Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

Stock-Based Compensation

3 Months Ended

Mar. 31, 2021

We 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. 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 March 31, 2021, and in June 2017 stockholders approved an amendment to extend the termination date of the Plan to January 1, 2026 and ratified all of our option grants issued after January 1, 2016 (the "Amended Plan").

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 March 31, 2021 was 1,007,312.

Stock option activity for the three months ended March 31, 2021 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, 2020	2,496,242	$0.71-$10.33	$	1.94	7.37 years	$	731,744
Granted	8,000	$1.75	$	1.75

Exercised	—
Canceled and forfeited	(253,500)	$2.60	$	2.60

Outstanding, March 31, 2021	2,250,742	$0.71-$10.33	$	1.87	7.95 years	$	1,435,158
Exercisable, March 31, 2021	591,908		$	4.03		$	23,258
Vested and expected to vest, March 31, 2021	2,001,917		$	1.97		$	1,223,373

Consolidated stock-based compensation expense for the three months ended March 31, 2021 and 2020 was $39,085 and $42,236, respectively. No tax benefit was recognized related to the stock-based compensation recorded during the period.

At March 31, 2021 the total compensation cost related to unvested stock option awards not yet recognized is $489,928 and this amount will be recognized over a weighted average period of 1.97 years.