The Company awards common stock and stock options to employees, consultants, and directors as compensation for their services, and accounts for its stock option awards to employees, consultants, and directors pursuant to the provisions of ASC 718. For the options with market conditions, the fair value of each award is estimated on the date of grant using Monte-Carlo valuation model and recognizes the fair value of each option as compensation expense over the derived service period. For the options with performance conditions, the fair value of each award is estimated on the date of grant using Black-Scholes Merton

valuation model and recognizes the fair value of each option as compensation expense over the implicit service period. For Restricted stock and option awards only with service conditions, the fair value of each option award is estimated on the date of grant using the Black-Scholes Merton valuation model. The Company recognizes the fair value of each option as compensation expense ratably using the straight-line attribution method over the service period, which is generally the vesting period.

Effective as of December 3, 2010 and amended on August 3, 2018, the Company’s Board of Directors approved the 2010 Plan pursuant to which options or other similar securities may be granted. On October 22, 2020, the Company’s shareholders approved the amendment and restatement of the 2010 Plan. The maximum aggregate number of shares of common stock that may be issued under the 2010 Plan increased from 31.5 million shares to 56.8 million shares. As of September 30, 2022, options available for issuance are 16.7 million shares.

For the three months ended September 30, 2022 and 2021, total share-based payments expense was $2.2 million and $15.2 million, respectively. For the nine months ended September 30, 2022 and 2021, total share-based payments expense was $7.4 million and $19.2 million, respectively.


	Options Outstanding	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding at January 1, 2022	21,843,781	$	1.74	—	$	—
Granted	1,605,000	1.01		—	—
Exercised	(72,334)	0.53		—	—
Expired	(737,963)	2.48		—	—
Forfeited	(234,662)	2.30		—	—
Outstanding at September 30, 2022	22,403,822	1.67		7.51	—
Vested as of September 30, 2022	18,039,489	1.51		7.31	—
Expected to vest as of September 30, 2022	4,364,333	2.16		8.36	—

As of September 30, 2022, $5.8 million of total unrecognized compensation expense related to non-vested share options is expected to be recognized over a weighted average period of 1.16 years. The total intrinsic value of shares exercised in the nine months ended September 30, 2022 and 2021 was $0.0 million and $5.6 million, respectively. The total fair value of shares vested in the nine months ended September 30, 2022 and 2021 was $6.7 million and $5.4 million, respectively. Cash received from options exercised in the nine months ended September 30, 2022 and 2021 were $0.0 million and $8.4 million, respectively.

For the options with service conditions, the assumptions used to estimate the fair values of the stock options granted in the nine months ended September 30, 2022 and 2021 as follows:


	Nine Months Ended
	September 30, 2022		September 30, 2021
Expected term (in years)	5.51-5.53		4.79-7.17
Expected volatility	123%-124%		112%-130%
Expected dividend yield	—	%	—	%
Risk free interest rate	1.69%-2.87%		0.51%-1.1%

For the options with market conditions, the assumptions used to estimate the fair values of the stock options granted in the nine months ended September 30, 2021 as follows:

In connection with certain of the Company’s service agreements, the Company issued warrants to service providers to purchase common stock of the Company.


	September 30, 2022	December 31, 2021
Warrants Outstanding	Number of Warrants Outstanding and Exercisable	Number of Warrants Outstanding and Exercisable	Exercise Price		Expiration Date
Service providers	—	200,000	$	5.00	July 1, 2022
Service providers	—	700,000	2.50		July 1, 2022 - October 1, 2022
Service provider	—	100,000	7.50		January 1, 2023
Service provider	—	100,000	9.00		January 1, 2023
Total	—	1,100,000