2020 Equity Incentive Plan

The Company’s 2020 Plan was established for granting stock incentive awards to directors, officers, employees and consultants to the Company.

Stock Options

During the nine months ended September 30, 2023, the Company granted 86,669 options with a weighted average strike price of $4.28 to purchase common stock to certain employees and non-employee members of the Board of Directors. Employee options vest annually in 3 equal parts over 3 years, whilst Board of Directors' options vest over 1 year. The Company granted 25,000 performance-based options with a weighted average strike price of $4.44 to purchase common stock to certain employees. These options are subject to performance vesting and will vest and become exercisable once the performance conditions have been met. There is no assurance that the performance conditions will be met and therefore some or all of these options may never vest or become exercisable. The total aggregate grant date fair value of all options granted was $338,741.

During the nine months ended September 30, 2022, the Company granted 76,651 options with a weighted average strike price of $5.80 to purchase common stock to certain employees and non-employee members of the Board of Directors. Employee options vest annually in 3 equal parts over 3 years, whilst Board of Directors' options vest over 1 year. The Company granted 62,500 performance-based options with a weighted average strike price of $6.42 to purchase common stock to certain employees. These options are subject to performance vesting and will vest and become exercisable once the performance conditions have been met. There is no assurance that the performance conditions will be met and therefore some or all of these options may never vest or become exercisable. The total aggregate grant date fair value of all options granted was $542,890.

During the three and nine months ended September 30, 2023 and 2022, no defined performance conditions were probable of being met.

Stock-Based Compensation Expense