercised resulting in net proceeds of $78,000.

The aggregate intrinsic value of the outstanding options and options vested as of June 30, 2021 was $0.4 million.

Stock Warrants

At December 31, 2020, the Company had 193,196 warrants outstanding at a weighted average price of $8.60. During 2021, 189,029 warrants expired, and as such, there were 4,167 remaining warrants outstanding as of June 30, 2021 at a weighted average exercise price of $10.44. At June 30, 2021, the 4,167 warrants outstanding had no intrinsic value.

Restricted Stock

In December 2017, the Company granted to Steven Kriegsman, Chief Executive Officer, 387,597 shares of restricted common stock, pursuant to the 2008 Plan. This restricted stock vests in equal annual instalments over three years. The fair value of the restricted stock is based on the market price of the Company’s shares on the grant date less the par value received as consideration. The fair value of the restricted stock on the grant date was $679,000. In December 2016, the Company granted to Steven Kriegsman, Chief Executive Officer, 387,597 shares of restricted common stock, pursuant to the 2008 Plan. This restricted stock vests in equal annual instalments over three years. The fair value of the restricted stock is based on the market price of the Company’s shares on the grant date less the par value received as consideration. The fair value of the restricted stock on the grant date was $1,000,000. The Company recorded an employee stock-based compensation expense for restricted stock of $56,267 and $112,534 respectively, for the three and six-month periods ended June 30, 2020. All shares had fully vested as of December 31, 2020. No restricted stock was granted in 2021 nor 2020.