| STOCK-BASED COMPENSATION |
NOTE
6 – STOCK-BASED COMPENSATION
Stock
Options: The following table summarizes stock option-based compensation for the three and nine months ended September 30, 2021 and
2020:
SCHEDULE OF STOCK BASED COMPENSATION
| |
|
For the three months ended September 30, |
|
|
For the nine months ended September 30, |
|
| |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
| Research and development |
|
$ |
432,000 |
|
|
$ |
765,000 |
|
|
$ |
1,649,000 |
|
|
$ |
2,380,000 |
|
| General and administrative |
|
|
955,000 |
|
|
|
484,000 |
|
|
|
2,148,000 |
|
|
|
1,703,000 |
|
| Stock option-based compensation expense included in operating expense |
|
$ |
1,387,000 |
|
|
$ |
1,249,000 |
|
|
$ |
3,797,000 |
|
|
$ |
4,083,000 |
|
We
estimate the fair value of each option award on the date of grant using the Black-Scholes option valuation model. We then recognize the
grant date fair value of each option as compensation expense ratably using the straight-line attribution method over the service period
(generally the vesting period). The Black-Scholes model incorporates the following assumptions:
| |
● |
Expected
volatility - we estimate the volatility of our share price at the date of grant using a “look-back” period which coincides
with the expected term, defined below. We believe using a “look-back” period which coincides with the expected term is
the most appropriate measure for determining expected volatility. |
| |
● |
Expected
term - we estimate the expected term using the “simplified” method, as outlined in Staff Accounting Bulletin No. 107,
“Share-Based Payment.” |
| |
● |
Risk-free
interest rate - we estimate the risk-free interest rate using the U.S. Treasury yield curve for periods equal to the expected term
of the options in effect at the time of grant. |
| |
● |
Dividends
- we use an expected dividend yield of zero because we have not declared or paid a cash dividend, nor do we have any plans to declare
a dividend. |
We
used the following weighted-average assumptions to estimate the fair value of the options granted for the periods indicated:
SCHEDULE OF WEIGHTED-AVERAGE ASSUMPTIONS TO ESTIMATE THE FAIR VALUE OF THE OPTIONS GRANTED
| |
|
For the three months ended September 30, |
|
|
For the nine months ended September 30, |
|
| |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
| Expected volatility |
|
|
92 |
% |
|
|
110 |
% |
|
|
97 |
% |
|
|
111 |
% |
| Expected term |
|
|
6.08 years |
|
|
|
6.25 years |
|
|
|
5.97 years |
|
|
|
6.25 years |
|
| Risk-free interest rate |
|
|
0.97 |
% |
|
|
0.16 |
% |
|
|
0.98 |
% |
|
|
0.29 |
% |
| Expected dividend yield |
|
|
0 |
% |
|
|
0 |
% |
|
|
0 |
% |
|
|
0 |
% |
The
following table summarizes the options granted for the periods indicated:
SCHEDULE OF OPTIONS ACTIVITY
| |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
| |
|
For the three months ended September 30, |
|
|
For the nine months ended September 30, |
|
| |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
| Options granted |
|
|
1,028,000 |
|
|
|
342,100 |
|
|
|
4,383,308 |
|
|
|
3,415,146 |
|
| Weighted-average: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Exercise price |
|
$ |
1.25 |
|
|
$ |
3.08 |
|
|
$ |
1.86 |
|
|
$ |
2.38 |
|
| Grant date fair value |
|
$ |
0.94 |
|
|
$ |
2.56 |
|
|
$ |
1.44 |
|
|
$ |
1.99 |
|
Restricted
Common Stock: The following table summarizes restricted common stock compensation expense for the three and nine months ended September
30, 2021 and 2020:
SCHEDULE OF STOCK BASED COMPENSATION
| |
|
For the three months ended September 30, |
|
|
For the nine months ended September 30, |
|
| |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
| Research and development |
|
$ |
256,000 |
|
|
$ |
89,000 |
|
|
$ |
1,286,000 |
|
|
$ |
561,000 |
|
| General and administrative |
|
|
894,000 |
|
|
|
72,000 |
|
|
|
1,832,000 |
|
|
|
251,000 |
|
| Restricted stock-based compensation expense included in operating expense |
|
$ |
1,150,000 |
|
|
$ |
161,000 |
|
|
$ |
3,118,000 |
|
|
$ |
812,000 |
|
The
following table summarizes the restricted common stock granted for the periods indicated:
SUMMARY OF RESTRICTED COMMON STOCK
| |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
| |
|
For the three months ended September 30, |
|
|
For the nine months ended September 30, |
|
| |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
| Restricted common stock granted |
|
|
767,934 |
|
|
|
- |
|
|
|
2,743,668 |
|
|
|
1,083,313 |
|
| Restricted common stock forfeited |
|
|
(293,109 |
) |
|
|
(265,080 |
) |
|
|
(721,768 |
) |
|
|
(265,080 |
) |
| Weighted-average: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Grant date fair value-granted awards |
|
$ |
1.24 |
|
|
$ |
- |
|
|
$ |
1.77 |
|
|
$ |
3.19 |
|
| Grant date fair value-forfeited awards |
|
$ |
1.93 |
|
|
$ |
3.18 |
|
|
$ |
1.90 |
|
|
$ |
3.18 |
|
|