Note 20: 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.

During the three months ended June 30, 2021, the Company granted options to purchase 253,636 shares of common stock to employees that fully vest on January 24, 2024 and have a five-year term. The Company also granted 20,000 options to purchase shares of common stock to a new member of the Board of Directors that vest on June 24, 2022 and have a five-year term. The shares have an option price of $1.98 per share.

During the three months ended December 31, 2021, the Company granted options to purchase 312,500 shares of common stock to employees that fully vest on December 9, 2026 and have a five-year term. The shares have an option price of $1.20 per share.

The fair value of the options granted was calculated using a Black-Scholes option-pricing model with the following assumptions:

The following table summarizes the stock option activity during the years ended December 31, 2021 and December 31, 2020:

During the years ended December 31, 2021 and December 31, 2020, the Company recognized $3.7 million and $8.4 million, respectively in share-based compensation expense related to stock options. The unrecognized share-based compensation expense as of December 31, 2021 was $1.6 million and will be recognized over a weighted average remaining contractual life of 6.4 years. The outstanding shares as of December 31, 2021 have an aggregated intrinsic value of $0. The weighted average fair values per option granted for the year ended December 31, 2021 was determined to be $1.36.