Stock Compensation

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Stock Compensation

9. Stock Compensation

Stock Options

The Company has a 2008 Stock Incentive Plan under which 5 million shares of common stock are reserved for issuance. As of December 31, 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 December 31, 2021, there were 550,000 shares subject to outstanding stock options and 25,000 shares outstanding related to restricted stock grants from the 2019 Plan. This Plan expires on November 14, 2029.

There were no stock options issued to employees and directors in 2021 and 2020.

During the year ended December 31, 2021, options to acquire 300,000 shares of common stock were exercised resulting in net proceeds of $78,000. During the year ended December 31, 2020, the Company issued an aggregate of approximately 2.8 million shares of its common stock upon the exercise of 4.55 million options. Of the 4.55 million option shares, holders of 4.4 million options exercised their shares on a cashless basis into approximately 2.69 million shares of the Company’s common stock. The Company received $39,000 for the exercise of the remaining 150,000 options shares in exchange for 150,000 shares of its common stock.

The following table sets forth the total stock-based compensation expense resulting from stock options and restricted stock included in our Consolidated Statements of Operations for the years ended December 31, 2021 and 2020:

	Years Ended December 31,
	2021		2020
General and administrative – employee	$	—	$	327,854
Total employee stock-based compensation	$	—	$	327,854

There were no options granted to employees and directors during the years ended December 31, 2021 and 2020. Presented below is the Company’s stock option activity for employees and directors:

	Stock Options						Weighted Average Exercise Price
	2021			2020			2021		2020
Outstanding — beginning of year		2,801,270			7,126,340		$	7.68	$	11.55
Granted		—			—			—		—
Exercised		(300,000	)		(4,300,000	)		0.26		0.26
Forfeited		—			—			9.49		—
Expired		(38,450	)		(25,070	)		14.62		41.03
Outstanding — end of year		2,462,820			2,801,270			7.68		7.68
Exercisable at end of year		2,462,820			2,801,270		$	7.68	$	7.68
Weighted average fair value of stock options granted during the year:	$	—		$	—

No options were issued to consultants in 2021 or 2020.

At December 31, 2021, there was no unrecognized compensation expense related to unvested non-employee stock options. Presented below is the Company’s non-employee stock option activity:

	Stock Options					Weighted Average Exercise Price
	2021		2020			2021		2020
Outstanding — beginning of year		365,000		615,000		$	5.49	$	3.36
Granted		—		—			—		—
Exercised		—		(250,000	)		—		0.26
Expired/Forfeited		—		—			—		—
Outstanding — end of year		365,000		365,000			5.49		5.49
Exercisable at end of year		365,000		365,000		$	5.49	$	5.49
Weighted average fair value of stock options granted during the year:	$	—	$	—

The following table summarizes significant ranges of outstanding stock options under the two plans at December 31, 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		7.95	$	0.26		550,000		7.95	$	0.26
$	1.01 - $3.00		1,050,673		5.60	$	2.04		1,050,673		5.60	$	2.04
$	3.01 - $15.00		817,482		3.10	$	12.54		817,482		3.10	$	12.54
$	15.01 - $42.42		409,674		2.12	$	25.24		409,674		2.12	$	25.24
			2,827,829		4.83	$	8.09		2,827,829		4.83	$	8.09

The aggregate intrinsic value of the outstanding options and options vested as of December 31, 2021 was $143,000.

Restricted Stock

In December 2021, the Company granted to Jennifer Simpson, who serves on our Board of Directors, 25,000 shares of restricted common stock, pursuant to the 2019 Plan. This restricted stock vests on the first anniversary of the date of the grant. 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 $11,200. No restricted stock was granted in 2020. As of December 31, 2021, there is $11,200 of unamortized stock compensation that will be amortized through December 2022,

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 and was amortized over the three-year term through 2020. The Company recorded an employee stock-based compensation expense for restricted stock of approximately $216,000 for the year ended December 31, 2020.

Equity-Classified Warrants

A summary of the Company’s warrant activity and related information for the years ended December 31, 2021 and 2020 are shown below.

	Warrants					Weighted Average Exercise Price
	2021			2020		2021		2020
Outstanding — beginning of year		193,916			193,916	$	8.60	$	8.60
Granted		—			—		—		—
Exercised		—			—		—		—
Forfeited		—			—		—		—
Expired		(189,749	)		—		8.04		—
Outstanding — end of year		4,167			193,916		33.60		8.60
Exercisable at end of year		4,167			193,916	$	33.60	$	8.60
Weighted average fair value of warrants granted during the year:	$	—		$	—

The outstanding warrants as of December 31, 2021 had no intrinsic value.