Stock Option Plans and Warrants to Purchase Common Stock

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Stock Option Plans and Warrants to Purchase Common Stock

Note 10. 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, 2020, approximately 214,689 shares are available for grants under the 2015 Plan, and are divided into four separate equity programs:

1) 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,

2) 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,

3) 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

4) 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, 2020	663,709
Options granted	(520,812	)
Options forfeited	71,792
Shares available for grant at December 31, 2020	214,689

Activity under the 2005 Plan and the 2015 Plan for the years ended December 31, 2020 and 2019 was as follows:

				Weighted Average
	Options			Options Exercise Price
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
Granted		520,812			2.17
Forfeited		(88,222	)		13.06
Exercised		(5,758	)		1.19
Balance outstanding at December 31, 2020		1,933,804		$	2.96

As of December 31, 2020, there were 1,310,442 options exercisable with a weighted average exercise price of $3.53 and a weighted average remaining contractual term of 7.24 years. As of December 31, 2020, there were 1,933,804 options outstanding with a weighted average exercise price of $2.96 and remaining term of 7.91 years.

The Company awarded 520,812 and 596,740 stock options during the years ended December 31, 2020 and 2019, respectively, which had a weighted average grant date fair value per share of $0.97 and $0.68, respectively. The weighted-average exercise price, by price range, for outstanding options to purchase common stock at December 31, 2020 was:

Price Range	Weighted Average Remaining Contractual Life in Years		Outstanding Options		Exercisable Options
$0.71-$2.79		8.49		1,723,180		1,099,818
$6.40-$15.60		3.42		156,394		156,394
$20.00-$39.80		2.58		54,230		54,230
Total		7.91		1,933,804		1,310,442

The Company’s share-based compensation expense for the years ended December 31, 2020 and 2019 was recognized as follows:

Share-based compensation	2020		2019
Research and development	$	195,560	$	143,217
General and administrative		214,373		233,122
Total	$	409,933	$	376,339

At December 31, 2020, the total compensation cost for stock options not yet recognized was approximately $584,000 and will be expensed over the next three years.

Warrants to Purchase Common Stock

Warrant activity for the years ended December 31, 2020 and 2019 was as follows:

	Warrants			Weighted Average Exercise Price
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
Granted		-			-
Exercised		(461,234	)		1.87
Expired		-			-
Balance at December 31, 2020		5,731,477		$	2.96

F-20

The remaining life, by grant date, for outstanding warrants at December 31, 2020 was:

Grant Date	Exercise Price		Remaining Contractual Life in Years		Outstanding Warrants		Exercisable Warrants
12/16/2016	$	3.95		0.96		2,403,405		2,403,405
11/3/2017	$	2.50		1.83		49,872		49,872
4/1/2018	$	1.95		2.24		10,000		10,000
7/2/2018	$	2.25		1.01		3,268,200		3,268,200
Total	$	2.88		2.02		5,731,477		5,731,477