Quarterly report pursuant to Section 13 or 15(d)

16. Stock Options

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16. Stock Options
 3 Months Ended
Mar. 31, 2021
Share-based Payment Arrangement [Abstract]  
Stock Options

Note 16: Stock Options

 

On September 18, 2015, the Company adopted the Genius Brands International, Inc. 2015 Incentive Plan (the “2015 Plan”). The total number of shares that can be issued under the 2015 Plan is 2,167,667 shares.

 

On September 1, 2020, the Company adopted the Genius Brands International, Inc. 2020 Incentive Plan (the “2020 Plan”). On August 4, 2020, the Board of Directors voted to adopt the 2020 Plan. The shares available for issuance under the 2020 Plan was approved by stockholders on August 27, 2020. The 2020 Plan as approved by the stockholders increased the maximum number of shares available for issuance up to an aggregate of 32,167,667 shares of Common Stock.

 

During the three months ended March 31, 2021, the Company granted options to purchase 520,000 shares of common stock to employees and granted to each of the members of the Board of Directors 20,000 options to purchase shares of the Company’s Common Stock with an option price of $3.06 per share. The options vest on January 27, 2022 and have a five-year term. The fair value of these options was determined to be $1,801,800 using the Black-Scholes option pricing model based on the following assumptions:

 

Exercise Price $3.06
Dividend Yield 0%
Volatility 143%
Risk-free interest rate 0.41%
Expected life of options 5.0 years

 

The following table summarizes the changes in the Company’s stock option plan during the three months ended March 31, 2021:

 

    Options
Outstanding
Number Of
Shares		     Exercise
Prices
Per Share		     Weighted
Average
Remaining
Contractual
Life		     Weighted
Average

Exercise Price Per Share		     Aggregate
Intrinsic
Value		  
Balance at December 31, 2020     9,116,176     $ 1.39 - 10.00       9.37 years     $ 1.69       –  
Options Granted     660,000     $ 3.06       4.83 years     $ 3.06       –  
Options Exercised     –     $ –       –     $ –       –  
Options Cancelled     45,000     $ 2.61       4.24 years     $ 2.61       –  
Options Expired     –     $ –       –     $ –       –  
Balance at March 31, 2021     9,731,176     $ 1.39 - 10.00       8.86 years     $ 1.78       –  
                                         
Exercisable December 31, 2020     6,449,452     $ 1.39 - 9.00       6.25 years     $ 7.67       –  
Exercisable March 31, 2021     6,434,452     $ 1.39 - 3.17       9.43 years     $ 1.44       –  

 

During the three months ended March 31, 2021, and March 31, 2020, the Company recognized $1,158,624 and $23,814, respectively in share-based compensation expense. The unvested share-based compensation as of March 31, 2021 was $4,510,315, which will be recognized through the fourth quarter of 2023 assuming the underlying grants are not cancelled or forfeited.