Note 11 – Share-based compensation

The following table sets forth total non-cash share-based compensation for the issuance of common stock, options to purchase common stock, warrants to purchase common stock, and restricted stock unit awards by operating statement classification for the three and nine months ended September 30, 2022 and 2021:

 Schedule of Stock-based Compensation

For the nine and three months ended September 30, 2022, the Company recorded $283 and $868, respectively, for share-based compensation expense related to stock options. For the three and nine months ended September 30, 2021, the Company recorded $536 and $1,886, respectively, for share-based compensation expense related to stock options.

As of September 30, 2022, unamortized share- based compensation for stock options was $1,244, with a weighted-average recognition period of 0.93 years.

For the three and nine months ended September 30, 2022, the Company recorded $0 and $57, respectively, for share-based compensation expense related to warrants. For the three and nine months ended September 30, 2021, the Company recorded $89 and $246, respectively, for share-based compensation expense related to warrants.

For the three and nine months ended September 30, 2022, the Company recorded $158 and $498, respectively, for share-based compensation expense related to restricted stock units. For the three and nine months ended September 30, 2021, the Company recorded $223 and $645, respectively, for share-based compensation expense related to restricted stock units.

As of September 30, 2022, unamortized stock compensation for restricted stock units was $417, with a weighted-average recognition period of 0.85 years.

Stock option and warrant activity

A summary of the Company’s stock option and warrant activity is as follows:

 Schedule of Stock option and Warrants

Restricted Stock Units

A summary of the Company’s restricted stock unit awards activity is as follows:

 Schedule of Restricted Stock Unit Awards Activity

As of December 31, 2021, there were 3,138 vested and unissued restricted stock units. These restricted stock units were issued as common stock during the nine months ended September 30, 2022.

Issuance of Common Stock

On January 5, 2022, non-employee members of the Board of Directors were granted an aggregate of 24,458 shares of fully-vested common stock with a fair value of $9.60 per share of common stock, as compensation, in lieu of $235 of cash compensation, for service as directors for 2022. The Company recorded $58 and $177 in expense for director services during the three and nine months ended September 30, 2022, respectively. The Company recorded $58 in prepaid expenses for director services as of September 30, 2022.

Issuance of Warrants to Purchase Common Stock

In February 2020, the Company entered into a services agreement whereby it agreed to issue warrants to purchase 6,000 shares of common stock of the Company. The warrants fully vested over a one-year period on a monthly basis and expire three years from the date of issuance and were exercisable at weighted average exercise price equal to $56.60 per share of common stock. In March 2022, the Company granted new warrants as a replacement to the vested warrants held by the service provider, for which all the share-based compensation expense had been recognized in prior fiscal periods. The issuance of new warrants concurrently with the cancellation of the existing warrants was treated as a modification. The Company agreed to issue replacement warrants to purchase 6,000 shares of common stock of the Company exercisable at a price equal to $10 per share of common stock. The replacement warrants immediately vested upon issuance and expire three years from the date of issuance. As a result, the Company recognized $0 and 26 of share-based compensation for the three and nine months ended September 30, 2022, related to the incremental fair value which is equal to the excess of the fair value of the new stock options granted over the fair value of the original award on the cancellation date.