NOTE 9: SHARE-BASED PAYMENTS

Common Stock Warrants

In connection with the April note agreement, the Company granted warrants to acquire 1,257,684 shares of common stock at an exercise price of $1.22 per share expiring in April 2027.

On May 10, 2022, pursuant to the Underwriting Agreement, the Company issued the Underwriters’ Warrants to purchase up to an aggregate of 1,495,592 shares of common stock. The Underwriters’ Warrants may be exercised beginning on November 1, 2022 until May 5, 2027. The initial exercise price of each Underwriters’ Warrant is $0.325 per share, which represents 130% of the public offering price.

The following is a summary of warrant activity:

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Stock Options

As of June 30, 2022 and December 31, 2021, the Company had 3,895,103 stock options outstanding with a weighted average exercise price of $3.59 per share. As of June 30, 2022, there were 3,339,173 options exercisable.

Stock-based compensation expense of $119,759 and $3,568,370 was recognized for the three months ended June 30, 2022 and 2021, and $258,852 and $3,604,346 was recognized for the six months June 30, 2022 and 2021, respectively. During the six months ended June 30,2022 and 2021, $28,798 and $523,151 was recorded to sales and marketing expense, and all other stock compensation was included in general and administrative expense in the condensed consolidated statements of operations. Total unrecognized compensation cost related to non-vested stock option awards as of June 30, 2022 amounted to $798,184 and will be recognized over a weighted average period of 1.79 years.