Options

 

On November 13, 2014, our Board of Directors authorized and approved the adoption of the Plan effective November 13, 2014 (“2014 Stock Option Plan”) under which an aggregate of 20% (290,879 shares) of the issued and outstanding shares may be issued. The plan shall terminate ten years after the plan’s adoption by the board of directors. We granted an aggregate 145,000 stock options. As of December 31, 2020, an aggregate total of 145,879 can still be granted under the plan.

 

On June 15, 2016, our board of Directors authorized and approved the adoption of the Equity Incentive Plan effective June 15, 2016 (“2016 Equity Incentive Plan”) under which an aggregate of 656,250 shares may be issued. The plan shall terminate ten years after the plan’s adoption by the board of directors. We granted an aggregate of 330,350 stock options. As of December 31, 2020, an aggregate total of 325,900 options can still be granted under the plan.

 

On May 15, 2018, the Board of Directors approved and adopted the BioCorRx Inc. 2018 Equity Incentive Plan (“2018 Stock Option Plan”) under which an aggregate of 450,000 shares may be issued. The plan shall terminate ten years after the plan’s adoption by the board of directors. The company has granted an aggregate of 363,281 stock options. As of December 31, 2020, an aggregate total of 86,719 can still be granted under the plan.

 

During the year ended December 31, 2020, the Board of Directors approved the grant of 15,834 stock options to consultants valued at $22,246. The term of the options ranges from three to five years, and the vesting period of the options ranges from immediately to one year.

 

Option valuation models require the input of highly subjective assumptions. The fair value of stock-based payment awards was estimated using the Black-Scholes option model with a volatility figure derived from using the Company’s historical stock prices. The Company accounts for the expected life of options based on the contractual life of options for non-employees. For employees, the Company accounts for the expected life of options in accordance with the “simplified” method, which is used for “plain-vanilla” options, as defined in the accounting standards codification. The risk-free interest rate was determined from the implied yields of U.S. Treasury zero-coupon bonds with a remaining life consistent with the expected term of the options.

 

In applying the Black-Scholes option pricing model, the Company used the following assumptions:

 

		2020				2019
Risk-free interest rate			0.27%-0.29%				2.36% - 2.58%
Expected term (years)			3-5				1.00 - 5.00
Expected volatility			112.97%-137.27%				99.85% - 143.11%
Expected dividends			0.00				0.00

 

 

The following table summarizes the stock option activity for the year ended December 31, 2020 and 2019:

 

		Shares				Weighted- Average Exercise Price				Weighted- Average Remaining Contractual Term				Aggregate Intrinsic Value
Outstanding at January 1, 2019			791,850				8.09				7.7				1,188,065
Grants			53,280				6.52				2.5				-
Exercised			-				-				-				-
Expired			(1,500	)			20.00				-				-
Forfeited			(20,833	)			5.75				-				-
Outstanding at December 31, 2019			822,797			$	8.03				6.5			$	244,603
Grants			15,834				2.53				3.5				-
Exercised			-				-				-				-
Expired			(10,000	)			15.00				-				-
Forfeited			-				-				-				-
Outstanding at December 31, 2020			828,631				7.84				5.8				-
Exercisable at December 31, 2020			819,742			$	7.90				5.8			$	-

 

The aggregate intrinsic value in the preceding tables represents the total pretax intrinsic value, based on options with an exercise price less than the Company’s stock price of $0.95 as of December 31, 2020, which would have been received by the option holders had those option holders exercised their options as of that date.

 

The following table presents information related to stock options at December 31, 2020:

 

	Options Outstanding											Options Exercisable
								Weighted								Weighted
								Average				Exercisable				Average
	Exercise			Number of				Remaining Life				Number of				Remaining Life
	Price			Options				In Years				Options				In Years
	$0.01-2.50				337,850				5.4				331,600			5.5
	2.51-5.00				43,334				4.1				41,112			4.2
	5.01 and up				447,447				6.3				447,030			6.3
					828,631				5.8				819,742			5.8

 

The stock-based compensation expense related to option grants was $76,760 and $1,694,653 during the year end December 31, 2020 and 2019, respectively.

 

As of December 31, 2020, stock-based compensation related to options of $11,850 remains unamortized and is expected to be amortized over the weighted average remaining period of 7.9 months.

 

Warrants

 

The outstanding Warrants contain provisions, often referred to as “down-round protection” that has led to adjustments of the exercise price and number of underlying warrant shares with respect to future issuances by the Company of its securities, including its common stock or convertible securities or debt securities.

 

 

The following table summarizes the changes in warrants outstanding and the related prices for the shares of the Company’s common stock:

 

Warrants Outstanding												Warrants Exercisable
Exercise Prices				Number Outstanding				Weighted Average Remaining Contractual Life (Years)				Weighted Average Exercise Price				Number Exercisable				Weighted Average Remaining Contractual Life (Years)
$	20.00				10,000				0.91			$	20				10,000				0.91
	100.00				62,500				0.38				100				62,500				0.38
					72,500				0.46			$	89.0				72,500				0.46

 

The following table summarizes the warrant activity for the year ended December 31, 2020:

 

		Number of Shares				Weighted Average Exercise Price Per Share
Outstanding at January 1, 2019			85,250			$	79.40
Issued			-				-
Exercised			-				-
Expired			(12,750	)			25.00
Outstanding at December 31, 2019			72,500			$	89.00
Issued			-				-
Exercised			-				-
Expired			-				-
Outstanding at December 31, 2020			72,500			$	89.00