Stock Plan | Note 11 – Stock Plan 2016 Stock Option and Stock Award On December 14, 2016, the Board adopted the Company’s 2016 Stock Option and Stock Award Plan (the “Plan”). The Plan provides for the award of stock options (incentive and non-qualified), stock awards and stock appreciation rights to officers, directors, employees and consultants who provide services to the Company. The terms of awards under the Plan are made by the Board. The Company has reserved 10 million shares for issuance under the Plan. (a) Stock Options granted to Science Advisors and Business Advisors On November 15, 2017, under the Plan, the Board awarded two of its Science Advisors the following three-year stock options: (i) an immediately exercisable option to purchase 6,667 shares of common stock at an exercise price of $2.00 per share, (ii) an option to purchase 6,667 shares of common stock exercisable on November 15, 2018 at an exercise price of $2.00 per share and (iii) an option to purchase 6,666 shares of common stock exercisable on November 15, 2019 at an exercise price of $2.00 per share, provided that such Advisors are providing services to the Company at the time of exercise. 13,334 On April 16, 2018, under the Plan, the Board awarded a Science Advisor, the following three-year stock options: (i) an option to purchase 10,000 shares of common stock, exercisable on April 16, 2018 at an exercise price of $2.00 per share (ii) an option to purchase 10,000 shares of common stock exercisable on April 16, 2019 at an exercise price of $2.00 per share, and (iii) an option to purchase 10,000 shares of common stock exercisable on April 16, 2020 at an exercise price of $2.00 per share, provided the Advisor is providing services to the Company at the time of exercise. 10,000 On August 15, 2018, under the Plan, the Board awarded a Science Advisor, the following three-year stock options: (i) an option to purchase 6,667 shares of common stock, exercisable on August 15, 2018 at an exercise price of $2.00 per share (ii) an option to purchase 6,667 shares of common stock exercisable on August 15, 2019 at an exercise price of $2.00 per share, and (iii) an option to purchase 6,666 shares of common stock exercisable on August 15, 2020 at an exercise price of $2.00 per share, provided the Advisor is providing services to the Company at the time of exercise On July 1, 2019, under the Plan, the Board awarded a Science Advisor, the following three-year stock options: (i) an option to purchase 33,334 shares of common stock, exercisable on July 1, 2019 at an exercise price of $2.00 per share (ii) an option to purchase 33,333 shares of common stock exercisable on July 1, 2020 at an exercise price of $2.00 per share, and (iii) an option to purchase 33,333 shares of common stock exercisable on July 1, 2021 at an exercise price of $2.00 per share On February 10, 2020 under the Plan, the Company granted three-year options to purchase an aggregate of 50,000 shares of its common stock at an exercise price of $2.00 per share, to a Business Advisor (Note 10(2) above). 25,000 of such shares subject to the option were immediately exercisable and expire on February 10, 2023, and 25,000 shares vest on February 10, 2021 and expire on February 10, 2024 (b) On December 10, 2018, the Board awarded an employee the following three-year stock options under the Plan: (i) an option to purchase 33,334 shares of common stock, exercisable on December 10, 2018 at an exercise price of $2.00 per share (ii) an option to purchase 33,333 shares of common stock exercisable on December 10, 2019 at an exercise price of $2.00 per share, and (iii) an option to purchase 33,333 shares of common stock exercisable on December 10, 2020 at an exercise price of $2.00 per share, provided the employee is providing services to the Company at the time of exercise On December 10, 2019, the Board awarded an employee, the following three-year stock options under the Plan: (i) an option to purchase 33,334 shares of common stock, exercisable on December 10, 2019 at an exercise price of $2.00 per share (ii) an option to purchase 33,333 shares of common stock exercisable on December 10, 2020 at an exercise price of $2.00 per share, and (iii) an option to purchase 33,333 shares of common stock exercisable on December 10, 2021 at an exercise price of $2.00 per share, provided the employee is providing services to the Company at the time of exercise On December 10, 2020, under the Plan, the Board awarded an employee, an immediately exercisable three-year stock option to purchase 100,000 2.00 The following table is the recognized compensation in respect of the above stock option compensation Three Months ended Six Months ended June 30, June 30, 2021 2020 2021 2020 Research and development expenses $ 3,100 $ 29,717 $ 6,200 $ 97,271 As of June 30, 2021 and December 31, 2020, total unrecognized compensation remaining to be recognized in future periods totaled $ 0 6,100 (c) Stock Options granted to Officers: On June 25, 2019, the Company appointed John N. Bonfiglio, PhD as its chief operating officer, effective July 1, 2019. As compensation, Dr. Bonfiglio was granted a three-year stock option to purchase 100,000 shares of common stock at an exercise price of $2.00 per share, 50,000 of which shares vested upon grant and 25,000 shares vest on each of July 1, 2020 and July 1, 2021, provided Dr. Bonfiglio is in the employ of the Company on such dates. On December 10, 2019, the Board granted five-year options to purchase 325,000 2.00 On December 10, 2020, the Board granted five-year options to purchase 325,000 2.00 There was no compensation recognized in the three and six months ended June 30, 2021 and 2020 related to stock option grants. As of June 30, 2021, and December 31, 2020, there was no unrecognized compensation remaining to be recognized in future periods. The fair value of each option award referenced above is estimated on the date of grant Measurement date Dividend yield 0% Expected volatility 114.69 ~ 186.80% Risk-free interest rate 0.39% ~ 2.68% Expected life (years) 3 ~ 5 Stock Price $0.38 ~ 2.80 Exercise Price $0.40 ~ 2.00 A summary of the activity for the Company’s stock options June 30, 2021 December 31, 2020 Weighted Average Weighted Average Remaining Contractual Life Weighted Average Weighted Average Remaining Contractual Life Shares Price (in years) Shares Price (in years) Outstanding, beginning of period 3,276,666 $ 2 3.28 2,515,000 $ 1.98 3.78 Granted - - - 800,000 $ 2 - Exercised - - - - $ - - Canceled/forfeited (85,000 ) $ 2 - (38,334 ) $ 2 - Outstanding, end of period 3,191,666 $ 2 3.08 3,276,666 $ 2 3.28 Options exercisable, end of period 3,191,666 $ 2 2.84 3,243,333 $ 2 3.28 Options expected to vest, end of period - $ - - 33,333 $ 2 2 Weighted average fair value of options granted $ 1.31 $ 1.31 |