Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

v3.22.1
Stock-Based Compensation
 3 Months Ended
Mar. 31, 2022
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Stock Incentive Plan
On October 31, 2014, after the closing of the Merger, the Board of Directors approved the Company’s 2014 Omnibus Incentive Plan (the “2014 Plan”). The share reserve under the 2014 Plan equals 10% of the number of issued and outstanding shares of common stock of the Company on an evergreen basis. In August 2020, the Company approved Amendment No. 2 to the 2014 Plan, which increased the share reserve by an additional 7,876,835 shares over the 10% of the number of issued and outstanding shares of common stock, and removed certain restrictions on the number of shares of common stock and the amount of cash-based awards up to which participants of the 2014 Plan can receive in a calendar year. The 2014 Plan authorizes the issuance of awards including stock options, stock appreciation rights, restricted stock, stock units and performance units to employees, directors, and consultants of the Company. As of March 31, 2022, the Company had 17,154,595 shares available for future grant under the 2014 Plan.
Stock Options
The following is a summary of option activities under the Company’s 2014 Plan for the three months ended March 31, 2022:
Number of
Shares		 Weighted
Average
Exercise Price		 Weighted
Average
Remaining
Contractual
Term (Years)		 Aggregate Intrinsic Value
Outstanding, December 31, 2021 35,405,000  $ 0.07  9.08 $ 134,750 
Granted —  — 
Exercised —  — 
Cancelled (215,000) 0.07 
Forfeited (825,000) 0.10 
Outstanding, March 31, 2022 34,365,000  $ 0.07  8.82 $ — 
Exercisable, March 31, 2022 11,331,250  $ 0.08  8.82 $ — 
Exercisable, Vested and expected to vest, March 31, 2022 34,365,000  $ 0.07  8.82 $ — 
Restricted Stock Units

On December 14, 2021, the Company granted restricted stock units (“RSUs”) to its executive management team. The RSUs cliff vest 33% per year on the anniversary of the grant date over a three year period. As of March 31, 2022, 4,000,000 RSUs with a weighted average grant date fair value of $0.06 per share remain unvested.
Awards Granted Outside the 2014 Plan
The following is a summary of restricted stock activity outside of the Company’s 2014 Plan during the three months ended March 31, 2022:
Number of
Shares		 Weighted
Average
Grant
Date Fair
Value
Unvested, December 31, 2021 150,000  $ 0.13 
Released (150,000) 0.13 
Unvested, March 31, 2022 —  $ — 
Stock-Based Compensation Expense
The Company recognizes stock-based compensation expense using the straight-line method over the requisite service period. The Company recognized stock-based compensation expense, including compensation expense for RSUs discussed above, in its Condensed Consolidated Statements of Comprehensive Loss as follows:
Three Months Ended March 31,
2022 2021
Research and development $ 18,585  $ 74,429 
General and administrative 118,773  72,151 
$ 137,358  $ 146,580 
The total amount of unrecognized compensation cost was $1,428,815 as of March 31, 2022. This amount will be recognized over a weighted average period of 3.00 years.