Quarterly report pursuant to Section 13 or 15(d)

12. Stock Options

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12. Stock Options
 3 Months Ended
Mar. 31, 2019
Share-based Payment Arrangement [Abstract]  
Stock Options

Note 12: Stock Options

 

On September 18, 2015, the Company adopted the Genius Brands International, Inc. 2015 Incentive Plan (the “2015 Plan”). The 2015 Plan was approved by our stockholders in September 2015. The 2015 Plan as approved by the stockholders authorized the issuance up to an aggregate of 150,000 shares of common stock. On December 14, 2015, the Board of Directors voted to amend the 2015 Plan to increase the total number of shares that can be issued under the 2015 Plan by 1,293,334 from 150,000 shares to 1,443,334 shares. The increase in shares available for issuance under the 2015 Plan was approved by stockholders on February 3, 2016. On May 18, 2017, the Board of Directors voted to amend the 2015 Plan to increase the total number of shares that can be issued under the 2015 Plan by 223,333 shares from 1,443,334 shares to an aggregate of 1,667,667 shares. The increase in shares available for issuance under the 2015 Plan was approved by the stockholders on July 25, 2017. On September 6, 2018, the Board of Directors voted to amend the 2015 Plan to increase the total number of shares that can be issued under the 2015 Plan by 500,000 shares from 1,667,667 shares to an aggregate of 2,167,667 shares. The increase in shares available for issuance under the 2015 Plan was approved by the Company’s stockholders on October 2, 2018.

 

The following table summarizes the changes in the Company’s stock option plan during the three months ended March 31, 2019:

 

    Options Outstanding Number of Shares     Exercise Price per Share     Weighted Average Remaining Contractual Life     Aggregate Intrinsic Value     Weighted Average Exercise Price per Share  
Balance at December 31, 2018     1,259,415     $ 2.09 - 12.00        2.50 years     $ –     $ 7.39  
Options Granted     81,000     $ 1.99        3.0 years     $ -      $  1.99  
Options Exercised     –                                  
Options Cancelled     –                                  
Options Expired     –                                  
Balance at March 31, 2019     1,340,415     $ 1.99 - 12.00        2.19 years     $ –     $ 7.14  
                                         
Exercisable December 31, 2018     1,070,869     $ 2.70 - 9.00        2.96 years     $ –     $ 7.44  
Exercisable March 31, 2019     1,145,965     $ 2.82 - 9.00        1.81 years     $ –     $ 8.01  

 

During the three months ended March 31, 2019, the Company granted options to purchase 81,000 shares of common stock to certain officers and employees. These stock options vest on December 31, 2019. The fair value of these options was determined to be $117,797 using the Black-Scholes option pricing model based on the following assumptions:

 

Exercise Price $1.99
Dividend Yield 0%
Volatility 125%
Risk-free interest rate 2.44%
Expected life of options 3 years

 

During the three months ended March 31, 2019, the Company recognized $35,749 in share-based compensation expense. The unvested share-based compensation as of March 31, 2019 was $315,102, which will be recognized through the second quarter of 2021 assuming the underlying grants are not cancelled or forfeited.