Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

Stock-Based Compensation

9 Months Ended

Sep. 30, 2020

The Company adopted a 2006 Stock Option and Incentive Plan, or the Plan, under which the Board of Directors may grant incentive or non-qualified stock options and stock grants to key employees, directors, advisors and consultants of the Company. The Plan was amended at various dates by the Board of Directors to increase the reserved shares of common stock issuable under the Amended Plan to 3,838,750 as of September 30, 2020.

Stock options vest based upon the terms within the individual option grants, with an acceleration of the unvested portion of such options upon a change in control event, as defined in the Amended Plan. The options are not transferable except by will or domestic relations order. The option price per share under the Amended Plan cannot be less than the fair market value of the underlying shares on the date of the grant. The number of shares remaining available for future issuance under the Amended Plan as of September 30, 2020 was 602,350.

Stock option activity for the nine months ended September 30, 2020 was as follows:



Common Stock Options	Number of Options		Exercise Price Per Share	Weighted Average Exercise Price		Weighted Average Remaining Life	Aggregate Intrinsic Value
Outstanding, December 31, 2019	1,352,874		$0.79-$10.33	$	3.57	5.30 years	$	95,381
Granted	1,440,000		$0.71-$0.78	$	0.72
Exercised	(1,000	)	$1.20	$	1.20
Canceled and forfeited	(136,170	)	$1.20-$4.50	$	2.41
Outstanding, September 30, 2020	2,655,704		$0.71-$10.33	$	2.09	7.48 years	$	278,921
Exercisable, September 30, 2020	969,287			$	3.73		$	3,181
Vested and expected to vest, September 30, 2020	2,402,741			$	2.18		$	274,740

Consolidated stock-based compensation expense for the three and nine months ended September 30, 2020 and 2019 was $50,482 and $42,671, and $132,312 and $120,604, respectively. No tax benefit was recognized related to the stock-based compensation recorded during the period.