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Stock Option Plans and Warrants to Purchase Common Stock

12 Months Ended

Dec. 31, 2019

Stock Option Plans and Warrants to Purchase Common Stock [Abstract]

Stock Option Plans and Warrants to Purchase Common Stock

Note 8. Stock Option Plans and Warrants to Purchase Common Stock

Stock Option Plans

The Amended and Restated 2005 Equity Incentive Plan ("2005 Plan") was replaced by the 2015 Plan, which was approved in June 2015. No securities are available for future issuance under the 2005 Plan. As of December 31, 2019, approximately 663,700 shares are available for grants under the 2015 Plan, and are divided into four separate equity programs:

the Discretionary Option Grant Program, under which eligible persons may, at the discretion of the Plan Administrator, be granted options to purchase shares of common stock,

the Salary Investment Option Grant Program, under which eligible employees may elect to have a portion of their base salary invested each year in options to purchase shares of common stock,

the Automatic Option Grant Program, under which eligible nonemployee Board members will automatically receive options at periodic intervals to purchase shares of common stock, and

the Director Fee Option Grant Program, under which non-employee Board members may elect to have all, or any portion, of their annual retainer fee otherwise payable in cash applied to a special option grant.

Shares available for grant under the 2015 Plan were as follows:

Shares available for grant at January 1, 2019	153,149
Increase in shares available for grant	1,000,000
Options granted	(596,740	)
Options forfeited	107,300
Shares available for grant at December 31, 2019	663,709

Activity under the 2005 Plan and the 2015 Plan for the years ended December 31, 2019 and 2018 was as follows:

				Weighted Average
	Options			Options Exercise Price
Balance outstanding at December 31, 2017		785,655		$	7.15
Granted		370,420			1.14
Forfeited		(133,980	)		4.66
Balance outstanding at December 31, 2018		1,022,095		$	5.32
Granted		596,740			1.09
Forfeited		(111,863	)		3.27
Balance outstanding at December 31, 2019		1,506,972		$	3.77

As of December 31, 2019, there were 908,178 options exercisable with a weighted average exercise price of $5.49 and a weighted average remaining contractual term of 7.34 years. As of December 31, 2019, there were 1,506,972 options outstanding with a weighted average exercise price of $3.77 and remaining term of 8.17 years.

The Company awarded 596,740 and 370,420 stock options during the years ended December 31, 2019 and 2018, respectively, which had a weighted average grant date fair value per share of $0.68 and $0.77, respectively. The weighted-average exercise price, by price range, for outstanding options to purchase common stock at December 31, 2019 was:

Price Range	Weighted Average Remaining Contractual Life in Years	Outstanding Options		Exercisable Options
$0.71-$17.20	8.46		1,431,154		832,360
$20.00-$39.80	3.76		50,830		50,830
$41.00-$48.00	0.66		24,988		24,988
Total	8.17		1,506,972		908,178

The Company's share-based compensation expense for the years ended December 31, 2019 and 2018 was recognized as follows:

Share-based compensation	2019		2018
Research and development	$	143,217	$	174,877
General and administrative		233,122		206,009
Total	$	376,339	$	380,886

At December 31, 2019, the total compensation cost for stock options not yet recognized was approximately $493,000 and will be expensed over the next three years.

Warrants to Purchase Common Stock

On April 1, 2018, warrants to purchase 10,000 shares of the Company's common stock were issued to a third party consultant in Europe. The warrants are exercisable upon the achievement of specified performance milestones at a per share price of $1.95 for a five-year period from issuance. As of December 31, 2019, warrants to purchase 10,000 shares of common stock were exercisable and compensation expense was recognized.

On July 2, 2018, the Company closed an underwritten public offering of 7,766,990 shares of its common stock and exercisable warrants to purchase up to an aggregate of 3,106,796 shares of its common stock at a combined offering price of $1.03. In addition, at the closing the underwriters exercised the over-allotment option to purchase 1,165,048 additional shares of common stock and warrants to purchase up to 466,019 shares of common stock at a combined offering price of $1.03. The warrants have a per share exercise price of $2.25 and will expire 42 months from the date of issuance. On July 9, 2018, warrants to purchase 155,340 shares of the Company's common stock were issued to representatives of the underwriters of the offering. The warrants are exercisable at a per share price of $1.13 and are exercisable twelve months from the effective date of the offering and will expire 42 months from the exercisable date. From January 1, 2020 through March 23, 2020, the Company issued 304,615 shares of common stock from the exercise of warrants issued in this public offering at an exercise price of $2.25.

Warrant activity for the years ended December 31, 2019 and 2018 was as follows:

	Warrants			Weighted Average Exercise Price
Balance at December 31, 2017		2,577,238		$	4.38
Granted		3,738,155			2.20
Exercised		-			-
Expired		(11,750	)		1.64
Balance at December 31, 2018		6,303,643		$	3.09
Granted		-			-
Exercised		-			-
Expired		(110,932	)		14.80
Balance at December 31, 2019		6,192,711		$	2.88

The remaining life, by grant date, for outstanding warrants at December 31, 2019 was:

Grant Date	Exercise Price	Remaining Contractual Life in Years	Outstanding Warrants		Exercisable Warrants
12/16/2016	$3.95	1.96		2,403,405		2,403,405
11/3/2017	$2.50	2.83		51,151		51,151
4/1/2018	$1.95	3.24		10,000		10,000
7/2/2018	$2.25	2.01		3,572,815		3,572,815
7/9/2018	$1.13	2.99		155,340		155,340
Total	$2.88	2.02		6,192,711		6,192,711