Note 17: 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, 2022, the Company granted options to purchase 875,000 shares of common stock to employees with a fair market value of $603,750. The options were granted on March 17, 2022, with a three-year vesting period and a five-year term.

The fair value of the options granted during the three months ended March 31, 2022 was calculated using the BSM option pricing model based on the following assumptions:

The following table summarizes the stock option activity during the three months ended March 31, 2022:

During the three months ended March 31, 2022 and March 31, 2021, the Company recognized $0.4 million and $0.98 million, respectively, in share-based compensation expense related to stock options. The unrecognized share-based compensation expense related to stock options at March 31, 2022 of $1.7 million, will be recognized through the first quarter of 2025 based on the remaining vesting periods, assuming the options are not cancelled or forfeited. The outstanding shares as of March 31, 2022 have an aggregated intrinsic value of $0. The weighted average fair value per option granted during the three months ended March 31, 2022 was $0.69.