As of September 30, 2023, there were 64,233 shares available for future option grants under the 2020 Equity Incentive Plan, as amended (the “2020 Plan”).

 

During the three and nine months ended September 30, 2023, the Company granted stock options for the purchase of a total of 87,000 and 1,753,453, respectively, and granted stock options for the purchase of a total of 1,403,728 and 3,081,203 and for the three and nine months ended September 30, 2022, respectively, in shares of common stock under the 2020 Plan to employees and directors. The options issued in the first nine months of 2023 have a five-year term, and an exercise price ranging from $0.75 to $1.39 per share and will vest over varying periods. The options issued in the first nine months of 2022 have a five-year term, and an exercise price ranging from $2.03 to $4.70 per share and will vest over varying periods.

 

For the three months ended September 30, 2023 and 2022, the Company recognized stock compensation expenses related to stock option awards of $0.7 million and $0.7 million, respectively, and $2.1 million and $1.5 million for the nine months ended September 30, 2023 and 2022, respectively. The Company recognizes all stock-based compensation in general and administrative expenses in the accompanying condensed consolidated statements of operations. As of September 30, 2023, there was approximately $0.8 million of unrecognized compensation cost related to service-based option awards that will be recognized over the remaining service period of approximately 1.3 years, and there was approximately $0.6 million of unrecognized compensation cost related to market-based stock option awards that will be recognized over the remaining derived service period of 1.4 years.

 

The Company previously granted stock options that were not issued under the 2010 Equity Incentive Plan or 2020 Plan. All of such options that were issued outside of the 2010 and 2020 Plans are fully vested, and include 16 million options that were awarded to two of GCEH’s executive officers had a market capitalization vesting arrangement, 500,000 options were issued to a consultant that had a transaction success arrangement, and 1,175,714 options were awarded to an executive officer that had a merit arrangement and 200,000 options were issued to two directors that were time-based. Option awards outstanding at September 30, 2023 include 50,000, 17,795,714 and 6,656,576 options under the 2010 Equity Incentive Plan, the non-plan and the 2020 Plan, respectively. There have been no awards outside the 2020 Equity Incentive Plan since the inception of the 2020 Equity Incentive Plan in April 2020.

 

The following tables show option award activity for service-based options for the nine months ended September 30, 2023 and 2022:

 

The following tables show the status of the Company’s non-vested stock options for the nine months ended September 30, 2023 and 2022:

 

 

The following table shows options award activity for market-based options for the nine months ended September 30, 2023:

The fair value of stock option grants with only continued service conditions for vesting is estimated on the grant date using a Black-Scholes option pricing model. The following table illustrates the assumptions used in estimating the fair value of options granted during the nine months ended September 30, 2023 and 2022:

 

During the nine months ended September 30, 2023, the Company issued 475,000 performance-based options to an executive officer and as of September 30, 2023, determined that the vesting of such options was not probable to occur. Therefore, the Company has not recognized any expense in the period related to these performance-based options and the 475,000 performance-based options remain outstanding and non-vested as of September 30, 2023.

In January 2023, under Amendment No. 10 of the Senior Credit Agreement, we agreed to issue warrants to

Senior Lenders to purchase up to 15,000,000 shares of the Company’s common stock, exercisable until December 23, 2028, at an exercise price of $0.075 per share. As of July 2023, the Company entered into Amendment No. 13 of the Senior Credit Agreement whereby the previously issued warrants to

Senior

were cancelled and reissued as new warrants to purchase up to 10,875,000 shares of the Company’s common stock, exercisable until December 23, 2028. Total warrants issued as of September 30, 2023 related to Amendments No. 10, 11, 12 and 13 were 23,565,884. Each new warrant is issued commensurate with each cash draw from the Senior Credit

. Therefore, the fair value of these warrants are determined on the date of the draw. If these warrants are exercised for cash, the Company will receive $1.4 million. The newly issued warrants have the same terms as the previously issued warrants under Amendments No. 10, 11 and 12 of the Senior Credit

. The following table is a summary of the ranges used in the inputs of the Black-Sholes option pricing model assumptions: