Quarterly report pursuant to Section 13 or 15(d)

STOCK-BASED COMPENSATION

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STOCK-BASED COMPENSATION
3 Months Ended
Mar. 31, 2022
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION

NOTE 11. STOCK-BASED COMPENSATION

 

AYRO 2020 Long Term Incentive Plan

 

The Company has reserved a total of 4,089,650 shares of its common stock pursuant to the AYRO, Inc. 2020 Long-Term Incentive Plan, including shares of restricted stock that have been issued. The Company has 1,255,590 stock options, restricted stock and warrants remaining under this plan as of March 31, 2022.

 

Stock-based compensation, including restricted stock awards, stock options and warrants is included in the unaudited condensed consolidated statement of operations as follows:

 

    2022     2021  
    Three Months Ended March 31,  
    2022     2021  
Research and development   $ 16,704     $ 23,486  
Sales and marketing     12,945       63,449  
General and administrative     258,461       1,612,488  
Total   $ 288,110     $ 1,699,423  

 

Options

 

The following table reflects the stock option activity:

 

      Number of Shares     Weighted
Average
Exercise Price
    Contractual Life (Years)  
Outstanding at December 31, 2021         1,338,675     $ 5.14       8.26  
Exercised         -                  
Forfeitures         (230,903 )     3.19          
Outstanding at March 31, 2022         1,107,773     $ 5.59       7.88  

 

Of the outstanding options, 1,068,318 were vested and exercisable as of March 31, 2022. At March 31, 2022 the aggregate intrinsic value of stock options vested and exercisable was $0.

 

The Company recognized $32,376 and $269,895 of stock option expense for the three months ended March 31, 2022 and 2021, respectively. Total compensation cost related to non-vested stock option awards not yet recognized as of March 31, 2022 was $58,199 and will be recognized on a straight-line basis through the end of the vesting periods through December 2023. The amount of future stock option compensation expense could be affected by any future option grants or by any forfeitures.

 

Restricted

 

      Number of Shares     Weighted Average Grant Price  
Outstanding at December 31, 2021       450,000     $ 2.48  
Granted       442,248          
Vested       -          
Forfeitures       -          
Outstanding at March 31, 2022       892,248     $ 1.89  

 

On February 1, 2022, pursuant to the AYRO, INC. 2020 Long-Term Incentive Plan, the Company issued 442,248 shares of restricted stock to non-executive directors at a value of $1.29 per share. The Company recognized compensation expense related to all restricted stock issued during the three months ended March 31, 2022 and 2021 of $255,734 and $1,429,528, respectively. Total compensation cost related to non-vested restricted stock not yet recognized as of March 31, 2022 was $1,250,305.