Annual report pursuant to Section 13 and 15(d)

STOCKBASED COMPENSATION

v3.22.1
STOCKBASED COMPENSATION
 12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
Equity Incentive Plans
In the first quarter of 2016, the Company adopted the 2016 Equity Incentive Plan. In the fourth quarter of 2018, the Company adopted the 2018 Equity Incentive Plan. The following table contains information about both plans as of December 31, 2021:
Awards
Reserved
for Issuance		 Awards
Exercised		 Awards
Outstanding		 Awards
Available
for Grant
2016 Equity Incentive Plan 2,000,000  —  499,953  1,500,047 
2018 Equity Incentive Plan 43,976,425  3,875,921  14,409,604  25,690,900 
2019 Equity Incentive Plan 84,150,000  34,884  73,014,717  11,100,399 
Stock Options
The following table summarizes the Company’s stock option activity and related information for the year ended December 31, 2021 and 2020:
Number
of Shares		 Weighted-
Average
Exercise
Price
Per Share		 Weighted-
Average
Remaining Contractual
Life		 Aggregate
Intrinsic
Value of In-
the-Money
Options
Options Outstanding as of December 31, 2019 12,365,295  $ 1.61 
Options Granted 12,803,918  $ 0.08 
Options Exercised —  $ — 
Options Forfeited (7,203,334) $ 1.19 
Options Expired (473,049) $ 1.51 
Options Outstanding as of December 31, 2020 17,492,830  $ 0.41 
Options Granted 88,627,220  $ 0.23 
Options Exercised (3,910,805) $ 0.08 
Options Forfeited (13,547,745) $ 0.15 
Options Expired (410,120) $ 0.41 
Options Outstanding as of December 31, 2021 88,251,380  $ 0.20  8.8 years $ 10,334,294 
Options Exercisable as of December 31, 2021 35,661,302  $ 0.27  7.6 years $ 3,591,052 
The aggregate intrinsic value is calculated as the difference between the Company’s closing stock price of $0.26 on December 31, 2021 and the exercise price of options, multiplied by the number of options. As of December 31, 2021, there was $7.97 million total unrecognized stock-based compensation. Such costs are expected to be recognized over a weighted-average period of approximately 1.58 years. The weighted average fair value of awards granted was $0.23 and $0.08 during 2021 and 2020, respectively.
The Company recognizes compensation expense for stock option awards on a straight-line basis over the applicable service period of the award. The service period is generally the vesting period. The following weighted-average assumptions were used to calculate stock-based compensation:
Year Ended December 31,
2021 2020
Expected term 5 years 6 years
Volatility 106.7  % 104.6  %
Risk-Free Interest Rate 0.8  % 0.4  %
Dividend Yield 0  % 0  %
The Company does not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. Hence, the Company uses the “simplified method” described in Staff Accounting Bulletin 107 to estimate the expected term of share option grants.
The expected stock price volatility assumption was determined by examining the historical volatilities for the Company’s common stock. The Company will continue to analyze the historical stock price volatility and expected term assumptions as more historical data for the Company’s common stock becomes available.
The risk-free interest rate assumption is based on the U.S. treasury instruments whose term was consistent with the expected term of the Company’s stock options.
The expected dividend assumption is based on the Company’s history and expectation of dividend payouts. The Company has never paid dividends on its common stock and does not anticipate paying dividends on its common stock in the foreseeable future. Accordingly, the Company has assumed no dividend yield for purposes of estimating the fair value of the Company stock-based compensation.
Stock-Based Compensation Expense
The following table sets forth the total stock-based compensation expense resulting from stock options and restricted grants of common stock to employees, directors and non-employee consultants in the consolidated statement of operations which are included in selling, general and administrative expenses:
(in thousands, except for number of shares or options)
For the Year Ended
December 31, 2021 December 31, 2020
Type of Award Number of
Shares or
Options
Granted		 Stock-Based
Compensation
 Expense		 Number of
Shares or
Options
Granted		 Stock-
Based
Compensation
Expense
Stock Options 89,930,019  $ 2,415  4,174,428  $ 1,868 
Stock Grants:
Employees (Common Stock) 250,000  68  740,580  142 
Directors (Common Stock) 1,917,837  494  173,610  105 
Non–Employee Consultants (Common Stock) 4,556,603  1,078  715,065  60 
Total Stock–Based Compensation Expense $ 4,055  $ 2,175